Measuring the effect of study abroad scholarships on the material (economic) and spiritual welfare of the scholars with the CIBEST model: The case of Turkey and Indonesia

It is known that social financial funds contribute greatly to the development of human resources in a country, to accelerate the economic growth of the country, and to reduce material (economic) and spiritual poverty. The purpose of this study is to fill in the gap of microfinance literature and human development regarding the effects of scholarship funds on the material (economical) and spiritual welfare of scholarship awardees. Participants in this research are 382 alumni LPDP and YTB Scholarship. In this research paper, 8 variables like persistence, family condition, level of education, duration of the study, scholarship amount, study experience, GPA and alumni network are used to measure the material welfare of scholarship alumni. Furthermore, Spiritual value indicators are evaluated from the CIBEST method which is shalat, fasting, zakat, government support, and household environment to measure the spiritual welfare of the alumni. Then, data will be processed by OLS (Ordinary Least Squares regression) and CIBEST calculation followed by categorizing respondents into four quadrants: welfare index, material poverty index, spiritual poverty index, and absolute poverty index. The results of this study show that family condition, study experience, duration of study and education level affect material welfare. Then the level of GPA, study experience, scholarship amount and alumni network have also influenced scholarship alumni spiritual welfare. After receiving LPDP and YTB scholarship, 98% of LPDP alumni and 100% of YTB alumi are in quadrant I which mean materially and spiritually rich.