Universitas Islam Negeri Alauddin Makassar Proceedings, The 2nd International Conference on Science and Islamic Studies (ICOSIS-2024)

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THE MOVEMENT OF THE MUHARJAM SAVINGS, LOANS AND SHARIA FINANCING COOPERATIVE (KSPPS) AGAINST USURY PRACTICES IN ENHANCING THE PEOPLE'S ECONOMY BASED ON ISLAMIC ECONOMY
Abd. Rizal, Muslimin Kara, Amiruddin K., Rahmawati Muin

Last modified: 2025-02-10

Abstract


This study examines the movement carried out by the Muharjam Sharia Savings and Loan Cooperative (KSPPS) against usury practices in an effort to enhance the people's economy based on Islamic economics. The objective of this study is to understand how KSPPS Muharjam plays a role in promoting interest-free financing alternatives and its impact on enhancing the welfare of the community. This study uses a qualitative approach with a case study method, collecting data through observation, documentation and in-depth interviews with cooperative managers, members, and beneficiaries. The findings show that KSPPS Muharjam has successfully implemented Islamic economic principles, such as interest-free financing and profit-sharing systems, which have had a positive impact on community economic empowerment, particularly in the micro and small business sectors. Additionally, this movement has helped reduce dependence on usury-based financing systems that harm the marginalized communities. This study is expected to contribute to the development of a people's economy based on principles of justice, welfare, and sustainability in accordance with the values of Islamic economics.

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