Determinants of Community Decisions To Lend Money To Loaners
Keywords:Community, Financial institution, Moneylenders, Access to finance
Purpose: To meet the needs of the public, the government has provided an official financial institution, which is subject to a certain series of administrations with all the calculations. The problem is that not all community members understand access to finance at these financial institutions. There are Islamic banking, BMT, and Sharia KSPPS, but in borrowing money they choose moneylenders. This problem is influenced by the ease of borrowing money from moneylenders, which are more flexible and the method of payment can be adjusted according to a special agreement between the customer and the moneylender. Disbursement of funds that can be done at any time according to the time needed, without being bound by conditions that are considered complicated by the customer. As a form of compensation, the interest charged by moneylenders is high and burdensome for the borrower. The risk of high-interest rates is often not taken into account by the borrower.
Design/Methodology/Approach: The method for developing public financial literacy is what the moneylender's practice as the object of observation. To be realized as an effort for educational methods is to conduct an analysis of moneylenders in the community and explore how people depend on moneylenders, evaluate financial behavior in the community, deconstruct financial behavior and re-conceptualize public financial behavior.
Findings: Socialization and acceleration of the marketing of financial products from the BMT, or official government financial institutions need to be carried out to prevent the level of community dependence on moneylenders, including by expanding financial literacy in the community, establishing management education methods, and implementing finance that is more inclusive in the community.
Research, Practical & Social Implications: The necessities of life for each individual in the community will certainly not be the same, to be able to fulfill the purpose of these needs it is financed by the availability of funds or financial means. There are members of the community who are relatively able to meet their financing needs, but not a few of the community have not met their needs.
Originality/Value: This study seeks to help the government and society in Indonesia to have a good education in terms of financial literacy, people need information and knowledge that currently in Indonesia there are many formal and legal financial institutions to help financial problems faced by people in Indonesia. Indonesian people are no longer just dependent on moneylenders or illegal financial institutions, which will instead trap them into new financial problems.
Alam, Dewi Permata Sari, Boby Habibi. (2020). Penyuluhan Etika Hutang Piutang Dalam Islam Di Dusun Bendosari Kabupaten Sukoharjo. Amaliah: Jurnal Pengabdian Kepada Masyarakat, 1–13.
Amin, Nur Afiqah Md, Ariffin, Noraini Mohd, & Fatima, A. H. (2021). Shariah disclosure practices in Malaysian islamic banks using the Shariah disclosure index. International Journal of Islamic Economics and Finance (IJIEF), 4(SI), 63–86.
Andiyan, A, & Alfarizi, Abdul Gani. (2022). Application of green architecture concepts in Wanakota apartments. AIP Conference Proceedings, 2453(1), 20073. AIP Publishing LLC.
Andiyan, Andiyan, Raka, I. Made, Rosyidah, Masayu, Salayanti, Santi, Cakranegara, Pandu Adi, & Nuraini, Rini. (2022). Modular Operating Theater (MOT) Based Integration System in Hospital Operating Rooms. Journal of Population Therapeutics and Clinical Pharmacology, 29(02).
Cahyasari, Cahyasari. (2019). Consumption Behavior, Financial Literature And Lifestyle Of Housewives. SWCU Journal, 1–6.
Cardiah, Tita, Andiyan, Andiyan, & Rahma, Amelinda. (2021). Implementation of Health Protocols at Mosques during the Covid-19 Pandemic in the city of Bukittinggi. Review Of International Geographical Education, 11(5), 3765–3771. https://doi.org/10.48047/rigeo.11.05.260
Drasmawita, Fitri. (2020). Customer Liberation From Loanners Case Study Of Baitul Maal Wa Tamwil (BMT) Almaun Berkah Madani. Journal of Theoretical and Applied Islamic Economics, 35.
Fathurrahman, Ayif. (2020). The determinants of the dependence of traditional Muslim traders on loan sharks in the traditional markets of Bantul, DIY. Al Urban Islamic Economics Journal, 141–152.
Fitriyanto, Fitriyanto. (2018). Procedure For Provision Of Financing In BMT Amal Mulia. IAIN Salatiga.
Ginda, Ginda. (2020). Koperasi Majelis Taklim Dalam Pemberdayaan Komunitas Muslimah Sebagai Pemutus Mata Rantai Rentenir Di Perumahan Sederhana Tampan. Jurnal Masyarakat Madani, 44–60.
Hakim, Hakim. (2018). The Influence of Understanding Riba and Religiosity on the Decision to Choose a Sharia Bank in Surakarta. Journal of Islamic Banking, 1–9.
Ida, Ida. (2021). Aspek Hukum Bank Plecit Dan Permasalahannya. JurnalAlam, Dewi Permata Sari, 608–615.
Indah, Fenita Purnama Sari, Cardiah, Tita, Rahmat, Azwar, Sulandjari, Kuswarini, Andiyan, Andiyan, & Hendayani, Nenden. (2022). Effect of Community-Based Total sanitation Program with diarrhea Incidents in toddler at communities near rivers. Materials Today: Proceedings.
K, Deni Danial. (2019). Realization Of Community Financial Literature And Local Wisdom: A Case Study Of Financial Inclusion In Teluk Jambe Village, Karawang West Java. Journal of Applied Humanities, 11.
Kusnandar, Kusnandar, & Kurniawan, Kurniawan. (2018). Financial Literacy and Housewife Lifestyles in Shaping Family Financial Behavior in Tasikmalaya City. National Seminar on Sustainable Competitive Advantage (SCA), 1–13.
Laode, Herdjiono, & Martanti, Martanti. (2018). Financial Behavior of Villagers in Merauke. Muara Journal of Economics and Business Sciences, 95.
Ma’zumi, Ma’zumi. (2017). Influence Of Religiusity On The Economic Behavior Of Traditional Market Communities (Empirical Study On Traditional Market Communities In Serang City, Banten Province). Al QALAM, 25–46.
Mahfiroh, Mahfiroh. (n.d.). Time Value Of Money Concept In Islamic Economic View.
Mardahleni, Mardahleni. (2020). The Influence of Financial Knowledge and Personality on Financial Management Behavior (Study on Households in Nagari Preparation for North Anam Koto, Kinali District, West Pasaman Regency). Journal of Economic Appreciation, 511–520.
Marlina, Chairunnisa. (2020). The Role of KSPPS BMT Bahtera Pekalongan in Minimizing Traders’ Dependence on Moneylenders Through Murabahah Financing. Jurnal Serambi, 63–74.
Marlina, Chairunnissa. (2021). The Effect of Financial Knowledge and Attitudes on Financial Behavior Among Housewives. Journal of Research and Management Studies, 213–222.
Masruroh, Binti, & Haryono, Bagus. (n.d.). Income, With Consumption Behavior Of Housewives In Kebonagung Village, Wonodadi Blitar. Jurnal Analisa Sosiologi, 11(1).
Meilita, Meilita. (2019). Effectiveness Of The Sharia Financial Literature Movement In Educing The Community To Understand Sharia Financial Products. Journal of Sharia Banking, 31–44.
Mokodenseho, Mokodenseho. (2022). Socio-Economic Relations And Power Between Moneylenders And Traditional Market Traders In Central Java. Journal of Politics, 19.
Mufarridah, Mufarridah. (2020). Factors Of Selecting Loans To Financial Institutions And Loaners By Muslim Traders. Journal of Sigma MU, 75–90.
Muheramtohadi, Muheramtohadi. (n.d.). The Role of Islamic Financial Institutions in Empowering MSMEs in Indonesia.
Nanda, Teuku Syifa Fadriza. (2018). Levels Of Sharia Financial Literacy: Study On Communities In Banda Aceh City. IHBIZ: Global Journal of Islamic Banking and Finance, 141–152.
Novida, Novida. (2020). Factors Affecting Society Related to Moneylendersv. Aghniya Journal of Islamic Economics.
Nurohmat, Nurohmat. (2021). Determinants of Financial Management Behavior in Kajoran District, Magelang Regency. ECONBANK: Journal of Economics and Banking, 53–69.
Pratiwi, Prajawati, & S, And. (2015). Loan Loans and Friendship. Journal of Samudra Ekonomi and Bisnis, 15.
Rahayani, Rahayani, & Tambusai, Tambusai. (2021). Factors Influencing Business Actors in Dealing with Moneylenders in the Tumenggungan Market, Kebumen. Journal of Education Tambusai, 6405–6414.
Rinda, Rinda, & Aminda, Aminda. (2020). Behavior of Moneylenders and Socio-Economic Activities: A Case Study in Bogor. Jurnal Samudra Ekonomi and Bisnis, 49–94.
Rohmah, Rohmah. (n.d.). Comparative Study of the Concept of Money in Conventional Economics and Islamic Economics. ADILLA : Journal of Islamic Economics, 78-- 95.
Romadoni, Romadoni. (2020). The Functions of Islamic Microfinance Institutions in Encouraging Inclusive Finance and the Real Sector (Bmt Nu East Java in Sumenep). Journal of Islamic Economics, 814.
Rosyidah, Masayu, Andiyan, Andiyan, Listyorini, Haniek, Prayitno, Pranoto Hadi, Yuswardi, Yuswardi, & Yuhanah, Yuhanah. (2022). LCA methodology for detecting environmental impacts on natural gas drilling process. IOP Conference Series: Earth and Environmental Science, 1041(1), 12035. https://doi.org/10.1088/1755-1315/1041/1/012035
Rosyidah, Masayu, Khoirunnisa, Ninin, Rofiatin, Umi, Asnah, Asnah, Andiyan, Andiyan, & Sari, Dyana. (2022). Measurement of key performance indicator Green Supply Chain Management (GSCM) in palm industry with green SCOR model. Materials Today: Proceedings.
Safira, Safira. (2020). Role Of Social Capital As A Mediator Of Financial Literature And Financial Inclusion In Padang City. Jurnal Mitra Manajemen, 1578–159.
Sari, Sari, & Wiyanto, Wiyanto. (2020). The Influence of Financial Knowledge, Financial Behavior, and Income Towards Financial Satisfaction. Journal of Management and Entrepreneurship, 880.
Setiawan, Setiawan. (2020). Financial Literacy of Micro, Small and Medium Enterprises, SMEs in Palembang City. Journal of Abdimas Mandiri, 70–77.
Setiyowati, Eppy, Agustina, Ayuda N., Yuddha, Ayi S., Muchtar, Muchtar, Fatmawati, Endang, & Andiyan, Andiyan. (2022). Self-Management To Change Of Perception And Clinical And Pharmacological Knowledge Of Covid 19. Journal of Pharmaceutical Negative Results, 13(2), 1.
Siboro, Ilas. (2015). Analysis Of The Function Of Interest Loans In The Rokan Hilir Community, Bagan Sinembah District, Bagan Batu Village. 7.
Siboro, Ilas Korwadi. (2015). Loan Tenir (Analysis Of The Function Of Interest Loans In The Rokan Hilir Community, Bagan Sinembah Village Bagan Batu).
Siitepu, Siitepu. (2020). Fenomena Rentenir : Studi Eksploratori Di Kabupaten Bekasi Dan Sekitarnya. SOSIO KONSEPSIA, 55–73.
Suhardi, Suhardi. (2019). Meningkatkan Keterampilan Berpikir , Me- Manage Keuangan Pada Masyarakat Pesisir Pulau Setokok. Jurnal Pengabdian Masyarakat, 8.
Sulandjari, Kuswarini, Putra, Adi, Sulaminingsih, Sulaminingsih, Adi Cakranegara, Pandu, Yusroni, Nanang, & Andiyan, Andiyan. (2022). Agricultural extension in the context of the Covid-19 pandemic: Issues and challenges in the field. Caspian Journal of Environmental Sciences, 20(1), 137–143. https://doi.org/10.22124/cjes.2022.5408
Supiani, Supiani. (2020). Description Study Of Opportunistic Behavior In Village Financial Management. Journal of Accounting and Financial Studies, 69–80.
Susiana, Rini. (2018). Consumptive Behavior of the Tambaklorok Community, Tanjung Mas Village, North Semarang District, Semarang City. Sabda, 59–67.
Susilowati, Ponpon Sri. (2018). Study of the Dominant Factors Influencing Community Decisions on Credit Making for Moneylenders in Wargamekar Baleendah Village. Journal of Samudra Ekonomi and Bisnis.
Tampubolon, Tampubolon, & Rahmadani, Rahmadani. (2020). The Influence of Financial Knowledge, Financial Attitudes and Personality on Financial Management Behavior on MSME Actors in Air Putih Subdistrict, Batubara Regency. Ambitek Journal, 70–79.
Uswatun, Uswatun. (2018). Determinants Of Financial Level Of Women Msme Activities In The Tanjung Market, Jember Regency. Journal of UMJ, 14.
Wahyuni, Rika, Irfani, Hadi, Syahrina, Isna Asyri, & Mariana, Rina. (2019). Influence Of Lifestyle And Financial Literature On Consumption Behavior Of Online Shopping On Housewives In Lubuk Begalung District, Padang City. Jurnal Benefita, 4(3), 548–559.
Wardah, Dwi Martha Marwatul. (2020). Phenomenon Of Community Lifestyle In The Era Of Online Shopping. Social Sciences and Humanities, 55–62.
How to Cite
Copyright (c) 2022 Fatmawati Sungkawaningrum, Sri Hartono, Mohammad H. Holle, Willson Gustiawan, Eka Siskawati, Niswatun Hasanah, Andiyan Andiyan
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html