Sharia Cooperative, Alternative Strength of Microfinance



Source / editor: Humpro Sulteng / Ikhsan Madjido

AS A Country with the largest Muslim population in the world, it is appropriate to place Indonesia as the world's sharia economic center.

In addition, Indonesia should also be placed as a center for study, research and role models for other countries that want to implement a sharia economic system.

The Governor of Central Sulawesi, represented by the Head of the Economic and Development Bureau, Richart Arnaldo SE, MSA, expressed this when opening a regional seminar on the theme of Sharia Cooperatives as the Power of Alternative Microfinance Institutions in Central Sulawesi at the Pogombo Building, Central Sulawesi Governor's Office, Thursday (11 / 7/2019).

The governor assessed the advantages and potential of the Islamic economic system carried out by Islamic banks, which have proved able to withstand the turmoil of the 1997 monetary crisis.

"In other words, the system offers a realistic and reliable solution, in order to face a new phase of global economic liberalization in Indonesia," said Richard representing the governor.

Although today's sharia economic development is quite significant and promising, continued Richard, but still needs to be increased in the role of Islamic economics, both in the trade, banking, insurance, investment sectors including cooperatives and others, especially in explaining the benefits and advantages of Islamic economics compared to economics conventional to the community.

"For that reason, I expect sharia economic actors to act as the main actors in protecting the joint economy of society, by participating in promoting the primacy of Islamic and sharia economic principles that are very strict in rejecting and prohibiting usury or interest, and can synergize with the principle kinship and cooperatives that are characteristic of Pancasila economics, "said Richart Arnaldo.

With the presence of sharia cooperatives, it will become the foundation in strengthening the commitment of the sharia economic system in microfinance institutions in Central Sulawesi.

"These commitments include providing business development services and community empowerment, either through loans or financing in micro-scale businesses to members and communities, deposit management, and providing business development consulting services," he concluded.

The regional seminar was carried out by the small business incubation center (Pinbuk) Central Sulawesi with the headline of Islamic cooperatives as an alternative power of microfinance institutions in Central Sulawesi.**

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