Waqf Plus Sukuk in Developing Islamic Microfinance Industry

Open Access

Abstract

The development of the microfinance as well as islamic microfinance Indonesia has been remarkable. It gains many attention by policy makers as well as academicians in many occasions. Topic that was discussed ranged from the past performance, current obstacle as wes as the problem, solution and the opportunity in the future (Hamad 2010, Bank Indonesia 2009,2010). The role of this microfinance gain more important during the recent financial crisis. The subprime mortgage occured in 2008 has affected many countries in the worlds. In Indonesia the effect can be seen from the stock market. Jakarta Composite Index (JCI) shows 2721.25 in January 2008 while it plunged to 1241.54 in October 2008. Companies which the operations is exposing themselves to the exchange rate were obviously got affected since the plunge of the stock market induce investors not to continue their investments in Indonesia. As a result ''fligh to quality" happened and this create fluctuation of the exchange rate. However, other sector such as microfinance does not seem to be affected.