The Strategy of Micro Waqf Banks for Job Creation on Micro-Scale Enterprises in Indonesia

Abstract

Indonesia is a Muslim-majority country with a middle-high level of economic growth supported by micro-scale enterprises. The initiative of the financial services authority to establish and supervise micro waqf banks aimed at channelling micro business financing originating from Islamic social finance is expected to open up business and employment opportunities. This research is essential to ensure micro waqf bank customers develop businesses that require new job creation due to financing their businesses managing. Research contribution for micro waqf banks uses the job creation strategy by developing micro-scale enterprises. The difference in this study regarding the previous micro waqf bank is a job creation strategy for customers in micro-scale enterprises. The research aims to determine the strategy of micro waqf banks for job creation in micro-scale enterprises in Banten Province, Indonesia. The research method uses qualitative and quantitative with a descriptive approach. Primary data sources were obtained from managers and heads of weekly halaqah (halmi) micro waqf banks with interviews by purposive sampling and secondary data from the literature. In contrast, data analysis used the Strength, Weakness, Opportunity, and Threat (SWOT) technique analysis. Research has found that increasing new customers for micro waqf banks is accompanied by an increase in business financing every year, so there is potential for developing new businesses and the need for additional workers in the informal sector. The SWOT analysis calculations show the Internal Factor Evaluation (IFE) score of 1.725 strengths and 1.530 weaknesses during the External Factor Evaluation (EFE) score of 2.213 opportunities and 1.244 threats. Hence, utilising Strength and Opportunity (SO) is the strategic priority. The research implications use the strengths and opportunities that bind to micro waqf banks for job-creating opportunities.