The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin

Micro, Small and Medium Enterprises (MSMEs) play a significant role in the economic development of a country. Besides contributing to the high percentage of employment, it also requires relatively small amount of investment. In Indonesia, MSMEs play important and strategic roles, as well as in the d...

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Main Author:	Thamrin, Yusmansyah Arsyad
Format:	Thesis
Language:	English
Published:	2022
Subjects:	Small business Medium-sized business Banking
Online Access:	https://ir.uitm.edu.my/id/eprint/76021/1/76021.pdf
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id	my-uitm-ir.76021
record_format	uketd_dc
spelling	my-uitm-ir.760212023-05-10T03:21:18Z The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin 2022 Thamrin, Yusmansyah Arsyad Small business. Medium-sized business Banking Micro, Small and Medium Enterprises (MSMEs) play a significant role in the economic development of a country. Besides contributing to the high percentage of employment, it also requires relatively small amount of investment. In Indonesia, MSMEs play important and strategic roles, as well as in the distribution of developmental outcomes. Sharia Rural Banks (Bank Pembiayaan Rakyat Syariah – BPRS) was established to improve the economic welfare of the Islamic ummah, especially the weak economic class in rural areas. One of the main focusses of BPRS is to provide easy and fast financial services to MSMEs. However, questions remain on the success of BPRS in supporting MSMEs. Financial Service Authority (Otoritas Jasa Keuangan – OJK) stated that BPRS face problems due to internal and external factors. Internal factors include lack of capital, management, governance and IT system. External factors include lack of knowledge (information) and government policy. Therefore, this research aims to explore the role of BPRS in the development of microenterprises in Bandung, West Java, Indonesia. It is a city with a large number of microenterprises and is also the place where BPRS was first established. Using qualitative method, a series of interviews and focus group discussion were conducted with BPRS, Bandung City Office of Cooperatives, Bank Indonesia, and selected microenterprises. Secondary data were also collected from The Ministry of Cooperatives and MSMEs, the Central Statistics Bureau (Biro Pusat Statistik), Bank Indonesia and OJK. The results of this study indicate that BPRS plays an important role in developing microenterprises, especially in the city of Bandung. However, BPRS faces challenges in doing so as First, the government's policy to reduce the People’s Business Credit (KUR) interest rate from 7% to 6% in 2020. Second, the government's policy to increase the realization of People’s Business Credit (KUR) to Rp. 190 trillion and the ceiling for micro debtors to Rp. 50 million. Third, rivalry from fintech loans which grew rapidly in 2019. Contributions of this research are: for microenterprises, this research contributes to the development of strategies to gain access to BPRS. For BPRS, contribute to improving its capabilities in IT-based financial reporting. For the government, take part in policy making to foster microenterprises. This research also has a contribution in developing stakeholder theory, maqashid theory, and agency theory in explaining the roles, challenges and strategies of BPRS in developing microenterprises. Based on this literature and other recent reviews, this study identifies various implications in relation to the theory and practice of the role of sharia BPR for the future sustainability and development of microenterprises in Bandung, Indonesia. This research has several limitations, such as only four of the seven BPRS in Bandung that are the object of this research, the number of microenterprises that become successful and sustainable BPRS customers is also limited, the research methodology used is in-depth qualitative interview approach which cannot be generalized. 2022 Thesis https://ir.uitm.edu.my/id/eprint/76021/ https://ir.uitm.edu.my/id/eprint/76021/1/76021.pdf text en public phd doctoral Universiti Teknologi MARA (UiTM) Accounting Research Institute (ARI) Mohamed, Nafsiah Ahmad Nazri, Farah Aida
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Mohamed, Nafsiah Ahmad Nazri, Farah Aida
topic	Small business Medium-sized business Banking
spellingShingle	Small business Medium-sized business Banking Thamrin, Yusmansyah Arsyad The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin
description	Micro, Small and Medium Enterprises (MSMEs) play a significant role in the economic development of a country. Besides contributing to the high percentage of employment, it also requires relatively small amount of investment. In Indonesia, MSMEs play important and strategic roles, as well as in the distribution of developmental outcomes. Sharia Rural Banks (Bank Pembiayaan Rakyat Syariah – BPRS) was established to improve the economic welfare of the Islamic ummah, especially the weak economic class in rural areas. One of the main focusses of BPRS is to provide easy and fast financial services to MSMEs. However, questions remain on the success of BPRS in supporting MSMEs. Financial Service Authority (Otoritas Jasa Keuangan – OJK) stated that BPRS face problems due to internal and external factors. Internal factors include lack of capital, management, governance and IT system. External factors include lack of knowledge (information) and government policy. Therefore, this research aims to explore the role of BPRS in the development of microenterprises in Bandung, West Java, Indonesia. It is a city with a large number of microenterprises and is also the place where BPRS was first established. Using qualitative method, a series of interviews and focus group discussion were conducted with BPRS, Bandung City Office of Cooperatives, Bank Indonesia, and selected microenterprises. Secondary data were also collected from The Ministry of Cooperatives and MSMEs, the Central Statistics Bureau (Biro Pusat Statistik), Bank Indonesia and OJK. The results of this study indicate that BPRS plays an important role in developing microenterprises, especially in the city of Bandung. However, BPRS faces challenges in doing so as First, the government's policy to reduce the People’s Business Credit (KUR) interest rate from 7% to 6% in 2020. Second, the government's policy to increase the realization of People’s Business Credit (KUR) to Rp. 190 trillion and the ceiling for micro debtors to Rp. 50 million. Third, rivalry from fintech loans which grew rapidly in 2019. Contributions of this research are: for microenterprises, this research contributes to the development of strategies to gain access to BPRS. For BPRS, contribute to improving its capabilities in IT-based financial reporting. For the government, take part in policy making to foster microenterprises. This research also has a contribution in developing stakeholder theory, maqashid theory, and agency theory in explaining the roles, challenges and strategies of BPRS in developing microenterprises. Based on this literature and other recent reviews, this study identifies various implications in relation to the theory and practice of the role of sharia BPR for the future sustainability and development of microenterprises in Bandung, Indonesia. This research has several limitations, such as only four of the seven BPRS in Bandung that are the object of this research, the number of microenterprises that become successful and sustainable BPRS customers is also limited, the research methodology used is in-depth qualitative interview approach which cannot be generalized.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Thamrin, Yusmansyah Arsyad
author_facet	Thamrin, Yusmansyah Arsyad
author_sort	Thamrin, Yusmansyah Arsyad
title	The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin
title_short	The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin
title_full	The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin
title_fullStr	The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin
title_full_unstemmed	The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin
title_sort	role of sharia rural banks for the sustainability and development of microenterprises in bandung indonesia / yusmansyah arsyad thamrin
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Accounting Research Institute (ARI)
publishDate	2022
url	https://ir.uitm.edu.my/id/eprint/76021/1/76021.pdf
_version_	1783736097450229760

The role of Sharia Rural Banks for the sustainability and development of microenterprises in Bandung Indonesia / Yusmansyah Arsyad Thamrin

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