Can Islamic Microfinance Unleash the Coastal Community from the Loan Shark? : A Case Study of Indonesia
Keywords:
Coastal Community, Islamic Microfinance, Loan Shark
Abstract
Indonesia is an archipelago with two-thirds of its territory in the form of oceans and coastal areas which support about two million fishermen. Despite having an enormous potential of fisheries, but most of the fishermen are poor and have minimal access to basic social services, including the affordable of financial services. Likewise in Puger Sub-District, Jember Regency, East Java Province, Indonesia.Poverty in there is caused also by the injustice of market with the dominance of loan shark who has weakened the marketing network of fish, the destruction of social institutions, fish auction, and impartiality of government policy for the fishing community. As a qualitative approach, this study can be categorized as field research to capture the problem of the coastal communities by interviewing, doing observation, and also studying the literature or previous research.This study aims to recognize and understand the phenomenon experienced through a purposive sampling as non-probability sampling that is selected based on characteristics of a population and the objective of the study.Thus, this study is intended to: (1) Describe the socio-economic profile of community in Puget Coastal, Puger Sub-District, Jember Regency, East Java Province, Indonesia; (2) Capture the working model of the loan shark to trap the fishermen; (3) Find the opportunities of Islamic microfinance to help the coastal community to meet their needs in order to avoid them from the loan sharks.
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Ahmed, Habib. (2015). Knowledge, Economy and Islamic Finance: A New-Institutional Economics Perspective. Presentations for Research Seminar The Islamic Research and Training Institute (IRTI) Webinar. 2 June.
Ambarwati, Ririn, 2014. Membangun Kelautan Untuk Mengembalikan Kejayaan Sebagai Negara Maritim. Page of Direktorat Pendayagunaan Pulau-Pulau Kecil Direktorat Jenderal Pengelolaan Ruang Laut Kementerian Kelautan dan Perikanan. 8 Oktober. Retrieved from http://www.ppk-kp3k.kkp. go.id/ver2/news/read/115/membangun-kelautan-untuk-mengembalikan-keja yaan-sebagai-negara-maritim.html
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Chapra, M. Umer. (1979). The Islamic Welfare State and its Role in the Economy. The Islamic Foundation. Letchworth: J.M. Dent & Sons Ltd. The Aldine Press.
FAO. (2014). The State of World Fisheries and Aquaculture Opportunities and Challenges. Rome: Food and Agriculture Organization (FAO) of The United Nations (UN).
Fitriyah, Khoirotul & Djoko Widodo. (2016). Karakteristik Sosial Budaya dan Ekonomi Nelayan Kecil di Wilayah Pesisir Desa Puger Wetan Kecamatan Puger Kabupaten Jember. In Jurnal Pendidikan Ekonomi, Edisi XI, No. 2. Agustus. Pp. 13-25.
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Harmadi, Sonny H.B. (2014). Nelayan Kita. Kompas Daily Newspaper. 19 November. Can be accessed http://nasional.kompas.com/read/2014/11/19/ 21243231/Nelayan.Kita
Mardjoeki. (2012). Pemberdayaan Masyarakat Pesisir Pantai Utara Daerah Kabupaten Cirebon. In Jurnal Ekonomi, Vol. 1 No. 1, September-Desember.
Muazir & Khairunnisa Musari. (2016). Institutional Arrangement for Distributive Justice of Islamic Financial Institutions based on New Institutional Economics in Indonesia. A paper was presented at 1st Gadjah Mada International Conference on Islamic Economics and Development, Gadjah Mada University, Yogyakarta. May 12-14.
Musari, Khairunnisa, 2017. Nanofinance, Addressing The Islamic Microfinance Gap Through Global Islamic Humanitarian Institution. A paper would be presented at Conference on Philanthropy for Humanitarian Aid 2017 held by International Research Centre of Islamic Economics and Finance (IRCIEF) International Islamic University College Selangor (KUIS) in collaboration with Islamic Research & Training Institute (IRTI) International Islamic Development Bank (IDB) and Sultan Sharif Ali Islamic University (UNISSA) at UNISSA, Brunei Darussalam. 23-24 May.
Naceur, Sami Ben, Adolfo Barajas & Alexander Massara. (2015). Can Islamic Banking Increase Financial Inclusion?. International Monetary Fund (IMF) Working Paper (WP)/15/31.
Nair, R. S., Alka Bharat & M.G. Nair. (2012). DPIRS Framework for Sustainable Development of Coastal Areas. Bonfring International Journal of Industrial Engineering and Management Science, Vol. 2, No. 4, December. Pp. 117-124.
Pradana, Agung Putra, 2014. Analisis Faktor yang Mempengaruhi Kesejahteraan Keluarga Nelayan Buruh Desa Puger Wetan Kecamatan Puger Kabupaten Jember. A Bachelor Thesis. Submitted in fulfillment of the requirement for the award of The Degree of Bachelor in Jember University, Jember, Indonesia.
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Santosa, Siswoyo Hadi. (2013). Kemiskinan Nelayan dalam Struktur Sosial Ekonomi Masyarakat Pesisir di Desa Puger Kulon Kecamatan Puger Kabupaten Jember. In Jurnal Ilmu Ekonomi, Volume 8, No. 1, Januari. Pp. 53-
Rachbini, Didik J. 2002. Ekonomi Politik: Paradigma dan Teori Pilihan Publik. Ghalia. Jakarta.
Sitorus, Hasan. (2016). Mengentaskan Kemiskinan Nelayan. Analisa Daily News. 1 April. Retrieved from http://harian.analisadaily.com/opini/news/mengentaskan-kemiskinan-nelayan/226240/ 2016/04/01
Sipahelut, Michel. (2010). Analisis Pemberdayaan Masyarakat Nelayan di Kecamatan Tobelo Kabupaten Halmahera Utara. Thesis. Sekolah Pascasarjana Institut Pertanian Bogor, Bogor.
Tietze, U. & L.V. Villareal. (2003). Microfinance in Fisheries and Aquaculture: Guidelines and Case Studies. Food and Agriculture Organization (FAO) Fisheries Technical Paper No. 440. Rome: FAO.
Tietze, U., S.V. Siar, G. Marmulla, R. van Anrooy. (2007). Credit and Microfinance Needs in Inland Capture Fisheries Development and Conservation in Asia. Food and Agriculture Organization (FAO) Fisheries Technical Paper No. 460. Rome: FAO.
Utomo, T.W.W. & T.R. Hutauruk, 2008. Socio-Economic Transformation for Coastal and Remote Society in Kalimantan: A Search for Enabling Developmental Policy). In Jurnal Borneo Administrator, Vol. 4, No. 3. Retrieved from http://samarinda.lan.go.id/ jba/index.php/jab/article/view/34
Wasak, Martha. (2012). Socio-Economic Condition of Fishermen Community in Kinabuhutan Village, West Likupang District of North Minahasa Regency, North Sulawesi. In Pacific Journal, Vol. 1 (7): 1339 - J3*2, January.
Wekke, Ismail Suardi & Andi Cahaya. (2015). Fishermen Poverty and Survival Strategy: Research on Poor Households in Bone Indonesia. In Procedia Economics and Finance 26. Elsevier B.V. Pp.7-11.
Widagdo, Suwignyo & Y. I. Handayani. (2015). The Development of Agribusiness Financial Institution of Sub Sector Marine and Fisheries in Jember Residence. In International Journal of Management Sciences and Business Research (IJMSBR), Vol. 4, Issue 6. June. Pp. 84-89.
World Bank. (2016). Oceans, Fisheries and Coastal Economies. Brief. April 9. Retrieved from http://www.worldbank.org/en/topic/environment/brief/ oceans
Yustika, Ahmad Erani. (2008). Ekonomi Kelembagaan: Definisi, Teori, dan Strategi. Malang: Bayumedia.
Yustika, Ahmad Erani. (2012). Ekonomi Kelembagaan: Paradigma, Teori, dan Kebijakan. Jakarta: Penerbit Erlangga.
http://www.eastjava.com/tourism/jember/puger.html
http://javaisbeautiful.com/2012/07/10/pantai-puger-jember-east-java-indonesia/
http://www.majalah-gempur.com/2017/05/dilanda-paceklik-kembar-pedagang-ikan.html
Published
2017-11-30
How to Cite
Musari, K., & Arodha, D. (2017). Can Islamic Microfinance Unleash the Coastal Community from the Loan Shark? : A Case Study of Indonesia. International Journal of Islamic Banking and Finance Research, 1(1), 14-24. https://doi.org/10.46281/ijibfr.v1i1.33
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2017 Khairunnisa Musari, Dianidza Arodha
This work is licensed under a Creative Commons Attribution 4.0 International License.
