Introduction To Islamic Social Finance IPB Template

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Introduction to

Islamic Social Finance

Irfan Syauqi Beik, PhD


Associate Professor, Department of Islamic
Economics, IPB University

Bogor, 16 October 2019 / 17 Safar 1441


irfan_beik@apps.ipb.ac.id @irfan.beik ies.fem.ipb.ac.id
Islamic Social Finance (ISF)

Its emergence: The Milestones

Components of ISF

ISF as Pillar of Islamic Economy


Milestones of Islamic Social Finance

FSAP for Islamic Finance:


FSAP : Financial Sector Workshop on Islamic
2008 Global Economic developed by IRTI
Assessment Program Social Finance, February
Crisis (workshop on December
(World Bank) 2013 (IRTI IDB and IPB)
2012)

Formulation of Waqf Core Formulation of Zakat Core


Principles (IDB, BWI, and Principles (IDB, BAZNAS and
Islamic Social Finance
Bank Indonesia) 2015 – 2018 Bank Indonesia) 2014 – 2016
Report 2014 followed by
(Launched during IMF and (Launched during UN
World Bank Annual Meeting, Humanitarian Summit, May ISF Report 2015-2017
October 14, 2018 in Bali) 23-24, 2016 in Istanbul)

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ISF Components

Zakat

Awqaf

Islamic Microfinance / Not-for-profit Microfinance

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Islamic Social Finance Report 2014

• Discusses development of zakat and awqaf sectors in


the following countries:
1. Indonesia
2. Malaysia
3. Singapore
4. Brunei Darussalam
5. India
6. Pakistan
7. Bangladesh

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Islamic Social Finance Report 2015

• Discusses development of zakat, awqaf and Islamic


microfinance sectors in the following countries:
1. Sudan
2. Nigeria
3. Kenya
4. Tanzania
5. South Africa
6. Mauritius

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Islamic Social Finance Report 2017

• Discusses development of zakat, awqaf and


Islamic microfinance sectors in the following
countries:
1. Russia including Tatarstan and Dagestan
2. Kazakhstan
3. Kyrgyztan
4. Bosnia and Herzegovina
5. Macedonia
6. Tajikistan

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ZCP and WCP
ZCP and WCP: A Comparison

Zakat Core Principles (ZCP) Waqf Core Principles (WCP)


• 18 core principles • 29 core principles
• Assessment of Compliance: • Assessment of Compliance:
1. Compliant 1. Compliant
2. Largely compliant 2. Largely compliant
3. Materially non-compliant 3. Materially non-compliant
4. Non-compliant 4. Non-compliant
• Adopted by the World Zakat
Forum
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Not-for-Profit Microfinance: The Case of BAZNAS
Microfinance Desa (BMD) Program

BMD Program

BMFi is an institution under


coordination of BAZNAS Directorate of
Managed by BAZNAS Distribution and Utilization, which is
dedicated for providing non-interest
Microfinance (BMFi) loan to the recipients of zakat so that
these recipients can have greater capital
access. 10
BAZNAS Microfinance (BMFi)

Program Model BAZNAS


BMD 1 Need Assesment CAPACITY BUILDING
2 Recruitment & Human Resource Training Institution
3 Program Fund: Human Resource
a. Micro capital
b. Operation cost Management
c. Social cost
3 Supervision COOPERATIVE
4 Monitoring & Evaluation IFI-BMD

BAZNAS Micro Business:


Microfinance Farmers, animal
Desa breeders, and other
micro entrepreneur
Institutionalization
Map of BMD Program Location

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ISF as Islamic Economy Pillar

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THANK YOU irfan_beik@apps.ipb.ac.id +62251 8624120 ies.fem.ipb.ac.id

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