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This study aims to analyze the productivity improvement strategies of the agricultural sector based on the problems faced by the agricultural sector in Central Java, Indonesia.

The analysis is done through interviews, literature studies and analytical hierarchy process data processing aids.

The results show that the strategy for developing the agricultural sector in Central Java needs to be focused on institutional factors to organize the field agricultural sector institutions. The ideal institution for the development of the agricultural sector in Central Java is cooperatives that can be accompanied by the Islamic Microfinance Institutions (LKMS).

This paper will contribute new knowledge specifically about the productivity improvement strategy through the cooperative institution.

This study aims to explore the risk management practices of Islamic microfinance institutions (IMFIs) to increase their financial performance and sustainability.

This research used a qualitative approach to increase financial performance and sustainability. The study population comprised the Baitut Tamwil Muhammadiyah (BTM) in Central Java Province, Indonesia. The data collection techniques included questionnaires and an in-depth interview, and the framework was validated by the main participants.

This study showed that BTMs have implemented risk management using different standards. However, such risk management is carried out partially while prioritising certain risks and using different methods. The risk of Sharia compliance is the most recognised risk, while financing and operational risks are the most anticipated, because these two risk types directly impact financial performance and sustainability. In general, a risk management model can improve financial performance and sustainability. Nevertheless, there are obstacles in implementing risk management at BTMs, which include weak human resources, the employee selection process, human resource development and a good control system.

This research explored best practices for risk management in IMFIs and may contribute to the development of risk management in such institutions to maintain the financial performance and sustainability of their services.

The purpose of this paper is to empirically examine the factors that affect Muslim customers’ participation in using Baitul Maal wat Tamwil (BMT). The decomposed theory of planned behaviour (DTPB) was used as the research framework.

The paper uses primary data collected by self-administered questionnaires involving a sample of 405 respondents from selected BMTs in five different regencies in East Java. Structural equation modelling was used in the analysis.

This study revealed that among the three main beliefs, only perceived behavioural control towards BMT was found to have positive and significant impact on clients’ participation towards BMT. With regards to antecedents’ influence on their main beliefs, only perceived compatibility, perceived complexity and uncertainty and facilitating condition were not significant.

As the data collected are existing clients of BMT, behavioural intention is excluded from the study, and as a result, the study may lack comprehensive results. Therefore, future study will be very useful if it includes behavioural intention as the variables.

The finding of the present study could help BMT to better manage by focussing on relative advantage and behavioural control to build client relationships.

The paper may be first study to apply DTPB to client behaviours in the area of Islamic microfinance in Indonesia.