Abstract
This study attempts to analyse the influence of religiosity aspects (religious life, religious issues and issues of halal product) and socio-economic factors (gender, age, income, head of household, year(s) of education, distance from Islamic microfinance, saving balance, sales, profit, food expenditure, non-food expenditure, health expense and education expense) to zakat of fitra, zakat of wealth, cash waqf and land waqf payment. A field survey is being conducted among 1469 ultra-micro-SMEs in 11 districts (Yogyakarta, Sleman, Bantul, Nogosari, Klaten, Gunung Kidul, Kulonprogo, Lombok Timur, Lombok Tengah, Mataram and Lombok Barat) in Indonesia. Data was analysed through descriptive and binary logistics analysis. This study finds that all religious aspects increase the probability of zakat and waqf payment while socio-economic influence responses in variety sign(s) depend on kinds of zakat and waqf payment. The study has significant contribution to the Baitul Maal wa Tamwil in providing maal services to ultra-micro-SMEs in Indonesia which are important to build sustainability.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Abdul Samad, M. (2014). Islamic Micro Finance: Tool for Economic Stability and Social Change. Humanomics, 30(3), 199–226. https://doi.org/10.1108/H-12-2013-0085.
Agier, I., & Szafarz, A. (2013, May). Microfinance and Gender: Is There a Glass Ceiling on Loan Size? World Development, 42(2010), 165–181. https://doi.org/10.1016/j.worlddev.2012.06.016.
Ahiawodzi, A. K., & Sackey, F. G. (2010). Determinants of Credit Rationing to the Private Sector in Ghana. African Journal of Business and Economic Research, 5(1), 23–49. https://doi.org/10.5897/ajbm09.462.
Ahmed, H. (2007). Waqf-Based Microfinance: Realizing the Social Role of Islamic Finance. In Integrating Awqaf in the Islamic Financial Sector (pp. 1–22).
Al-Azzam, M., Carter Hill, R., & Sarangi, S. (2012). Repayment Performance in Group Lending: Evidence from Jordan. Journal of Development Economics, 97(2), 404–414. https://doi.org/10.1016/j.jdeveco.2011.06.006.
Ali, D. A., & Deininger, K. (2014). Causes and Implications of Credit Rationing in Rural Ethiopia: The Importance of Zonal Variation. Journal of African Economies, 23(4), 493–527. https://doi.org/10.1093/jae/eju008.
Amuda, Y. J. (2013). Empowerment of Nigerian Muslim Households Through Waqf, Zakat, Sadaqat and Public Funding. International Journal of Trade, Economics and Finance, 4(6), 419–424. https://doi.org/10.7763/IJTEF.2013.V4.329.
Awunyo-Vitor, D., Mahama Al-Hassan, R., Bruce Sarpong, D., & Egyir, I. (2014). Agricultural Credit Rationing in Ghana: What Do Formal Lenders Look For? Agricultural Finance Review, 74(3), 364–378. https://doi.org/10.1108/AFR-01-2013-0004.
Bao Duong, P., & Izumida, Y. (2002). Rural Development Finance in Vietnam: A Microeconometric Analysis of Household Surveys. World Development, 30(2), 319–335. https://doi.org/10.1016/S0305-750X(01)00112-7.
Carling, K., & Lundberg, S. (2005). Asymmetric Information and Distance: An Empirical Assessment of Geographical Credit Rationing. Journal of Economics and Business, 57(1), 39–59. https://doi.org/10.1016/j.jeconbus.2004.07.002.
Cheng, E., & Ahmed, A. D. (2014). The Demand for Credit, Credit Rationing and the Role of Microfinance: Evidence from Poor ZRural Counties of China. China Agricultural Economic Review, 6(2), 295–315. https://doi.org/10.1108/CAER-07-2012-0076.
Drakos, K., & Giannakopoulos, N. (2011). On the Determinants of Credit Rationing: Firm-Level Evidence from Transition Countries. Journal of International Money and Finance, 30(8), 1773–1790. https://doi.org/10.1016/j.jimonfin.2011.09.004.
Duca, J. V., & Rosenthal, S. S. (1991). An Empirical Test of Credit Rationing in the Mortgage Market. Journal of Urban Economics, 29(2), 218–234. https://doi.org/10.1016/0094-1190(91)90016-Z.
Dusuki, A. W. (2008). Banking for the Poor: The Role of Islamic Banking in Microfinance Initiatives. Humanomics, 24(1), 49–66. https://doi.org/10.1108/08288660810851469.
Effendi, J. (2013). The Role of Islamic Microfinance in Poverty Alleviation and Environmental Awareness an Pasuruan, East Java, Indonesia. Gottingen: Universitatsverlag.
Fahme, A., Ali, M., Ridhwan, M., & Aziz, A. (2014). Zakat Poverty Line Index and Gender Poverty in Malaysia: Some Issues and Practices. International Journal of Business and Social Science, 5(10), 286–294.
Farook, S., Hassan, M. K., & Lanis, R. (2011). Determinants of Corporate Social Responsibility Disclosure: The Case of Islamic Banks. Journal of Islamic Accounting and Business Research, 2(2), 114–141. https://doi.org/10.1108/17590811111170539.
Ferri, G., & Murro, P. (2014). Do Firm–Bank “Odd Couples” Exacerbate Credit Rationing? Journal of Financial Intermediation. https://doi.org/10.1016/j.jfi.2014.09.002.
Fletschner, D. (2009). Rural Women’s Access to Credit: Market Imperfections and Intrahousehold Dynamics. World Development, 37(3), 618–631. https://doi.org/10.1016/j.worlddev.2008.08.005.
Hashem, E. A., & El-sha’er, S. (2015). Can Zakat Help to Enhance Financial Inclusion? Case Study Egypt. International Journal of Education and Research, 3(3), 413–432.
Hassan, A. (2014). The Challenge in Poverty Alleviation: Role of Islamic Microfinance and Social Capital. Humanomics, 30(1), 76–90. https://doi.org/10.1108/H-10-2013-0068.
Hassan, M. K., & Ashraf, A. (2010, January). An Integrated Poverty Alleviation Model Combining Zakat, Awqaf and Micro-Finance. In Seventh International Conference—The Tawhidic Epistemology (pp. 261–281). Bangi, Malaysia: Zakat and Waqf Economy.
Hsieh, S. H., Li, C. S., & Lee, S. M. (2013). Logistic Regression with Outcome and Covariates Missing Separately or Simultaneously. Computational Statistics & Data Analysis, 66, 32–54. https://doi.org/10.1016/j.csda.2013.03.007.
Ibrahim, P., & Ghazali, R. (2014). Zakah as an Islamic Micro-Financing Mechanism to Productive Zakah Recipients. Asian Economic and Financial Review, 4(1), 117–125.
Ismail Abdel Mohsin, M. (2013). Financing Through Cash-Waqf: A Revitalization to Finance Different Needs. International Journal of Islamic and Middle Eastern Finance and Management, 6(4), 304–321. https://doi.org/10.1108/imefm-08-2013-0094.
Jia, X., Heidhues, F., & Zeller, M. (2010). Credit Rationing of Rural Households in China. Agricultural Finance Review, 70(1), 37–54. https://doi.org/10.1108/00021461011042620.
Johari, F., Ridhwan, M., Aziz, A., Fahme, A., Ali, M., Ridhwan, M., et al. (2014, December). A Review on Literatures of Zakat Between 2003–2013. Library Philosophy and Practice (E-Journal), Paper 1175.
Kamla, R., & Rammal, H. G. (2013). Social Reporting by Islamic Banks: Does Social Justice Matter? Accounting, Auditing & Accountability Journal, 26(6), 911–945. https://doi.org/10.1108/AAAJ-03-2013-1268.
Khoi, P. D., Gan, C., Nartea, G. V., & Cohen, D. A. (2013). Formal and Informal Rural Credit in the Mekong River Delta of Vietnam: Interaction and Accessibility. Journal of Asian Economics, 26, 1–13. https://doi.org/10.1016/j.asieco.2013.02.003.
Mason, D. R. (2014, February). Who Gets What? Determinants of Loan Size and Credit Rationing Among Microcredit Borrowers: Evidence from Nicaragua. Journal of International Development, 90(2013), 77–90. https://doi.org/10.1002/jid.
Menkhoff, L., & Rungruxsirivorn, O. (2011). Do Village Funds Improve Access to Finance? Evidence from Thailand. World Development, 39(1), 110–122. https://doi.org/10.1016/j.worlddev.2010.09.002.
Mijid, N., & Bernasek, A. (2013). Gender and the Credit Rationing of Small Businesses. The Social Science Journal, 50(1), 55–65. https://doi.org/10.1016/j.soscij.2012.09.002.
Montgomery, H., & Weiss, J. (2011). Can Commercially-oriented Microfinance Help Meet the Millennium Development Goals? Evidence from Pakistan. World Development, 39(1), 87–109.
Nezakati, H., Ali, N. A., & Asgari, O. (2012). Market Value Coverage (4A) in Terms of Fast Food Adoption. African Journal of Business Management, 6(7), 2549–2556. https://doi.org/10.5897/AJBM11.223.
Noibi, M. A. (2014). Islamic Development Bank’s Microfinance Support Programme and the Growth of Small Scale Enterprises in Nigeria. Canadian Social Science, 10(2), 98–107. https://doi.org/10.3968/4260.
Nor, S. M., & Hashim, N. A. (2014). CSR and Sustainability Dimension in Islamic Banking in Malaysia: A Management Insight. In Proceedings of 26th International Business Conference (pp. 1–15). London, UK: Imperial College.
Papias, M. M., & Ganesan, P. (2010). Financial Services Consumption Constraints: Empirical Evidence from Rwandan Rural Households. Journal of Financial Services Marketing, 15(2), 136–159. https://doi.org/10.1057/fsm.2010.11.
Peng, C. J., Lee, K. L., & Ingersoll, G. M. (2002). An Introduction to Logistic Regression Analysis and Reporting. The Journal of Educational Research, 2(1), 3–14.
Permani, R. (2011). The Presence of Religious Organisations, Religious Attendance and Earnings: Evidence from Indonesia. The Journal of Socio-Economics, 40(3), 247–258. https://doi.org/10.1016/j.socec.2011.01.006.
Rahman, R. A., Kamarudin, M. F., Siwar, C., Ismail, A. G., Bahrom, H., & Khalid, M. M. (2013). Zakat and Microfinance (Ziauddin 1991; pp. 10–13). https://doi.org/10.7763/ipedr.
Raimi, L., Patel, A., & Adelopo, I. (2014). Corporate Social Responsibility, Waqf System and Zakat System as Faith-Based Model for Poverty Reduction. World Journal of Entrepreneurship, Management and Sustainable Development, 10(3), 228–242. https://doi.org/10.1108/WJEMSD-09-2013-0052.
Rulindo, R. (2012). Assessing the Impact of Islamic Microfinancing on Clients’ Income and Poverty Status with Reference to Clients’ Spirituality and Religiosity in Jakarta, Indonesia. IIUM.
Sakai, M. (2010). Growing Together in Partnership: Women’s Views of the Business Practices of an Islamic Savings and Credit Cooperative (Baitul Maal wat Tamwil) in Central Java. Indonesia. Women’s Studies International Forum, 33(4), 412–421. https://doi.org/10.1016/j.wsif.2010.02.015.
Salleh, A. M. H. A. P. M. (2015). Integrating Financial Inclusion and Saving Motives into Institutional Zakat Practices: A Case Study on Brunei. International Journal of Islamic and Middle Eastern Finance and Management, 8(2), 150–170. https://doi.org/10.1108/imefm-12-2013-0126.
Sergius Koku, P., & Savas, S. (2014). On Corporate Social Responsibility and Islamic Marketing. Journal of Islamic Marketing, 5(1), 33–48. https://doi.org/10.1108/JIMA-04-2013-0028.
Shaw, J. (2004). Microenterprise Occupation and Poverty Reduction in Microfinance Programs: Evidence from Sri Lanka. World Development, 32(7), 1247–1264. https://doi.org/10.1016/j.worlddev.2004.01.009.
Togba, E. L. (2012). Microfinance and Households Access to Credit: Evidence from Côte d’Ivoire. Structural Change and Economic Dynamics, 23(4), 473–486. https://doi.org/10.1016/j.strueco.2012.08.002.
Turvey, C. G., He, G., Kong, R., Ma, J., & Meagher, P. (2011). The 7 Cs of Rural Credit in China. Journal of Agribusiness in Developing and Emerging Economies, 1(2), 100–133. https://doi.org/10.1108/20440831111167146.
Tzounis, E., Kerenidi, T., Daniil, Z., Hatzoglou, C., Kotrotsiou, E., & Gourgoulianis, K. (2016). A Qualitative Content Analysis of Spirituality and Religiosity Amongst Greek COPD Patients. Religions, 7(3), 22. https://doi.org/10.3390/rel7030022.
Uner, M. M., & Gungordu, A. (2016). The New Middle Class in Turkey: A Qualitative Study in a Dynamic Economy. International Business Review. https://doi.org/10.1016/j.ibusrev.2015.11.002.
Urbina, M. (2004). An Evaluation of Microfinance as a Tool for Poverty Alleviation Case Study of SEPAS/FONCRESOL, Potosi, Bolivia. Halifax, Nova Scotia: Saint Mary’s University.
Verteramo Chiu, L. J., Khantachavana, S. V., & Turvey, C. G. (2014). Risk Rationing and the Demand for Agricultural Credit: A Comparative Investigation of Mexico and China. Agricultural Finance Review, 74(2), 248–270. https://doi.org/10.1108/afr-05-2014-0011.
Wilson, J. A. J. (2012). The New Wave of Transformational Islamic Marketing. Journal of Islamic Marketing, 3(1), 5–11. https://doi.org/10.1108/17590831211225436.
Yumna, A., & Clarke, M. (2011, December). Integrating zakat and Islamic charities with microfinance initiative in the purpose of poverty alleviation in Indonesia. In Proceeding 8th International Conference on Islamic Economics and Finance, Center for Islamic Economics and Finance, Qatar Faculty of Islamic Studies, Qatar Foundation.
Zeller, M. (1994). Determinants of Credit Rationing: A Study of Informal Lenders and Formal Credit Groups in Madagascar. World Development, 22(12), 1895–1907. https://doi.org/10.1016/0305-750X(94)90181-3.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Wulandari, P., Rabbani, M. (2019). Do Religiosity and Socio-Economic Aspects Influence Zakat and Waqf Payment?. In: Ali, K., Hassan, M., Ali, A. (eds) Revitalization of Waqf for Socio-Economic Development, Volume II. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-18449-0_14
Download citation
DOI: https://doi.org/10.1007/978-3-030-18449-0_14
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-18448-3
Online ISBN: 978-3-030-18449-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)