Spiritual Intermediation in Islamic Microfinance: Evidence from Indonesia

DOI

10.2991/imm-16.2016.24How to use a DOI?

Keywords

Islamic microfinance, spiritual intermediation, spiritual practice, spiritual education, spiritual Training

Abstract

Islamic microfinance is the integration of the two forces are growing rapidly, namely Islamic finance and microfinance. Therefore, not only has the dual mission as conventional microfinance (financial intermediation and social), Islamic microfinance also has a spiritual mission (spiritual intermediation) as a manifestation of Islamic principles which it is based and a real differentiator compared to MFIs. This study is the first empirical study to explore and establish the concept of spiritual intermediation of Islamic microfinance (IMFI) towards the concept of triple mission MFI (financial, social and spiritual intermediation). The study used a qualitative approach with qualitative interviews and focus group discussions to 32 administrators, managers and field staff of 12 Baitul Maal wattamwil (BMT) in the city of Jambi and Kendari. The research proves that there is a spiritual intermediary and conducted by BMT in the form of: a spiritual practice, spiritual education and spiritual training. Spiritual practice is done in two forms of activity, 1) the behavior of the individual/staff daily in accordance with Islamic principles as exemplary forms and then into the corporate culture, and 2) the behavior of the organization in accordance with Islamic principles (Sharia compliance). Spiritual education and spiritual training have been programmed by BMT. Although spiritual education is still done on a limited scale, incidental, adapted to the conditions and needs of BMT. While spiritual training has not been done at all. This is due to the lack funding, expertise and networks. Therefore, a planned effort and synergy needs to be done by IMFI and all stakeholders, especially the Syariah economic community (MES) to strengthen this spiritual mission, so that the mission of the whole held together with financial and social mission. This can ultimately improve the financial literacy of sharia in Indonesia and improve public access to IMFI.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Besse Wediawati
AU  - Rike Setiawati
PY  - 2016/10
DA  - 2016/10
TI  - Spiritual Intermediation in Islamic Microfinance: Evidence from Indonesia
BT  - Proceedings of the International Conference, Integrated Microfinance Management for Sustainable Community Development (IMM 2016)
PB  - Atlantis Press
SP  - 155
EP  - 161
SN  - 2352-5428
UR  - https://doi.org/10.2991/imm-16.2016.24
DO  - 10.2991/imm-16.2016.24
ID  - Wediawati2016/10
ER  -