Community Cooperatives: Public Policy Instruments for Poverty Alleviation Achieving Distributive Social Justice


Authors

(1) * Dinda Febrianti Putri   (Universitas Nurul Jadid, Probolinggo)  
        Indonesia
(2)  Moh. Idil Ghufron   (Universitas Nurul Jadid, Probolinggo)  
        Indonesia
(*) Corresponding Author

Abstract


Persistent poverty and socioeconomic inequality require public policy instruments that promote inclusive economic participation beyond conventional welfare approaches. This study aims to examine community cooperatives as public policy instruments for poverty alleviation and distributive social justice from the perspective of Islamic economics. A qualitative conceptual research design employing library research was adopted through the systematic analysis of scholarly literature, policy documents, and official publications, followed by thematic content analysis. The findings identify three integrated dimensions: community cooperatives institutionalize distributive social justice through participatory governance, strengthen multidimensional poverty alleviation by expanding access to capital, markets, employment, and entrepreneurship, and operationalize maqāṣid al-sharī’ah by protecting wealth, welfare, knowledge, and future generations. This study contributes an integrated conceptual framework connecting public policy, community cooperatives, distributive justice, and Islamic economics while recommending governance strengthening, transparency, and community participation to enhance policy effectiveness.




Full Text: PDF



References


Andy, G. S., & -, M. G. V. (2024). Digital Financial Literacy and Financial Behavior. International Journal For Multidisciplinary Research, 6(4), 23–38. https://doi.org/10.36948/ijfmr.2024.v06i04.26921

Abdullayev, A., Kadyrova. & Ydyrys, S. (2025). Modernization of the Local Government System: Development Prospects and Implementation Mechanisms. Emerging Science Journal, 9(3), 1434–1476. https://doi.org/10.28991/ESJ-2025-09-03-017

Alamanda, D. T., Kusmiati, E., Shiddieq, D. F., & Roji, F. F. (2022). MSME Clusterization Using K-Means Clustering in Garut Regency, Indonesia. Review of Integrative Business and Economics Research, 12(4), 199–211.

Aliyi, I., Faris, A., Ayele, A., Oljirra, A., & Bayessa, M. (2021). Profitability and Market Performance of Smallholder Vegetable Production: Evidence from Ethiopia. Heliyon, 7(9). https://doi.org/10.1016/j.heliyon.2021.e08008

Bayhantopcu, E., & Aymerich Ojea, I. (2024). Integrated Sustainability Management and Equality Practices in Universities. International Journal of Sustainability in Higher Education, 25(3), 631–648. https://doi.org/10.1108/IJSHE-02-2023-0054

Braun, V., Clarke, V., Boulton, E., Davey, L., & McEvoy, C. (2021). The Online Survey as a Qualitative Research Tool. International Journal of Social Research Methodology, 24(6), 641–654. https://doi.org/10.1080/13645579.2020.1805550

Costa, F. de A., Assad, E. D., Oliveira, G., Pereira, H. D. S., & Schmink, M. (2024). Complex, Diverse and Changing Agribusiness and Livelihood Systems in the Amazon. Acta Amazonica, 54(spe1). https://doi.org/10.1590/1809-4392202200960

Donohue, J. M., Cole, E. S., James, C. V., & Roberts, E. T. (2022). The US Medicaid Program: Coverage, Financing, Reforms, and Implications for Health Equity. In JAMA (Vol. 328, Issue 11, pp. 1085–1099). https://doi.org/10.1001/jama.2022.14791

Fuadi,. Hasibuan. & Saputra, J. (2021). Investigating the Effect of Micro Waqf Bank Sector Expansion on Poverty Alleviation: Evidence from Indonesian Rural Communities. In Proceedings of the International Conference on Industrial Engineering and Operations Management (pp. 4150–4158). https://doi.org/10.46254/an11.20210745

Gietzen, L. J., Lewis, H., & Buchanan, J. A. (2023). Age-Related Microaggressions: A Descriptive Study. Gerontologist, 63(5), 820–830. https://doi.org/10.1093/geront/gnac158

Haris, A., Widodo, A., & Sarah, S. (2024). Eco-Maqāṣid in Climate Change Campaigns: From an Ecolinguistics Study to the Philosophy of Islamic Law. Al-Manahij: Jurnal Kajian Hukum Islam, 18(2), 219–236. https://doi.org/10.24090/mnh.v18i2.10652

Harsanto, B., Pradana, M., Firmansyah, E. A., Apriliadi, A., & Ifghaniyafi Farras, J. (2024). Sustainable Halal Value Chain performance for MSMEs: The Roles of Digital Technology, R&D, Financing, and Regulation as Antecedents. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2397071

Jones, C. (2024). The Detrimental Effects of Population Growth on the Sustainability of the Planet and the Human Race Itself. Tydskrif Vir Geesteswetenskappe, 64(2), 147–164. https://doi.org/10.17159/2224-7912/2024/v64n2a1

Katuk, N., Tey, P. Y., Sinal, M. S., Abdullah, W. A. N. W., Wahab, N. A., Kurniadi, E., & Budianto, H. (2024). Estate Planning Model for Sustaining Economic Values of Digital Assets. In Communications in Computer and Information Science: Vol. 2002 CCIS (pp. 336–350). https://doi.org/10.1007/978-981-99-9592-9_26

Malotana, V. S. (2025). Enhancing Small Business Management Education in South African Universities: Integrating Mixed Methods of Research for Workforce Development in SMMEs. In Research Methods for Educational Leadership and Management (pp. 89–110). https://doi.org/10.4018/979-8-3693-9425-0.ch004

Martins, A. O. (2024). Banking Reforms in Africa: Implications for Economic Welfare and Poverty Reduction. In Banking Reforms in Africa: Implications for Economic Welfare and Poverty Reduction. https://doi.org/10.4324/9781003467670

Mercader, V., Galván-Vela, E., Ravina-Ripoll, R., & Popescu, C. R. G. (2021). A Focus on Ethical Value under the Vision of Leadership, Teamwork, Effective Communication and Productivity. Journal of Risk and Financial Management, 14(11). https://doi.org/10.3390/jrfm14110522

Mufti Afif, Syahruddin, Khurun’in Zahro’, & Nur Suriana Awaludin. (2025). Bridging Waqf and Sukuk: Cross-Country Insights from Indonesia and Malaysia on Islamic Social Finance Innovation. Muslim Heritage, 10(1), 91–105. https://doi.org/10.21154/muslimheritage.v10i1.10510

Mundi, H. S., & Rao, M. (2025). A Qualitative Investigation into Financial Well-Being and Social Capital of Retired Government School Teachers. Qualitative Research in Financial Markets, 17(3), 576–603. https://doi.org/10.1108/QRFM-10-2023-0250

Mundó, J. (2024). Fiduciary Relationships. Current Sociology. https://doi.org/10.1177/00113921241271860

Munir, Z. A. H. (2023). Wealth Distribution among Sasak Communities Through Inheritance: A Quest for Justice. Samarah, 7(3), 1627–1643. https://doi.org/10.22373/sjhk.v7i3.10835

Munthe, S. (2025). The Role of Zakat, Waqf, and Sharia Financing in Empowering MSMEs: A Systematic Study. Economic: Journal of Economics and Business, 4(3), 588–593. https://jurnal.larisma.or.id/index.php/EJEB/article/view/1229

Muthoifin, M., & Rhezaldi, A. Y. (2024). Community Economic Empowerment Through Mosque Management to Improve People’s Welfare. In Multidisciplinary Reviews (Vol. 7, Issue 8). https://doi.org/10.31893/multirev.2024134

Oh, J. W., Kim, S., Yoon, J. won, Kim, T., Kim, M. H., Ryu, J., & Choe, S. A. (2023). Women’s Employment in Industries and Risk of Preeclampsia and Gestational Diabetes: A National Population Study of the Republic of Korea. Safety and Health at Work, 14(3), 272–278. https://doi.org/10.1016/j.shaw.2023.08.002

Pane, S. G. (2025). Productive Waqf and Innovation of Sharia Social Instruments: Strategies for Strengthening the Ummah’s Economy. Journal of Management, Economic, and Accounting, 4(2), 1085–1090. https://doi.org/10.37676/jmea.v4i2.1085

Parish, J. (2023). Fiduciary Activism From Below: Green Gentrification, Pension Finance, and the Possibility of Just Urban Futures. Urban Planning, 8(1), 414–425. https://doi.org/10.17645/up.v8i1.6119

Purwanti, P., Susilo, E., & Indrayani, E. (2020). Business Empowerment Program and Household Economic Welfare: Lessons from Indonesia. Journal of Asian Finance, Economics and Business, 7(1), 313–320. https://doi.org/10.13106/jafeb.2020.vol7.no1.313

Rizki, D., Wijanarko, F. N., & Murti, T. W. (2023). Rahn Contract Construction as Micro, Small and Medium Enterprises (MSME) Capitalization Solutions in the Halal Industry Sector. Indonesian Journal of Interdisciplinary Islamic Studies, 5(3), 165–182. https://doi.org/10.20885/ijiis.vol.5.iss3.art3

Rospriandana, N., Burke, P. J., Suryani, A., Mubarok, M., & Pangestu, M. A. (2023). Over a century of small hydropower projects in Indonesia: a historical review. Energy, Sustainability and Society, 13(1). https://doi.org/10.1186/s13705-023-00408-1

Shaikh, S. A. (2023). Economic Evaluation of Islamic Banking in Pakistan. Journal of King Abdulaziz University, Islamic Economics, 36(1), 91–111. https://doi.org/10.4197/Islec.36-1.5

Yudha Pratama, V., Suryo, I., Sista Devy, H., & Tamamudin. (2025). Islamic Banking Efficiency and Sharia Compliance: Comparative Insights from Indonesia and Malaysia. SHARE : Journal of Islamic Economics and Finance, 14(2), 755–769.

Yusuf, M. Y., Jalilah, & Kesuma, T. M. (2022). Shariah Marketing Strategy of Micro, Small, and Medium Enterprises Products in Aceh: a Case of Minyeuk Pret. Jurnal Ilmiah Peuradeun, 10(2), 433–448. https://doi.org/10.26811/peuradeun.v10i2.653

Zainuddin, M., & Mutaqin, A. (2025). Sharia Financial Convergence: Synergy of Gold, Digital Inclusion, and Socio-Economic Resilience in Sharia Pawnshop Practices. Al-Muhasib: Journal of Islamic Accounting and Finance, 5(1), 1–20. https://doi.org/10.30162/al-muhasib.v5i1.2233




Refbacks

  • There are currently no refbacks.


Islamic Finance and Economic Insights Published by Lembaga Penerbitan, Penelitian, dan Pengabdian kepada Masyarakat (LP3M) of Nurul Jadid University, Paiton, Probolinggo, East Java, Indonesia.

Adress : PO BOX 1 Tanjung, Paiton, Probolinggo, East Java