Muhammadiyah of West Java and Sharia Rural Financing Bank

This article reveals the urgency of Regional Director of Muhammadiyah of West Java (RDMWJ) to have Islamic Rural Financing Bank (IRFB) or Sharia Rural Financing Bank (SRFB) that in Indonesia, it is mentioned by Bank Pembiayaan Rakyat Syariah (BPRS). By using descriptive method, this article found that with the issuance of Muhammadiyah fatwa on April 3, 2010, which stated that conventional bank interest was ḥarām, it was considered important and urgent that Muhammadiyah in West Java must have RSFB (BPRS) as other Muhammadiyah Regional in Indonesia. The framework of thinking in this research begins with the presence of a financial institution in the midst of a lot of solid economic activity and business activities are a necessity. Moreover, today there are no life activities that cannot be separated from the role and function of financial institutions, the RSFB (BPRS) is one of them. By using the SWOT analysis, the research results obtained indicate that it is time for Regional Director of Muhammadiyah of West Java to establish a Sharia Rural Bank as one of the solutions to the synergy of several existing business and to show the alignments of the people who need financing.


INTRODUCTION
At the central level, the Regional Director of Muhammadiyah of West Java (RDMWJ) is one of the Regional Director of Muhammadiyah (RDM) that is always taken into account, both in terms of the quantity of citizens, the availability of qualified human resources, and the number of business. Some of its business were fairly-flashy and accounted for, even the main choice of some of the people of West Java, especially in urban areas. The business is like hospitals, clinics, polyclinics, schools ranging from basic to college, boarding school, orphanage, nursing home, to rehabilitation centers. This is very natural, because the requirement of RDMWJ has run long enough, since 1930 (about 90 years).
Currently, the business of Muhammadiyah of West Java has gone into the joints of the lives of its citizens and the people of West Java, especially education and health. If it is seen in the field of economics or sharia economy, Muhammadiyah of West Java seems still continue to be cultivated, no exception of Sharia Financial Institution (SFI), which today its role and function is so real and cannot be considered by the eye. Even the presence of SFI with the relation of institutions to support other business is very possible to synergize internally and externally with the Muslim people of West Java in general. However, in fact, today, RDMWJ does not yet have a financial institution independently such as the Sharia Rural Financing Bank (SRFB).
The absence of a financial institution itself in the name of RDMWJ which is able to manage the business in an integral and professional, on the basis of his financial management of business in several bank of RDMWJ cooperation. In addition to complementing the synergy of some of the existing business to be well coordinated and strengthening the business base, this SRFB owned by RDMWJ also serves to serve and maximize the movement of da'wah in the overall economic aspects of the lower and rural layer society. Because during this time the stigma of the Society of Muhamamdiyah majority thrives in urban.
Strengthening and developing the business of the SRFB in the region of West Java, it seemed necessary, given the role and function of a sharia-based financial institution for Islamic organizations in Muhammadiyah class. Especially after Muhammadiyah issued a fatwa in 2010 that the interest of conventional banks is haram. The fatwa was issued on the 27th Musyawarah Nasional Tarjih ceremony held at Universitas Muhammadiyah Malang, East Java, Saturday 03 April 2010 with decision of Fatwa Majelis Tarjih dan Tajdid Pimpinan Pusat Muhammadiah number 08 year 2006.
The choice of RFSB for RDMWJ seems quite realistic, where the existence of RFSB has a special purpose, which is to provide services and banking products to the people of the weak economy, and micro Small and medium enterprises (MSME) both in urban and rural areas. In general, the RFSB has the same objectives and characteristics as other microfinance institutions (MFI). MFI has two main objectives that must be achieved at once, namely commercial and development (Muhari and Hosen, 2014:307), and this is in line with the work program of the Economic Assembly and entrepreneurship by RDMWJ which is developing model of economic empowerment and entrepreneurship based on its own strength as a manifestation of the ideals of economic independence of Muhammadiyah citizens in West Java. In fact, some of Regional Directors of Muhammadiyah (RDMs) already have them, among others, RDM of Central Java with the SRFB Artha Surya Barokah, RDM of Yogyakata with the SRFB Bangun Drajat Warga, and RDM of East Java with the SRFB Mitra Mentari Sejahtera.
The potential and ability of RDMWJ to establish the SRFB is very open and it is possible that only a few constraints, considering that the regulations are very in the ability of organization. According to the Financial Services Authority Regulation (FSAR) Number 03 year 2016 about SRFB, article 6, paid up capital for the establishment of SRFB for Zone 2 (Java and Bali) at least is 7 billion (seven billion Rupiah). The cost of the amount for RDMWJ is not a problem in the midst of business that is very much in demand by the majority of West Java Society.
There are interesting from the interview (May 29th, 2020) that researcher did on one of the existing business, SMP (Sekolah Menengah Pertama [Junior High School]) of Muhammadiyah 2 Ciparay, Region of Bandung is one of them, where the school head, Hj. Cucu Solihah, felt grateful if this establishment did occur. She seemed to be very responsive and enthusiastic if RDMWJ established RFSB and was ready to cooperate both in gathering and in financing both students, teachers and large families of SMP Muhammadiyah who are under his control and responsibilities. Still according to his narrative, the presence of Islamic financial institutions that are independent and professional has been awaited since Muhammadiyah issued a fatwa that conventional banks are ḥarām, which is since the date 03 April 2010.
Based on the facts and data above, then this research will reveal the importance of DMWJ start to think even when necessary to implement, the establishment of SRFB such as the existing RDMs in other place, which is from the side of the resources are under of position when compared with RDMWJ. As well as the presence of SRFB in RDMWJ as concrete evidence and answers to the haram of interest in conventional banks by Muhammadiyah

METHOD → Cambria 13 Bold
The type of research used is qualitative research. Research is conducted by involving a variety of existing methods (Moleong, 2001: 5). This descriptive research is a study that learns issues in society as well as situations including the relationships, activities, attitudes, views and ongoing processes and influences on a phenomenon (Hasan, 2002: 14). While the descriptive method is a method of researching the status of a human group, an object, a condition, a system of thought or a class of events at present (Nazir, 1988: 63). The data sources in this study are extracted from primary data sources and secondary data sources. Primary data is data that is directly obtained from the first data source in the research location or research object while secondary data is data obtained from the second source or source of the data we need (Arikunto, 1992: 107).
This Data are obtained through documents, notes, books, magazines, and other sources related to the issues to be researched. The Data collection techniques are as follows: observation, interviews and documentation. And lastly, Data analysis. Data analysis is the process of organizing the data order and organizing it into a pattern, category and unit of basic description making it more readable and interpreted (Moleong, 2001: 7). The data analysis phase in qualitative research has generally begun since researcher gather data from field research, both primary and secondary collection is intended to classify data relevant to research purposes. Conducting data selection (data reduction) that has a relationship between one and another in this regard is intended to seek analysis of the importance of founding of the SRFB in RDMWJ. Then perform data presentation (display data) that can be achieved if it meets certain criteria. Last researcher drew conclusions/ verifications and gave advice (Suprayono, 2003:195).

RESULTS AND DISCUSSION → Cambria 13 Bold
Muhammadiyah organization existed in West Java through two routes, namely the northern and southern lines. From the northern lane, it originated from Jakarta which at that time was still known as Batavia, while from the southern lane originated from the city of Garut. Muhammadiyah in Garut City was officially established on 30 November 1923, where the pioneering establishment was H.M. Djamhari, Wangsa Eri, Masjamah, and H.M Gazali. Whereas Muhammadiyah in Jakarta, as estimated at the moment, the Muhammadiyah branch was established not long after the establishment of a branch in Garut. The figure who pioneered Muhammadiyah in Jakarta was Kartosudharmo.
From the City of Garut, Muhammadiyah grew step by step to touch several nearby cities. One of the cities that had a great influence on the spread of Muhammadiyah from Garut was Tasikmalaya West Java Province is one of the provinces with the largest population in Indonesia. In 2009, based on the survey results the population of West Java reached 42.61 million, consisting of 21.51 million men and 21.18 million women. Based on age structure, the number of populations under the age of 15 years and above is 29.12%, the productive age is 15-64 years by 65.55%, and the elderly population is 5.33%. Thus, from the aspect of human resources, West Java has the highest proportion of the population with an educational level, the highest number of graduates of stratum 1, stratum 2 and stratum 3 compared to other provinces. In addition, most of the people of West Java embraced Islam, men with 22,294,315 people, and 21,616,695 people (Editor, https://data.jabarprov.go.id/dataaset/jotal-penduduk-ber-Basis-agama) -confidenceand-sex-/, accessed on May 27, 2020).
The number of cities and districts in West Java is 26 cities / districts. Of the 26 cities / regencies, the management of Muhammadiyah within the scope of the fostered West Java Region only amounted to 24 cities / regencies, while 2 cities / regencies namely Bekasi City and Bekasi Regency are under the guidance of the DKI Jakarta Region. From 24 cities / regencies in West Java, the management of Muhammadiyah was formed to the level of sub-districts and villages to villages. The following is a comparison of Muhammadiyah residents with Muslim populations in West Java. Based on the data above, it can be seen that 11.64% of the total Muslim population in West Java is a member of the Muhammadiyah community organization. Figures 4,548,290 inhabitants constitute a large population for this mass organization that was founded in 1923. With Muhammadiyah residents that size, it becomes an asset and capital for West Java Muhammadiyah to continue to grow. Until now, the Regional Board of Muhammadiyah in West Java already has various fields of business. Reporting from the official website follows the display of business data from the field being run: In the economic field, RDMWJ run Cooperation, Baitul Maal Wa Tamwil, and other types of business. Then in the education sector is the highest number of businesses run by RDMWJ, ranging from PAUD (Pendidikan Anak Usia Dini [Early Childhood Education]) to universities spread in 24 regencies/cities in West Java. In the social field, RDMWJ run business by having a type of social service consisting of children's orphanages, werda homes, family welfare homes, and disaster services. Not to forget, even in the number of health sectors, RDMWJ run the type of business of the maternal and child health centers, medical centers, pesantren health, maternity hospitals, and general hospitals. Lastly, business in the field of places of worship is the second highest in terms of numbers, consisting of mosques and prayer rooms which are also spread in 24 regencies/cities in West Java.
But until now, since it was first established in Garut in 1923 which is 97 years ago, RDMWJ still does not have an Islamic bank as an embodiment of Fatwa Number 08 of 2010 concerning the prohibition of bank interest. As an Islamic community organization with a large base of followers, it should establish a sharia bank in the smallest form namely RFSB into something that has been realized for a long time. With 11.64% of Muhammadiyah residents in West Java, it is a strength for Muhammadiyah to re-add business efforts. Muhammadiyah in West Java has lagged behind East Java, Central Java and Yogyakarta in terms of establishing Islamic banking.
The establishment of SRFB in an area with a religious community base, as well as a supportive environment from the level of micro economic transaction activities that are quite prominent such as West Java, are certainly in line with the policies of the local government especially in relation to increasing the role of Islamic financial institutions or promoting Islamic economics. In addition, in the 2019 Republika news, it was explained that Islamic banking assets in West Java grew 4.67%. In addition, news released by Pikiran Rakyat said that the share of Islamic banking financing services in West Java was 8.4% higher than the national share which was only at 5.9%. Head of the West Java Province Bank Indonesia Representative Office, Wiwiek Sisto Widayat, said that West Java has an important role in the development of the Islamic economy. Especially in the provision of human resources for the main drivers of the development of Islamic economics, given the large number of Muslim populations. And also, West Java has more than 4.5 million micro Perbarindo also noted that the assets of the SRFB industry in 2019 grew by 137 trillion, with 17.9 million customer accounts (13.5 million depositors, and 3.8 million debtor customers). The data reflects that SRFBs in West Java has great potential for growth and interest by the community, only the level of community recognition of SRFBs is still less intense. The general public thinks that the function of SRFB is only to borrow money.
The above description explains the objective conditions of West Java as one indicator that supports the DMWJ establishing the SRFB. This is a strategic step amid the enormous opportunities offered by West Java. So, to strengthen the objective conditions, the writer will identify internal and external factors and determine the right strategy to see RDWMJ's readiness in establishing SRFB.
Researchers use Strength analysis, Weakness, Opportunity, and Threats or commonly referred to as SWOT analysis. This analysis is used as a model in analyzing a profitoriented and non-profit organization with the main objective of knowing the state of the organization comprehensively (Irfan Fahmi, 2013, p. 252). In this section, SWOT analysis is used to analyze Strength, Weakness, Opportunity, and Threats RDWMJ to be able to establish SRFB. Where the analysis is done qualitatively.
Through this analysis the author will conclude the strategic factors of an organization. These factors are combined between External Factors Analysis Strategy (EFAS) and Internal Factors Analysis Strategy (IFAS) into a summary analysis of strategic factors (SASF). SAFS requires determining external and internal strategic factors first and then making a SWOT analysis matrix. In the following, the researcher describes the internal factors (strengths and weaknesses) and external factors (opportunities and threats) based on the results of observations and also interviews with several RDMWJ officials presented in the table. Based on the table above it can be seen that the internal strength variable has a total score of 4.77 and a total weakness score of 0.76. So that the total score of the internal variable is 5.53. It can be concluded that the internal variables on RFSB are very dominant towards the formation of RFSB by RDMWJ. Based on the table above, it can be seen that the opportunity variable has a total score of 3.47 and the threats have a total score of 1.08, so the total score of the external variable is 4.55. It can be concluded that the external variable has a dominant influence in determining the establishment of a RSFB (BPRS) owned by RDMWJ. After identifying the internal and external factors that can influence the formation of RSFB (BPRS) of Muhammadiyah of West Java, the researcher will then formulate alternative strategies in determining coordinates in the SWOT analysis diagram and compile organizational strategic factors in the SWOT matrix.
The determination of these coordinates aims to determine the organization's strategic position whether it is located in quadrant I (aggressive strategy), quadrant II (diversification strategy), quadrant III (turnaround strategy), and quadrant IV (defensive strategy). Following is the position of RDMWJ in the coordinate diagram. Based on the table above it can be seen that the value of IFAS is 4.01 greater than the value of EFAS which is 2.39. The calculation results above are used to determine the suitable strategy based on the objective situation of the organization. The following figure shows the results of the data display if entered in the SWOT analysis:

RDMWJ Position in the SWOT Analysis
Source: tracking result, processed. From the diagram above it can be seen that the RDMWJ position is in quadrant I by implementing an aggressive strategy. This shows that the Management of RDMWJ has internal strength that can be utilized to seize the opportunities that exist so as to establish the RSFB (BPRS) and be able to compete in the business world. A company or organization that is in quadrant I is in a very good position.
In addition, based on the IFAS and EFAS matrices above, information values can be calculated as follows: 1. Strategy of SO: 4,77 + 3,47= 8,24 2. Strategy of ST: 4,77 + 1,08= 5,85 3. Strategy of WO: 0,76 + 3,47= 4,23 4. Strategy of WT: 0,76 + 1,08= 1,84 The information above is in line with the coordinate position diagram previously described. This shows that the Strategy of Strength Opportunity (SO) is the dominant factor in determining the formation of the RSFB (BPRS) of RDMWJ. This SO strategy utilizes the strengths that exist in RDMWJ to seize opportunities.
When referring to the SWOT matrix above, the strategy described actually refers to the strength and opportunities of RDMJW has. Therefore, according to the researcher, based on the results of the study indicate that it is time for RDMJW to establish the RSFB (BPRS). With the strength from within the body of RDMJW itself, it can be the main foundation in terms of capital, promotion, governance management, and customers. Coupled with the opportunities that exist in West Java can help the growth of Islamic banking.
The existence of the RSFB (BPRS) is also beneficial for Muhammadiyah business because there can be a synergy of several existing businesses and shows the alignments of the people who need financing. The synergy here means that existing business can make the RSFB (BPRS) of Muhammadiyah as an intermediary institution in terms of capital, financing, or just as a bank to save. In addition, the establishment of the RSFB (BPRS) is seen to be able to maximize the role and function of the Economic and Entrepreneurship Assembly (Majelis Ekonomi dan Kewirausahaan [MEK]) as the implementation of the da'wah movement in the fields of economics and entrepreneurship and as evidence of the progress of Islam in West Java.

CONCLUSION → Cambria 13 Bold
Based on the results of the research and discussion above, the researcher concludes that the Regional Director of Muhammadiyah in West Java (RDMWJ) has been able to establish a Rural Sharia Financing Bank (Bank Pembiayaan Rakyat Syariah). This conclusion is based on the results of the research conducted by the researcher and gets results that RDMWJ strategic position. The position is in quadrant I, where RDMWJ has internal strength that can be utilized to seize the opportunities that exist. So that, it can establish the RSFB (BPRS) and be able to compete in the world of financial business and maximize