Ujang Syahrul Mubarrok, Zera Zuryana Idris, Izzani Ulfi


Although Islamic Microfinance Institutions (IMFIs) have become a new and developing financial industry, the Indonesian community has not explored this organization's journey. Therefore, this study analyzes how the IMFI journey in Indonesia gained public trust and the development to date. A library research approach based on archival records and previous studies was used, and the social movement theory framework was employed to identify factors that influence society's trust in this institution. This paper shows three factors that affect the societal acceptance of IMFIs, which were, first the differences in the roles and functions of other Islamic finance organizations. Second, the passion of IMFI activists for the development and lastly, strengthening legitimacy for IMFIs is significantly needed to establish regulatory legislation. Hence, the findings in this study can become a reference for policymakers towards IMFI development in Indonesia, particularly on the uniformity of legal umbrellas applying to all types of this institution. This paper adds to the literature on IMFIs and contributes new research by employing a social movement approach in the development analysis of the organization, particularly in Indonesia.


Islamic microfinance; Interest-free microfinance; Social movement; Baitul Maal wa Tamwil

Full Text:



Abouchatir, H. (2023). Islamic Microfinance Literature : A Bibliometric Analysis. Researches and Applications in Islamic Finance, 7(2), 150–169.

Adnan, M. A., & Ajija, S. R. (2015). The effectiveness of baitul maal wat tamwil in reducing poverty the case of indonesian islamic microfinance institution. Humanomics, 31(2), 160–182.

Ahmed, H. (2002). Financing microenterprises: An Analytical study of Islamic microfinance institutions. Islamic Economic Studies, 9(2), 27–64.

Al-ani, O. A. (2013). Islamic micro-finance in Iraq (Challenges & opportunities). Journal of King Abdulaziz University, Islamic Economics, 26(2), 47–92.

Antonio, M. S. (2008). Islamic microfinance initiatives to enhance small and mediumsized enterprises. In Expressing Islam: Religious Life and Politics in Indonesia (pp. 251–266). Institute of Southeast Asian Studies.

Antonio, M. S. (2011). Islamic microfinance initiatives to enhance small and medium enterprises in Indonesia: From Historical Overview to Contemporary Situation. Journal of Indonesian Islam, 5(2), 313.

Anwar, M. K., Ridlwan, A. A., & Laili, W. N. R. (2023). The role of Baitul Maal wat tamwil in empowering MSMES in Indonesia: a study of Indonesian Islamic Microfinance Institutions. International Journal of Professional Business Review, 8(4).

Ayaz, M., Shah, H. S., Noor, A. U. M., Shaheen, S., & Yusuf, J. B. (2019). Islamic microfinancing by the banking sector of Pakistan: Problems and solutions. Journal of Islamic Thought and Civilization, 9(2), 20–43.

Bank Indonesia. (2013). Outlook perbankan syariah 2014.

Beik, I. S., Buana, G. K., & Pickup, F. (2018). Unlocking the Potential of Zakat and Other Forms of Islamic Finance to Achieve the SDGs in Indonesia. United Nations Development Programme, 23.

Bewley, K., Graham, C., & Peng, S. (2018). The winding road to fair value accounting in China: a social movement analysis. Accounting, Auditing & Accountability Journal, 31(4), 1257–1285.

Bin Mislan Cokro Hadisumarto, W., & Ghafar, A. (2010). Improving the effectiveness of Islamic micro-financing: Learning from BMT experience. Humanomics, 26(1), 65–75.

Choiruzzad, S. A. B. (2012). The Central Bank in the Development of Islamic Economy Project in Indonesia : Role, Motivations and Moderating Effect. The Ritsumeikan Journal of International Studies, 25(2), 437–460.

Choiruzzad, S. A. B. (2013). More Gain, More Pain: The Development of Indonesia's Islamic Economy Movement (1980s-2012). Indonesia, 95(April), 125–173.

Choiruzzad, S. A. B., & Nugroho, B. E. (2013). Indonesia's Islamic economy project and the Islamic scholars. Procedia Environmental Sciences, 17, 957–966.

Davis, G. F., & Thompson, T. A. (1994). A Social Movemet Corporate Control. Administrative Science Quarterly, 39(1), 141–173.

Dusuki, A. W. (2008). Banking for the poor: the role of Islamic banking in microfinance initiatives. Humanomics, 24(1), 49–66.

Engwall, L., Pahlberg, C., & Persson, O. (2018). The development of IB as a scientific field. International Business Review, 27(5), 1080–1088.

Fianto, B. A., Gan, C., & Hu, B. (2019). Financing from Islamic microfinance institutions: evidence from Indonesia. Agricultural Finance Review, 79(5), 633–645.

Fianto, B. A., Maulida, H., & Laila, N. (2019). Determining factors of non-performing financing in Islamic microfinance institutions. Heliyon, 5(8).

Frickel, S., & Gross, N. (2005). A general theory of scientific/intellectual movements. American Sociological Review, 70(2), 204–232.

Greckhamer, T., & Cilesiz, S. (2020). The extension of strategic management discourse into public education administration: A critical analysis. Organization, 135050842095632.

Hambrick, D. C., & Chen, M. (2008). New Academic Fields as Admittance-Seeking Social Movements: The Case of Strategic Management. Academy of Management Review, 33(1), 32–54.

Hamidah, S., Bakri, M., Budiono, A., & Winarno, B. (2017). the Analysis of Islamic Economy in the Constitution of Indonesia. Brawijaya Law Journal, 4(1), 59–76.

Handayani, W., Haniffa, R., & Hudaib, M. (2018). A Bourdieusian perspective in exploring the emergence and evolution of the field of Islamic microfinance in Indonesia. Journal of Islamic Accounting and Business Research, 9(4), 482–497.

Hossain, B. (2019). Islamic microfinance and rehabilitation model for the slum and floating population by waqf funds, the case of Bangladesh: A proposal for Muslim countries. Journal of King Abdulaziz University, Islamic Economics, 32(2), 139–160.

Islam, R., & Ahmad, R. (2020). Applicability of Mudarabah and Musharakah as Islamic Micro-equity Finance to Underprivileged Women in Malaysia. European Journal of Development Research, 32(1), 176–197.

Ismail, R. (2001). Economic and Social Impact of Amanah Ikhtiar Malaysia (AIM) Scheme: A Case Study in Kedah and Terengganu. Humanomics, 17(1), 141–155.

Jenkins, J. C. (1983). Resource Mobilization Theory and the Study of Social Movements. Annual Review of Sociology, 9, 526–553.

Khan, J. A., & Nisar, S. (2004). Collateral (Al-Rahn) as Practiced by Muslim Funds of North India. Journal of King Abdulaziz University-Islamic Economics, 17(1), 17–34.

Komite Nasional Ekonomi dan Keuangan Syariah. (2019, April). Sharing Platform Keuangan Mikro Syariah Berbasis Baitul Maal Wat Tamwil (BMT). Knks.Go.Id.

Komite Nasional Keuangan Syariah. (2019). Strategi Pengembangan Keuangan Mikro Syariah Di Indonesia (Rekomendasi Kebijakan). KNKS. Pengembangan Keuangan Mikro Syariah Di Indonesia (Rekomendasi Kebijakan) - KNKS.pdf

Mariyanti, T., & Mahfudz, A. A. (2016). Dynamic circular causation model in poverty alleviation: Empirical evidence from Indonesia. Humanomics, 32(3), 275–299.

Masyita, D., & Ahmed, H. (2013). Why Is Growth of Islamic Microfinance Lower Than Its Conventional Counterparts in Indonesia ? Islamic Economic Studies, 21(1), 35–62.

Masyitoh, N. D. (2014). Analisis Normatif Undang-Undang No. 1 Tahun 2013 Tentang Lembaga Keuangan Mikro (LKM) atas Status Badan Hukum dan Pengawasan Baitul Maal wat tamwil (BMT). Economica, V(2), 17–36.

Mawardi, I., Widiastuti, T., Sukmaningrum, P. S., & Al Mustofa, M. U. (2019). Optimum financing portfolio of islamic microfinance institutions: Indonesia case. Utopia y Praxis Latinoamericana, 24(Extra5), 268–274.

Mccarthy, J. D., Zald, M. N., & Mccarthy, J. D. (2009). Resource Mobilization and Social Movements : A Partial Theory'. 82(6), 1212–1241.

Merton, R. K. (1973). Social Conflict Over Styles of Sociological Work. In R. K. Merton (Ed.), The Sociology of Science: The Theoritical and Emprical Investigations (pp. 47–69). University of Chicago Press.

Mia, M. A. (2023). The transformation of conventional microfinance into Islamic microfinance in Bangladesh: proposed Shariah-based model(s). Qualitative Research in Financial Markets.

Mohamed, T. S., & Elgammal, M. M. (2023). Credit risk in Islamic microfinance institutions: The role of women, groups, and rural borrowers. Emerging Markets Review, 54.

Nasim, A., Mediawati, E., Ningsih, C., Heryana, T., & Nurlaela, F. (2020). Application of islamic accounting principles in shirkahmudarabah and musharakah to realize justice. International Journal of Psychosocial Rehabilitation, 24(2), 1816–1825.

Obaidullah, M., & Khan, T. (2008). Islamic Microfinance Development: Challenges and Initiatives. In IRTI-IDB (Issue 2). IRTI-IDB.

Peng, S. (Stella), Graham, C., & Bewley, K. (2013). Fair Value Accounting Reforms in China: Towards an Accounting Movement Theory. SSRN Electronic Journal.

Purwanto, P., Abdullah, I., Ghofur, A., Abdullah, S., & Elizabeth, M. Z. (2022). Adoption of Islamic microfinance in Indonesia an empirical investigation: an extension of the theory of planned behaviour. Cogent Business and Management, 9(1).

Rahim Abdul Rahman, A. (2010). Islamic microfinance: An ethical alternative to poverty alleviation. Humanomics, 26(4), 284–295.

Rashid, M. H. U., Uddin, M. J., & Mohd. Zobair, S. A. (2018). Islamic Microfinance and Sustainable Development Goals in Bangladesh. International Journal of Islamic Business & Management, 2(1), 67–80.

Riwajanti, N. I. (2014). Exploring the Role of Islamic Microfinance Institution in Poverty Alleviation Through Microenterprises Development, A Case Study of Islamic Financial Cooperative (BMT) in Indonesia. Kyoto Bulletin of Islamic Area Studies, 7(March), 49–66.

Rokhman, W. (2013). The effect of Islamic microfinance on poverty alleviation: Study in Indonesia. Economic Review: Journal of Economics and Business, 11(2), 21–30.

Rokhman, Wahibur. (2014). Islamic Work Ethic As an Antecedent of Work Outcomes: a Study of Islamic Microfinance in Central Java, Indonesia. QIJIS (Qudus International Journal of Islamic Studies), 2(1), 82–97.

Sadeq, A. M. (2002). Waqf, perpetual charity and poverty alleviation. International Journal of Social Economics, 29(1/2), 135–151.

Sakai, M. (2010). Growing together in partnership: Women's views of the business practices of an Islamic Savings and Credit Cooperative (Baitul Maal wat Tamwil) in Central Java, Indonesia. Women's Studies International Forum, 33(4), 412–421.

Sakai, M. (2014). Establishing social justice through financial inclusivity: Islamic propagation by Islamic savings and credit cooperatives in Indonesia. TRaNS: Trans-Regional and -National Studies of Southeast Asia, 2(2), 201–222.

Samad, M. A. (2014). Islamic micro finance: Tool for economic stability and social change. Humanomics, 30(3), 199–226.

Sarker, M. N. I., Khatun, M. N., & Alam, G. M. (2019). Islamic banking and finance: potential approach for economic sustainability in China. Journal of Islamic Marketing, 11(6), 1725–1741.

Schrempf-Stirling, J., & Van Buren, H. J. (2020). Business and Human Rights Scholarship in Social Issues in Management: An Analytical Review. Business and Human Rights Journal, 5(1), 28–55.

Seibel, H D. (2008). Islamic microfinance in Indonesia: The challenge of institutional diversity, regulation, and supervision. Sojourn, 23(1), 86–103.

Seibel, Hans Dieter, & Agung, W. D. (2005). Islamic Microfinance in Indonesia.

Servantie, V., Cabrol, M., Guieu, G., & Boissin, J.-P. (2016). Is international entrepreneurship a field ? A bibliometric analysis of the literature (1989 – 2015). Journal Internasional Entrepreneurship, 14, 168–212.

Setyowati, E., & Rahayu, S. T. (2020). The role of shariah micro financial institution in reducing poverty. Test Engineering and Management, 82(2–2), 2233–2241.

Shaik Mohammed, W., & Waheed, K. (2019). Interest-free microfinance in India: a case study of Bait-un-Nasr Urban Cooperative Credit Society. ISRA International Journal of Islamic Finance, 11(2), 322–337.

Smolo, E., & Ismail, A. G. (2011). A theory and contractual framework of Islamic micro-financial institutions operations. Journal of Financial Services Marketing, 15(4), 287–295.

Solikhah, Wiwoho, J., Pujiyono, & Taruno Muryanto, Y. (2020). Model of management baitul maal wat tamwil (Bmt) financial institutions based on sharia principles in poverty alleviation efforts. International Journal of Advanced Science and Technology, 29(4), 1681–1684.

Ülev, S., Savaşan, F., & Özdemir, M. (2023). Do Islamic microfinance institutions affect the socio-economic development of the beneficiaries? The evidence from Turkey. International Journal of Ethics and Systems, 39(2), 286–311.

Ulfi, I. (2018). Empowering Women through Islamic Microfinance: Experience of BMT Beringharjo. Jurnal Ekonomi Dan Bisnis Islam, 3(1), 89–101.

Ulfi, I., Mubarrok, U. S., Sawarjuwono, T., & Fianto, B. A. (2023). A Review on Islamic Microfinance Literature. Jurnal Manajemen Dan Kewirausahaan, 8(April), 88–101.

Wahyudi, I. (2014). Commitment and trust in achieving financial goals of strategic alliance: Case in Islamic microfinance. International Journal of Islamic and Middle Eastern Finance and Management, 7(4), 421–442.

Wardiwiyono, S. (2012). Internal control system for Islamic micro financing: An exploratory study of Baitul Maal wat Tamwil in the City of Yogyakarta Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 5(4), 340–352.

Wasiaturrahma, Ajija, S. R., Sukmana, R., Sari, T. N., & Hudaifah, A. (2020). Breadth and depth outreach of Islamic cooperatives: do size, non-performing finance, and grant matter? Heliyon, 6(7), e04472.

Wulandari, P, & Kassim, S. (2016). Issues and challenges in financing the poor: case of Baitul Maal Wa Tamwil in Indonesia. International Journal of Bank Marketing, 34(2), 216–234.

Wulandari, Permata. (2019). Enhancing the role of Baitul Maal in giving Qardhul Hassan financing to the poor at the bottom of the economic pyramid: Case study of Baitul Maal wa Tamwil in Indonesia. Journal of Islamic Accounting and Business Research, 10(3), 382–391.



  • There are currently no refbacks.

Editorial Office:
Megawati Soekarnoputri Building
Faculty of Economics
Universitas Islam Negeri Maulana Malik Ibrahim Malang

E-ISSN 2622-0083 

Creative Commons License
El Dinar under a CC BY SA 4.0 International License.

Member of:


Indexed By:



View My Stats


Flag Counter