Baitul Mal Fund: A Mechanism for Managing Informal Debt in the Community

Abstract

This research aims to: (1) enhance the capacity of mosque funds within communities to become Baitulmal funds to address the issue of informal debts and (2) design a mechanism for managing informal debts in communities through a Baitulmal fund. This is a participatory action research involving five communities in Pattani Province. The study sample includes mosque committee members from these five communities, with 10 members per community, totaling 50 participants, as well as 30 stakeholders involved in the management of mosque funds, resulting in a total sample size of 80 individuals. The sampling method employed is multi-stage sampling to ensure an appropriate and comprehensive sample group. Data collection methods include in-depth interviews and focus group discussions, with qualitative analysis conducted using content analysis, supplemented by surveys and observations. The findings reveal that utilizing existing mechanisms within the community, such as mosque committees, mosque funds, and Islamic cooperatives in the area, in conjunction with an innovative Baitulmal fund model developed by the researchers, can effectively address informal debt management. This new model involves the management of zakat fitrah funds within community mosque funds in an innovative way, enhancing the capacity of mosque funds to function as Baitulmal funds capable of systematically and practically planning and addressing informal debt issues in the community. The model also allows for systematic monitoring and forecasting of the potential reduction in the number of households with informal debts. This approach leads to greater self-reliance within communities, enabling them to solve their problems independently rather than solely relying on government assistance, as was often the case in the past.