Author
Assoc Prof Nun Harrieti
Organisation/Institution
Faculty of Law, Universitas Padjadjaran
Country
INDONESIA
Panel
Banking and Finance
Title
The Strategic Role of the Social Function of Sharia Banking in Empowering Rural Communities: Opportunities and Challenges
Abstract
One of the efforts to address the social gap between rural and urban communities is through the empowerment of rural communities, which is one of the duties of the village head as the village government organization. Rural community empowerment is an effort to develop the independence and welfare of rural communities through the utilization of village resources. In reality, as potential assets that can be optimized, the utilization of village resources requires funding for their development and management. The funds are sourced from Village Revenue, which can come from grants or cooperation with third parties. Sharia banking, as a financial institution with a strategic role in the economy and development, carries a social function to collect social funds from the community, including their distribution and management. It is interesting to do a research regarding the strategic role of the social function of sharia banking in empowering rural communities in order to promote equitable development and improve the welfare of the people. This research engaging a normative juridical approach with descriptive-analytical specification. The strategic role of the social function of sharia banking in empowering rural communities for equitable development and improving the welfare of the people is through the distribution of collected grant funds to help increase the village's income, which is allocated to implement strategic programs for rural community empowerment and also can be through the management of cash waqf, which is utilized to build infrastructure for the development of village potential that is considered promising for rural community empowerment. Political will from the government is required to optimize the social function of sharia banking for rural community empowerment, along with the need for a regulatory framework that governs the accountability of village governments in receiving these social funds to minimize fund misappropriation.
Biography
Dr. Nun Harrieti, S.H., M.H. is an associate professor at Faculty of Law, Universitas Padjadjaran, Bandung, Indonesia. Started undergraduate studies in the Law Program at the Faculty of Law, Universitas Padjadjaran in 2003 and graduated in 2007. Worked as a junior associate at ANG Law Firm Jakarta before pursuing a master's degree in the Business Law program at Universitas Padjadjaran, graduating in 2009. Worked as a lecturer at the Faculty of Law, Universitas Padjadjaran since 2009 and do the doctoral degree at the same university in 2020. Currently, teach various courses in the Department of Economic Law, including Sharia Economic Law, Banking Law, Security Law, Investment and Capital Market Law, with a research focus on Sharia Banking Law and Sharia Economic Law. Actively writing various articles published in academic journals at both national and international levels, the most recent scholarly article titled "The Role of Sharia Banking in Strengthening the Assets of Village-Owned Enterprises in Indonesia," published in Cogent Social Sciences Journal, 2024. In 2015, served as the secretary of the civil law division, and currently hold the position of Chief Editor for the Bina Mulia Hukum Journal.
