The Implementation of 5C Principle and Maqashid Al-Sharia at Baitul Māl wat Tamwil BMT DAQU Bojonegoro, Indonesia

Dewi Gita Ramadhanti; Ifa Khoiria Ningrum; Muhammad Zaenal Abidin

doi:10.24256/alw.v11i1.9363

Authors

Dewi Gita Ramadhanti Sunan Giri Nahdlatul Ulama University Bojonegoro, Indonesia
Ifa Khoiria Ningrum Sunan Giri Nahdlatul Ulama University Bojonegoro, Indonesia
Muhammad Zaenal Abidin Sunan Giri Nahdlatul Ulama University Bojonegoro, Indonesia

DOI:

https://doi.org/10.24256/alw.v11i1.9363

Keywords:

Principle 5C, Maqashid al Sharia, Non-Performing Financing(NFC), Baitul Māl wat Tamwil (BMT)

Abstract

Purpose - This study aims to analyze the application of the 5C prudential principle consisting of Character, Capacity, Capital, Collateral, and Condition in financing practices at BMT DAQU Klepek Sukosewu Bojonegoro, Indonesia. The study also examines the relationship between the implementation of the 5C principle and the values of Sharia Economic Law through the perspective of Maqasid al Sharia, particularly in the context of the increasing level of Non-Performing Financing (NPF).

Method – This research applies a qualitative approach with a field research design. Data were collected through semi structured interviews with Sharia administrators and supervisors, direct observation of financing practices, and documentation related to the financing process and the management of problematic financing. Data analysis was conducted using the interactive model of Miles and Huberman which consists of data reduction, data display, and conclusion drawing. Data validity was ensured through source triangulation and method triangulation.

Results – The findings show that weaknesses in several elements of the 5C assessment contribute to the increase of problematic financing. Limitations in evaluating character, capacity, and economic conditions of customers affect the quality of financing decisions. The study also finds that the settlement of problematic financing at BMT DAQU is conducted through approaches which consider both managerial prudence and Sharia based ethical considerations.

Implications – This study contributes to strengthening risk management in Islamic microfinance institutions. The integration of the 5C prudential principle with the values of Maqasid al-Sharia, particularly the principles of hifz al-mal and justice, can support more responsible financing practices and improve the governance of Islamic microfinance institutions.

Author Biographies

Ifa Khoiria Ningrum, Sunan Giri Nahdlatul Ulama University Bojonegoro

Lecturer in Sharia Economic Law, Faculty of Sharia and Literature

Muhammad Zaenal Abidin, Sunan Giri Nahdlatul Ulama University Bojonegoro

Lecturer in Sharia Economic Law, Faculty of Sharia and Literature

References

Source Book:

2023, K. et al. (2021). KONSEP MAQASHID SYARIAH DALAM PENGEMBANGAN PRODUK LEMBAGA KEUANGAN ISLAM. 32(3), 167–186.

Hamonangan. (2020). ANALISIS PENERAPAN PRINSIP 5C DALAM PENYALURAN PEMBIAYAAN PADA BANK MUAMALAT KCU PADANGSIDEMPUAN. | Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi), 4(2), 454–466.

Source Article

Johari, D. (2025). Penerapan 5C dalam Pencegahan Pembiayaan Bermasalah pada Baitul Maal wat Tamwil. Journal of Philantrophy and Islamic Economics, 2(2), 111–122.

Khairan, & Asngari, H. (2025). Analisis Mekanisme Prinsip 5C dalam Meminimalisir RisikoPembiayaan Bermasalah di BMT NU KEDIRI NU Kediri. EKSYA : Jurnal Ilmiah Ekonomi Syariah, 3(1), 1–19. http://jurnal.iaih.ac.id/index.php/EKSYA/article/view/1912

Malik, M., & Punjab, C. (2024). Islamic Microfinance as a Tool for Financial Inclusion : A Comparative Analysis with Conventional Microfinance. 10(4), 549–562.

Mansyur, Z. (2020). Implementasi Teori Maqashid Syari`Ah Asy-Syatibi Dalam Muamalah Kontemporer. Jurisdictie: Jurnal Hukum Dan Syariah, 11(1), 67–92. https://doi.org/10.18860/j.v11i1.7675

Miles, M. B., Huberman, A. M., & Saldaña, J. (n.d.). Qualitative Data Analysis.

Muslimin, K. (2012). Pemikiran Al-Syatibi Tentang Maslahah Dan Implementasinya Dalam Pengembangan Ekonomi Syariah. Assets, 2(2), 177–179.

Onwuegbuzie, A. J. (2016). Mapping Miles and Huberman ’ s Within-Case and Cross-Case Analysis Methods onto the Literature Review Process. 2(1), 265–288. https://doi.org/10.5296/jei.v2i1.9217

Rahayu, Y. S., Abdul, L., & Farhan, H. (2025). Maqashid al-Sharia. c, 73–86.

Rofiq, N., & Hasbi, M. Z. N. (2022). A New Paradigm In Economy About Maqashid Al-Sharia Theory: Reformulation Of Ibn-Asyur. PAMALI: Pattimura Magister Law Review, 2(1), 77. https://doi.org/10.47268/pamali.v2i1.817

Saputri, L. I., & Ansori, M. (2024). Implementasi Indeks Maqashid Syariah Di Bmt Alhikmah Semesta. Jurnal Masharif Al-Syariah: Jurnal Ekonomi Dan Perbankan Syariah, 9(4), 2297–2316. https://journal.um-surabaya.ac.id/Mas/article/view/23199%0Ahttps://journal.um-surabaya.ac.id/Mas/article/download/23199/8130

Sulistyorini, Octavia, A. N., & Setyarini, A. (2022). Analisis Implementasi Prinsip 5C Dan 7P Dalam Upaya Pencegahan Pembiayaan Murabahah Bermasalah Di Kspps Hudatama Semarang. 1–10.

Wahdoni, N. S., & Rofikoh, N. U. (2025). Al Urwah : Sharia Economics Journal The Strategic Role of BMT as a Non-Bank Islamic Financial Institution in Empowering MSMEs in Indonesia. 3(2), 13–22.

Zahidda, D., & Sugiyono. (2017). TERHADAP KEBIJAKAN DIVIDEN PADA Berdasarkan hasil penelitian terdahulu mengenai faktor-faktor yang memengaruhi dividend payout ratio , terdapat beberapa perbedaan hasil penelitian ( research gap ). Dan pertanyaan untuk penelitian ini adalah : 1 ) Apakah r. Ilmu Dan Riset Manajemen, 6(2).

Zaman, N., & Rauf, A. (2023). The role of Sharia supervisory boards in enhancing ethical accountability in Islamic cooperatives. Journal of Islamic Management and Finance, 6(4), 307–324.

Saeed, M. (2020). Ethics and efficiency in Islamic finance: Revisiting maqasid-oriented frameworks. Islamic Economic Studies, 28(1), 43–66.

Wibisono, M., & Azizah, F. (2024). Ethical governance and prudential discipline in Islamic microfinance institutions. International Journal of Islamic Economics and Finance Studies, 10(1), 45–64.

Restianita, A., & Saiful, A. (2024). Analyzing default determinants in Islamic microfinance: Governance and human resource perspectives. Sharia Finance Review, 6(1), 33–49.

Latif, R., & Zainuddin, H. (2024). Ethical leadership and governance in Baitul Maal wat Tamwil (BMT). Journal of Islamic Economics and Policy, 7(1), 58–73.

Kholid, A., & Mustofa, R. (2022). The intersection of Maqasid al-Sharia and prudential principles in Islamic banking regulation. Journal of Islamic Law and Society, 5(3), 203–222.

Hidayat, R., & Kusuma, I. (2020). Prudential banking in Islamic microfinance: An ethical analysis. Journal of Islamic Management Studies, 11(3), 213–230.

Abdullah, M., & Ismail, S. (2021). Integrating Sharia governance and ethical accountability in Islamic microfinance institutions. Journal of Islamic Accounting and Business Research, 12(6), 915–932.

Ainul, M., & Rahmawati, D. (2023). Risk mitigation and prudential principles in Islamic microfinance: Lessons from BMTs in Java. Indonesian Journal of Islamic Economics Research, 5(1), 42–57.

Al-Qaradawi, Y. (2022). Maqasid al-Sharia as Philosophy of Islamic Law. London: International Institute of Islamic Thought.

Amin, H. (2021). Exploring ethical decision-making among Islamic microfinance officers: A qualitative approach. Journal of Islamic Management Studies, 9(4), 301–318.

Dusuki, A. W., & Bouheraoua, S. (2021). Maqasid al-Sharia, Sustainable Development, and Islamic Finance. Kuala Lumpur: ISRA Research Paper No. 148.

Arifin, Z., & Wibisono, M. (2024). Prudential financing and its ethical dimensions in Indonesian Islamic cooperatives. Islamic Economics Review, 14(2), 87–105.

Sofyan, M., & Hidayah, S. (2022). Risk prevention and social capital in Islamic cooperative institutions. Journal of Islamic Economics and Business, 8(3), 172–188.

Muslimin, K. (2012). Al-Shatibi's thoughts on maslahah and its implementation in the development of the sharia economy. Assets, 2(2), 177–179.