Page 73 - IJPS-10-4

International Journal of
Population Studies Migrant traders, social capital, and politics

During this study, Madura grocery stall owners said bureaucracy, relatively high interest rates, and stringent
that they received almost no formal assistance from the requirements, have limited the utilization of the KUR
government in establishing their businesses. Only very few program. In particular and more importantly, the Warung
individuals borrowed money from banks under general Madura owners intentionally avoid bank loans, including
business loan schemes rather than government subsidies. KUR, due to their religious belief that the interest is
The field data report that 89% (or 178) and 11% (or 22) considered riba (usury) (Fatmawati, 2020). Riba refers to the
of respondents financed their stalls using the owner’s practice of collecting interest or additional profits in financial
capital and obtained funding from banks or other sources transactions and is prohibited in Islamic teachings (Fatmawati,
(Table 3). The income generated from the grocery stalls 2020). This belief is derived from Islamic teachings, which are
can be considered quite high, where 66 (33%), 34 (17%), the majority religion in Madura. Madurese individuals who
22 (11%), 38 (19%), and 40 (20%) stalls have an income adhere closely to their religious teachings and the guidance of
of over IDR 10 million per month, IDR 9 – 10 million kiai (traditional Islamic scholars) prefer to avoid bank loans,
per month, IDR 7 – 8 million per month, IDR 5 – 6 steer clear of riba, and establish personal businesses without
million per month, and below IDR 5 million per month, violating religious beliefs (De Jonge, 1995; Fatmawati, 2020).
respectively (Table 3). Among these figures, 178 (89%) Mr. Taufiq, one of the informants residing in Jakarta for
of the respondents stated that they are living in a state of 6 years, shared the story of obtaining capital to open a small
sufficiency or affluence, while 22 (11%) are managing with grocery stall in Jakarta:
modest or inadequate resources. Some studies have found
that the socioeconomic self-reliance shown by Madurese “My stall was funded entirely with my own money,
migrants is a rare phenomenon, especially in Indonesia, from savings. I opened this stall without taking out
where numerous owners of MSME are seeking financial a bank loan or anything else, just my savings. Why
assistance from the government (Augendra et al., 2019; did I not borrow from the bank? According to my
Nel & Binns, 2000; Panjaitan-Drioadisuryo & Cloud, kiai, borrowing money from the bank is haram
1999). This study of Warung Madura underscores the because of riba, and I’ve never saved in a bank
findings of the previous studies, emphasizing that Madura either. I saved it by myself, collected it at home,
grocery stall owners are also not interested in borrowing and kept it in the closet. Alhamdulillah, after my
money through credit schemes offered by the Indonesian wedding reception in my village, I was able to amass
government. a substantial amount of money as my capital. After
totaling it, I had IDR 53 million, and that is how
The Indonesian government has been assisting MSME
financing schemes since 2007 under the People’s Business this stall came into being.”
Credit (Kredit Usaha Rakyat or KUR) program (Augendra This small grocery stall business may develop relatively
et al., 2019). However, various obstacles, including complex slowly due to limited capital, but for Madurese people, what
is more important is that their business brings barokah
Table 3. Sources of capital and income of Warung Madura in (blessings). The term “barokah,” derived from the Arabic
Jakarta (per month) barakah, signifies blessings, sustenance, goodness, or the
Category N % fortune bestowed by Allah for adhering to His commands
Sources of capital and avoiding His prohibitions (Fatmawati, 2020). This
finding shows the significant influence of Islamic values
Stall owner (fully, 100%) 178 89 in building businesses for Madurese migrant traders.
Stall owner and bank loan 18 9 In addition, this finding supports the thesis of previous
Bank loan (bank credit, 100%) 0 0 research that the economic morality of Madurese migrants
Other 4 2 in Indonesia is slightly different from that of ethnic
Total (N) 200 100 Chinese (Tionghoa), who are known to be driven more by
Income per month (IDR) profit motives than religious values (Landa, 2018; Nonini,
2015; Panggabean & Smith, 2011; Rochadi, 2021).
Below 5 million per month 40 20
5 – 6 million per month 38 19 3.2. Social capital of Warung Madura stalls: values,
7 – 8 million per month 22 11 norms, networks, and trust
9 – 10 million per month 34 17 The original contribution of this section is to
Over 10 million per month 66 33 microscopically explain how social capital becomes a
Total (N) 200 100 critical factor in enabling Madurese migrant traders to
Source: Field study questionnaire data (2023). achieve socioeconomic self-reliance in Jakarta.

Volume 10 Issue 4 (2024) 67 https://doi.org/10.36922/ijps.2637