Abstract
Indonesia is an agricultural country with the world’s largest Muslim population. Islamic microfinance institutions can play a significant role in poverty alleviation in the rural sector predominantly dominated by agricultural activities and poor farmers. The institutions offer unique financial products that cater to the needs of traditional farmers and rural households based on the risk-sharing concept in Indonesia. Islamic microfinance institutions operate cooperatively on equity financing and debt-based financing. Islamic finance provide products and services that parallel with Muslim clients’ religious beliefs. The chapter begins with a historical overview and landscape of Islamic microfinance in Indonesia followed by the principles of Islamic values in Islamic microfinance and the factors that influence Islamic Microfinance Institutions’ performance.
Original language | English |
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Title of host publication | Microfinance In Asia |
Publisher | World Scientific Publishing Co. |
Pages | 227-270 |
Number of pages | 44 |
ISBN (Electronic) | 9789813147959 |
DOIs | |
Publication status | Published - 1 Jan 2017 |
Externally published | Yes |
Keywords
- Indonesia.
- Islamic microfinance institutions
- Poverty
- Rural household