AL-MUZARA'AH – Journal of Islamic Economics, is a collaborative journal of the Department of Islamic Economics, IPB University with the Indonesian Association of Islamic Economist (IAEI). The aim of the journal is to communicate and as the media of academic socialization by providing a platform for publication of research in the fields of Islamic economics, Islamic finance, Islamic microfinance, Islamic banking, Islamic insurance, Islamic management, Islamic agriculture and environment, halal industry, Islamic social finance and poverty alleviation, Islamic law and sharia issues in economics and finance, Islamic securitization and sukuk, Islamic capital market, Islamic accounting, Islamic development economics, and other topics related to this area. AL-MUZARA'AH has been Accredited SINTA Rank 2 by Directorate General of Research and Development Strengthening, Ministry of Research, Technology and Higher Education of the Republic of Indonesia (Kemenristekdikti RI) No 158/E/KPT/2021 which is valid for 5 (five) years since enacted on 9 December 2021. AL-MUZARA'AH has been registered in Google Scholar, Crossref, Garda Rujukan Digital (Garuda), Dimensions, and <a href="https://research.ebsco.com/c/ylm4lv/search/results?q=AL-MUZARA%27AH%20-%20Journal%20of%20Islamic%20Economics%20%26%20Finance&autocorrect=y&expanders=fullText&expanders=concept&facetFilter=sourceTypes%3AMTYwTU4%3D&limiters=RV%3AY&qm=W3sidmFsdWUiOiJBTC1NVVpBUkEnQUggLSBKb3VybmFsIG9mIElzbGFtaWMgRWNvbm9taWNzICYgRmluYW5jZSIsInR5cGUiOiJ0ZXh0In1d&resetPageNumber=true&searchMode=all&searchSegment=all-results&skipResultsFetch=true">EBSCO. <a href="https://research.ebsco.com/c/ylm4lv/search/results?q=AL-MUZARA%27AH%20-%20Journal%20of%20Islamic%20Economics%20%26%20Finance&autocorrect=y&expanders=fullText&expanders=concept&facetFilter=sourceTypes%3AMTYwTU4%3D&limiters=RV%3AY&qm=W3sidmFsdWUiOiJBTC1NVVpBUkEnQUggLSBKb3VybmFsIG9mIElzbGFtaWMgRWNvbm9taWNzICYgRmluYW5jZSIsInR5cGUiOiJ0ZXh0In1d&resetPageNumber=true&searchMode=all&searchSegment=all-results&skipResultsFetch=true"> ISSN p: 2337-6333; e: 2615-7659
Department of Islamic Economics, IPB University
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The Nexus Between Income Inequality and Environmental Degradation in ASEAN-6 Countries During 1992 – 2015 from Islamic Perspective
The purpose of the study is to examine the relationship between income inequality and environmental degradation in ASEAN-6 countries namely Indonesia, Malaysia, the Philippines, Thailand, Singapore, and Vietnam. It also provide analysis from the Islamic perspective based on result of the econometric regression. The study utilizes annual panel data from1992 until 2015 where the region suffered from high income distribution and environmental degradation. The analytical tool used in the study is Bias-Corrected Least Squared Dummy Variable (LSDVC), which is sufficient for small panel data. The methodological approach leads to two main findings. First, income inequality, measured by Gini coefficient, is contributing to environmental degradation (proxied by CO₂ emission and Natural Resources Depletion) in the short- and long-run term. Other explanatory variables namely GDP per capita and energy consumption, also impact significantly on environmental degradation level in the short- and long-term. From the findings, it is recommended that greater investment is required in addressing high level of income inequality and environmental issues. Instruments in Islam such as zakat and waqf provide solution to overcome issue of high income gap and environmental degradation in ASEAN-6 countries, moreover majority of Muslim population located in ASEAN countries. Hence, collaboration should be enhanced among the ASEAN-6 countries where wealth distribution, technology and knowledge sharing from high income countries to low and middle-income in ASEAN countries to mitigate the negative impact of high income inequality and environmental issue in the region.
Profit Increase of Microentrepreneurs through Islamic Microfinance Institution Financing Program (Case Study of BPRS Amanah Ummah)
The development of micro-business sector in Indonesia is one of the efforts to reduce poverty. Bank Pembiayaan Rakyat Syariah (BPRS) Amanah Ummah is an Islamic microfinance institution that enables microentrepreneurs in Bogor regency to secure capital. The funding provided by BPRS Amanah Ummah is expected to increase their business income while contributing to reduce poverty levels in Bogor regency. The aim of this research was to analyze how the distribution of Islamic microfinance from BPRS Amanah Ummah affects the profit increase of microentrepreneurs. It also analyzes the factors that affect the profit of microenterprises in Bogor. This study uses a descriptive approach combined with quantitative and qualitative approaches. The effect of the Financing Program of Islamic Microfinance Institutions (LKMS) against the profit increase of microenterprises was evaluated using the Ordinary Least Square (OLS) method. The result shows that the LKMS financing program increases profits. This is evidenced by the change in microenterprise profit after securing financing. In addition, there are several variables that can increase profits such as the duration of business, the number of employees involved, the frequency of capital received, business turnover, and level of education. The conclusion of the research is that financing provided by BPRS Amanah Ummah yields a positive and significant effect in increasing the profits of microentrepreneurs in Bogor regency.
The Impact of Socioeconomic and Behavioral Factors on Health Indicators in OIC Countries
Health sector indicators are important basis of determining the overall state of a nation’s wealth and welfare. Apart from this broad and conventional perspective on the role of health, in many Islamic countries, health is also part of objective of ‘maqashid sharia’ that needs to be maintained to sustain life. Accordingly, countries invest substantial share of national resources to sustain critical health systems. Notwithstanding these commitments, health service delivery remains a major challenge in these countries, as indicated by the low average life expectancy and the high mortality rate caused by communicable diseases. This study aims to describe and analyze the factors influencing health outcomes, namely life expectancy and mortality rate, in Muslim countries using secondary data from 46 OIC countries from 2010-2018. Employing panel data estimation, the study finds evidence suggesting the important role of a nation’s wealth, health expenditure, educational achievement and the prevalence of smoking as important determinants of life expectancy in OIC countries. In particular, the results show that high incidence of communicable diseases in countries with lower than mean years of schooling and those with significantly wide prevalence of smoking habits may have contributed to high mortality in these countries.
Sharia Supervisory Board Characteristics and Anti-Corruption Disclosure: Study of Islamic Banks in Indonesia and Malaysia
Corruption continues to pose a substantial challenge for corporations globally, including financial institutions that comply with sharia principles. Islamic banks must prioritize transparency and accountability, as these elements are essential for maintaining ethical governance and revealing their anti-corruption efforts. Despite the growing focus on Anti-Corruption Disclosure (ACD), corruption cases within Islamic banks continue to occur, highlighting concerns regarding the efficacy of Islamic governance mechanisms. This research analyzes the influence of Sharia Supervisory Board (SSB) attributes—namely, number, cross-membership, expertise level, educational qualifications, reputation, and rotation—on ACD. This research employs a quantitative approach, utilizing panel data regression to analyze Islamic banks in Indonesia and Malaysia during the period 2020–2021. The sample, chosen via purposive sampling, includes 16 Islamic banks from a total population of 37, according to established criteria. According to the results, ACD is considerably affected by the number of SSB members, but it is not significantly affected by cross-membership, expertise, educational background, reputation, or rotation. The results provide light on how SSB traits affect ACD improvement and add to the broader conversation on Islamic governance and company transparency.
Mapping Research Landscape on Ijarah Accounting: A Bibliometric Study Based on PSAK 107 Literature
The development of ijarah accounting in Indonesia is in line with the growth of the Islamic financial sector which continues to show a positive trend. Compliance with the Statement of Financial Accounting Standards (PSAK), particularly PSAK 107 on Ijarah Accounting, is crucial in ensuring transparency and accountability of financial statements of Islamic financial institutions. However, although PSAK 107 has been in effect since 2010, in-depth and sustained academic studies on this topic are still limited, especially in the Indonesian context. To comprehensively explore the research on PSAK 107, a bibliometric review was conducted using Scopus and Crossref academic databases. ScienceDirect and Emerald Insight academic databases were used for data updates, covering the period 2014-2024 for Scopus and 2019-2024 for Crossref. Article metadata from Scopus and Crossref downloaded on April 17, 2024 were processed using BibTeX and RIS formats with R Studio and VOSviewer software. This collaborative study categorizes research themes on PSAK 107 using metadata from 1187 articles indexed in Scopus and Crossref between 2014 and 2024. The mapping visualization results show that the dominant themes are PSAK 107 and Ijarah, while topics such as Accounting, Ijarah Contracts, Ijarah Financing, and Islamic Profitability are identified as potential research opportunities. Another important finding is the dominance of contributions from Malaysia and Pakistan, with very little representation of research from Indonesia. This indicates a significant literature gap on the implementation and development of Ijarah accounting based on PSAK 107 in Indonesia. In addition, a number of topics such as Sukuk Ijarah, Accountability, and Ujrah are relatively under-researched, thus offering great room for further scientific exploration. Therefore, this study emphasizes the urgency for researchers in Indonesia to fill the literature gap to strengthen local understanding and contribute to the global discourse of Islamic accounting.
Halal Marketing Approaches: A Systematic Review of Strategies, Challenges, and Social Implication
Halal, meaning "lawful and permitted," is deeply rooted in Islamic philosophy and teachings. Halal marketing refers to the strategies and approaches used to promote and sell products that comply with halal standards. This systematic review aims to examine the various marketing approaches utilized in promoting halal products. Some critics argue that the emphasis on halal products can lead to exclusion and division within societies, as it may prioritize catering to a specific religious group over others. They contend that promoting halal products exclusively may create a sense of segregation and hinder social integration. Utilizing the PRISMA method and analyzing publication from Scopus database. The study investigates diverse marketing technique used in promoting halal products. Several countries were included in this review, including Indonesia, Malaysia, Turkey, Arab Saudi, and the United Arab Emirates. The result of this review will provide insights into the marketing approaches that have been successful in promoting halal products and highlight any potential implications of these strategies on social integration. The finding suggest that halal marketing approaches vary across different countries, with a focus on building trust, emphasizing authenticity, and utilizing digital platforms. Based on the findings of this systematic review, it can be concluded that there are diverse marketing approaches used in promoting halal products. The study recommends future research explore of the impact of halal marketing on social integration and the potential for inclusive marketing strategies that can cater to a diverse consumer.
The Negative Influence of Viral Marketing and Brand Awareness on Customer Trust and Purchase Decisions of Pro-Israel Products in Banten Province
This study investigates the influence of viral marketing, brand awareness, and trust on the purchase decisions of pro-Israel products in Banten Province. Anchored in the Stimulus-Organism-Response (SOR) theory, the research conceptualizes viral marketing and brand awareness as external stimuli (S), consumer trust as the internal organismic state (O), and purchase decisions as the behavioural response (R). The study employs a purposive sampling technique targeting individuals who previously purchased pro-Israel products but have since discontinued or become more selective in their choices. Data were collected through an online survey involving 278 respondents and analyzed using Structural Equation Modelling (SEM) with AMOS 23. The results indicate that viral marketing and brand awareness have a significant negative effect on consumer trust. Furthermore, viral marketing, brand awareness, and trust each have a negative influence on purchase decisions regarding pro-Israel products. These findings underscore the mediating role of trust within the SOR framework, highlighting how consumer perceptions shaped by external marketing stimuli impact ethical decision-making. The study concludes that brands operating in sensitive socio-political contexts must carefully manage their marketing communications to maintain trust and consumer alignment. These insights provide valuable implications for marketers aiming to influence behaviour through ethical and culturally sensitive branding strategies.
The Analysis of Crowdfunding Implementation as an Alternative Financing for Islamic Microfinance Institution
Islamic Microfinance Institutions (IMFIs) play a crucial role in delivering financial services to Micro, Small, and Medium Enterprises (MSMEs), thereby advancing financial inclusion and fostering economic empowerment. Despite their significance, IMFIs frequently encounter major constraints, particularly limited access to capital. In contrast, technological advancements have introduced innovative and efficient financing alternatives, most notably in the form of financial technology (fintech). This study investigates the potential for collaboration between IMFIs and fintech, with a particular emphasis on crowdfunding as a financing mechanism. It seeks to identify the benefits and opportunities, alongside the costs and risks, associated with the implementation of fintech-based crowdfunding as an alternative financing source for IMFIs. Adopting a critical review research paradigm and a mixed-method epistemological approach, the study employs two key methodologies: (1) the development of a typology outlining the benefits, opportunities, costs, and risks of collaboration; and (2) the application of the Analytic Network Process (ANP), using the typology as the foundation for model construction. Findings indicate that experts generally perceive the benefits and opportunities of such collaboration to outweigh the associated costs and risks. Notable advantages include enhanced access to capital and the cultivation of a more robust investment culture within IMFIs. On the other hand, key concerns include infrastructural limitations and the potential for capital loss. To mitigate these risks and maximize collaborative benefits, the study highlights the importance of strengthening institutional management across both IMFIs and fintech platforms.
Volatility Dynamics of Islamic and Conventional Equity Portfolios During COVID-19: Evidence from Fama-French and GARCH Models
This paper examines the performance and volatility of Islamic equity portfolios in contrast to their conventional counterparts during the pre-pandemic, COVID-19 pandemic, and post-pandemic periods. Using daily data gathered from February 2019 to December 2023, this study employs the Fama-French factor models alongside GARCH-type models to evaluate risk-adjusted returns and volatility of portfolios. Furthermore, shariah screening rules, particularly those related to debt ratios, are integrated into the portfolio construction process to assess their influence on performance. The results show that while Islamic equity portfolios generally deliver lower returns, they demonstrate significantly lower volatility. This relation implicitly suggests a trade-off between risk and return, which are amplified further during periods of market stress. These findings contribute to the growing literature on Islamic finance by demonstrating the stability provided by shariah-compliant equity portfolios. Future research may explore sector-specific performance or extend the framework to other economies.
Analysis of the Effect of Outreach on Cooperative Sustainability: The Mediating Role of Capital Deepening
Indonesia is experiencing a serious inactivity of cooperatives, initially the number of active cooperatives was 209,448 units (2014) but has decreased to 130,119 units (2023) or a decrease of 79,328 units. This research aims to defined the effect of cooperative outreach on the sustainability of sharia saving and loan cooperatives (SLC). SLCs endeavor to elevate support provision to members. Mutually beneficial will be reached if financial and non-financial services (NFS) provided in a balanced manner. Utilizing data via questionnaires from 11 provinces in Indonesia or 32.3% of the total provinces, linear regression, mediation and moderation analysis were carried out. The analysis technique uses Structural Equation Model Partial Least Square (SEM PLS). The findings show a negative relationship between outreach and sustainability. Meanwhile, capital deepening has a positive effect and has a mediating effect on sustainability. However, NFS were found to have no moderating effect on this relationship. This research concludes that SLCs have to take a look at the capitals strength to maintain outreach, and should be wise regarding non-financial services. As a recommendation, the delivery of NFS needs a carefully consideration because apart from adding costs it also does not support the sustainability of the institution.
Designing the Business Scheme Model of Direct Investment of Indonesian Hajj Funds to The Saudi Food Industry
Diversification of investment in hajj funds is also needed in the real sector to optimize the portfolio and sustainable development of hajj finance. This study analyzes the potential for direct investment in the supply of raw materials to meet the needs of catering and processed food by the Indonesian Hajj Fund Management Agency in Saudi Arabia’s food industry. This research utilized a qualitative approach and used data and regulations from authorities and regulators in Indonesia and Saudi Arabia. All available data is used to design direct investment models using contracts complying with ethical and fair investment principles. The results depicted two alternative investment schemes: executing a joint venture or establishing a subsidiary. Murabaha and parallel salam can carry out the business contract schemes. Using the murabaha scheme, the risk of fluctuations in exchange rates and commodities can be controlled by setting the margins. Meanwhile, salam contracts are explicitly made for orders obtained from local suppliers to avoid the risk of exchange rate fluctuations. This research is limited to the condition of hajj financial management in Indonesia and Saudi Arabia. However, this research is expected to improve the literature on the management of hajj finance and provide an alternative way for innovative and sustainable direct investment performed by the Indonesian Hajj Financial Management Agency.
Revisiting Mudharabah Investment Account and Proposal for Improvement – Case of Indonesia
The rapid growth of Islamic banks is accompanied by various innovations in Islamic financial transactions which generally seem to follow the product diversity and risk profile of conventional banks. This innovation is also carried out in the application of mudharabah particularly in the Profit-Sharing Investment Account (PSIA). Mudharabah, whose original form is equity, has been adapted by Islamic banks by treating it just like a normal deposit whith the exception that the profit is calcualted based on a ratio, resulting difficulties to distinguish it from conventional bank deposits which are debt in nature. This research aims to evaluate the implementation of mudharabah in PSIA in Indonesia, by conducting field survey and interviews with parties whom responsible for managing it and comparing it with Sharia Standard issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and fatwas of National Sharia Council of Indonesian Ulama Council (DSN-MUI). The research revealed that although PSIA return is calculated using profit distribution ratio (as mudharabah core feature), it lacks other main features of mudharabah, be it in its nature or profit or loss determination method. To rectify this deviation, this research proposes an operational model of mudharabah termed “the Quasi Equity Model", which meets the main features of mudharabah as envisaged by AAOIFI and DSN-MUI. This study contributes to the field of Islamic finance by not only identifying existing discrepancies but also proposing a practical model for addressing them, thus aligning it back to sharia principles within Islamic banking practices.
Improving the Quality of Life of People with Disability through Zakat: A Zakat Utilization Model Canvas Perspective
Islam upholds the principle of equality for all individuals, regardless of their disability status. The sole distinction between people lies in their level of piety. However, in reality, people with disabilities (PWD) continue to face various forms of discrimination, ranging from education and employment to societal stigma, hindering their ability to improve their quality of life. Furthermore, the exclusion of PWD from the economy can result in a national GDP loss of up to 7% per year. Zakat optimization presents a potential solution to enhance the lives of PWD. In this context, PWD can be classified under the asnaf of fakir (the poor) and/or miskin (the destitute). Their categorization as fakir stems from their limitations in meeting basic needs, while their classification as miskin is supported by data and research indicating a strong correlation between disability and poverty. Unfortunately, the attention given to PWD within the zakat system remains relatively low. Therefore, employing a qualitative research methodology, this paper delves into the distribution of zakat in the disability sector and proposes an integrated distribution model for PWD. This model entails grouping PWD based on their age and work capabilities before providing appropriate assistance. Additionally, utilizing the Zakat Utilization Model Canvas (ZUMC), this paper explores the ideal planning framework for disability programs that can be implemented by zakat institutions. ZUMC adopts a holistic approach, considering not only the commercial aspects of programs but also the empowerment of mustahik (zakat recipients) in each element. This paper aims to contribute to the still-limited research on zakat and disability in Indonesia.
Evaluating Islamic Bank Efficiency and Productivity in ASEAN: Does Technological Advancement Play a Role?
Amid the economic crises triggered by the COVID-19 pandemic, sustainable financial systems have become essential for resilience and recovery, particularly in ASEAN countries where Islamic banks play a crucial role in economic stability. The purpose of this study is to evaluate the performances of the Islamic Bank in the ASEAN countries in terms of both efficiency and productivity. This study provides insights into 33 Islamic banks in Indonesia, Malaysia, Brunei Darussalam, Thailand, and the Philippines from 2015 to 2022. This study employs the Data Envelopment Analysis (DEA) technique and the Malmquist Productivity Index (MPI) to simultaneously attain elevated levels of efficiency and productivity. The result shows that Maybank Islamic Berhad was considered the most efficient and productive Islamic Bank within ASEAN countries. In terms of significant elements, it was discovered that shifts in technology capabilities have a greater magnitude of effect on Islamic banking productivity in ASEAN than shifts in innovation strategies and operational efficiencies. The findings also show that Islamic banks in ASEAN region experienced a growth in banking performance during the research period. This implies that the Islamic banking sector demonstrated enhanced performance despite the adverse effects of the COVID-19 pandemic. This study suggests that all ASEAN Islamic banks must continue to enhance the quality of their technology in order to raise their efficiency and generate more productivity in the future.
Determinants of Food Waste Behavior in Muslim Household Food Consumption in Indonesia
Islam forbids wasteful behavior in all activities, yet Indonesia, with the world's largest Muslim population, is the second largest contributor to food loss and waste, with household consumption being the largest contributor. This study examines the factors influencing tabzir (food waste) behavior in Indonesian Muslim households and their relationship with religiosity in reducing tabzir behavior. The method used was a survey of 529 Muslim household respondents, and data analysis was performed using the structural equation modeling–partial least squares (SEM-PLS) approach. The results showed that routine shopping and eating habits had a positive impact on food waste; the worse the shopping behavior and eating habits, the more food wasted. On the other hand, awareness, religiosity, religious norms, and knowledge negatively influence food waste. Thus, the better the level of awareness, knowledge, religiosity, and religious norms, the less food is wasted. While awareness, knowledge, religiosity, and religious norms can help lessen food waste, they are insufficient without regulations on unethical consumption.
Digital Transparency and Consumer Awareness: Digital Platforms for Educating Consumers about Product Origins and Sustainability
This paper investigates the role of digital transparency in enhancing consumer awareness of product origins and sustainability. As consumers increasingly seek to make informed, ethically aligned purchasing decisions, digital platforms - such as blockchain-enabled systems, mobile apps, and e-commerce sites - offer a medium for brands to communicate supply chain transparency. Through a comprehensive literature review, this article examines how transparency practices impact consumer trust, decision-making, and the adoption of sustainable products. Findings reveal that while digital platforms can significantly influence ethical consumption, their effectiveness depends on the clarity, accessibility, and perceived credibility of information presented. Key challenges, including greenwashing and information overload, can hinder transparency efforts, thereby reducing consumer trust. Additionally, stakeholder theory and the theory of planned behaviour provide insights into the ethical responsibilities of brands and the cognitive factors shaping consumer choices. Practical recommendations are offered, including the need for simplified, interactive transparency tools and collaboration with third-party certifiers to enhance authenticity. The study highlights the importance of evolving digital transparency practices to meet the ethical demands of modern consumers and suggests ways for future research to explore the impact of transparency across diverse consumer segments and regions.
Strategic Financial Planning in the Context of Sharia Principles: A Study of Indonesia’s Sandwich Generation
This study investigates the factors influencing the intention of Indonesia's sandwich generation to adopt sharia-compliant financial planning. With a focus on attitudes, knowledge, subjective norms, financial self-efficacy, and religiosity, this research aims to clarify how these elements shape the behavioral intentions of individuals responsible for financially supporting both older and younger family members. Using the Theory of Planned Behavior as a framework, the study conducted a survey across key regions of Java and applied PLS-SEM for data analysis. The findings reveal that while attitudes and knowledge have a limited direct effect on the intention to engage in sharia-compliant financial planning, subjective norms, financial self-efficacy, and religiosity exhibit a significant positive influence. These results underscore the importance of social support, personal financial confidence, and religious values in fostering sharia-compliant financial behavior within this demographic. The study provides insights for policymakers and financial institutions aiming to enhance financial literacy and sharia-compliant practices among Indonesia’s sandwich generation.
Integration between Indonesian Sharia Stock Index and Türkiye Sharia Index Using the Generalized Autoregressive Conditional Heteroscedasticity Model
Indonesia and Türkiye are countries with a large number of followers of Islam. These two countries have a lot of cooperation in various activities. This study aims to measure the integration between Islamic capital markets in Indonesia and Türkiye. For the Indonesian Islamic capital market index, the Indonesian Islamic Stock Index (ISSI) is used, while for Türkiye, the Borsa Katilim (KATLM) is used. Using the Generalised Autoregressive Conditional Heteroscedasticity (GARCH) method, it was found that during the observation year, although there was a lot of cooperation, the activities of these two countries were not integrated. This can provide ideas for further research related to why there is a lot of cooperation between countries but it does not result in integration.
Islamic FinTech and MSMEs: The Role of Religiosity and Product Knowledge
As the backbone of the national economy which is still struggling with the financing problem, prior studies on the intention to use Islamic FinTech for MSMEs are still rare. This study aims to examine whether both the religiosity (R) and product knowledge (PK) on Islamic FinTech products and services affect the intention to adopt it or not. A total of 100 responses were collected using an online questionnaire and then examined using structural equation modeling (SEM). The results show that subjective norm (SN), perceived usefulness (PU), as well as R, and PK significantly influence the intention to get financing and use the services offered. It is indicated that Indonesian MSMEs actors are getting aware and knowledgeable about sharia compliance of FinTech products. Likewise, the influence of social norms such as religious leaders and or the business environment also strengthens the intention. This means that there is a need for continuous efforts from the stakeholders by cooperating with sharia scholars in improving the Islamic financial literacy in order to eliminate the doubts on the practical side. This needs to be followed by strengthening consumer data protection as well as providing incentives in order to enlarge the industrial market share.
Determinant Factors Influencing the Interest in Halal Certification: The Perspective of MSMEs in Indonesia
The halal industry is overgrowing, including in Indonesia, with the largest Muslim population in the world. Indonesia is ranked 19th as a producer and ranked 3rd as a consumer in the global halal industry. Although one of the halal certifications for MSMEs is free, only 1% of MSMEs in Indonesia are already halal certified. This study aims to analyze empirically the factors that influence the intensity of MSMEs in Indonesia to register for halal certification. A quantitative approach is used in this research by distributing questionnaires using the Likert scale to MSMEs. A total of 122 valid data collected were analyzed by adopting SEM-PLS. The analysis found that external factors had a dominant influence on the intention of MSMEs to register their products in halal certification, consumer pressure with a t-statistic of 4.328, and government policies with a t-statistic of 2.976. Moreover, one of the internal factors, awareness, is accepted with a t-statistic of 2.065. Meanwhile, benefits, competitors, and religiosity are not proven to affect halal certification. The data will help plan interventions from the government to encourage MSMEs to register their products in halal certification. The government should focus on assisting halal certification for MSMEs intensively.
Identification of Food Expenditure and Food Security of Muslim Households: Evidence from Indonesian Family Life Survey 2007 and 2014
This study examines the impact of religiosity on household food consumption and food security in Indonesia, particularly among Muslim households. Despite the acknowledgment of religious factors in food-related policies, limited research has explored their specific influence on food expenditure and security. Using longitudinal data from the Indonesian Family Life Survey (IFLS) covering 2007 and 2014, this study analyzes food expenditure and food security levels among Muslim households, employing the Propensity Score Matching (PSM) model. The analysis includes variables such as age, education, marital status, employment, and gender. Findings reveal that religiosity negatively influences food expenditure, both in total and per capita, suggesting that religious households tend to spend less on food. Moreover, Muslim households demonstrate higher levels of food security, often reporting moderate or adequate food security, compared to non-religious households. This indicates a potential protective effect of religiosity on food stability. The study recommends integrating financial education programs that emphasize frugality and mindful consumption. Additionally, strengthening community-based support systems, such as zakat and sadaqah, could play a crucial role in improving food assistance and security.
Analisis Strategi Keunggulan Kompetitif Berkelanjutan Perusahaan Crowd Business Syariah (Studi Kasus pada Halal Network International)
Business model innovation of a company is a form of adaptation to the current economic turmoil to determine competitive advantage. To deal with this, PT HPA Indonesia or Halal Network International (HNI) which is based on the Muslim crowd and consistently is considered to be developing and getting the leading position must be able to survive in the middle of challenging market. The purpose of this research is to analyze the strategy of sustainable competitive advantage for HNI as sharia crowd business firm. The mixed method approach was carried out using literature studies, guided interviews, and online questionnaires for certain experts. The data processing technique used in this research is ANP (Analytical Network Process) to involve the analysis of the relationship between the network elements. The results of this research indicate that effective strategy is the right strategy for sustainable competitive performance. This strategy focuses on developing resource capital. The three elements with the lowest priority in this pride strategy model are reputation & quality control, technology & buyer fulfillment and sales of product content. By combining institutional capital and resource capital, a sustainable competitive advantage can be achieved by focusing performance on the subfactors of corporate image and leadership.
Faktor yang Memengaruhi Minat Muzaki dalam Membayar Zakat Melalui Kitabisa.com: Pendekatan Technology Acceptance Model dan Theory of Planned Behavior
This study aims to examine the factors that influence muzaki's interest in paying zakat through Kitabisa.com with the Technology Acceptance Model and Theory of Planned Behavior approaches. In addition, this study analyzes the relationship pattern of the perceived usefulness, ease of use, attitudes, subjective norms, and behavioral control towards muzaki’s interest. The method used in this study is a quantitative method using Structural Equation Modeling (SEM). The analytical tool used is the SmartPLS version 3 software. The data collection technique was through distributing questionnaires with a total sample of 180 respondents. The results showed that muzaki’s interest in paying zakat through Kitabisa.com was influenced by perceptions of ease of use, attitudes, subjective norms, and perceptions of behavior control. This study proves that perceived ease of use has a significant effect on perceived usefulness. Perceived usefulness and perceived ease of use have a significant effect on attitudes. Meanwhile, perceived usefulness has no significant effect on the interest in using Kitabisa.com digital zakat services. In addition, perceptions of ease of use, attitudes, subjective norms, and perceptions of behavioral control have a significant effect on the interest in using Kitabisa.com digital zakat services.
Peer-to-Peer Lending Syariah dan Dampaknya terhadap Kinerja serta Kesejahteraan Pelaku Usaha Mikro dan Kecil (UMK) pada Masa Pandemi Covid-19
Peer-to-Peer (P2P) lending is one of the mechanisms to overcome capital problems for the MSE sector, especially during the Covid-19 pandemic. P2P lending has the highest asset growth compared to other financial technology (fintech) schemes and mostly preferred by the majority of population. As a country with a majority Muslim population, people prefer to use sharia P2P lending, but its role has not been widely documented in the literature. MSEs are business enterprises that contribute greatly to the national gross domestic product (GDP) and absorb the most labor. This study aims to analyze the effect of sharia (P2P) lending on the performance and welfare of MSEs during the Covid-19 pandemic. The method of analysis consists of paired t-test, OLS and logistic regression analysis. Paired t-test results show that there are differences in turnover, profits, operating costs, and the number of MSE workers before and after receiving financing. OLS analysis shows that the amount of financing, business costs, labor, and length of business affect changes in MSE turnover. The results of the logistic regression analysis show that the average family income and the amount of savings significantly affect the welfare of MSE actors.
Public Service Satisfaction on Hajj-Related Services in Indonesia: Demographic Analysis
Measurement of public service satisfaction with government services serves as a valuable reflecting point for public officials to improve the public service quality. Pilgrimage to Mecca and Medina in Saudi Arabia is considered as a national duty and government responsibility in countries with a significant number of Muslim citizens. This article analyzes primary data from the 2019 national public service satisfaction survey on hajj-related services within Indonesian territory collected by the Ministry of Religious Affairs to examine variation across demographic backgrounds. 1,491 respondents participated in the survey representing individual appraisals toward various services during departure and returning phases. The main focus of investigation are the six selected service dimensions, namely, 1) Individual capability, 2) Ease of access to information, 3) Service procedures, 4) Speed of service, 5) Facilities and infrastructure, and 6) Cost-related perception. The results of regression analysis support diverse roles of demographic variables in explaining variance in public service satisfaction feedback. The empirical findings suggest that people with a higher-level education are more likely to experience less satisfaction. Meanwhile, females are likely to perceive higher satisfaction with the provided services than the males.
Preferensi Publik terhadap Wakaf Uang di Sumatera Barat
Cash waqf can be a solution in optimizing the potential of land waqf asset in Indonesia, in order to reach economic empowerment. In Indonesia, cash waqf had a great potential reaching 180 trillion rupiah, however the money acquired on 2019 only reached 400 billion rupiah. Several factors caused the low rate of accumulation of cash waqf, namely religiousity, cash waqf literacy, waqf inclusion, and waqf institution management. This study aims to find out public preference toward cash waqf specifically in West Sumatera Province. The analytical method used is PLS-SEM qualitative analysis using SmartPLS 3.9.2 as a tool. Purposive sampling technique was used to assign 175 respondents. Results showed that there are positive and significant relationship between cash waqf literacy, waqf inclusion and waqf institution management variables with the public preference towards cash waqf. Whereas religiousity factor had positive but insignificant effect to the public preference of cash waqf.
Analisis Kualitas Laba Perbankan Syariah di Indonesia
The firms tend to perform earning management, mainly due to there was an agency problem amongst the management (agent) and the owner (principal), in more specifically because the lack of corporate governance, manager’s bonus plan, decreasing of supervision, debt-covenant, and economic-meltdown condition. The earning management practice is potentially done by any firms included the sharia bank. The earning management practice will affect the firm’s earnings quality as represented in the financial report. Despite the accounting treatment of mudharabah-musyarakah financing uses cash-basis, the sharia bank may manipulate the earnings when they determine the profit from the investments which will be shared to both the bank and investor. The study aims to investigate the differences of earnings quality and examine the effect of mudharabah-musyarakah financing and leverage to earnings quality, within Bank Umum Syariah (BUS) and Unit Usaha Syariah (UUS) during economic meltdown period in Indonesia between 2014-2016. The results show that there are no significant differences in the earnings quality within sharia bank types during the observed period. Furthermore, the results show that the effect of mudharabah-musyarakah financing and leverage to earnings quality within sharia bank types are in significant within the same observed period.
Faktor–Faktor yang Memengaruhi Tingkat Literasi Keuangan Syariah pada Mahasiswa Muslim di Bogor
The Indonesian Financial Services Authority (OJK) has targeted college students as one of the priority targets of their financial education programs in Indonesia. This research aimed to analyze the level of Islamic financial literacy of college students in Bogor; and analyze the factors that influence their level of Islamic financial literacy. The independent variable used in this study is the score of Islamic financial literacy. While gender, university, Grade Point Average (GPA), sources of information and religiosity are used as the dependent variables. The data analysis is conducted using the descriptive analysis and Structural Equation Modeling Partial Least Square (SEM-PLS). The estimation results showed that the level of Islamic financial literacy towards Muslim students in Bogor is 50.2% and is classified as sufficient literate. The study found that gender and university have positively and significantly influenced the level of Islamic financial literacy of Muslim students in Bogor.
Happiness in Islam and Influencing Factors (SLR Approach)
Islam is a religion that commands humans to pursue happiness both here and hereafter. Previous research states that many factors can influence happiness. However, these factors emphasize worldly happiness which is temporary, while the goal that humans want to achieve is not only happiness in this world but true happiness in the hereafter. This study explores the factors that influence individual happiness and examines the impact of faith and other factors on happiness. This research uses a systematic literature review method, precisely the Prisma method and has identified 3540 research results from Google Scholar, and screened into 1265 documents, then into 99 and selected 87 qualifying studies. The results of the analysis of this number of documents found that happiness in Islam is divided into temporary and true happiness, here and hereafter. Happiness is influenced by material factors, and non-material factors such as faith and other religiosity behaviors. Happiness derived from material factors is temporary, while religiosity factors such as faith, the practice of Sufism and religious behavior bring a sense of closeness to God, and provide tranquility and peace, which is an indication of true happiness.
A Bibliometric Analysis of Sukuk using VOSviewer in Indonesia with Publish or Perish (PoP)
The subject matter of sukuk has elicited increasing attention from both academic researchers and professionals within the industry. The employment of sukuk financing is effectively facilitating the progression of economic growth. The primary objective of this research endeavor is to integrate mapping analysis techniques with the utilization of VOSviewer software to conduct a comprehensive bibliometric analysis of scholarly literature pertaining to sukuk. The acquisition of research data is facilitated through the utilization of the Publish or Perish (PoP) application. The data collected has been derived from an examination of search outcomes pertaining to the keyword "sukuk" obtained from scholarly journals indexed by Google Scholar. A total of 997 articles, spanning the period from 2018 to 2022, have been identified in the present study. Based on the research findings, it has been observed that there has been a consistent upward trend in the number of studies conducted over the period 2018 to 2022. Islamic bonds, commonly referred to as sukuk, play a pivotal role in facilitating and propelling this expansion. The present study showcases the significance of bibliometric analysis in furnishing analytical data about occurrences. This study provides guidelines and serve as a valuable resource for researchers engaged in the exploration and identification of research themes.