​#    ​​​Title ​  Authors
​​ ​​​2017 ​ ​
​ 6-2018 Micro Level Models of Integrated Islamic Commercial and Social Finance in Indonesia ​Ascarya

 

Abstract

Islamic finance is essentially a blended combination of Islamic commercial and social finance, without dichotomizing commercial and social dealings. When there is a call to act socially, profits become not a concern, but seeking the well-pleasing of Allah. This study aims to investigate models of integrated Islamic commercial and social finance in Indonesia, using field survey, in-depth interview and focus group discussion to practitioners, experts and academicians from 10 (ten) provinces in Java and Sumatra. The findings shows that the integrated Islamic commercial and social finance (IICSF) can be implemented in microfinance by Baitul Maal wat Tamwil (BMT). Baitut Tamwil (BT) division of BMT as IMFI carry out Islamic commercial finance activities providing micro-financing and other microfinance services, while Baitul Maal division of BMT, performs Islamic social finance, acts as Amil of zakat and Nazhir of waqf (including cash waqf) at once, whereas ZIS-Waf funds are deposited in BT. The findings also show that there is no significant relation between the structure of Baitul Maal and the degree of IICSF operation. There is also no significant relation between the size of Baitul Maal and the degree of IICSF operation.

Keywords: Islamic Finance, Islamic Commercial Finance, Islamic Social Finance, Integrated Islamic Commercial and Social Finance