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The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community

Financial inclusion (FI) is a global movement under the world bank programs and Alliance Financial Inclusion (AFI) which is sponsored by the Bill Gates Foundation. The aim of the movement is to ensure that the poor is able to access any financial services. The FI level in Indonesia achieved 32 %; it...

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Main Authors: Santoso, Bedjo, Khaliq, Ahmad
Format: Article
Language:English
Published: 2016
Subjects:
HG1501 Banking
HG201 Money
Online Access:http://irep.iium.edu.my/54452/1/AsShajarah-Khaliq-Bedjo%20Santoso.pdf
http://irep.iium.edu.my/54452/
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spelling my.iium.irep.544522017-07-14T01:07:14Z http://irep.iium.edu.my/54452/ The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community Santoso, Bedjo Khaliq, Ahmad HG1501 Banking HG201 Money Financial inclusion (FI) is a global movement under the world bank programs and Alliance Financial Inclusion (AFI) which is sponsored by the Bill Gates Foundation. The aim of the movement is to ensure that the poor is able to access any financial services. The FI level in Indonesia achieved 32 %; it means 68% are financial transactions excluding the poor, whereas, the average figure in the world is just only 50%. The poverty rate in Indonesia is very high, it is reaching approximately 59%. Hence, FI is an urgent solution for the case of Indonesia. To tackle this issue, the Indonesian government has just started adopting FI by introducing the vision, the mission, and the concept for the efforts taken. The question is to what extent the appropriate model will be applied in Indonesia. There are two models: the AFI global model or top down model and another community model based on local values. There are pros and cons to the above issue. Some proponents have suggested the Islamic microfinance cooperative, i.e., the Baitul Mal Wa Tanwil (BMT)which is the offering of a solution based on its relationship to the poor. They do not agree with the global model. This study therefore attempts to evaluate the models and design the appropriate model for Indonesia which has special characteristics, i.e., cooperation, value driven culture, local wisdom, etc., which is neglected in most studies undertaken so far. This study is based on a qualitative approach done by conducting interviews of the stakeholders, using the deductive method to explore and design the model. This research revealed that the financial inclusion model based on Baitul Mal WaTanwil (BMT)-Cooperative is better in terms of flexibility and acceptability when compared to the global model. This is because Indonesia is the largest archipelago in the world with wide distances, diverse cultures, values, customs, and religions. To deal with the distances, wide area, and efficiency issues, the ICT mobile phone should be suitably used. The implementation of the model will strengthen the unity of Indonesia and national issues. 2016 Article REM application/pdf en http://irep.iium.edu.my/54452/1/AsShajarah-Khaliq-Bedjo%20Santoso.pdf Santoso, Bedjo and Khaliq, Ahmad (2016) The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community. Al-Shajarah, Special Issue (Islamic Banking and Finance). pp. 161-182.
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic HG1501 Banking
HG201 Money
spellingShingle HG1501 Banking
HG201 Money
Santoso, Bedjo
Khaliq, Ahmad
The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community
description Financial inclusion (FI) is a global movement under the world bank programs and Alliance Financial Inclusion (AFI) which is sponsored by the Bill Gates Foundation. The aim of the movement is to ensure that the poor is able to access any financial services. The FI level in Indonesia achieved 32 %; it means 68% are financial transactions excluding the poor, whereas, the average figure in the world is just only 50%. The poverty rate in Indonesia is very high, it is reaching approximately 59%. Hence, FI is an urgent solution for the case of Indonesia. To tackle this issue, the Indonesian government has just started adopting FI by introducing the vision, the mission, and the concept for the efforts taken. The question is to what extent the appropriate model will be applied in Indonesia. There are two models: the AFI global model or top down model and another community model based on local values. There are pros and cons to the above issue. Some proponents have suggested the Islamic microfinance cooperative, i.e., the Baitul Mal Wa Tanwil (BMT)which is the offering of a solution based on its relationship to the poor. They do not agree with the global model. This study therefore attempts to evaluate the models and design the appropriate model for Indonesia which has special characteristics, i.e., cooperation, value driven culture, local wisdom, etc., which is neglected in most studies undertaken so far. This study is based on a qualitative approach done by conducting interviews of the stakeholders, using the deductive method to explore and design the model. This research revealed that the financial inclusion model based on Baitul Mal WaTanwil (BMT)-Cooperative is better in terms of flexibility and acceptability when compared to the global model. This is because Indonesia is the largest archipelago in the world with wide distances, diverse cultures, values, customs, and religions. To deal with the distances, wide area, and efficiency issues, the ICT mobile phone should be suitably used. The implementation of the model will strengthen the unity of Indonesia and national issues.
format Article
author Santoso, Bedjo
Khaliq, Ahmad
author_facet Santoso, Bedjo
Khaliq, Ahmad
author_sort Santoso, Bedjo
title The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community
title_short The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community
title_full The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community
title_fullStr The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community
title_full_unstemmed The financial inclusion model based on Baitul Mal Wa Tanwil (BMT) cooperatives and community
title_sort financial inclusion model based on baitul mal wa tanwil (bmt) cooperatives and community
publishDate 2016
url http://irep.iium.edu.my/54452/1/AsShajarah-Khaliq-Bedjo%20Santoso.pdf
http://irep.iium.edu.my/54452/
_version_ 1643614558265278464
score 13.211869

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