Muhamad Ammar Muhtadi, Muhammad Nailul Author

Implementation of Maqashid Syariah Principles in Islamic Microfinance Practices in Indonesia

Introduction

Implementation of maqashid syariah principles in islamic microfinance practices in indonesia. Study Maqashid Syariah implementation in Indonesian Islamic microfinance. Findings show high alignment, significant impact on social welfare, poverty alleviation, and ethical inclusion.

Abstract

This study examines the implementation of Maqashid Syariah principles in Islamic microfinance practices in Indonesia. Using a quantitative approach, data were collected from 64 respondents through a structured questionnaire measured on a 5-point Likert scale. The data were analyzed using SPSS version 25, applying descriptive statistics, validity and reliability tests, correlation, and regression analysis. The findings indicate that Islamic microfinance institutions (IMFIs) in Indonesia generally demonstrate a high level of alignment with Maqashid Syariah principles, particularly in the preservation of wealth (mal) and life (nafs). Regression analysis revealed that these two dimensions are the most influential in shaping microfinance practices, while intellect (‘aql) was found to be relatively less emphasized. The results highlight that IMFIs not only provide Sharia-compliant financial services but also contribute significantly to social welfare, poverty alleviation, and ethical financial inclusion. However, the study suggests that greater efforts are needed to strengthen educational and literacy initiatives to enhance clients’ long-term empowerment. Overall, the findings reinforce the role of IMFIs as vital institutions that integrate economic, social, and spiritual objectives in line with the vision of Islamic economics.

Review

This study addresses a highly relevant and critical area within Islamic finance: the practical implementation of Maqashid Syariah principles in Islamic microfinance institutions (IMFIs) in Indonesia. Utilizing a quantitative approach with data from 64 respondents and robust statistical analysis, including regression, the paper offers valuable empirical insights into how these fundamental Islamic objectives are integrated into financial practices. The core finding—that Indonesian IMFIs generally exhibit a high alignment with Maqashid Syariah, particularly in the preservation of wealth (mal) and life (nafs)—provides an important affirmation of their adherence to ethical frameworks. A significant strength of the research lies in its ability to empirically identify the most influential dimensions of Maqashid Syariah, namely wealth and life preservation, which are shown to actively shape microfinance practices. The study effectively articulates how IMFIs transcend mere Sharia-compliant service provision to actively contribute to broader societal goals such as social welfare, poverty alleviation, and ethical financial inclusion. By highlighting the integration of economic, social, and spiritual objectives, the findings reinforce the holistic vision of Islamic economics and position IMFIs as vital institutions for comprehensive development. While the study provides a strong foundation, the abstract also points to areas for further consideration. The finding that 'aql (intellect) is "relatively less emphasized" suggests a potential gap in current practices, specifically regarding client education and literacy, which the study acknowledges as needing "greater efforts." Future research could explore the reasons behind this emphasis imbalance and propose practical strategies for strengthening educational initiatives. Additionally, while the quantitative approach and sample size are suitable for the chosen analysis, a broader and potentially more diverse sample in future studies could offer a more comprehensive representation of the Indonesian IMFI landscape. Nevertheless, this paper makes a substantial contribution to the understanding of Maqashid Syariah implementation in microfinance, offering valuable insights for both academia and practitioners.

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