Green Finance Based Access to Financing in Islamic Microfinance: A Case Study of the UMi AMBO Program in Padang

Authors

  • Seppi Mustion Universitas Islam Negeri Imam Bonjol Padang
  • Aulia Ikhwani Universitas Islam Negeri Imam Bonjol Padang
  • Natasya Amelia Wulandari Universitas Islam Negeri Imam Bonjol Padang
  • Hulwati Universitas Islam Negeri Imam Bonjol Padang
  • Ahmad Wira Universitas Islam Negeri Imam Bonjol Padang

DOI:

https://doi.org/10.24252/lamaisyir.v12i1.57269

Keywords:

Accsess to Financing, Green Finance, MsmES

Abstract

This study aims to analyze access to financing based on green finance, using a case study of the UMi AMBO program. The research employs a qualitative approach, collecting data through interviews, observations, and documentation.  The implementation of green finance program in Padang not only enhances access to financing for micro enterprises but also encourages environmentally friendly business practices. This requires simplification of procedures, improvement in banking service quality, and strengthening of the capacity of micro, small, and medium enterprises. The UMi AMBO financing program has proven effective in supporting microenterprise development and promoting financial inclusion for small business actors. Innovations in the application of green finance-based financing and enhancement of mentoring programs for beneficiaries are necessary. If managed properly, the ultra micro financing can serve as a model for other financial institutions to implement green finance, eliminate predatory lending practices, and empower MSMEs to grow sustainably. It can be concluded that the program is also based on the principles of Islamic economics, such as ‘adl), balance (tawazun), prohibition of usury (riba), social responsibility (maslahah), and profit-and-loss sharing mechanisms. These principles ensure that financing is conducted ethically and sustainably, in alignment with Islamic values and the goals of sustainable economic development.

References

Abd Rahman, A., Asrarhaghighi, E., & Ab Rahman, S. (2015). Consumers and Halal Cosmetic Products: Knowledge, Religiosity, Attitude and Intention. Journal of Islamic Marketing, 6(1), 148–163. https://doi.org/10.1108/JIMA-09-2013-0068

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T

Alkhasawneh, A. H. M. (2015). Consumer Behavior in Islam. In Islamic Perspectives on Marketing and Consumer Behavior (pp. 20–39). IGI Global. https://doi.org/10.4018/978-1-4666-8139-2.ch002

Amin, H., Abdul Rahman, A. R., Abdul Razak, D., & Rizal, H. (2017). Consumer attitude and preference in the Islamic mortgage sector: a study of Malaysian consumers. Management Research Review, 40(1), 95–115. https://doi.org/10.1108/MRR-07-2015-0159

Bandura, A. (1989). Human agency in social cognitive theory. American Psychologist, 44(9), 1175–1184. https://doi.org/10.1037/0003-066X.44.9.1175

Becker, J. M., Cheah, J. H., Gholamzade, R., Ringle, C. M., & Sarstedt, M. (2023). PLS-SEM’s most wanted guidance. In International Journal of Contemporary Hospitality Management (Vol. 35, Issue 1, pp. 321–346). Emerald Publishing. https://doi.org/10.1108/IJCHM-04-2022-0474

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–336). Lawrence Erlbaum Associates. https://doi.org/10.4324/9781410604385-10

Dharma, Y., Puteh, A., Widodo, R., Alfaqih, L., & Yahya, A. (2024). The Influence of Financial Literacy and Islamic Business Ethics on Investment in Islamic Financial Instruments: The Mediating Role of Risk Attitude and the Moderating Role of Religious Knowledge. Journal of Ecohumanism, 3(8), 264–282. https://doi.org/10.62754/joe.v3i8.4729

DinarStandard. (2023). State of the Global Islamic Economy Report 2023. Dubai Department of Economy and Tourism. https://www.salaamgateway.com/specialcoverage/SGIE2023

Fahm, A. G. O. (2019). Islam, sustainable consumption, and consumers’ motivations in Nigeria. In Global Food Politics and Approaches to Sustainable Consumption: Emerging Research and Opportunities (pp. 201–220). IGI Global. https://doi.org/10.4018/978-1-7998-0125-2.ch010

Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104

Furqani, H. (2017). Consumption and Morality: Principles and Behavioral Framework in Islamic Economics. Journal of King Abdulaziz University: Islamic Economics, 30, 89–102. https://doi.org/10.4197/Islec

Hair, Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Springer International Publishing. https://doi.org/10.1007/978-3-030-80519-7

Hair, J., & Alamer, A. (2022). Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3). https://doi.org/10.1016/j.rmal.2022.100027

Jamshed, K. M., & Uluyol, B. (2024). What drives to adopt Islamic banking products and services: is it shariah compliance or convenience? Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-08-2023-0243

Junaidi, J. (2021). The Awareness and Attitude of Muslim Consumer Preference: The Role of Religiosity. Journal of Islamic Accounting and Business Research, 12(6), 919–938. https://doi.org/10.1108/JIABR-08-2020-0250

Kamiyama, H., & Kashiwagi, K. (2019). Factors affecting customers’ continued intentions to use Islamic banks. Journal of Financial Services Marketing, 24(3–4), 59–68. https://doi.org/10.1057/s41264-019-00066-5

Lajuni, N., Kasuma, J., & Yacob, Y. (2020). Islamic financial products/services and the intention to use. Malaysian Journal of Consumer and Family Economics, 24, 153–166. Retrieved from https://www.researchgate.net/publication/344475549

Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5

Marzuki, M., & Nurdin, N. (2020). The influence of halal product expectation, social environment, and fiqih knowledge on intention to use shariah financial technology products. International Journal of Innovation, Creativity and Change, 13(1), 171–193. Retrieved from https://www.ijicc.net/index.php/volume-13-2020/213-vol-13-iss-1

Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). McGraw-Hill.

Razak, S., Abdullah, I., Raking, J., & Nuzul, A. (2023). Mediating role of socio-religious behavior on consumption pattern changes of middle-class Muslims: An analysis using SEM. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2022.2163798

Sarstedt, M., Ringle, C. M., Cheah, J. H., Ting, H., Moisescu, O. I., & Radomir, L. (2020). Structural model robustness checks in PLS-SEM. Tourism Economics, 26(4), 531–554. https://doi.org/10.1177/1354816618823921

Septiani, D., & Ridlwan, A. A. (2020). The Effects of Halal Certification and Halal Awareness on Purchase Intention of Halal Food Products in Indonesia. Indonesian Journal of Halal Research, 2(2), 55–60. https://doi.org/10.5575/ijhar.v2i2.6657

Shaikh, S. A., Ismail, M. A., Ismail, A. G., Shahimi, S., & Mohd Shafiai, M. H. (2018). Intertemporal consumption behaviour in OIC countries. International Journal of Islamic and Middle Eastern Finance and Management, 11(4), 529–552. https://doi.org/10.1108/IMEFM-06-2017-0160

Wardana, W. (2024). The Potential Development of the Islamic Capital Market in Indonesia as an Investment Destination for the Young Generation. Jurnal Ekonomi Syariah, 1(1), 2024. https://doi.org/10.35905/taswiq.v1i1.10711

Warsame, M. H., & Ireri, E. M. (2016). Does the theory of planned behaviour (TPB) matter in Sukuk investment decisions? Journal of Behavioral and Experimental Finance, 12, 93–100. https://doi.org/10.1016/j.jbef.2016.10.002

Wijaya, H. R., Hati, S. R. H., Ekaputra, I. A., & Kassim, S. (2024). The impact of religiosity and financial literacy on financial management behavior and well-being among Indonesian Muslims. Humanities and Social Sciences Communications, 11(1), 830. https://doi.org/10.1057/s41599-024-03309-6

Zulfaka, A., & Kassim, S. (2023). Roles of Islamic Financial Literacy on Financial Decision-Making: Building a Conceptual Framework Based on the Theory of Planned Behavior and Social Cognitive Theory. Islamic Sustainable Finance, Law and Innovation, 255–266. https://doi.org/10.1007/978-3-031-27860-0_23

Downloads

Published

2025-06-29

How to Cite

Seppi Mustion, Aulia Ikhwani, Natasya Amelia Wulandari, Hulwati, & Ahmad Wira. (2025). Green Finance Based Access to Financing in Islamic Microfinance: A Case Study of the UMi AMBO Program in Padang . LAA MAISYIR : Jurnal Ekonomi Islam, 12(1), 117–141. https://doi.org/10.24252/lamaisyir.v12i1.57269

Issue

Vol. 12 No. 1 (2025)

Section

Artikel

License

Copyright (c) 2025 Seppi Mustion MUSTION

Creative Commons License

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

By submitting your manuscript to our journal, you are following Copyright and License.