Indonesia Conference Directory

Corresponding Author
Anya Safira

Institutions
a) Faculty of Economics and Business, Universitas Indonesia

Abstract
Rapid development of financial technology has contributed to the growth of the financial sector in Indonesia, as seen by the increasing number of peer to peer (P2P) lending providers, including those that provide sharia-based services. However, compared to conventional P2P lending providers, growth of Islamic P2P lending tends to lag behind. This condition contradicts with the fact that Indonesia has many potential users due to the large Muslim population, including the Muslim millennials who are more tech-savvy and thus are prospective users of financial technology. By using The Unified Theory of Acceptance and Use of Technology (UTAUT) 2, this research aims to analyze factors which influence the behavioral intention of Muslim millennials in using Islamic P2P lending. By using Structural Equation Modeling (SEM) analysis, the results show that performance expectancy, social influence, price value, religiosity and trust in the platform were found to be significant determinants of behavioral intention to use Islamic P2P lending platforms. On the other hand, effort expectancy, facilitating condition, and perceived risk were not found to be significant determining factors. In addition, this research also investigated further whether there are differences between two groups of respondents, namely previous users of Islamic P2P lending, and those who have not used it. Significant differences were found, specifically regarding performance expectancy and the price value that is perceived.

Keywords
Islamic financial technology; Islamic peer to peer lending; unified theory of acceptance and use of technology; Muslim millennials

Topic
Islamic Finance Technology (Shariah Fintech)

Link: https://ifory.id/abstract/2fxDaG8ePqym

Corresponding Author
Hassnian Ali

Institutions
International Center for Research in Islamic Economics, ICRIE
hassnian.icrie[at]mul.edu.pk

Abstract
Digital transformation in the Islamic Fintech industry is vital in this era of digitalization and smart regulations from the regulators are needed to enhance its development. Islamic Fintech can be a tool to reach out to the masses, which are not served by the Islamic finance industry, especially Islamic banks. Globally there are different regulatory approaches applied to Fintech that are historically provided by banks. This sometimes creates confusion regarding the category to place Fintech, that is, whether as a bank or as a separate entity. Policymakers should devise new rules and standardized regulations for Islamic Fintech. In that case, the numerous opportunities provided by the Islamic Fintech, such as financial inclusion, empowerment of underserved consumers and the achievement of Maqasid Al-Shariah, will become truly and apparent. This paper discusses the different regulatory approaches being adopted around the globe and also elucidates essential elements required to establish robust and standardized regulation for Islamic Fintech.

Keywords
Islamic Fintech, Regulations, Digital Transformation, Maqasid Al Shariah

Topic
Islamic Finance Technology (Shariah Fintech)

Link: https://ifory.id/abstract/n79kCY3GuUp8

Corresponding Author
DIYAH PUTRIANI

Institutions
Department of Economics, International Islamic University Malaysia
Department of Informatics System, International Islamic University Malaysia

Abstract
Current research on Zakah focuses more on potential zakah collection, factors affecting zakah payment, best practices of zakah in certain region/country, zakah as social finance, or even the performance and efficiency of zakah institution. General finding from all previous studies concludes that zakah is able to reduce poverty and hence will minimize income inequality. At this point, a question rise, i.e., by how much Gini index- a measure of income inequality- can be reduced after zakah enforcement? Considering this gap of research, this study is proposed to measure a decrease in Gini index when zakah is received by all recipients.Since the existing economy is under interest based system, thus this study will develop a model of artificial economy to simulate the impact of zakah enforcement on Gini index. To achieve the main objective, this research will simulate the interactions amongst three economic agents (households, firms, and bank) in the system. That is, households will supply labour for the firms; meanwhile firms will supply product in the goods market. Both households and firms can ask credit with certain interest rate from the bank.There will be two scenarios where the economy will simulate zakah is not exist and where zakah is introduced in the system. From these two scenarios, it can be observed a potential reduction or increment on Gini index after zakah is disbursed to all recipients. This research fundamentally is an exploratory research, thus many findings will be examined in the analysis. One of the most interesting findings is that in the long run only arround 1 percent of population own about 25 percent of total wealth in the economy without zakah. Further, the findings also observe that reason of an increase in Gini index where the economy has no zakah and observe a group of population which will dominate total wealth in the economy. An Agent-based Computational Model (ABM) simulation will be employed to conduct the simulation. The application of ABM in this research is to bring the use of computational study as an alternative methodology to develop research in the area of Islamic economics.

Keywords
Zakah, Gini Index, Agent-based Computational Model, Computational Study

Topic
Islamic Finance Technology (Shariah Fintech)

Link: https://ifory.id/abstract/Hax87WEC4JnN

Corresponding Author
Maulidah Narastri

Institutions
a) University of 17 Agustus 1945 Surabaya
jalan Semolowaru Nomor 45 Surabaya
* maulidah[at]untag-sby.ac.id
b) Universitas Islam Negeri Sunan Ampel Surabaya

Abstract
The purpose of this article is to find out how harmony between the era of financial technology is compared with Islamic principles in Indonesia. Financial technology that is intended for humans to meet ever-increasing needs, increasingly rapid human mobilization, as well as increasing human activity. The method used in the discussion of this article is a critique of the phenomenon that developed in the era of financial technology in Indonesia as a developing country that supports the era of financial technology from developed countries. The literature used in this paper is published by national and international scientific journals and is supported by scientific books from various scientists. This article is expected to provide additional knowledge, become an opening point for further research, and be made as a guide in conducting business at various levels that discuss using financial technology.

Keywords
financial technology, islamic perspective, regulation

Topic
Islamic Finance Technology (Shariah Fintech)

Link: https://ifory.id/abstract/kfzGwXKbR3u9

Corresponding Author
Fahmi Ali Hudaefi

Institutions
Academy of Islamic Studies, University of Malaya

Abstract
This study reviews the existing Islamic fintech lending in Indonesia to understand the degree to which the firms have been promoting sustainable development goals (SDGs) in the local context. To do so, the theoretical literature related to fintech and SDGs are reviewed firstly to explore the understandings of the subject matters. Following this, the official reports from the domestic regulators are employed to select the firms for in-depth review. This work finds the selected firms mostly have been financing the underdeveloped sectors, such as agriculture and Small and Micro Enterprises (SMEs), collecting and distributing Islamic funds which are Infaq, Waqf, and Shadaqah, and conducting charity programmes for the underprivileged community. To an extent, these findings are synonymous of the firms- effort in promoting the SDGs of ending poverty and hunger, advancing clean energy, and reducing the inequalities. Due to the method engaged, these shreds of evidence do not provide any positivist generalisation. Even so, this is the first study substantively confirms the role of fintech firms in implementing the SDGs from the Indonesian perspective. A recommendation demands the Indonesian government collaborating legally with the existing fintech firms to best solve its recent issue of the declining trend in the SDGs of life on land.

Keywords
Islamic Fintech, Sustainable Development Goals (SDGs), Review, Indonesia

Topic
Islamic Finance Technology (Shariah Fintech)

Link: https://ifory.id/abstract/kfJQBebr2GEP

Corresponding Author
Affan Muhammad Andalan

Institutions
Faculty of Law
Universitas Airlangga

Abstract
Islamic financial technology (fintech) transactions has to be based on a contract that perform both sharia and legal compliance. Compliance is very essential since it influences the quality and reputation of an Islamic fintech company. This paper will review a musharaka akad used as sharia financing contract by “X” Islamic fintech company in Indonesia. Juridical-normative method is used to observe whether it complies with related national legislations and also sharia principles. From the research conducted, it is found that the musharaka akad of “X” Islamic fintech company in Indonesia does not comply with OJK Regulation on Peer-to-Peer Lending and also sharia contractual principles.

Keywords
Islamic fintech, akad, compliance, musharaka, sharia financing

Topic
Islamic Finance Technology (Shariah Fintech)

Link: https://ifory.id/abstract/UvDZbqCexYNH

Corresponding Author
puji sucia sukmaningrum

Institutions
Syadiyah Abdul Shukor
Faculty of Economics and Muamalat
Universiti Sains Islam Malaysia
syadiyahas[at]usim.edu.my

Puji Sucia Sukmaningrum
Faculty of Economics and Business
Universitas Airlangga
puji.sucia[at]feb.unair.ac.id

Abstract
Fintech, the abbreviation for financial technology, is a broad category that refers to the influx of technology tools, platforms, and ecosystems that make financial services or products more accessible, efficient, and affordable. This study aims to examine the impact of trust in influencing consumer attitude towards fintech and mediating effect of perceived ease of use and perceived usefulness between trust and consumer attitude towards fintech. The findings of this paper are based on 350 samples. Descriptive analysis, exploratory factor analysis, regression analysis, and mediation analysis are used to analyse the data. The results indicate that: a) trust, perceived ease of use, and perceived usefulness influence consumer attitude towards fintech, b) perceived ease of use influence perceived usefulness, and c) perceived ease of use and perceived usefulness mediate the effect between trust and attitude towards fintech. The study attempts to represent research discovery about Malaysian behaviour towards fintech.

Keywords
fintech, consumer attitude, Malaysia

Topic
Islamic Finance Technology (Shariah Fintech)

Link: https://ifory.id/abstract/pb47KuAYEtq6