Can Islamic Microfinance Unleash the Coastal Community from the Loan Shark? : A Case Study of Indonesia

  • Khairunnisa Musari Department of Islamic Economics, Faculty of Islamic Economics and Business, State Institute of Islamic Studies Jember, Indonesia
  • Dianidza Arodha Department of Islamic Economics, Faculty of Islamic Economics and Business, State Institute of Islamic Studies Jember, 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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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
Original Articles/Review Articles/Case Reports/Short Communications