Analysis of Sharia Compliance Islamic Business The Industrial

Centers of Peci

Survey on Cianjur Regency Craftsmen

Habibah Moslem, M. Adib Sultan, and Juliana Juliana

Universitas Pendidikan Indonesia, Jl. Dr. Setiabudhi No. 229, Bandung, Indonesia

habibah.moslem@student.upi.edu, {adieb_sultan, juliana}@upi.edu

Keywords: Sharia Compliance, Fiqh Muamalah, Islamic Business Ethics.

Abstract: This research aims to measure the level of sharia compliance in the industrial centers of peci Cianjur. The

research was distributed by the high religiosity the entrepreneurs of peci, but the level of knowladge about

sharia compliance is low, and still many found transactions that are incompatible with sharia compliance. The

research used quantitative descriptive method, and data collection with questionnaires and interviews with

data analysis techniques used descriptive statistics. The population in this research is entrepreneurs in the

industrial centers of peci Cianjur, with sample saturated as many 28 respondents in 3 districts. Based on the

result of the research, it is known (1) the level of fiqh muamalah understanding entrepreneur peci Cianjur that

is equal to 67% with good category, the notion of rukun and terms of sale and purchase, forbidden transactions,

and zakat trading. (2) the level of application of Islamic business ethics that is equal to 76.3% included in the

good category, which includes the application of Islamic business ethics from the aspects of principles,

management, and business orientation.

1 INTRODUCTION

MSMEs sector has an important role for the economy,

because most of Indonesian people work in the sector

of SMEs. One of them is the peci industry center

located in Cianjur Regency, which has big business

potential.

Based on pre-research data conducted on peci

craftsmen in Pagelaran Districts with brand

Kampoeng Peci Cianjur, monthly turnover reached

Rp. 60,000,000. The demand for peci also increased

threefold before the month of Ramadan, the

celebration of Eid al-Fitr and also Eid al-Adha.

Marketing caps have also penetrated to several areas

in Indonesia and also penetrated overseas markets.

The peci business in Cianjur begins due to the

many demand of caps by the santri in some pesantren

located in Cianjur Regency (Nurjaman, 2012).

Cianjur people are famous for having high religiosity

in accordance with the philosophy of Cianjur. The

people of Cianjur Regency are known as a religious

society with the majority of the population converting

to Islam (wikipedia, 2017).

In line with this, from the pre-research of the

craftsmen peci Cianjur has a high level of religiosity,

it is shown in the figure 1 below:

Figure 1: Implementation of Fardu Worship.

The picture above explains the level of the

implementation of fardu worship (rukun Islam), that

the people who work as artisans of peci there perform

fardu or obligatory services such as prayer, Ramadan

fasting, and zakat fitrah of 100%.

In addition to fardu worship, the level of

implementation of other sunnah worship is also very

high. Such as the implementation of sunna prayer

(tahajud, witir, dhuha, rawatib), berinfaq and alms,

reading the Quran, following religious activities.

698

Moslem, H., Sultan, M. and Juliana, J.

Analysis of Sharia Compliance Islamic Business The Industrial Centers of Peci - Survey on Cianjur Regency Craftsmen.

In Proceedings of the 1st International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP 2017) - Transforming Islamic Economy and Societies, pages 698-701

ISBN: 978-989-758-315-5

However, the high level of religiosity in the

implementation of fardu and sunah worship is not

directly proportional to the knowledge and

implementation of sharia compliance in business

implementation in Cianjur peci industry center. Only

one out of nine artisans claimed to always pay zakat,

while 89% or eight of nine respondents said they

rarely paid zakat. Understanding of peci artisans

about sharia compliance of Islamic business is still

very low. The peci artisans still do not know about the

difference of usury and the interest system, the

difference of usury and profit sharing, the pillars and

murabahah requirements in Islam, and the kind of

illicit transactions.

In capital, the artisans of peci in Buniwangi

Village Pagelaran sub-district also have difficulties to

access the business capital of sharia financial

institution because the location is far from downtown

of Cianjur Regency, and there is no syariah financial

institution like syariah banking and sharia

cooperative in that village. This has led to the

proliferation of mobile bank practices or loan sharks

as an alternative option for borrowing venture capital.

2 LITERATUR REVIEW

Sharia compliance can be defined as follows, that is

to comply with or follow the standards or laws or

rules relating to human behavior, both with respect to

the fundamental law and the branch law that comes

from the Qur'an and the hadith of the Prophet.

According to Mahmudah, compliance means

following a clearly defined specification, standard or

law, while sharia compliance means following sharia

standards (Mahmudah, 2012). The meaning of sharia

compliance is very broad, within the scope of SMEs

the implementation of sharia compliance is based on

Islamic business ethics, namely principles, norms and

standards of behavior that regulate individuals and

groups that distinguish what is right and what is

wrong in doing business in accordance with Islamic

Shariah principles (Nawatmi, 2010).

3 METHODOLOGY

The research method used in this research is

quantitative descriptive method. The statistic used in

this research is descriptive statistic. The design of this

research is descriptive research, in this research

describes the implementation of sharia compliance in

peci business. The population studied in this study

were 28 respondents. Sampling technique used is

Non-Probability sampling In addition, data collection

is also done using questionnaires and interview

techniques. While the scale-making technique used is

Likert scale. Data analysis techniques use descriptive

statistics.

4 RESULTS

Based on the results of research conducted to the

entrepreneurs peci, sharia compliance level in the

Cianjur peci industry centers included in the good

category, including the level of understanding

muamalah fiqh and application of Islamic business

ethics.

Level of understanding of fiqh muamalah an

average of 67% included in either category. Here is

an interpretation of the results of the research.

Table 1: Thickness Observation Data Processing.

Value Criterion Descri

tion

0-20% Ver

less

21-40% Less

41-60% Enou

61-80% Goo

81-100% Ver

From the table 1 it is known that the level of

understanding of rukun jual beli included in the

category of very good, understanding of terms of sale

and purchase of illicit transactions into the category

of good, while among these indicators, the

understanding of zakat trade is the lowest with

sufficient category, it caused by many entrepreneurs

who do not know about the haul and nishab zakat

trade. Based on the research, the level of application

of Islamic business ethics average entrepreneur cap

Cianjur for 76.33% which included into the good

category, which includes:

4.1 Principle

Level of application of principle as one of syariah

complience measurement found in table 2 below.

Table 2: Category variable literacy of Islamic banking

products.

Indicator

Implementation of the Basic

Princi

les of Islamic Business Ethics

Tauhiid Uluihi

ah 88,93%

Tauhiid Rububi

ah 67,50%

Balance 80,00%

Freedo

80,36%

Res

onsible 67,86%

Ihsan 73,57%

Avera

e 76,37%

Analysis of Sharia Compliance Islamic Business The Industrial Centers of Peci - Survey on Cianjur Regency Craftsmen

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The level of application of the principle of

responsibility is the lowest due to the still uncovering

of illicit transactions in the form of usury and gharar.

4.2 Management

Good business requires management activities to

achieve success. In addition, for Muslim

entrepreneurs should perform management activities

in accordance with sharia. Based on the results of

research on the application of sharia-based

management values in the Cianjur peci industry

centers can see in table 3:

Table 3: Level of Implementation of Sharia Management.

Indicator

Implementation of Sharia

Management

Production 82,38%

SDM 79,52%

Finance 58,57%

Marketing 75,36%

Average 73,96%

The level of application of sharia management of

peci entrepreneurs is good category, in addition to

low financial management because the peci

entrepreneurs are still not routinely in performing

financial stakes and still use loans with usury system

from loan sharks and banks.

4.3 Orientation

Business in Islam is not only aimed to gain material

benefits for the entrepreneur, but also must be

beneficial to the environment and society, and the

most important is to be blessed by doing business.

Table 4 is the level of implementation of Islamic

business orientation by entrepreneurs peci Cianjur,

that is:

Table 4: Level of Implementation of Islamic Orientation.

Indicator

Implementation of Islamic

Orientation

Profi

82,38%

Benefi

79,52%

Zakat 58,57%

Blessing 75,36%

Average 73,96%

The average level of implementation of the

orientation or business objectives of Islamic

entrepreneurs peci Cianjur is 81.12% which is

included into the category very well, it means that the

purpose of business entrepreneur peci cianjur is in

accordance with the purpose of doing business in

Islam, with details as follows:

4.3.1 Profit, Benefit, and Zakah on Trade

Any business or trading activity would want to earn a

profit as reflected in the operating profit earned. In

addition, the business must also provide benefits for

the community and the environment. Islam also

obliges to pay zakat trade. Terms of trade zakat,

namely:

Table 5: Terms of Trading Zakah.

Haul 1 Years

Nishab 85 grams of 24 carat gold

Kadar zakat 2,5%

formula (Capital rotates (stock) + Profit +

current accounts receivable) - deb

Assumption  price of 1 gram of gold = Rp.

556.000 x 85 gram = Rp.

47.260.000

 no debts and receivables

Based on the table 5, shows the level of

entrepreneurs who are obliged to zakat and not

obliged to zakat. With nishab zakat Rp. 47.26 million

per year, then 96.4% of entrepreneurs are included in

the category of obligatory zakat. Average turnover of

entrepreneurs per year is Rp. 503.207.000, while the

potential of zakat trade reached Rp. 352,245,000.

Figure 2: Level of Zakat Implementation.

The figure 2 shows that 4% of entrepreneurs who

have not obliged to pay zakat, 71% entrepreneurs who

must pay zakat obligation and have fulfilled

obligations, and 25% entrepreneurs who have obliged

zakat but have never paid zakat business.

4.3.2 Blessing

Level of implementation of Islamic business

orientation with blessing indicator that is:

Table 6: Level of Application of Blessings.

Indicator Implementation Interpretation

Qanaah 73,57% Good

Feel closer to

Allah SWT

86,14% Very Good

Average 79,86% Baik

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Table 6 shows the level of application of qanaah

of 73.57% with good category, meaning that

entrepreneurs caps feel quite with business profits

obtained. In addition, 86.14% of entrepreneurs felt

closer to Alloh with business. It is very important to

apply in order to get blessings from Allah SWT.

5 CONCLUSIONS

The conclusion of this research is that the level of

sharia compliance in Cianjur peci industry center are

included in good category, covering the level of

understanding of muamalah fiqh and the level of

application of business ethics of Islamic entrepreneur

peci Cianjur in the form of application of principle,

syariah management and business orientation

entrepreneurs peci enter in very good category.

REFERENCES

Mahmudah, N. A., 2012. Pengawasan Terhadap Bisnis

Syariah di Indonesia. Jurnal Ekonomi dan Hukum

Islam. Vol. 2, No. 2 .

Nawatmi, S., 2010. Etika Bisnis dalam Perspektif Islam.

Fokus Ekonomi (FE). Vol. 9, No.1 , 50-58.

Nurjaman, R., 2012. Sentra Peci Cianjur Muncul dari

Kmapung Santri, (online) Agustus 2, 2017, available at:

m.kontan.co.id/news/sentra-peci-cianjur-muncul-dari-

kampung-santri-1.

Wikipedia, 2017. Zakat Harta Perniagaan, (online) Juli 30,

2017, available at:

https://id.wikipedia.org/wiki/Zakat_Harta_Perniagaan

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