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Euis Amalia: Evaluating The Models of Sharia Microfinance  13

EVALUATING THE MODELS OF SHARIA MICROFINANCE 
IN INDONESIA: AN ANALYTICAL NETWORK PROCESS 

(ANP) APPROACH

Euis Amalia & Mahmudah Atiqah1

Abstract. Evaluating The Models of Sharia Microfinance in Indonesia: An 
Analytical Network Process (ANP) Approach. This study focuses on evaluating 
the performances of three sharia microfinance models, i.e. cooperative model 
represented by BMT al Fath, Grameen model represented by MBK, Ltd.co, and 
mixed model represented by Baytul Amanah Ikhtiar cooperative. ANP approach 
is used to evaluate the performances of those models from five important aspects 
(clusters) as the determiners, such as human resource, finance, management, 
sharia compliance, and marketing. The findings of this research show that the 
most important aspect (priority) among the clusters is human resource. Thus, the 
best strategy is the mixed-based; the model which integrates the cooperative system 
with grameen system. It becomes the best model inasmuch as it implements values 
of both co ownership and co responsibility, in addition to power of collectivity 
resulting in no cash collateral.

Keywords: Sharia Microfinance, Performance, ANP, Strategy

Abstrak. Evaluasi Model Keuangan Mikro Syariah di Indonesia: Suatu 
Pendekatan ANP. Fokus dari kajian ini ialah untuk melakukan evaluasi atas 
tiga model keuangan mikro syariah, yaitu model koperasi yang direpresentasikan 
oleh BMT Al-Fath, model Grameen yang direpresentasikan oleh MBK, Ltd.
co, dan model campuran yang direpresentasikan oleh koperasi Baytul Amanah 
Ikhtiar. Pendekatan ANP dipergunakan untuk evaluasi atas kinerja dalam model 
ini pada lima aspek utama yaitu sumber daya manusia, keuangan, manajemen, 
kepatuhan syariah, dan pemasaran. Temuan dari kajian ini menunjukkan bahwa 
aspek yang paling penting antar kluster ialah sumber daya manusia, dan strategi 
terbaik yang dipergunakan strategi campuran, yaitu yang mengintegrasikan 
sistem koperasi dengan sistem grameen. Hal ini menjadi model yang terbaik untuk 
diimplementasikan dalam keuangan mikro syariah.

Kata Kunci: keuangan mikro syariah, kinerja, ANP, strategi

First draft: September, 12th 2014, Revision: November, 5th 2014, Accepted: December, 5th  
2014

1 Syarif Hidayatullah State Islamic University. Jl. Ir. H. Juanda No. 95, Ciputat, South 
Tangerang, Banten, Indonesia.

euis.amalia@uinjkt.ac.id; ach.blue@gmail.com



Al-Iqtishad: Vol. VII No. 1, Januari 2015 14

Introduction

Economic activity will not be separated from human life. From the point of 
view of the jurisprudence science, economic activities not included chapter worships, 
but muamalah chapter. National economic conditions are still recovering today that 
have an impact on the difficulty or fear in the form of bank financial institutions 
for lending, especially for the development of the real sector in small land medium 
scale. Currently, the most dominating economic problem is poverty. One of the 
main causes of poverty indeveloping countries is the lack of access to productive 
capital (Todaro, 2009). Indonesian economy not only face structural imbalances 
in the acquisition of value-added and employment among sectors but also face the 
added value inequality between actors or between group scale economic activities 
and sectors (Amalia, 2008). 

Indonesia must find a way out quicly in some strategies, one of them is the 
reinforcement various aspects of the Micro sector and Small Enterprises (SMEs) 
which have important role as a major source of employment and income in 
developing countries (Arsyad, 2008). In addition to proven current global crisis 
sometimes ago, SMEs present as a solution of the system.

A healthy economy is when the industrial sector little or not at all affected by 
the global crisis sweeping the world. With this evidence, it is clear that SMEs can be 
taken into account in increasing competition in the market and stabilization of the 
existing economic systems in Indonesia. SMEs development is the main priority of 
the Government in Indonesia (Hill, 2001). Difficulty capital became a major issue 
in the developmentof SMEs. Community Under almost untouchable (underserved) 
and it is not considered to have potential funding by formal financial institutions 
like banks, so it causes an stunted economic acceleration.

One strategy in many countries have grown in overcoming the problems that 
have been focused on improving access to credit facilities with the establishment 
of a microfinance institution (MFI) that offer credit to the poor (Haryati, 2007). 
Alternative financial institutions fund agencies rooted in the midst of a society 
where the distribution process funds is done in a simple, expensive, and fast with the 
principle of alignments to small communities and fair (Lestiadi, 2008). Indonesia 
with various forms of existing MFIs, was expected by the agency can be run in 
accordance with the expectations. So any type of institutional Microsharia is still 
varieted, like legal entities and cooperatives around 30 percent are cooperatives 
or other legal entities are not even incorporated. In connection to this problem 
the authors need to do research about the model of microfinance institutions in 
Indonesia, which has opportunities to develop operations with sharia system, both 
of the financial and non-financial related to the strengthening of the role of business 
small micro.



Euis Amalia: Evaluating The Models of Sharia Microfinance  15

Literature Review

Microfinance institution is indicated by regulations, innovation, and flexibility 
designed on the basis of social environment and local economy. Microfinance 
is a phenomenon, that complicated and dynamic economic and socio-cultural 
dimensions. The definition is used by Microcredit Summit 1997 and Microcredit 
Summit in New York 2002 stated that: “programmes extend small loans to very poor 
for self employment project to generate income, allowing them to care for themselves and 
their families (Amalia, 2008). Another definition is used by The European Banking 
Federation stated that microcredit in European Banking Industries refers to small 
loans and micro entities, and small commercial customer groups (RohmatulAjija, 
2010).

Microfinance is committed to serve people ignored by formal banking sector 
“unbankable”. The development of Microfinance sector is based on the assumption 
that poor people have economic capacity to conduct their own project to get return. 
But unfortunately, they have limited access to some banking products such as saving 
accounts, credits, and insurance facilities. World bank predicts that the general 
condition of market and demands to microfinance come from households and small 
companies that unregulated operating in informal economic sector. World Bank 
predicts that potential market for micro credit around the world today is less than 
100 million customers. 

Table 1. Proportion of Size Business in Indonesia Year 2012

Category Number of SMEs (%)
Small and Micro 94%
Medium 3%
Large 3%

Source: Ministry of Cooperation and SMEs, Republic of Indonesia

Based on that data, it is clear that small medium enterprises or SMEs are 
very potential in economic world. The general condition of informal sectors are 
often described as an institution that has a limited access to capital. It is owned 
or managed by a family, which is usually small scale and no legals, is running in 
unregulated markets that is easy to escape from the market, employs tons of people 
who usually have lower education and limited skills (Edratna, 2013).

Therefore, it can be classified that SMEs are based on the number of employees, 
the rate of income, and the size of asset.  According to Hubeis (2009), SMEs are 
defined in many different ways depending on the countries and other aspects. 

In general, the Microfinance in Indonesia operates either sharia-based or 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 16

conventional-based model. The sharia-based microfinance is mostly set up in the 
form of Baitul Maal wa Tamwil (BMT) operating normaly like other Sharia banks. 
However, it is running legally under the cooperative regulation on the basis of Act 
No 25 year 1992 about cooperative rules and PP No. 9 year 1995 which rules the 
saving and credit cooperative businesses. Therefore, BMT has similar products to 
the ones that Sharia banks have. Yet it is different from the amount of financing 
that away less than the Sharia banks can provide (Baihaqi, 2000). In Some cases, 
there is another kind of BMT operating with totally pure cooperative system. All 
the cooperative terms are used for its products such as basic contribution/deposit, 
obligatory deposit, and voluntary deposit. This is of course the kind of BMT also 
runs under the same cooperative regulations. On the other hand, microfinance in 
Indonesia either conventional or sharia also can operate grameen model under a 
venture capital company legally running under No.18/PMK 010/2012. Recently, a 
brand new regulation has just been released in act No. 1 year 2013 about microfinance 
institutions.  It regulates that all microfinance models must have an operation licence 
from the Financial Services Authority, both in running with cooperative legals or 
company.  Nevertheless, the position of microfinance nowadays in Indonesia is still 
debatable depending on the interests, needs, motives, and purposes of stakeholders. 
Consequently, it is not focusing on regulation issue only. 

Shariah microfinance institutions appeared in reality as a social business model 
movement which rapidly develops in Indonesia. There are at least three models 
of this microfinance; firstly - BMT running with a cooperative model, secondly 
- microfinance institution operating with a grameen model, and thirdly - the one 
operating with both cooperative and grameen model, called mixed microfinance 
model.In practice,those three models operate with shariah principles such as fairness 
(Amalia, 2008), cooperation (Alma, 2005), transparency (Daniri, 2005), and, 
universal values such as prohibition of interest, gambling, speculation activities, and 
other harmfull activities. In operating this microfinance,those institutions are similar 
to the banks in terms of funding, financing and other kinds of services offered to 
their customers.

Table 2. The Comparison of Three Sharia Microfinace Models

No Specification
Sharia  Microfinace Models

Grameen Cooperative Mixed
1. Legals Co. ltd (PT) Cooperative Cooperative
2. Customers Financing for 

small groups of 
poor women

Financing for 
individuals 
(anyone can be a 
member)

Financing for 
small groups of 
poor women



Euis Amalia: Evaluating The Models of Sharia Microfinance  17

3. Products Profit Sharing 
Financing, No 
Saving

Saving and 
Financing 
Products (using 
Cooperative 
terminologies)

Saving and 
Financing 
Products (using 
Cooperative 
terminologies)

4. Financing 
Purposes 

Productive 
activities

Productive 
activities, 
Housing, 
Education, 
Investment, 
others

Productive 
activities, 
Housing, 
Education, 
Investment, 
others

5. Transaction 
System

Profit Sharing 
(mudharabah)

Profit Sharing 
(mudharabah-
musyarakah), 
Soft Loan 
(QardhulHasan), 
Sales &Purchaces 
(murabahah), 
Lease (Ijarah), 
the transfer of 
debt (Hiwalah)

Profit Sharing 
(mudharabah-
musyarakah), 
Soft Loan 
(QardhulHasan), 
Sales &Purchaces 
(murabahah), 
Lease (Ijarah),the 
transfer of debt 
(Hiwalah).

6. First Amount 
of Financing

Rp. 500.000 – 
Rp. 1.000.000

Rp. 300.000 – 
Rp. 500.000

Rp. 300.000 – 
Rp. 500.000

7. Mentoring No No/Yes Yes

The following are the three models of microfinance, which become the object 
of research in this paper: first, sharia microfinance as cooperative represented by 
BMT al Fath. Besides implementing the sharia principles, this model uses special 
cooperative terms for its products and management. In terms of financing, this 
model provides the credits to individuals, not groups. Second, Sharia microfinance 
operating with grameen model.This model which has been succesful in Bangladesh 
is triggered and led by Muhammad Yunuswho has won an a Nobel awards. The 
basic principle of Grameen model is financing the small groups particularly groups 
of lower-income or poor women who have the ability to conduct any productive 
economic activity. In Indonesia, PT MBK Ventura is one sample that totally adopts 
this grameen system eventhough it integrates this grameen system with sharia 
principles. Third, mixed-model microfinance is a combination between cooperative 
and grameen model. Koperasi Baytul Ikhtiar (BAIK) is a shariah microfinance 
institution which is implemented this model; on one side, it operates using the 
terms and management of cooperative. However, it also implements the financing 
program for small groups of women as it is developed by grameen system.

There are several variables that can be compared between the model of 
microfinance with grameen system, cooperative model, and mixed model, i.e. legal 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 18

aspects, target of customers, products, size of financing, operation systems or type of 
financing transaction, first amount of financing, and monitoring programs. Those 
three models have both differences and similiraties. 

Furthermore, in term of performance, any institutionshould have a 
certain standard as indicators to measure its development and sustainability. This 
study elaborates some factors that may affect the performance of a microfinance 
institution, as well as the indicators found for evaluating the models. The factors are 
human resource, finance (Robbin and Coulter, 2012), management (Robbin and 
Coulter, 2012), sharia compliance, and marketing, including both spiritual aspect 
and material aspect.

Methods

To evaluate and analyze the finding of research, Analytic Network Process 
(ANP) is used as the study approachment and measurement of some criteria (Ascarya 
and Cahyono, 2010). The approace will identify and classify three models of sharia 
microfinance into 5 clusters that each of them has 4 main aspects of category. The 
criteria of clusters are divided into human resources, finance, management, sharia 
compliance, and marketing. In human resource, there are have 4 main aspects such 
as cooperation, solidarity sharia principles knowledge and division of the obligations 
including the rights of officer and reward for the empoloyee. 

In finance cluster, there are source of fund, effiency of cost, rate of late 
payment or non-performing loan, and financing service. The third cluster is 
management which has the followingfour main aspects: first, institution; second, 
standard operating management; third, standard operating procedures; fourth, 
technology. In the cluster of Sharia Compliance, the 4 main aspects comprise 
include; collateral type of transactions regulation and product. The last cluster is 
marketing that consists of these main aspects: first, price; second, communication; 
third, assistancy of the customers; fourth, quality of the products.

Overall, the tendency of all respondents toward the problems and strategies 
found in the sharia microfinance institutions can be shown by the value of 
geometric mean. The degree of rater agreement between respondents in term of 
problems and strategies can be represented by value or score of Kendall’s Coefficient 
of Concordance (W). The result of each respondent can be found by using the 
ANP analysis software called “Superdecision”. To obtain the desired findings of 
geometric agreement from all respondents, the data are collected from respondents 
and later will at first need to beexported to the Microsoft Excel program, calculated, 
and then imported to the “Superdecision” of ANP Network. The next phase is to 



Euis Amalia: Evaluating The Models of Sharia Microfinance  19

ensure that all the results are correct by validating every single procedure. At this 
stage, the concordance of Kendall’s Coeffeciency is possible to be calculated to see 
the aggrement among respondents. Eventually, either the specific interpretation 
(individuals) or overall interpretation (geometric mean) can obviously be identified 
and concluded. 

Geometric Mean describes the priority of results from respective clusters 
and criteria or nodes. These results are in the form of the most important priority 
of others. The calculating the geometric mean is used to find out the individual 
judgment among respondents and to determine the results of group’s evaluation or 
perception (Rusydiana and Devi, 2010). The questions from respondents will be 
combined and compared to the form an agreement. Geometric Mean is an average 
scoring system showing tendencies or certain scores with the following formulation 
(Ascarya, 2012):

GMk = (R1*R2*...*Rn) 1N
GM = Geometric Mean
R = Responden
N = Number ofRespondens
After counting the geometric mean, agreement rater can be calculated. Value 

of rater agreement as a measure shows asuitable degree among respondents (R1-
Rn) toward problem in a cluster. The measure formula to get the rater agreement 
is Kendall’s Cofficient of Concordance (W; 0< W < 1). W=1. W=1 which shows 
the perfect suitability. The next step is finding rater agreements such as, transpose 
ranking counted by ordering normalized value from the biggest to the smallest and 
then to sum, to count W. If the score of appraisal W is 1 (W=1), it means that 
perception or opinion from respondents is perfect suitability. Nevertheless, when 
the score W is 0 or is closed to 0, it means that there is no suitability among the 
answers from respondents or more various answer.

Discussion

Based on the findings of research, it can be concluded that the three models 
of sharia microfinance institutions (i.e. Sharia Cooperative model, Grameen Model, 
and Mixed Model) have their own operating systems and prosedures. BMT al Fath 
and Baytul Amanah Ikhtiar with cooperative legals declare that the ownership and 
responsibility of the institution belong to all of members, while the Grameen Model 
of MBK Ventura Ltd.co with corporation legals declares that the ownership and 
responsibility of the company belong to shareholders.

The following are Geometric Mean scores of respective clusters: 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 20

Table 3. Score of Rater Agreement (W) in All of Clusters of ANP

No Cluster W (rater agreement)
1. Alternative 0.40
2. Criteria 0.32
3. Human Resource 0,612
4. Finance 0,27
5. Management 0,54
6. Sharia Compliant 0,628
7. Marketing 0,24

From the aspect of customer target, there are some differences among the 
three models of this microfinance. BMT al Fath focuses on customers individually, 
while Baytul Amanah Ikhtiar Cooperative focuses on cutomers not only in individu-
als but also in groups by providing ample financing for women who have productive 
businesses or economic activites. However, MBK Ventura Ltd.co, the third model, 
only focuses on providing some financing to the groups of women. 

Priority of supported criteria of the models sharia microfinance can be shown 
in the picture below:

Figure 1. The Priority of the Problems

From the aspect of product, both BMT al Fath and BaytulAmanah cooperative 
offer the same products like saving and financing, yet the latter has additional 
product namely Qard al Hasan or Benevolent Loan. Unlike the two previously 
mentioned models, MBK Ventura Ltd.co just provides a financing for customers’ 
businesses under profit sharing principles. In relation with financing products, 
the first two models also actually provide such services with specific purposes, for 
example housing, education, and other kinds of investment, besides basic financing. 
The similarities of all models are that all their financing products apply the sharia-



Euis Amalia: Evaluating The Models of Sharia Microfinance  21

based transactions such as profit sharing (mudaharabah and musyarakah), sales (bay’ 
murabahah), and others that embrace sharia principles. In addition, BMT Baytul 
Ikhtiar and MBK Ventura provide special assistance, guidance, or mentoring for 
their customers or members.

The highest priority assessment of each respondent on supporting existing 
criteria on aspects of human resources in accordance with the order of ranking are, 
the value of human resources geo mean 0.29; 0.24 geo mean financial value; value 
management geo mean is 0.19; sharia compliance and marketing the value of geo 
mean are the same, namely 0.12.

In total, the first priority of supported criteria is human resource aspect 
with rater agreement W= 0.27. Second, priority of criteria problems is finance, 
third is management, fourth is shariah compliance, and the fifth is the aspect of 
marketing.

Figure 2. Priority of Human Resource Problem

In human resource clusters it has priority value The highest of the assessment 
of each respondent contained on cooperation and solidarity and division of tasks in 
order to rank is, the cooperation/team work and solidarity and job description. This 
value geo mean 0.30, comprehension Islamic principles geo mean value of 0.22. 
Finally rights managers and the award geomean value of 0.17.The first supporting 
criterion is human resource. They are cooperation or team work, solidarity, job 
description according to expert and practicioners with rater agreement W= 0.612, 
in supporting priority in human resource aspect there are two similarities aspects 
about cooperation and solidarity (Chapra, 2008). The most important value of 
this rater agreement (W) is team work. It is needed for the sustainability of the 
institutions as well as the same score in the division of job. In the standardof 
operational procedures of sharia cooperative services finance models stated that the 
division of job is important to avoid double burden or double job in one division 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 22

or in one officer than others (SOP KJKS, 2012). According to the experts and 
praticioners the second priority is human resources or their employee perception 
of sharia principles. Knowing of officer of microfinance institutions should be best 
in sharia pinciples knowledge otherwise it influences the institution’s reputation 
and lack of participation of all members. In the last priority is the rights and award 
for the employees. All employees of the institutions need to receive proper wage 
or salary for their welfare and prosperity as well as important to give award for the 
officer or employee who has a good performance or achieve of the targets. This way 
can be encouraging for themselves and other persons in work and influencing for 
the creative thinking and skill in marketing strategy. 

Figure 3. Priority of Financial Aspect

On the financial aspects of the cluster mentioned that the highest priority 
value to the assessment of each respondent that is found in the service financing in 
accordance with the order of ranking. The service financing has a value geo mean 
of 0.27, the second of the ranking arrears have value geo mean 0.26, the next order 
of business efficiency with the value geo mean of 0.25, and the last of the financial 
cluster source of funds to have a value of 0.21 geo mean. The first priority criteria of 
finance in general is service of financing aspect with the rater agreement score of W= 
0.27. According to Nurmanaf, financing services such as a complex administration 
in microfinancial institutions cause of users or customers problem to get money 
soon for their business continuity (Nurmanaf, 2007). Furthermore according to the 
experts and practitioners the second priority is a number of non-performing loan or 
performing financing in sharia term. The NPL or NPF needs to reduce continuesly 
from time to time because of this in a large number make the institutions cannot 
be running well or stop the operation. The third priority is efficiency of the business 
activities. Every microfinance institution must have efficient cost including the 
reduction of expenditure. The last priority is source of fund. It is needed for the 
institutions to get fund from the external to help the healthty cash condition and 
make more products to serve for the society as well as customers (Ascarya, 2012).



Euis Amalia: Evaluating The Models of Sharia Microfinance  23

Figure 4. Priority Management Elements

In the cluster management aspects, the highest priority value to the assessment 
of each respondent is found in the standard operational procedures in accordance 
with the order of ranking, the standard operating procedure value is 0.30 geo mean, 
the second order of the operational standards of management geo mean value of 
0.27, next institutional geo mean value of 0.23, the last of the cluster management 
technology with a value of 0.19 geo mean. On the management element, the first 
priority is problem criteria which discusses the aspect of Standard of Operating 
Procedure (SOP) with rater agreement W = 0.54. Exellent and detailed SOP will 
assist an organization in operation and will be a guide in operating various policies 
and regulations related to the management of the institution, as described on the 
Standard of Operating Management (SOM) (SOP KJKS, 2012). Furthermore, 
practitioners and experts agree that the second priority is Standard of Operating 
Management (SOM). According to the SOP of Islamic financial services cooperative, 
SOM is a task structure, working procedures, management systems and standards of 
work that can be used as a guide for the management to provide good services. The 
third priority is the institution. An institution with social capital has an enormous 
influence on the environment. Hence, the institution needs to be strengthened. The 
last priority is technology. Better technology will make the operations easier and 
faster.

Figure 5. Priority elements of Sharia Compliance



Al-Iqtishad: Vol. VII No. 1, Januari 2015 24

Incompliance aspects of sharia cluster has the highest priority value to the 
assessment of each respondent that is found in the contract of financial institutions in 
accordance with the value of the priority ranking order is, on aspects of the contract 
has a value of 0.30 geo mean, the second order of the views of the product given a 
value of 0.26 geo mean, the regulation with geo mean value of 0.25, the last of the 
collateral cluster sharia compliance with geo mean value of 0.18. In complying with 
elements of sharia, the first priority is the ratio of rater agreement contract with W 
= 0.628. Every contract was made   by the Islamic microfinance institutions should 
be based on sharia. The first contract agreed will determine whether it is a sharia or 
non-Islamic sharia based transaction (Afandi, 2009). 

Figure 6. Priority Elements of Marketing

Furthermore, according to practitioners and experts of priorities, the second 
supporting element is products. The products offered by the Islamic financial 
institutions must comply with the Shariah aspects and will be supervised by a 
Shariah Supervisory Board (DPS). The third priority is regulation. A clear legal 
basis is highly important for an agency to develop and progress more easily (Amalia, 
2008). The last priority is the collateral. Angela said that the collateral is burdensome 
requirements for micro businesses. The absence of collateral in the financing will 
ease SMEs.

On the cluster marketing aspect, the highest priority value of the respondent 
is communication. It has a value of 0.27 geo mean, the second order of the views of 
the product to the customer has a value of 0.26 geo mean, the price of the product 
geo mean valueof 0.25, Last of cluster marketing the guidance to customers with 
value geo mean 0.2.1. The last element is marketing. The top priority lies in the 
aspect of communication with rater agreement W=0.24. Good communication 
between Islamic microfinance institutions and customers should be maintained. 
Furthermore, according to practitioners and experts of priorities, there is only a 



Euis Amalia: Evaluating The Models of Sharia Microfinance  25

slight difference among the priorities.The first priority is product quality that should 
always be customized by the customers’ needs. The third priority is that the price 
of the product offered must be appropriate and affordable for customers. The last 
priority is providing guidance especially for clients who have been able to sustain 
their bussinesses.  Supporting the statement, M. Asdar said that customers who 
have been recruited are not supposed to be left alone running their own businesses 
by themselves, but they must be fostered in order to keep their businesses running 
well.

If the overall opinions of experts and practitioners have rater agreement for 
0.27 on the aspect of the problem, then their opinions on the aspect of strategy, as 
a whole, have a rater agreement which is equal to W = 0.40 as shown in the figure 
below:

Figure 7. Priority Elements of Alternatives

In the alternative cluster has the highest priority value to assessment of each 
respondent is found in the model agencies Islamic microfinance namely the mixed 
model, the value corresponding priority with the order of ranking is, the mixed 
model has value geo mean 0.34, the second sequence with the Grameen model 
has value geomean 0.33, the last node on the cooperative model of sharia with 
geo mean value of 0.31. The last priority of strategyis on a model of sharia Islamic 
microfinance institutions that is cooperative-based. Gaining the rater agreement 
with W = 0.40, those three models (mixed-based, Grameen-based, andcooperative-
based) are the models of sharia microfinance institutions, that have been successfully 
implemented in Indonesia.

Priority of strategy toward thethree models of Islamic microfinance institutions 
was selected by experts and practitioners as a whole. It puts on the mixed model 
of Islamic microfinance institutions. The second priority strategy is on the model 
of Islamic microfinance institutionsthat are Grameen-based. The strategy of the 
Islamic microfinance institutions that apply mixed model is actually a fairly new 
system introduced in Indonesia. In fact, the Grameen model has existed for a long 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 26

time in community, especially in Bangladesh. For the very first time, this system was 
introduced in Bangladesh by Muhammad Yunus. According to Mahmud Toha, 
the role and effectiveness of the Grameen Bank model have their own appeal in the 
ease of the procedures and installment loans, relatively low interest rate, and last but 
not least, the convenience, attention, guidance, and marketing support given to the 
whole members (Toha, 2000). Consequently, it is more than just cooperative model 
that has long been in society and that applies the concept of cooperative savings 
and loans, and more than just the Grameen model that only applies its finance 
concept.

Microfinance becomes the most important factor in poverty reduction, 
especially in Indonesia. The number of small and micro enterprises reaches around 
99.39 %. It is very significant compared to the large and medium-sized businesses. 
From those data, it can clearly be seen that small and micro enterprises have 
an important role in the development and the growth of economy, not only in 
developing countries but also in developed countries. Many institutions provide 
microfinance services for small enterprises, not only Islamic banking but also 
followed by many non-bank Islamic financial institutions operating in the micro 
sectors. Islamic microfinance institutions based on profit and loss sharing or based 
on sharia is a reality that has been growing rapidly in Indonesia.

In support of the development of Sharia microfinance institutions, the 
presence of an appropriate model of institution is required for strengthening the 
micro sector in Indonesia. Based on the findings of research conducted with the 
approach of the Analytic Network Process (ANP) toward the practitioners and 
experts of micro enterprises, strategic prioritiesof every element have been identified, 
namely: first, mixed-based models of Sharia microfinance institutions; second, 
Grameen-based models of Islamic microfinance institution; and third, models of 
Islamic microfinance institutions in the form Sharia cooperatives. 

The findings of ANP show that the mixed-based model of Islamic microfinance 
institutions is the most appropriate model to encourage the real sector in Indonesia. 
The model integrates two systems in operation; sharia cooperative system and 
Grameensystem (group financing).

Ascarya’s research compares microfinance institutions in Indonesia to 
conventional and sharia types, concludes that the cooperative model like Baitul 
Maalwa Tamwil (BMT) is a model of Sharia microfinance institution, that can be 
a sustainable and balanced business which operates as a social institution (Ascarya 
and Cahyono, 2010). Meanwhile, the research in this paper shows that the mixed 
model of microfinance institutions embracing sharia system along with its several 
advantages is the most appropriate alternative model of microfinance institutions to 



Euis Amalia: Evaluating The Models of Sharia Microfinance  27

be applied in Indonesia, in comparisonto the Grameen model and sharia cooperative 
model.

Based on the ANP, the mixed-based model of Sharia microfinance institutions 
is encouraged by various aspects of supporting priorities.

First: Human Resources (HR). The core of rater agreement is (W) = 0.088 
with the first priority elements i.e. cooperation, solidarity, and division of tasks. 
According to experts and practitioners,human resource is the most important aspect 
in a microfinance institution because having a strong and good human resource 
will be a positive influence on the institution, and of course it is supported by good 
cooperation and solidarity among employeesBased on ANP results, in addition to 
cooperation and solidarity,the division of tasks between HR has the same level of 
priority, score of rater agreement (W) =0.612.Clear and well organized division 
of tasks is expected to be able to avoidthe human resources having multiple 
responsibilities (SOP KJKS, 2012). Human resources should be given responsibilities 
in accordance with the skills and abilities of each individual.

Second: Finance. The highest priority element that supports the financial 
aspect is financial services with rater agreement (W) = 0.048. For instance, a long-
time process of administration in a microfinance institution will also make the 
micro business doers wait for a long time to receive the financing while they are in 
need of the funds fast (Nurmanaf, 2007). Having a maximum service in providing 
financing for customers will lead to a positive value of financial institutions.

Third: Management. The highest element of priority in management aspects 
is the Standard Operating Procedures (SOP) with rater agreement score (W) 
= 0.54. Good and detailed SOP will assist an organization to operate and will a 
guidance to implement the policies and regulations related to the management 
of the institution, which contains detailed procedures outlined on the Standard 
Operations Management (SOM) (PINBUK, 2000). The Guidelines containing 
standard operating procedures within an organization are used to ensure that all 
decisions and actions, as well as the facilities used in the organization can be efficient, 
effective, consistent, standardized, and systematic.

Fourth: Sharia Compliance. The highest element of priority that supports 
sharia compliance aspects is the contract (akad) with rater agreement (W) = 0.628. 
The beginning of the contract agreed in the beginning will determine the type of 
transaction whether it is sharia and non sharia. The purpose of the contract is the 
pillar of the establishment of a contract so that once the contract is made, the goal 
is reached.

Fifth: Marketing. The aspect which has the highest supporting priority 



Al-Iqtishad: Vol. VII No. 1, Januari 2015 28

element is communication with rater agreement (W) = 0.24. Communication can 
meet the company’s goals with the outcomes to be achieved. Communication can 
function to adapt the changes in the organization as well as the external influences. 
Communication can also maintain the relationships between members of the 
organization so that they can perform the task well.

An islamic microfinance institution with BaitulMaalwatamwil model has 
two products; savings and loans. In contrast, MFIs which is Grameen-based offering 
only one product is working capital reserved just for women. On the distribution of 
funding, BMT applies a guarantee for customers who want to have the financing, in 
contrast to MBK Ventura that does not require any collateral in financing its clients. 
Instead, MBK implements joint responsibility concept to help each other among 
groups that do not have the ability to pay.

Thus, the strategic choice based on the ANP approach necessitates the 
existence of a model of Islamic microfinance institution which applies sharia aspects 
either in the collection or in the distribution of funding as applied by BMT with 
the cooperative system. Unfortunately, people still objection to BMT’s policy which 
still applies cash collateral or physical assets as the guarantee for instance, certificates 
or other sorts of securities. 

While in the Grameen system, a group its self is the warranty, which is called 
as ‘collective responsibility’, so this system never makes any type of physical assets 
as the warranty.  Facts show that Grameen system has been successful in terms 
of maximum financial returns with a minimum level of bad loans, almost 0 %. 
Islamic microfinance institutions with a mixed model will be more sustainable with 
the support of five aspects; human resource that is competent and professional, 
finance that is accessible and adequate, management which is effective and efficient, 
sharia compliance that is consistent either in the operational or in the product and 
marketing that is communicative.

Evaluations conducted on Islamic microfinance institutions Baitul Maal 
watamwil, gramen models, and mixed models based approach Analytical Network 
Process (ANP) found that Islamic microfinance institutions have decisive factors in 
the performance of the supporting activities that, in terms of evaluations conducted 
on the three models of Islamic microfinance institutions; BMT, Grameen, and mixed 
model, using the ANP approach explain that the Islamic microfinance institutions 
have decisive elements which support their performances in five important aspects or 
clusters. Every single cluster has four elements and indicators as follow: first, elements 
of human resource cluster are cooperation and solidarity, understanding of Islamic 
principles, division of duties and responsibilities, and awards. Second, elements of 
finance cluster are the source of funding, business efficiency, ranking of arrears, 



Euis Amalia: Evaluating The Models of Sharia Microfinance  29

and financing services. Third, elements of management cluster are institutional 
matter, standard operating procedures, standard of operational management, and 
technology. Fourth, elements of Sharia compliance cluster are collateral, contract 
(akad), regulation, and products. Fifth, Elements of marketing cluster are product 
pricing, communication, coaching, and product quality.

The solution in the development of models of Islamic microfinance 
institutions for strengthening the real sector in Indonesia is applying a mixed model 
in its process. Mixed model is a model of Islamic microfinance institution, which 
implements two systems i.e sharia cooperative system and Grameen system. This 
mixed model is a good strategy and has a better performance supported by five 
aspects: first, human resource a support in the area of cooperation and solidarity. 
Second, finance a support for financing services-. Third, management is a support in 
the area of standard operating procedure-. Fourth,  Shariah compliance is a support in 
the area of contracts. Fifth, marketing is a support in the area of communication.

Conclusion

Based on the foundings, it can be concluded that Islamic microfinance     
institutions with the cooperative model of sharia Baitul Maal wat tamwil, gramen 
models,and mixed models (combining cooperative model of sharia and gramen) 
have each system and procedures in operation. 

In BMT Al-Fath and BMT Baytul Legal based on cooperative endeavor 
where responsibility the company is shared. In contrast to MBK Ventura 
-foundation law based venture limited liability company- where responsibility 
fully held by shareholders. 

Evaluations were conducted on Islamic microfinance institutions Baitul 
Maalwatamwil, gramen models, and models based on the mixture approach 
Analytical Network Process (ANP) found that the agency Islamic microfinance has 
a determining factor in the performance of the supporting activities which, in terms 
of human resources has four indicators, cooperation and solidarity, understanding of 
Islamic principles, the division of duties and rights managers and awards. From the 
financial side have four indicators, namely the source of funding, business efficiency, 
ranking arrears, financing services. The deciding factor supporting performance 
the next of the management side, there are four indicators, namely, institutional, 
standard operating procedures, operational standards, management, and technology. 
Furthermore, based on adherence factor Shariah is based on indicators of collateral, 
contract, regulation and products given. Last factors supporting performance in 
terms of marketing institutions based on product price indicators, communication, 
coaching customers, and the quality of the product.



Al-Iqtishad: Vol. VII No. 1, Januari 2015 30

Solutions in the development of a shariah microfinance institutions model 
to the strengthening ofthe real sector in Indonesia, namely by applying a model 
mixing the process. Mixed model is a model agency Islamic microfinance that 
applying two systems in operation. The first system is based on sharia and second 
cooperative gramen system. Model-based Islamic microfinance institutions have 
amixture of strategies to support better performance, which is supported based on 
five aspects of the operation, namely: first, resource human strengthening of the 
cooperation and solidarity; Second, financial strengthening of the financial services; 
Third, strengthening management standard operating procedures of the institution; 
Fourth, compliance sharia of the contract; Fifth, marketing aspects are supported 
strengthening of the communication.

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