Ta'amul: Journal of Islamic Economics

Establishing Technological Innovation in MSMEs For Sustainable Finance: The philosophy paradigm of Indonesia

2025-05-26T07:43:20+00:00

This study explores how financial technology (fintech) can be developed and positioned within Micro, Small, and Medium Enterprises (MSMEs) in Indonesia to support sustainable finance through a philosophical and ethical lens. The core problems addressed include unequal access to finance, the capitalist bias in technological innovation, and the lack of ethical integration in fintech development. The study aims to bridge conceptual gaps between technological innovation, ethical finance, and inclusive development. Employing a qualitative research design grounded in interpretivism and constructivism, the research integrates philosophical inquiry with literature-based analysis. Phenomenological and grounded theory approaches are used to examine ethical, behavioral, and Islamic perspectives on fintech usage among MSMEs. The findings reveal that while fintech has the potential to democratize access to finance and accelerate digital innovation, its effectiveness relies on alignment with core values such as trust, justice, transparency, and sustainability. Sharia-compliant fintech models provide an ethical alternative to conventional systems but require regulatory, infrastructural, and cultural support. The study emphasizes the need for fintech solutions that empower rather than exploit and that place human dignity and ethical responsibility at the heart of innovation. This research is among the few to examine fintech adoption among MSMEs from a philosophical perspective, combining postmodern, Islamic economic, and behavioral finance viewpoints. It offers a conceptual framework for humanizing fintech and provides ethical guidance for policymakers and innovators working toward inclusive and sustainable financial ecosystems.

Cultural Strategy of Saving Money Madura's Kelontong Shop In Business Income

2025-05-26T08:21:19+00:00

elontong (traditional grocery) stores represents a unique and intriguing socio-economic phenomenon. This informal financial habit, rooted in community tradition, is widely observed across Madurese grocery store owners in various regions, including Malang. However, this cultural practice has received limited academic attention, particularly in terms of its functions, motivations, and implications. The objective of this study is to explore the cultural practice of saving money among Madurese-owned grocery stores in Malang, focusing on its underlying purpose, mechanism, and socio-economic significance. This research uses a descriptive qualitative approach, with data collected through in-depth interviews and direct observation of selected Madurese store owners operating in urban and suburban Malang. The findings reveal that this saving culture follows a consistent pattern—where 10% of daily sales are set aside every 24 hours. This practice is not formally recorded or banked but is stored securely within the shop environment or in a trusted informal setting. The saved income is intended not only for profit accumulation but also for strategic financial readiness, such as for restocking inventory, covering emergency expenses, or fulfilling family and social obligations. The study concludes that this saving behavior is both an economic and cultural strategy, serving as a grassroots financial management model embedded in local values of discipline, foresight, and community solidarity. The findings contribute to the field of cultural economics and micro-enterprise finance by highlighting how traditional practices can serve as sustainable informal financial systems among ethnic business communities.

Islamic Ethical Values in Traditional Commerce: A Field Study of Market Traders

2025-06-29T03:36:41+00:00

This study explores the implementation of Islamic business ethics in the transaction practices of traders at the Waru Traditional Market, Waru District, Pamekasan Regency. The research addresses the problem of how Islamic ethical principles—such as tauhid (oneness of God), balance, free will, responsibility, and benevolence (ihsan)—are reflected in the daily commercial behaviors of traditional market traders. The objective is to uncover how deeply these principles are understood and applied in the context of local economic transactions, especially among grassroots Muslim communities. Using a qualitative descriptive method, data were collected through field observation and in-depth interviews with both traders and buyers. The primary data sources were direct interviews with ten selected traders, while secondary sources included relevant literature on Islamic economics and ethics. The findings reveal that most traders apply the main principles of Islamic business ethics in their transactions. The principle of tauhid is evident in their belief that sustenance comes from Allah, prompting them to conduct business with sincerity, patience, and a worshipful spirit. The principles of balance and responsibility are reflected in fair dealings, such as product quality assurance, replacement of defective goods, and price transparency. Traders also practice free will by giving customers full freedom in making purchasing decisions. Moreover, the principle of benevolence (ihsan) is actively demonstrated through acts of kindness, such as granting price discounts, extending payment terms, and assisting with the physical delivery of goods. This study contributes to the understanding of how Islamic values can be operationalized in traditional market settings. It highlights the spiritual and moral dimensions of Islamic business practices and offers a model for building ethical, human-centered, and sustainable local economies rooted in religious principles.

Wealth and Inequality: A Qualitative Inquiry into Institutional Dysfunction in Resource-Rich Muslim Nations

2025-05-26T08:49:44+00:00

Several Muslim-majority countries endowed with abundant natural resources (NR) continue to face persistent development stagnation and severe social inequality, raising critical questions about the paradox of resource wealth. This study aims to qualitatively examine how institutional dysfunction influences wealth distribution and development trajectories in these contexts. Employing a qualitative approach with a case study design, the research focuses on resource-rich Muslim-majority countries, using Indonesia as a primary case due to its substantial natural resources and Muslim population exceeding 80%. Data were collected through policy document analysis and triangulated with media reports to ensure validity. Findings reveal that weak institutional capacity, entrenched corruption, and the dominance of political-economic elites are key drivers of persistent inequality and developmental inertia. These structural deficiencies prevent resource wealth from translating into broad-based prosperity, instead reinforcing elite capture and social disparity. The study contributes to the literature on resource governance by demonstrating that natural resource abundance, without robust institutional frameworks, intensifies the resource curse in Muslim-majority contexts. Practical implications underscore the urgency of institutional reform and the design of governance models tailored to socio-cultural and political realities, aiming to achieve inclusive and sustainable development. This research advances understanding of the intersection between institutional quality, resource wealth, and inequality, offering policy insights for governments and international development agencies operating in similar contexts.

The Influence of Safarwadi Pamijahan Religious Tourism on the Improvement of the Economy of Pamijahan MSMEs

2025-05-26T08:26:49+00:00

This study is motivated by the rapid growth of the tourism sector in Indonesia, particularly religious tourism, which plays a vital role in driving local economic development. In Kampung Pamijahan, Tasikmalaya Regency, religious tourism—centered around the tomb of Sheikh Abdul Muhyi—has attracted a significant influx of visitors. This phenomenon has created economic opportunities for local micro, small, and medium enterprises (MSMEs), notably kolang-kaling traders, whose products represent a regional specialty. The objective of this research is to analyze the influence of Safarwadi Pamijahan religious tourism on the economic improvement of these traders. A quantitative approach was employed using a descriptive analysis method. The study utilized a saturated sample of 40 respondents, representing the entire population of kolang-kaling traders in the area. Data collection was conducted through a field research approach with structured instruments, while hypothesis testing was performed using the t-test. Findings reveal that religious tourism significantly influences MSME economic performance, indicated by a significance value of 0.004 (<0.05) and a t-count of 3.033 (>1.686). The coefficient of determination shows that tourism contributes 19.5% to traders’ economic growth, while 80.5% is affected by other external factors. These results confirm that Safarwadi Pamijahan religious tourism serves as an essential but not exclusive driver of local MSME development. The contribution of this study lies in providing empirical evidence of the partial role of religious tourism in enhancing community-based economies, which can inform regional tourism and economic policies.