junaidi junaidi, Salju Salju


The escalating social and economic development problems faced by Muslims worldwide today raised new questions as well as expectations about social responsibilities and roles of Islamic banking and finance. The problem in the Islamic world is not lack of funds. In fact, banks in the Indonesia Country, which has generally led to massive increases in all asset prices. Consequently, there is a growing interest among Muslim economist about the potential of Small Medium Entreprises (SMEs) scheme in alleviating poverty. Indeed microfinance is widely acclaimed as a new innovative approach to alleviate poverty. Through various microfinance mechanisms, the poor who were normally denied access to mainstream banking services are now able to benefit from various financial products and services. The concern over credit provision and finance accessibility for the poor is inevitably relevant to Islamic bank that should place greater social welfare responsibilities and religious commitments in order to achieve the Islamic economic objectives, including social justice, equitable distribution of income and wealth and promoting economic development. This paper aim to present a model Islamic tool for poverty alleviation by Zakat and SMEs finance facilities. Using Indonesia’s Islamic Banks annual report from 2013-2015 by content analysis we found that the evolving concepts of Islamic for Small Medium Entreprises (SMEs) to empowering their economic level. Some programs have launched to Indonesia society. However, overall IBs does not disclosure about the progress their program.

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