| By: |
Rahajeng, DIAN |
| Abstract: |
As the largest Muslim community in the world, Indonesia is optimist on
implementing Islamic economy as one of the system. The previous global
financial turmoil has made the attention turn on the Islamic financial model,
and in particular the Islamic banking system. This model offers a microfinance
system that allows poor people to meet their financial needs. Most banking
systems are less concern about the difficulties affecting poor people since
they usually have no collateral, making them a riskier investment. Knowing the
98.9% micro industries of Indonesia, it is an urgent need on facilitating
their financial intermediaries. The Islamic microfinance system manages this
demand by providing small-scale financial services to the lower and poor
markets by giving them banking facility. Hence Islamic microfinance helps to
sustain financial inclusion as attempt for that mostly poor society who has
lack access to financial institution. The motivation for this research is to
meet the knowledge gap of acceptance on the Islamic banking system
implementation in the Indonesian micro economy development. The research
questions is how micro industries perception and acceptance towards the
existence of Islamic rural banks. The methodologies used are survey as primary
data collection of 60 both Islamic and common rural banks for thorough
analysis also secondary data collection from its financial reports. The
research finding is the positive perception and acceptance of Islamic rural
banks as micro industries’ financial intermediaries. This research concludes
that Islamic rural bank has become the part of micro banking services and
contributes on building ideal Indonesia development. |
| Keywords: |
Islamic banking, development, acceptance, micro industry, financial intermediaries |
| JEL: |
C83 C91 D14 D7 G02 G2 G21 Z00 |
| Date: |
2013–09–10 |
| URL: |
http://d.repec.org/n?u=RePEc:pra:mprapa:50465&r=mfd |