THE NEED OF MUSLIM FLOATING MARKET FOR BANK SYARIAH A Case Study of the Member of Pengajian Bisnis al-Kautsar NU in Special District of Yogyakarta

Entrepreneurs of NU, engaged in the al-Kautsar religious gathering, can be deemed as having good education and structural position either as a member or an organizer. They declare that NU institutionally gives a big contribution to their business. Their companies are generally home-industries in which they themselves pay the capital. Though the profit is less than IDR 5,000,000, they are aware of developing their industries. Their participation in the Islamic organization, NU, does not mean that they do not choose the conventional banking system, not the shariah one. Their choice is based upon a consideration which banking system is more beneficial for them. To put simply, it can be said that they will be enthusiastic and interested in utilizing the services of shariah-banking system if they could get more benefits. However, they prefer interest system than profit-sharing system. They consider both systems as being at the same position and regard interest as religiously acceptable. Therefore, they believe that conventional banking system is allowed in Islam. Though having preference to conventional banking system, they still possibly utilize shariahbanking system as long as it can give more facilities and benefits and confess that shariah-banking system is in line with their religious doctrines.

Keywords: floating market, entrepreneur of NU, syariah bank.

A. Introduction
Adiwarman Karim found that based on market potency there are three market groups: syariah committed market, 1 floating market which is less committed to a certain banking system, 2 and conventional market. Syariah banking tends to play in syariah committed markets. Based on Karim's research, To survive and extend their domain, syariah banks should be targeted at floating markets whose potency reaches Rp 720 billion. 4 As a result, this business potency has stimulated banking industry actors to compete dominating markets. Markets can be divided into floating customers, both individuals and corporations, that need normal services; and special customers who need more private services. 5 It is these floating customers, with their financial potency, who should be the target of Bank Syariah. 6 Members of the NU (Nahdlatul Ulama), commonly identified as traditional Muslims, are organizationally free to choose their preferred banks in Indonesia, either conventional Bank or Bank Syariah. This means that they are part of the floating markets which are also potential markets for Bank Syariah. In addition, their attitude towards banking interest is heavily dependent on their own understanding on it. In a number of its muktamar, the NU reached three opinions on banking interest including haram (unlawful), shubhah (no clarity between the lawful and the unlawful) and halal (lawful). Thus, people preserve to determine what they adhere to. 7 These were affirmed by Lajnah Bahtsu al-Masâil Nadlatul Ulama, 8

that the NU lets its members
choose what they want. 9 This research is aimed at understanding characteristics and attitudes of the NU corporations towards Bank Syariah so as to figure out the potency of the NU entrepreneurs in Yogyakarta. In addition, it is also aimed at identifying dominant factors influencing the NU entrepreneurs in choosing Bank Syariah.

B. Research Method
This is a field research, 10  Here I have applied two models of sample. One is convenient sample, a sample taken unintentionally where persons included in the population met by the researcher and 12 and random sampling.
In getting data, I have used a questionnaire method; since it is a simple way to collect data flexibly and easily. 13 The questionnaires were shared to members of Pengajian al-Kautsar for four meetings with 29 samples and the remaining 18 given randomly to respondents in their homes or offices. The collected data are then analysed by using the descriptive and regressive-logistic models. Descriptive analysis is used to answer how NU entrepreneurs' characteristics and how their attitude towards Bank Syariah are. Regressive-logistic is a statistic method to understand mathematic relation between a dependent variable and one or more independent variables. 14 The main aim of this analysis is to predict probability of an event based on predictive values and to classify the subject matter based the threshold of probabilities. 15

C. Economic Movements of the NU
The establishment of the Nahdlatul Ulama (NU) in 1926 was preceded by the establishment of three organisations. The first was the Nahdlatul Tujjar 1918 which worked in economic sectors. Taswiru al-Afkar, established in1922, was concerned with science and culture. Nahdlatu al-Watan, established in1924, was concerned with politics through education. These three organisations became bases of the establishment of the NU. Seen from this, there are three pillars of the NU organisation, including mass-oriented economy, socio-cultural and intellectual realms; and national horizon. 16 Nahdlatul al-Tujjâr was the name of Syirkah al-Inân, a trading system in the form of cooperative. 17 This organisation was headed by K.H. Hasyim Asy'ari, while Abdul Wahab became a managing director. Its shared stock and capital was f. 1.125,-, paid by 45 individual members, each f.24,-. There is no further information on this cooperative except the certificate of its establishment. 18 However, this is enough to say that some ten years before the establishment of the NU there had been an attempt among pesantren circles to make cooperation, regardless of its being local and not yet well arranged. 19 The establishment of Nahdlatul al-Tujjâr was much more aimed at stimulating the care of boemi poetra about the decline of the nation as could be seen from the scarcity of students, the weakness of (social) ties and some of them had become free so that even (they) could not perform congregation prayers. 20 In 1930 an endowment association called Lajnah Waqfiyyah was established. Seven years after, it was changed into Waqfiyyah Nahdlatu al-'Ulamâ. The rise and decline of economic enterprises of the NU show that the economic ethos of its members is weak and often taken for granted by themselves. 21 So, it becomes clear that from its economic enterprises the NU has been very concerned about the welfare of umma.
In this regard, two points should be noted. First of all is that Nahdlatu al-Tujjâr was the embryo organisation of the NU. 22 Second is the NU's return to its initial As seen above, historically the NU has a high concern with economic sectors.
However, most of its members are still under poverty. 29 In other word, poverty is still the main problem of the NU members which comprise farmers, fishermen, small traders, and so on. 30  Hasyim was the head, Kiai Wahab was a programme manager, and Kiai Bisri was treasurer. Majelis At-Tujjar involves experts in business and business actors. It also opens wide business access for its members. In its first gathering, it featured a speaker which specialised in motivating business beginners to develop their enterprises. 32 Pengajian al-Kautsar is an independent legal organisation serving as a medium of economic empowerment for NU members. Its establishment is aimed at improving their economic life. 33 According to official data of the NU DIY, there are 229 NU entrepreneurs.

D. NU's Attitude towards Bank Interest
Bank interest has become a debated issue since the second Muktamar held in Surabaya, 9-11 October 1927 34  This was based on a hadith (the Prophet' saying): "every load which attracts interest is riba."

The issue of bank interest reached its peak in the Munas Alim Ulama in Bandar
Lampung, 21-25 June 1992. In this Munas, the official method (manhaji) was decided in Lajnah Bahtsu al-Masâil. The method was for the first time applied to respond to the issue as follows: 1. It was equated with riba, so it was haram.
2. It was not equated with riba, so it was permitted (mubah).
3. It was shubhat (it was not identical with haram).

Characteristics of Respondents
In general, the comparative ratio between the NU officials and common members who are involved in business is 51% and 48.9%. Most respondents are still active in the organisational activities of NU. In addition to that, they consider that so far the NU has contributed to the improvement of enterprises in terms of cooperation, proving information, training for business, mediating with banks.
This profile shows that the NU organisation still functions significantly in encouraging the development of its members' business. From 47 respondents, 72.3% of them graduated from universities, undergraduates, postgraduates or doctorates. This shows that they who are involved in business are well-educated.
74.5% of their enterprises are home industries, and only 8.5% are firms. From home industries, 68.1% of its members have income under five million per month, and 25.6% between 6-10 million per month. There are only three respondents with income up to more than 11 million per month. They are the owners of limited companies.
On their capital, small enterprises commonly need a small capital so that they can afford it by themselves. Only 36.2% respondents take the advantage of banking services. 61.7% of them use their income to create new enterprises. To get capitals, 80.8% of them take the advantage of the services of conventional banks, while only 12.8% use the services of Bank Syariah. And the rest take the advantage of cooperative services. This finding shows that NU community give much of their trust to conventional banks more than Bank Syariah. Only few use the services of cooperatives. This is strange because cooperatives are the initial enterprises the NU ever made historically.

The Attitude of NU Entrepreneurs towards Bank Syariah
Respondents' choice of the preferred banks is tightly related to the interest they might take. 83% respondents pointed preferred banks, and only one respondent timidly agreed on. In general respondents chose the services of conventional banks. However, they still thought that if bank syariah give much more interest and better facilities, they will follow it. 82.9% potentially change to bank syariah, and 4.3% decided to remain with conventional banks. Such data show that their key motif to choose certain banks is interest. Taking this into consideration, Bank Syariah should be able to convince NU entrepreneurs that they would really take much advantage from any transaction in Bank Syariah more than in conventional banks. What they want from the service of Bank Syariah covers payment products and saving which its comparative ratio is 68.1% and 31.9%. Their knowledge of Bank Syariah is much taken from mass media information, and only few who take from educational processes. Their responses to Bank Syariah vary. In general, 82.9% respondents believe that Bank Syariah is in accordance with Islamic teaching. Although some know the conformity of Bank Syariah with Islamic teaching, they are much more interested in interest they may get. The data above are important for Bank Syariah to expand its customers. It should take use of mass media, electronic as well as printed, to promote its products.
They view that transactions in Bank Syariah is relatively easy. 80.8% respondents have known about Bank Syariah products. Even 47.8% of them know more than three products of Bank Syariah: wadiah, mudlârabah and murâbahah and others. Only one respondent knows nothing about the products of Bank Syariah. Although many know about Bank Syariah, they are actually foreign with it. 85.1% respondents stated that they felt it difficult to understand the products of Bank Syariah, and only 14.9% of them do understand them. They are much more familiar with terms used in conventional banks. This means that even though they know the products but do not really understand them. For them, its services are still not satisfying enough. 85.1% respondents feel so, and only few do not.
This finding shows that the reason the respondents are still convenient with conventional banks is that they feel unsatisfied with Bank Syariah's services. 44 However, it is interesting that 95.7% respondents still wish to get more information about Bank Syariah. This is a good opportunity for Bank Syariah to provide business actors of NU members in DIY with more information and satisfying services. 45 The little number of branches of Bank Syariah seem also to be the reason to choose or not. 74.5% respondents stated that they feel hard to find branches of Bank Syariah in their respective regions.
In general, some consider banking interest subhat and some other halal.
Only the remaining 19.2% respondents regard it haram. This means that most NU members consider that banking interest is permitted in Islam. This attitude does not contradict the organization attitude which leaves it to its members. In this regard there is no distinction between Bank Syariah and conventional banks.
After describing the data above, let me make a regressive-logistic analysis as follows: a. First is education, with coefficient= 1,232. Sign positive shows that the higher a businessman got education level, much more he does not agree with banking interest system. Instead, they prefer profit sharing. Value sig (p) = 0,103 > 0,05. It can be said that the level of education will not effect on the choice of profit sharing system more than interest system. Second is income, with coefficient = -1,564. Sign negative means that the higher income they get, the more possible they choose interest system rather than profit sharing. Value sig (p) = 0,076 > 0,05, it can be said that the high amount of income does not effect on variables of choice of profit sharing system more than interest system. Third is legal status of banking interest. With coefficients = 1,835. Sign positive means that the higher score they consider banking interest haram, the more possible they choose profit sharing system rather than interest system. Value sig (p) = 0,002 < 0,05. It can be said that the opinion on the forbidden status of banking interest effects significantly on choosing profit sharing.
b. First is education, with coefficient = 1,899. Sign positive means that the higher respondents' education level is, the more saliently different Bank Syariah and conventional banks are. In other words, the higher education they have, the more possible they disagree on Bank Syariah as well as conventional banks. Sig (p) = 0,027 < 0,05. It can be said that education effects on the opinion that Bank Syariah ada conventional banks are different. Second is income, with coefficient = -0,541, sign negative means that the higher income they get, the more they think that Bank Syariah and conventional banks are the same. Or in other words, the higher income they have, the more they agree that both Bank Syariah and conventional banks are the same. Sig (p) = 0,404 > 0,05. It can be said that those with high income consider that both bank syariah and conventional banks are the same. Third is legal status of banking interest. With coefficient = 1,606. Sign positive means that the more the opinion on the unlawfulness of banking interest, the more they consider that Bank Syariah and conventional banks are different.
Or, in other words, respondents who consider it unlawful will disagree on the opinion that Bank Syariah and conventional banks are the same. Sig (p) = 0,004 < 0,05. It can be said that the opinion on legal status of banking interest effect significantly on the attitude towards the opinion that bank syariah and conventional banks are the same.
c. First is education, with coefficient = -0,069 sign negative means that the higher the level of education they have, the more they consider that bank syariah is not in accordance with religious teaching. Or, in other words, the higher the level of education they have, the more they disagree on the opinion that the support to Bank Syariah is given because it is in accordance with religious teaching. Sig (p) = 0,9278 > 0,05. It can be said that education does not effect on the attitude towards bank syariah as being in accordance with religious teaching. Second is income, with coefficient = 0,091. Sign positive means that the higher the income they get, the higher their attitude that bank syariah is in accordance with religious teaching. But this attitude is not so significant. Sig (p) = 0,888 > 0,05. It can be said that income does not effect on supporting attitude toward bank syariah as being in accordance with religious teaching. Third is legal status of banking interest. With coefficient = 1,171. Sign positive means that the more they consider banking interest haram, the more the attitude towards bank syariah as being in accordance with religious teaching. Or, in other words, respondents who consider banking interest haram will agree if bank syariah is in accordance with religious teaching.

F. Conclusion
Many NU entrepreneurs in DIY are floating markets potential for the development of Bank Syariah. They believe that Bank Syariah is in accordance with Islamic teaching. They are familiar with Bank Syariah's products. But this is not a main factor which encourages them to choose Bank Syariah. Advantages, services, facilities, and nearness of branches are main factors which encourage them to change from conventional banks to bank syariah. Therefore, Bank Syariah should improve their services and interest of partnership better than interest system, and to open more branches. ______________ * Financial staff of PSI-UII and teaching staff at Prodi Ekonomi Islam, FIAI-UII, Yogyakarta.