Islamic Microfinance Institutions: The Determinants of Performance in Indonesia

ZAIED Maher | Maktouf Samir

Abstract: After that, we are particularly interested in the impact of a set of factors related to portfolio quality, financial structure, non-performing financing, and certain characteristics specific to the 11 IMFIs on their financial performance, on the one hand, and on their social performance, on the other. We used panel data from a sample of 11 Indonesian Islamic rural IMFIs over a five-year quarterly period, 2011-2015. Furthermore, the estimation of the different regressions shows that the factors that have a positive impact on the financial performance of IMFIs are the total assets, the zakat, FDR as well as personal expenses while the factor that has a negative impact on this performance is non-performing financing. Next, the factors that have a positive impact on the scope of the scope are the total assets, the zakat, FDR as well as the personal expenses. This performance is negatively affected by non-performing financing. Finally, the degree of reach is positively affected by the active total of IMFIs.

Keywords: Microfinance Institutions, Islamic finance, , Poverty, financial performance, social performance, zakat, Indonesia

Edition: Volume 9 Issue 1, January 2020,

Pages: 1751 - 1759