A sharia economic collaboration model and its positive impact on developing of poor villages: A study in Indonesia


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The economic development of villages has a substantial impact on community welfare. It can become the backbone of the national economy. However, significant obstacles in village development are lack of human resources (HR), high poverty rates, poor common welfare, justice, and prosperity values. In 2022, in Indonesia there are 9584 underdeveloped villages. Some of the causes of the weak economic condition of a village are economic potential was not optimized, and excessive government interference stifled creativity and independence. This study seeks to explore the extent of the positive impact of the sharia economic implementation model in developing the village’s economy and the model’s potential as an alternative solution to building the economy of poor villages. This paper used descriptive qualitative methods, observations, and interviews with community leaders, community representatives, and the regency office. The results show that the economic development strategies carried out by Gerdu Village had three stages, namely (1) education and cooperation, (2) implementation and management, and (3) evaluation and planning. In addition, the internal driving factor behind the success of the village’s development lies in the activeness of village leaders in implementing sharia economics. As for cooperation with external parties, National Zakat Institution, related local department government, and other institutions around the village have also actively assisted in its development. Positive impacts on the community include increased employment opportunities, income, tourist visits, and tourism and language village programs. This study is expected to be one of the references to explain the Islamic economy’s role in advancing the poor village’s economy.

We would like to express our utmost gratitude to the Department of Sharia Economic Law Study Program, Universitas Muhammadiyah Surakarta and the Department of Islamic Economics, Universitas Airlangga for supporting this study and its publication process.

view full abstract hide full abstract
    • Figure 1. The cooperative relationship of all parties in developing Gerdu Village
    • Table 1. List of key informants
    • Table 2. List of informants related to the implementation model
    • Table 3. Implementation of sharia economics in Gerdu Village
    • Table 4. The positive impact of sharia economic implementation in Gerdu Village
    • Table 5. Evaluation and planning of the sharia economic implementation
    • Conceptualization
      Azhar Alam
    • Data curation
      Azhar Alam
    • Formal Analysis
      Azhar Alam
    • Funding acquisition
      Azhar Alam, Fauzul Hanif Noor Athief
    • Investigation
      Azhar Alam, Boby Habibi
    • Methodology
      Azhar Alam, Boby Habibi
    • Project administration
      Azhar Alam, Ririn Tri Ratnasari
    • Resources
      Azhar Alam, Ririn Tri Ratnasari, Boby Habibi
    • Supervision
      Azhar Alam, Ririn Tri Ratnasari, Fauzul Hanif Noor Athief
    • Writing – original draft
      Azhar Alam, Ririn Tri Ratnasari, Boby Habibi
    • Writing – review & editing
      Azhar Alam, Ririn Tri Ratnasari, Boby Habibi
    • Software
      Boby Habibi, Fauzul Hanif Noor Athief
    • Validation
      Fauzul Hanif Noor Athief
    • Visualization
      Fauzul Hanif Noor Athief