Blockchain-Driven Trust: A New Paradigm for Transparency and Governance in Islamic Microfinance Institutions

Abstract

This study aim for analyze role blockchain technology as paradigm new in build trust, transparency, and governance in Islamic Microfinance Institutions (IMFIs) in Indonesia. The main problems IMFIs face are: limitations system manual reporting, delays in delivery report finance, as well as asymmetry information between management and stakeholders’ interests, which results in low trust public and accountability institutional. With use approach qualitative descriptive- analytical research This combines studies literature and analysis context institutional for understand relevance and potential blockchain implementation in sector finance Islamic micro. Research results show that blockchain, through characteristic decentralization, transparency, and record keeping permanent, capable replace system reporting conventional become system recording real-time transactions and can verified in a way public. Findings This consistent with study international spotlight the role of blockchain in increase accountability and effectiveness Islamic social fund management. Comparison with practices in Malaysia, Pakistan and Middle Eastern countries show importance support regulation, readiness digital infrastructure, and adaptation local as key success adoption. Research This give contribution theoretical in development literature modern Islamic finance as well as implications practical for improved governance and trust public towards IMFIs through integration blockchain technology.