The Role of Money Waqf towards Empowering MSMEs in Reducing Production Costs
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 01
Abstract
Waqf is one of the instruments that can help economic development in Indonesia. Thus, waqf plays a role in empowering the people's economy through business capital assistance programs for MSME players. Micro, small, and medium enterprises play an important role in developing the economic growth of society. This is because the MSME sector has the potential to contribute the largest GDP, requires a large workforce, and is relatively resistant to economic crises. According to the Ministry of Cooperatives and Small and Medium Enterprises, Indonesia has 64.2 million MSME units. With details of 63.4 million micro-businesses, 783.1 thousand small businesses, and 60.7 thousand medium-sized businesses. However, of the total number of MSMEs in Indonesia, 70.2% of MSME units experience problems in capital or raw material supply. However, Islamic economics is here to solve economic problems through waqf instruments. Waqf has eternal benefits that are universal. Thus, one of the benefits of waqf is that it can be used as business capital for MSMEs. According to BWI, Indonesia has a cash waqf potential of around IDR 180 trillion per year. To realize the potential of waqf, an optimal and professional management system is needed. This study aims to examine the potential of cash waqf in encouraging the community's economy through micro businesses in determining production costs. This research uses a qualitative method using a literature study research design with content analysis. The results of this study conclude that the optimal management and distribution of waqf funds can help micro businesses in reducing production costs.
Authors and Affiliations
Syamsuri, Dara Ayu Okta Safitri, Imam Kamaluddin
Keywords
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- EP ID EP730241
- DOI 10.47191/jefms/v7-i1-62
- Views 64
- Downloads 0
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