Islamic microfinance in Indonesia

Bayu Arie Fianto, Christopher Gan

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

6 Citations (Scopus)

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 languageEnglish
Title of host publicationMicrofinance In Asia
PublisherWorld Scientific Publishing Co.
Pages227-270
Number of pages44
ISBN (Electronic)9789813147959
DOIs
Publication statusPublished - 1 Jan 2017
Externally publishedYes

Keywords

  • Indonesia.
  • Islamic microfinance institutions
  • Poverty
  • Rural household

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