The Transformation of Gala and Mawah
Towards the Sharia Gala Bank Microfinance Model in Aceh
DOI:
https://doi.org/10.22373/sjhk.v9.i3.31899Keywords:
Gala, Mawah, Gala Bank, Economic HeritageAbstract
The Acehnese society has long practiced customary economic arrangements such as gala (pawning) and mawah (profit-sharing). However, the traditional gala practices are frequently exploitative and inconsistent with the Sharia principles, as lenders exercise full control over collateralized productive assets. In addition, the potential of mawah as a cooperative economic mechanism has not been fully realized. This qualitative study examines the transformation of these customary practices into sustainable Sharia-based microfinance institutions through a case study of their implementation in Southwest Aceh. Data were collected through observations and in-depth interviews. The findings indicate that KSPPS Baitul Qiradh Gala Muamalah, commonly known as the “Gala Bank,” has initiated a revitalization of local economic wisdom grounded in Sharia principles. A fundamental transformation is evident in the gala practice through the application of a rahn (Sharia pawn) contract, whereby the institution holds only the collateral, while productive assets, such as rice fields, remain under the management of their owners. This arrangement enables farmers to continue agricultural production and generate income. For working capital financing, the institution employs a mudharabah (profit-sharing) contract with a flexible post-harvest repayment system. The “Gala Bank” model has successfully transformed previously harmful practices into equitable, farmer-empowering, and Sharia-compliant transactions. Consequently, this initiative demonstrates how traditional economic practices can be effectively adapted into a modern, sustainable economic framework rooted in local culture, serving as a model for community-based economic development.
References
Journals and Books
Burhanudin, Jajat. “Islamic Turn in Malay Historiography: Bustan Al-Salatin of 17th-century Aceh.” Studia Islamika 28, no. 3 (2021).
Deacon, Harriet Jane. “Cultural Heritage, Creativity and Economic Development.” Cultural Trends 29, no. 4 (2020).
Fahriansah, Fahriansah. “Transaksi Ekonomi Klasik Masyarakat Aceh (Analisis Kelayakan Taqnin Hukum Ekonomi Syariah).” Ihtiyath: Jurnal Manajemen Keuangan Syariah 1, no. 2 (2017).
Fajri, Ikhsan, and Muksal. “Implementasi Akad Pembiayaan Syariah Pada GALA (Gadai Tradisional).” Islam Universalia: International Journal of Islamic Studies and Social Sciences 3, no. 1 (2021).
Fakhriati, Fakhriati. “Indians Hybrid Communities in Aceh.” In Proceedings of the 9th Asbam International Conference (Archeology, History, & Culture In The Nature of Malay) (ASBAM 2021), 2022.
Galluccio, Carla, and Francesca Giambona. “Cultural Heritage and Economic Development: Measuring Sustainability over Time.” Socio-Economic Planning Sciences 95 (2024).
Hadi, Amirul. “Aceh in History: Preserving Traditions and Embracing Modernity.” MIQOT: Jurnal Ilmu-Ilmu Keislaman 37, no. 2 (2016).
Haykal, Hassanain, Johannes Ibrahim, and Shelly Kurniawan. “Building Sharia Law Banking System In Global Economic Development Under Local Wisdom Basis.” Revista de Gestao Social e Ambiental 18, no. 7 (2024).
Herrero-Prieto, Luis César. “Cultural Heritage, Creativity and Economic Development.” Regional Studies 54, no. 9 (2020).
Hurgronje, Christiaan Snouck. Aceh: Adat Istiadatnya. Jakarta Indonesia: Indonesian Netherlands for Islamic Studies, 1996.
———. De Atjèhers. Leiden: E. J. Brill, 1893.
Ibrahim, Azharsyah. “Indonesian Horizons in Islamic Finance: Navigating Risk, Innovation, and Social Impact.” Share: Jurnal Ekonomi Dan Keuangan Islam 13, no. 1 (2024).
———. “Praktik Ekonomi Masyarakat Aceh Dalam Konteks Ekonomi Islam: Kajian Terhadap Sistem Mawah Dan Gala.” The Aceh Development International Conference, no. March (2012).
Ismail, Badruzzaman. Ensiklopedia Budaya Adat Aceh. Banda Aceh: Majelis Adat Aceh, 2018.
Lombard, Denys. Le Sultanat d’Atjéh Au Temps d’Iskandar Muda, 1607-1636. Paris : École française d’Extrême-Orient, 1967.
Maksalmina, Maksalmina. “Mawah Practices in Aceh: Syariah Legitimacy Based on Fatwas and Islamic Jurisprudence.” Al-Mustashfa: Jurnal Penelitian Hukum Ekonomi Syariah 9, no. 2 (2024).
Muhammad Ali, Mahadi Bahtera, Mustakim Sagita, Ayu Andira, and Ziatul Via. “”Mawah” Profit Sharing System with Local Acehnese Wisdom Based on Islamic Perpective.” Journal of Law, Politic and Humanities 4, no. 6 (2024).
Muhammad, Rusjdi Ali. “Reconciliation for the Settlement of Criminal Cases: Reactualization of Local Wisdom in Indonesian Criminal Law [Upaya Perdamaian Untuk Penyelesaian Perkara Pidana: Reaktualisasi Kearifan Lokal Dalam Hukum Pidana Indonesia].” Legitimasi: Jurnal Hukum Pidana Dan Politik Hukum 10, no. 2 (November 19, 2021): 171.
Muhammad, Rusjdi Ali, and Dedy Sumardi. Kearifan Tradisional Lokal: Penyerapan Syariat Islam Dalam Hukum Adat Aceh. Banda Aceh: Dinas Syariat Islam Aceh, 2011.
Mukhtasar, Mukhtasar, and Angga Syahputra. “Optimizing the Mawah Concept for the Economy of the Aceh Community.” IQTISHODUNA: Jurnal Ekonomi Islam 9, no. 2 (2020).
Nelly, Nelly, Rahmi Rahmi, Mahdani Mahdani, and Djuraidin Ismail. “The Implementation Of Mawah Custom Process To Improve The Community Economy In Kuta Baro Subdistrict Aceh Besar,” 2020.
Nelly, Rahmi, Mahdani, and Djuraidin Ismail. “A Pattern of Empowerment of Traditional Values Mawah as a Model of Poverty Alleviation Based on the Supply Chain Strategy.” International Journal of Supply Chain Management 9, no. 1 (2020).
Nurlina, and Iskandar Muda. “The Analysis of the Effects of Capital Expenditure and Human Development Index on Economic Growth and Poverty in East Aceh Regency.” International Journal of Economic Research 14, no. 17 (2017).
Pratama, Siectio Dicko, and Rizal Rahadiana. “Multidimensional Poverty and Its Effect on the Economy of Aceh Province.” Bappenas Working Papers 6, no. 2 (2023).
Reid, Anthony. “War, Peace and the Burden of History in Aceh.” Asian Ethnicity 5, no. 3 (2004).
Sudiarti, Sri, Pangeran Harapan, and Nanda Safarida. “Mawah & Cater Di Aceh: Studi Peningkatan Kesejahteraan Masyarakat.” Al Muamalat Jurnal Hukum Ekonomi Syariah III, no. 01 (2017).
Sugeng, Sugeng, Annisa Fitria, Adi Nur Rohman, and Andre Cardenas Jr. “Strengthening Sharia Microfinance Regulations And Business Models In Indonesia.” Jurnal Hukum Dan Peradilan 13, no. 1 (2024).
Suhaimi, Abdurrahman, and Ishak. “Existency Of Mawah (Product Share) Of Agricultural Land In A Traditional Law Society In Kuta Cot Glie Sub-District, Aceh Besar District.” Jurnal IUS Kajian Hukum Dan Keadilan 9, no. 1 (2021).
Interviews
Interview with Salman, Director of Bank Gala, Southwest Aceh Regency, June 26, 2025
Interview with Zedi, Head of the Department of Industry and Cooperatives and Head of the Economic Sub-Division, Abdya Regency, June 19, 2025
Interview with Miswar, Administrator of the Aceh Traditional Council, Southwest Aceh Regency, June 25, 2025
Interview with Hamdani, Community Leader of Meukuta Village, Southwest Aceh, June 23, 2025
Interview with Syaiba Ibrahim, Chair of the Aceh Traditional Council, Southwest Aceh Regency, June 25, 2025
Interview with Ishak, Customary Guidance Officer of the Aceh Traditional Council, Southwest Aceh Regency, June 25, 2025
Interview with Muhammad Nasir, Traditional Leader of Suak Bakung Village, South Aceh, June 22, 2025
Interview with Miswar, Traditional Leader of Air Pinang Village, Tapaktuan Sub-district, South Aceh, June 22, 2025
Downloads
Published
Versions
- 2025-12-31 (3)
- 2025-12-31 (2)
- 2025-12-31 (1)
Issue
Section
License
Copyright (c) 2025 Wardiah Hamid, Dedy Sumardi, I Made Suarsana, Muhammad Dachlan, and Hamsiati Hamsiati
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish in Samarah: Jurnal Hukum Keluarga dan Hukum Islam agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed Attribution-ShareAlike 4.0 International (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. (See The Effect of Open Acces)
