Increasing the Existence of Sharia Cooperatives, UB Students Study About Takaful Integration

UB students research strategies to strengthen the existence of sharia cooperatives through the takaful integration or sharia insurance

Five students from the Faculty of Economics and Business, Universitas Brawijaya (FEB UB) conducted research aimed at initiating a strategy to strengthen the existence of sharia cooperatives through the integration of takaful or sharia insurance. They are Dhaifullah Rahim Hudaya (Islamic Economics), Pipit Amanda (Islamic Economics), Hannan Yahya Abdillah (Management), Faza Maulidiyah Putri (Management), and Khairul Insan Tadzkirul Alam (Islamic Economics).

This is motivated by the lack of community participation in using sharia cooperative products and services. The number of active sharia cooperatives in Indonesia by 2022 will reach 3,912 units or an increase of 1.58 percent from the previous year. However, this number still shows an imbalance with conventional cooperatives, which amount to 130,354 units.

“In general, people still underestimate sharia cooperatives and tend to use conventional cooperatives because of the lack of product diversification, so there is an opinion that the two types of cooperatives have the same products. In fact, the presence of sharia cooperatives should be a characteristic of the Indonesian nation considering that the majority of the population is Muslim, reaching 240 million people or the equivalent of 86.7 percent of the total population,” explained Dhaifullah Rahim Hudaya as the Team Leader.

In running its business, sharia cooperatives are not only business-oriented, but also have a social role in them as collectors and distributors of zakat, infaq and alms (ZIS) funds which originating from members to members.

Takaful or sharia insurance is an effort carried out by a group of people through a contract (agreement) to help and cover each other through tabarru’ funds in facing risks through investment management that does not conflict with Islamic principles.

“The implementation of takaful as a sharia cooperative product also provides protection for members who join in it from various risks, as well as returns from investment profits,” said Dhaifullah.

According to Khairul, in line with the principles of takaful and sharia cooperatives, namely the principle of mutual assistance between members is the aim of the integration between two. The integration of takaful into sharia cooperatives is one form of product mix for sharia cooperatives because it can create an inclusive, sustainable economic environment and empower cooperative members to manage their finances in accordance with sharia.

“Elaborating takaful in sharia cooperative businesses can form a sense of belonging for members. This is very necessary in the successful management of sharia cooperative businesses, considering that quite a few businesses have collapsed due to poor management,” said Khairul.

In interviews conducted with four sharia cooperatives in Malang City, the four cooperatives responded well to the concept of takaful integration in sharia cooperatives.

“The implementation of takaful in this cooperative has great potential to be implemented, because it not only provides protection from risks, but also gets investment profits from its management,” said Mr. Anas, one of the administrators of the sharia cooperative.

With this research, it is expected that it can produce draft concepts and regulations as a concrete form of UB students’ contribution in increasing the existence of sharia cooperatives in Indonesia.

Under the guidance of lecturer, Dr. Virginia Nur Rahmanti, S.E., M.S.A., Ak., This research was conducted through the Student Creativity Program in the Field of Social Humanities Research (PKM-RSH) funded by the Ministry of Education and Culture in 2024. [Team/Irene/ UB PR/ Trans. Iir]