Communities empowerment by cooperative Sharia: A Preliminary research By: Budiman, Faculty of Economics, Gunadarma University
October 2014 Abstract
Community empowerment for the poor is an important activity in Indonesia's development, and from experience it is known that the activities of community assistance program revolving funds, cooperatives, and cooperative sharia become three important things for community empowerment. From the field data analysis, cooperative sharia can bring out characteristics of community in the form of sustainable, integrative, participatory, and independent. Thus the model of community empowerment through cooperatives sharia proposed as an alternative realization of community empowerment. In this model, besides involving the community includes cooperative and Welfare Council of Mosques (Dewan Kesejahteraan Mesjid/DKM) which manages Badan Amil Zakat, also involved a third party that is expected to be a college. Key concepts: community development, cooperative Sharia, Islamic Welfare Council of Mosques (DKM), college.
INTRODUCTION
Community empowerment is an activity that becomes important in Indonesia's development, especially for the poor who, according to the BPS in March 2014 to reach 28 million or approximately 11.34%. Indonesia's Muslim majority is about 182,570,000 people, or about 85% of the largest Muslim countries in the world. Even though Indonesia is not an Islamic country. From the experience of mentoring community by Community Services program (PKM), it is known that the Revolving Fund program is an important program to the process of empowerment of the poor. By considering the predominantly Muslim in Indonesia and one of the important actors in Indonesian economy is the cooperative, so micro revolving fund program through cooperative becomes one of important activities, and for Indonesian cooperative sharia that applies the principles of Islamic Sharia is the main choice.
This paper aims to make possible the development of a model of community empowerment programs by cooperative sharia.
Data were analyzed qualitatively to be able to take lessons for a better model development of community .
REFERENCES ANALYSIS
COMMUNITY EMPOWERMENT
With reference to a number of literatures it can be concluded that in the process of community empowerment, there are four characteristics that needs to be identified, namely:
2. Integrative, empowerment involves all aspects of the existing in society (Robbins, 1991; Sen, 1999; Friedmann, 1992)
3. Participatory, empowerment involves all relevant parties (stakeholders) in a society where it is implemented (World Bank, 2002; Conger and Kanungo, 1988; Ohama, 2001a)
4. Independent (self-sustained), as a result of processes performed in which people no longer have a great dependence on the outside of their territory (Djohani, 1996; Rowlands in Eade, 1996; World Bank, 2002)
COOPERATIVE
Part one (Cooperatives Act No. 25 of 1992) states that the function and role of cooperatives are: a. build and develop the economic potential and the ability of members in particular and society
in general to improve the economic and social welfare;
b. participate actively in efforts to enhance the quality of human life and society;
c. strengthen the economy of people as the basis of strength and resilience of national economy with the Cooperative as mastermind;
d. strive to realize and develop the national economy which is a joint effort based on family principles and economic democracy.
On the basis of the above, the cooperative will be in accordance with the community development program because besides cooperative is a group, cooperative also has a role for economic improvement of its members in the form of joint venture.
In the second part of Act No. 25 of 1992 is also mentioned that the principles of cooperation include the following:
a. is voluntary and open membership; b. management conducted democratically;
c. distribution of net income conducted fairly comparable to the size of the business services of each member;
d. limited provision of remuneration to capital; e. independence.
Voluntary nature, open to anyone, deliberation through the democratic process, fairness in distribution of operations results, are not concerned with capital, and the creation of the independence of the members will be essential to the achievement of the helpless condition of the community.
Thus in terms of the implementation of cooperative providing community involvement opportunities openly, provide opportunities for capital accumulation sustainable institutions, and provide opportunities for productive economic development for the community at large. These criteria will strongly support the process of achieving community helpless condition.
SHARIA
To be able to implement elements of Sharia purpose it is necessary to the operation of the law purposes. From a review of the literature it can be concluded that for the purposes of implementation of sharia compliance required four (4) main elements, namely:
1. The process of lost-profit sharing, that customers and financial institutions share proportionally if they gain or lose from the process of economic effort made by customers. With the process-outcome (lost-profit sharing) then the managers of financial institutions and customers will share the risks and benefits proportionally, thus the characteristics of justice can be met. If profit-sharing process is done correctly then there will be equality between the work done with the results achieved, thus being will be achieved. Both elements of justice and well-being if achieved then automatically become the foundation of truth that action performed.
2. Accountability, that the profit-sharing is based on the exact value of the income earned from the customer's business records in detail a period of use.
3. Monitoring intensive, that the business and the recording of business outcome is controlled both by the client and agency
4. The proper human resource, that the business activities carried out by customers or business partners and agencies who are trustworthy.
DATA AND DISCUSSION
The data presented are the result of field observations and interviews with some cooperative officials who become partners of PKM activity. The data are also used secondary data derived from information on the internet. The primary data was performed using participative observations, over a period of about 4 years from 2010 to 2014, while secondary data on the success of the cooperative cases taken from several sites on the internet such as http://tanggungrenteng.blogspot.com/2007/06/dengan-sistem-tanggung-renteng-kopwan.html. - Badan Amil Zakat (BAZ) can be the executing agency for Community Empowerment (Case
of Kopsyah Nurul Huda, Depok).
- Implementation of community empowerment through cooperatives can use deliberation system (named : rembug), where members of the group are made according to the region or the degree of recognition among members. Each member can be a member with the consent of the other members, as well as for the implementation of empowerment through micro revolving fund (Case of KJK Srengseng Sawah, Jagakarsa, South Jakarta, Jakarta)
Of the 350 members, identified only 9 people who can develop their business scale, such as increased business units, business space and a more complete product offering and change of land ownership for the business itself. (Case of KJK Lenteng Agung, Jagakarsa, South Jakarta, Jakarta)
- The micro revolving fund in the community is intended to preserve life and not to enlarge the scale of the work done. Revolving funds provide security to members for easy access to funds when they needed for example to pay children’s school fees, fund for their sick family member, or a sudden accidental invitation to family by the neighbor or contribute to the family event. (Case of the Rw 07 micro credit group in Lenteng Agung, Jagakarsa, South Jakarta, Jakarta)
From the description above, the community empowerment can be learned that the principal characteristics that need to exist in a revolving fund revolving program are:
1. The group brings together members of the community
2. The regular meetings as a process control (supervision), both among members and between members of the cooperative with government agencies
3. Tere are productive economic activities undertaken by members
Based on the lessons learned so we can be submitted empowerment scheme, which was filed on the next page.
From the scheme, community empowerment process can be done by combining the concept of cooperative, sharia and mentoring by a third party. The combination of these three concepts is believed to produce a true community empowerment programs, in that it can bring together the community to carry out economic and social activities simultaneously and achieve the expected economic development.
The concept of co-operative society can unite people in a group. Case of KJK Srengseng Sawah that unites members in the rembug group can be used as an example. Cases of successful Perempuan Mandiri Sumber Perubahan (Preman Super), Malang, East Java, that success make the self-employed housewives into informal group since October 3, 2010. In 2014 the group has been working to provide credit support to the members of Rp. 2.000.000, - for the production and development of their business, where aid was given to the group. There are 28 groups were given and that process result decreasing of the percentage of bad loans and almost non-existent.
facilitate productive economic activities. Currently the cooperative with a mix of elements of sharia system can occur.
community empowerment cooperative work program increase of purchasing power coaching
increase of income assistance
increase of productive employment assistance
Cooperative sharia
Cooperative
+
lost-profit sharingSaving recovery fund
Group cooperation ZIS
between citizens (Zakat-Infaq-Shodaqoh)
LAZIS
(Institute of Amil ZIS)
Mosque - DKM
Figure Community empowerment process through sharia cooperatives
income of their members, both controlled by members and the implementing agencies, and carried out by a trusted human resources as well board members as well as cooperative institutions.
Thus, the cooperative sharia can strengthen the bond between the members and the process control is good for all members. Also, with these characteristics, members can gain reinforcement through job training and cooperation can do well.
However, it was found from fieldnote that in order to maintain the sustainability of the activities that have been undertaken by the cooperative we need the assistance of the members so that the members and the cooperative development activities can be further improved.
In the case of KJK Lenteng Agung, where the development of business scale include small number of members and in the case of Rw 07 micro-credit groups in Lenteng Agung which shows that the implementation of empowerment through a revolving fund geared towards consumptive purposes only, indicating that assistance to community empowerment members can improve their business and also economies of scale. And, also in order to bring out awareness to want to perform economically productive activities and not just to survive despite a revolving fund that is given to provide security to members for ease of access to funds when needed. Assistance is also needed to provide increased technical capabilities of productive economic efforts that have been made.
CONCLUSION
From the description that has been submitted, the conclusion that can be drawn is that the cooperative sharia could be an important alternative for the empowerment of the poor, especially through the Revolving Fund program.
This program has the advantage of integrating the concept of cooperative and concept of sharia. Both of these concepts provide greater opportunities for the achievement of empowered community characteristics are : sustainability, integrative, participatory, and independent. However, in the implementation of this program should involve a third party as a facilitator who can maintain the sustainability of the program in which the college as the top choice in the presence of tri-dharma through “Pengabdian Kepada Masyarakat/PKM” (Community Services) program.
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Chapra, M. Umer, 2000, Islam dan Tantangan Ekonomi, Gema Insani, Jakarta.
Conger, Jay A., Rabindra N. Kanungo,.Jul 1988, The Empowerment Process : Integrating Theory And Practice; dalam Academy of Management. The Academy of Management Review. Briarcliff Manor:.Vol.13, Iss. 3; pg. 471, 12 pgs
Djohani, Rianingsih (editor), 1996, Berbuat Bersama Berperan Setara : Acuan Penerapan Participatory Rural Appraisal, Konsorsium Pengembangan Dataran Tinggi Nusa Tenggara, Bandung.
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“Dengan Sistem Tanggung Renteng Kopwan Setia Bhakti Wanita Mampu Tekan Kemacetan Piutang Hingga 0 % dan Anggota Lebih berdaya”, Thursday, June 14, 2007, in http://tanggungrenteng.blogspot.com/2007/06/dengan-sistem-tanggung-renteng-kopwan.html downloaded on October 19, 2014,
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Robbins, Stephen P, 1991, Management, 3rd ed.; Prentice-Hall Int.
Rowlands, Jo, 1996, Empowerment Examined, dalam Deborah Eade (ed.) Development and Social Diversity, Oxfam, UK, hal. 86 – 92.
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