The actualization of economic fiqh in empowering the small traders to challenge Asean economic community

Khasanah, Umrotul (2021) The actualization of economic fiqh in empowering the small traders to challenge Asean economic community. Jurisdictie, 12 (1). pp. 123-144. ISSN 2086-7549, 2528-3383

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Abstract

The small traders in traditional markets have become a unique phenomenon. In actualizing the Fiqh of Economy, they should be empowered. However, in socio-economic facts, small traders often face difficulties in obtaining fund assistance from formal financial institutions. This qualitative study reveals the role of the Economic Fiqh actualization in empowering small traders in the era of ASEAN Economic Community (AEC). They still face the classic problem i.e. limited access to capital. The credit distribution from conventional financial institutions should have been accessible for small traders to increase capital. However, in fact, it is not that easy due to lack of collateral and less elastic administrative management. Interestingly, amid the unfortunate situation, Sharia Microfinance Institutions (SMI) provide capital access for small traders. SMI transforms the existing system by providing easy access without collateral and elastic administration. Since 2015, Indonesia has entered the AEC committed to realizing economic equality in the ASEAN region by prioritizing the Micro, Small and Medium Enterprises (MSMEs) sector. With easy access to capital, it will encourage people’s welfare and increase the economic growth of the community.

Item Type:	Journal Article
Keywords:	economic fiqh; actualization and economic empowerment
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140299 Applied Economics not elsewhere classified
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Mufid Mufid
Date Deposited:	03 Aug 2021 11:00

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