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  • Abstract - INSTITUTIONAL ARRANGEMENT FOR DISTRIBUTIVE JUSTICE OF ISLAMIC FINANCIAL INSTITUTIONS BASED ON NEW INSTITUTIONAL ECONOMICS IN INDONESIA

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    Khairunnisa Musari
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    Islamic economics as a new paradigm based on the concept of NIE has laid the foundation in Indonesia. IFIs is one of the driving motor. Distributive injustice can be reflected by the growth of inequality level and most of the micro society still do not have ability to access financing from formal financial institutions. In Islamic finance, the study of NIE has a role to see how the IFIs can bridge the financial and real sector, distribute the wealth, and manage the lack and excess of liquidity in order to establish financial inclusion for all as the key for creating the distributive justice. IFIs should be a financial solution for the very micro society through IMFIs. The very poor, the very low income, and the very micro enterprises should be a target of microfinance through nanofinance. Synergies among IFIs, authority, and government must be done to avoid competition in the market, but rather emphasize the cooperation and ukhuwah (brotherhood/solidarity) to achieve the true Islamic economics goals, which is to reduce the gap through distributive justice.

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    Abstract - INSTITUTIONAL ARRANGEMENT FOR DISTRIBUTIVE JUSTICE OF ISLAMIC FINANCIAL INSTITUTIONS BASED ON NEW INSTITUTIONAL ECONOMICS IN INDONESIA

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    Islamic economics as a new paradigm based on the concept of NIE has laid the foundation in Indonesia. IFIs is one of the driving motor. Distributive injustice can be reflected by the growth of inequality level and most of the micro society still do not have ability to access financing from formal financial institutions. In Islamic finance, the study of NIE has a role to see how the IFIs can bridge the financial and real sector, distribute the wealth, and manage the lack and excess of liquidity in order to establish financial inclusion for all as the key for creating the distributive justice. IFIs should be a financial solution for the very micro society through IMFIs. The very poor, the very low income, and the very micro enterprises should be a target of microfinance through nanofinance. Synergies among IFIs, authority, and government must be done to avoid competition in the market, but rather emphasize the cooperation and ukhuwah (brotherhood/solidarity) to achieve the true Islamic economics goals, which is to reduce the gap through distributive justice.

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    © All Rights Reserved
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    15 views1 page

    Abstract - INSTITUTIONAL ARRANGEMENT FOR DISTRIBUTIVE JUSTICE OF ISLAMIC FINANCIAL INSTITUTIONS BASED ON NEW INSTITUTIONAL ECONOMICS IN INDONESIA

    Uploaded by

    Khairunnisa Musari
    Islamic economics as a new paradigm based on the concept of NIE has laid the foundation in Indonesia. IFIs is one of the driving motor. Distributive injustice can be reflected by the growth of inequality level and most of the micro society still do not have ability to access financing from formal financial institutions. In Islamic finance, the study of NIE has a role to see how the IFIs can bridge the financial and real sector, distribute the wealth, and manage the lack and excess of liquidity in order to establish financial inclusion for all as the key for creating the distributive justice. IFIs should be a financial solution for the very micro society through IMFIs. The very poor, the very low income, and the very micro enterprises should be a target of microfinance through nanofinance. Synergies among IFIs, authority, and government must be done to avoid competition in the market, but rather emphasize the cooperation and ukhuwah (brotherhood/solidarity) to achieve the true Islamic economics goals, which is to reduce the gap through distributive justice.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    1st Gadjah Mada International Conference

    on Islamic Economics and Development


    Recasting the Significance of Islamic Economics for Socioeconomic Development.
    May 12-14, 2016
    Topic:
    ISLAMIC REDISTRIBUTIVE SCHEMES
    Title:
    INSTITUTIONAL ARRANGEMENT
    FOR DISTRIBUTIVE JUSTICE OF ISLAMIC FINANCIAL INSTITUTIONS
    BASED ON NEW INSTITUTIONAL ECONOMICS IN INDONESIA1
    Muazir2
    Khairunnisa Musari3
    The rapid growth of the Islamic finance industry actually has not been accompanied
    by the realization of wealth equalization and poverty alleviation. In Indonesia, the inequality
    level is growing and most of the very micro societies still do not have ability to access
    financing from formal financial institution that all indicates the unrealized of distributive
    justice. This paper tries to propose model of institutional arrangement for distributive justice
    of Islamic financial institution in Indonesia based on new institutional economics. Therefore,
    this paper attempts to discuss two things. First, mapping of the current microfinance scheme
    of Islamic financial institution in Indonesia. Second, offering the proposed model of
    institutional arrangement for distributive justice of Islamic financial institution in Indonesia
    based on new institutional economics paradigm.
    Keywords: New Institutional Economic, Institutional Arrangement, Islamic Financial
    Institution, Distributive Justice
    JEL Classification: C18, D30, D63

    A paper will be presented at 1st Gadjah Mada International Conference on Islamic Economics and
    Development Recasting the Significance of Islamic Economics for Socioeconomic Development, Faculty of
    Economics & Business, Gadjah Mada University, Yogyakarta. May 12-14, 2016
    2

    Faculty of Economic, University of Jember;. E: muazir_indonesia@yahoo.com.

    Faculty of Islamic Economics and Business, State Institute of Islamic Studies (IAIN) Jember. E:
    khairunnisamusari@yahoo.com

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