Indonesia Conference Directory

Corresponding Author
Lisa Febriani

Institutions
Airlangga University

Abstract
This study aims to examine whether the Riba Free Community of the Directorate General of Taxes (Komunitas Bebas Riba Direktorat Jenderal Pajak/Kobar DJP) has criteria that are close to the Islamic Savings and Loan and Financing Cooperative (Koperasi Simpan Pinjam dan Pembiayaan Syariah/KSPPS) and whether it can finally be concluded that the Kobar DJP is a miniature of informal Islamic cooperatives at the Directorate General of Taxes (DGT). This research is a qualitative study with a case study method. Data is obtained through library research by juxtaposing the Kobar DJPs Articles of Association and By-laws with government regulations regarding cooperatives and Islamic cooperatives, as well as other electronic literature. In addition, interviews were conducted with members and administrators of the Kobar DJP to find out the business processes in it. The results show that there are many characteristic similarities between Kobar DJP and KSPPS so that it can be concluded that Kobar DJP is a miniature of informal Islamic cooperatives at the DGT.

Keywords
Riba, Cooperatives, Islamic Cooperatives, Kobar DJP, KSPPS

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/nU6TcWDbeHJB

Corresponding Author
ahmad abbas

Institutions
IAIN Parepare, Universitas Sembilanbelas November

Abstract
The core of this research is to highlight marketability in the growth of sharia banking in Indonesia and to test the role of sharia financial inclusion and literacy. The sample of this research is Indonesia sharia banking consisting of sharia commercial banks and business units listed in Indonesia Bank and Financial Services Authority over the period of 2014-2019. Data of monthly financial statements are analyzed using the test of interaction effect with multiple moderators. The starting result of this research points out that the marketability at the degree of sharia bankings- growth is in a moderate power. The main result is found that the nexus between marketability and the growth is empirically affected by the role of sharia financial literacy and inclusion, nevertheless both have opposite roleS.

Keywords
Market Power, Marketability, Financial Inclusion, Financial Literacy

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/cCW9fz8ahPRH

Corresponding Author
Ecky Imamul Muttaqin

Institutions
Center for Economic Development and Public Policy (CEDPP), University Muhammadiyah Yogyakarta, Brawijaya Street, Yogyakarta, Indonesia

Abstract
The behavior of procyclicality is one of the important sources that encourage systemic risk in banking system in Indonesia. This study aims to analyze amplitude and frequency on credit cycle of Islamic and conventional banking in Indonesia. The data used are total Islamic bank financing and total conventional bank lending in monthly from 2004 to 2017. The methodology used is frequency based filter analysis (FBF) and turning point analysis. Determination of time range of cycle is examined using equation of standard deviation ratio between credit cycle and business cycle. The results showed that size of Islamic bank-s amplitude is larger than size of conventional bank-s amplitude. This is as characteristic of Sharia banks based on the pattern of financing of real sector. Meanwhile, unlike conventional banks encourage creation of bubble capital because it is related on the credit pattern based on speculative activities on basis of the interest system. Therefore, conventional banks need to encourage credit patterns based on the capital. Meanwhile, for the size of the frequency of Sharia banks has a longer frequency measure than conventional banks, but number of cycles formed is the same as a perfect cycle.

Keywords
Amplitude, Bank Lending, Credit Cycle, Dual Banking System, Frequency, Procyclicality

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/FDUphb7cGBZR

Corresponding Author
MOHAMED NOORDEEN MOHAMED IMTIYAZ

Institutions
(a,b, & d) Kulliyah of Economics and Management Sciences, International Islamic University Malaysia.

(c) IIUM Institute of Islamic Banking and Finance,International Islamic University Malaysia

Abstract
Micro enterprises are emerging as an important sector in economic system of the Malaysia by contributing significantly to Gross Domestic Product (GDP) and providing employment opportunities to millions of workers in the country. Despite its importance in contributing towards the enhancement of wellbeing of the society and the continuous efforts from the government, Micro enterprises in Malaysia, are struggling with several issues. Majority of them are facing difficulties in obtaining financing as they rated as a market segment associated with high risk. Contemporary Islamic banks are in paradigm of shifting its portfolio towards debt financing and after considering the current Islamic finance and banking phenomenon, there is a need arise for special purpose Islamic financial institution to serve the capital requirements of micro enterprises. This study suggests a mosque based sustainable model for financing micro enterprises using cash waqf with a significant feature of involving mosque-based administration committees (AJK) to intermediate between the Waqf Corporation of Selangor (PWS) (Waqf assets managing body of State Islamic Religious Council of Selangor (MAIS)) as Mutawalli of waqf, and micro enterprises at village level. The study is based on the Selangor state as the case study. The model suggested by this study may helpful in addressing the financing constraints of Micro enterprises and further improving wellbeing of the Muslim society by better usage of cash waqf. Thus will enhance the lives of ordinary individuals to stand by their own which will result in equitable distribution of economic resource among Muslims. Outcome of this study may enlighten Islamic financial institutions, waqf administrators and policy makers for their strategic planning activities in Islamic microfinancing.

Keywords
Cash Waqf, Islamic Microfinance, Mosques

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/3py2h6jaV9XW

Corresponding Author
Rahmayati Nasution

Institutions
Muhammadiyah University North Sumatera

Abstract
This study aims to determine the perceptions and preferences of social investors towards cash waqf link sukuk or CWLS. The problem in this study is that it has not achieved the target of fulfilling the cash waqf link sukuk investment due to various factors and this has become the basis for finding out the constraints of the target waqf market for this money. The methodology of this research is qualitative and explorative by conducting interviews with 37 respondents according to their classification. The results of this study that the public perception is still not knowing the information and socialization related to money waqf because socialization has not been carried out optimally by the government and other institutions that are bound. Whereas the preference of this study shows that the general public is still accustomed to waqf not money, so there is still something new in this cash waqf link sukuk and the main reason for the community to choose cash waqf because of the worship motivation.

Keywords
Perception, Preferences, Cash Waqf Link Sukuk

Topic
Sukuk

Link: https://ifory.id/abstract/QNPDpBz8HVdu

Corresponding Author
Khalifah Muhamad Ali

Institutions
a) Department of Islamic Economics, Faculty of Economics and Management, IPB University, Bogor, Indonesia
*khalifahma[at]apps.ipb.ac.id
b) Department of Landscape Architecture, Faculty of Agriculture, IPB University, Bogor, Indonesia
c) Institute of Islamic Banking and Finance, International Islamic University of Malaysia, Gombak, Malaysia

Abstract
Poverty and equality are two major problems of developing countries, including Indonesia. Zakat is one of the obligatory act in Islamic teaching, specifically the third of ‘Rukun Islam-. Zakat is the act of giving out certain amount of someone-s wealth that meets several conditions. Per 31 December 2015, the potential of zakat in Indonesia was recorded to be 286 trillion rupiahs, while the actual amount of collected zakat was recorded to be only 3.75 trilion rupiahs. This fact shows that zakat management has not been optimally done. The objective of this study is to assess and evaluate the performance of zakat management including the contribution of government, contribution of society, zakat institution performance, and the impact of zakat on the society-s prosperity in Kotabaru Regency, South Borneo. This study was done by using survey method through questionnaire-interview. Sampling technique that was used was purposive sampling method. The analysis tools that was used in this study was National Zakat Index (ZNI) with the Multi-Stage Weighted Index assessment method. The result of the study showed that zakat management performance in Kotabaru Regency, South Borneo was considered to be good with the index value 0.66.

Keywords
National Zakat Index (ZNI), poverty, zakat management performance

Topic
Islamic Philantrophy

Link: https://ifory.id/abstract/mrFHCy8Pp6DZ

Corresponding Author
Taridi Kasbi Ridho

Institutions
State Islamic University (UIN) Syarif Hidayatullah Jakarta

Abstract
Purpose –The paper intends to assess the readiness of Islamic banks in Indonesia in the sustainable finance implementation. The implementation of sustainable finance will enable Islamic banks to maximize their role as a catalysator for creation of environmentally friendly investment and fair economical social system to achieve 17 SDGs more effectively. In addition, these financial institutions might also gain several additional benefits such as stronger company-s resilience, green financial product and services domination, and access to cheaper from global green financial market. Indonesian Financial Service Authority (FSA) had launched a Roadmap for Sustainable Finance 2014-2019, followed by the issuance of FSA regulation Number 51 Year 2017 on Sustainable Finance Implementation, which obliged all banks operated in Indonesia to implement sustainable finance in 2020, which had started with mandatory implementation by biggest banks of tier 3 and tier 4 in 2019. Design/methodology/approach – This research will observe and compare biggest both Islamic and conventional banks in Indonesia, measured by their revenues in 2016 and 2017 in implementing sustainable finance. Secondary data will be gathered from 2016 and 2017 company-s annual report, CSR/sustainability report, and on-line CSR information. Measurement of sustainable finance implementation will be conducted by employing content analysis of those reports using SDG Compass which links the SDGs with GRI. Descriptive analysis will be employed to understand the sustainable finance implementation across different banks. Deeper explanation will also be provided by showing case studies of banks that had implemented sustainable finance.

Keywords
SDGs, Islamic finance, sustainable finance, Indonesia

Topic
Islamic Governance and Ethics

Link: https://ifory.id/abstract/udKaTLg3xtN4

Corresponding Author
Muhammad Abubakar Siddique

Institutions
International Institute of Islamic Economics (IIIE),International Islamic University Islamabad

Abstract
In Pakistan, banking sector was brought under the umbrella of Islamic financial paradigm since 2004. Many studies has proved that Islamic banking industry (IBI) with its macro indicators was performing well. But no study has been done yet to analyze the role of Shariah compliant financing of IBI in achieving the SDGs. This study attempt to explore this role of Pakistani IBI considering one of the SDGs economic growth. This study used Islamic bank-s products like Salam, Murabaha, Diminishing Musharkah (DM), Ijarah and Istisna as independent variables, while GDP growth rate was used as dependent variable. Keeping in view the availability of data, this study selected thirteen banks; four full-fledged Islamic banks and standalone Islamic Branches of nine conventional banks in Pakistan. The study employed annual unbalanced panel data spanning from 2004 to 2018. In the light of findings obtained from Im, Pesaran and Shin panel unit root test, Breusch-Pagan LM test, and Hausman test, Random Effect (R.E) estimation technique was employed. The results showed that Islamic bank specific variables as well as macroeconomic variables had significant impact on economic growth in Pakistan. The study concluded and recommended that Shariah compliant financing has great potential to boost up the economic growth of Pakistan and to achieve other SDGs in Pakistan as well, if government of Pakistan takes solid steps to promote Shariah compliant financing.

Keywords
SDGs, Islamic Banking, Economic Growth, Islamic Financial Instruments.

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/rvABgRp6nmML

Corresponding Author
Nori Oktadewi

Institutions
a) student of magister international relastion Universitas Muhammadiyah Yogyakarta, Kampus Terpadu UMY Jl. Brawijaya, Kasihan, Bantul Yogyakarta 55183
*norioktadewi97[at]gmail.com
b)magister international relastion Universitas Muhammadiyah Yogyakarta

Abstract
The aims of study to implement factors that cause a lot of poverty and implement ways to reduce poverty in Indonesia. This study uses a descriptive qualitative approach, while the data collection techniques in this method use literature review techniques. In this study the authors analyzed the data using the maudui method (thematic method) which was applied by collecting verses from the Al-Quran related to poverty alleviation strategies. The results of this study indicate that the factors that cause poverty are low levels of education, low health status, limited employment and conditions of isolation. The Indonesian governments way of alleviating poverty by adopting the values contained in the Sustainable Development Goals (SDGs) in the form of Presidential Regulation No. 59 of 2017, and the government uses Islamic principles in solving poverty such as the making of the National Zakat Amil Agency (BAZNAS).

Keywords
No Poverty, Baznas, SDGs, Hadist, Al-Quran

Topic
Sustainable Development in Islamic Perspective

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

Corresponding Author
isfandayani anjono

Institutions
Universitas Islam "45" Bekasi (UNISMA BEKASI)

Abstract
One of contracts used by financing product of islamic bank is agreement based on profit sharing. This contract is very exceptional because one of the distinguis elements of islamic bank to the conventional bank is the profit sharing system and/or loss and profit sharing. One of profit sharing based financing is musyarakah. This research will study the risk mitigation at the musyarakah financing at the Bank Muamalat Indonesia by using qualitative method. Bank Muamalat Indonesia has set the risk management strategy through a series technical, provisio and device in the process of identification, measurement, supervision and control and qualified risk management as reflected on implementation Quality of Risk Management (KPMR) and also Key Risk Indicators as paramater control which is contributed by Risk Oversight Committee, Risk Management Committee, Sharia Supervisory Board and Risk Management Unit. The three lines of combined assurance of risk management defense at the Bank Muamalat Indonesia are First Line Defense, Second Line Defense and Third Defense. Mitigation is conducted by way of analyzing the key risk indicators in the field of legality, character, management, industry, information technology, marketing, Environment Impact Assessment (AMDAL) and finance. Whereas the Key Risk Indicators of the Financing of Musyarakah Mutanaqishah of mortgage loans at the Muamalat iB is conducted by way of analyzing the customer individually, developer, market risk, finance and obedience. The Risk mitigation of musyarakah financing comprises finance risk, operational risk, legal risk, reputation risk, liquidation risk and market risk.

Keywords
Mitigation, Financing Risk of Musyarakah, Islamic Bank

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/zV3ue4bJGh6M

Corresponding Author
TRIMULATO TRIMULATO

Institutions
UIN ALAUDDIN MAKASSAR, SOUTH SULAWESI
IAIN DATO KARAMA PALU, CENTRAL SULAWESI

Abstract
Abstract: Islamic microfinance institutions in Indonesia going into well improving, especially in providing services to the public, In February 2018, growth of financing by 52.883 percent. The existence of Islamic microfinance institutions has a role increasing public economic income. It is in line with the goal of sustainable development or commonly called Sustainable Development Goals (SDGs), that-s SDGs have 17 goals to be achieved until 2030. Among these goals is to bring prosperity to all levels society. This goal is in line with the existence Islamic microfinance institutions to improve standard of living and public welfare. The type in this paper is a qualitative method, the method used is qualitative descriptive analysis, which describes the growth of Islamic microfinance institutions in BPRS and BMT institutions. This paper describes the SDGs which have objective conformity with BPRS and BMT. The results this paper indicate growth in Islamic microfinance institutions, where there are several components in BPRS grow above 10 percent. The results show there are financing aspects grow by the percentage 17.008 percent or 9,084,467,000,000. The BMT financial ratio of the remaining operating results grew by 403.532 percent. This study to provides information that Islamic financial institutions are in accordance with the achievement program SGDs related to increasing income and economic activities the community can be realized with the presence of welfare. As for the form the role sharia financial institutions in the form of, easy access to finance from access to capital and socialization of the introduction of financial investment products.

Keywords
BPRS, BMT, and Sustainable Development Goals (SDGs)

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/RWGmkw8jMen7

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
Yudi Ahmad Faisal

Institutions
(a) (b) Department of Management, Universitas Padjadjaran, Jl. Dipati Ukur, Bandung. email: yudi.ahmad[at]unpad.ac.id

Abstract
The purpose of this paper is to figure out: (i) strengths and weaknesses, environmental opportunities and threats encountered by human resources in halal hotel, a type of hotel following the requirements of Islamic moral principles; (ii) halal hotel market business position; and (iii) a proper business strategy to be applied by halal hotel to enhance its human resources. The sample of this research was human resource in halal hotel in Bandung, West Java Province. The data analysis used internal and external strategic factor matrix (IE). Key external strategic variables that pose current threats are: higher competition, lack of best practices of halal hotel, low productivity of Muslim workers, decreasing loyalty of part-time workers, and rapid development of information technology and communication. The key internal strategic variables are productive age of human resources in halal hotel, multy-tasking skills, hospitality, announcement of prayer time, stop working on prayer time, Sharia-based services (serving halal food), reading al-Qur-an ability of personnel, knowledge of Islamic law, Sharia-based working activities, conveying Salam, women personnel using veil (hijab), and higher emotional quotient. Based on the business position of the present human resource in halal hotel which is in quadrant I, the strategy properly applied is the growth or concentration strategy. The research was only conducted to human resource in halal hotel located in Bandung, West Java Province, thus it cannot be generalised to wider areas, and this research used the survey method wehre the date collection process was done in a certain point of time or cross-section, whilst the environment would experience extra quick changes. Therefore, it is important to do this research in the future and different areas. The originality of this research shows the comprehensively strategic alternatives in human resource for halal hotel, by using strengh weakness opportunity threat and IE matrix analysis, and research location which is conducted in Bandung, West Java province has different tourist condition and potentials from other regions.

Keywords
Strategic formulation, Bandung, Human Resources, Halal Hotel

Topic
Islamic Business and Entrepreneurship

Link: https://ifory.id/abstract/jKQVpzM3TJuG

Corresponding Author
Dinda Imani Khamasasyiah

Institutions
HHP Law Firm, 35th Level, Pacific Century Place, Sudirman Central Business District, South Jakarta, Indonesia
dinda.khamasasyiah[at]bakermckenzie.com/dinda.khamasasyiah[at]gmail.com

Abstract
This paper discusses the legal consequences for investors on the bankruptcy of corporate sukuk originators under Indonesian Law, Malaysian Law and UAE Law. This paper focuses to analyse the sukuk asset-based products with Ijarah Lease and Sub Lease akad and Mudharabah akad under those three laws. Besides the function to diversify the investment profile of investors, sukuk, from the very beginning of its creation, aims to promote responsible and real economic based fund raising by keeping financing facilities on proper level of worth relatively with the underlying assets. This virtue is still often sustained as the differentiation value from conventional bond. But does it really achieve the aim? This paper shows how those three current laws respond the bankruptcy of Ijarah Lease and Sub-Lease and Mudharabah sukuk originators for investors and the underlying asset. It seems the investors will be treated the same as conventional bond holders. Investors will be treated as concurrent investors where a pari passu concept applies to them. Under this circumstance, the function of underlying assets will not matter anymore.

Keywords
Sukuk, Default, Bankruptcy, Legal Treatment, Indonesian Law, Malaysian Law, UAE Law

Topic
Sukuk

Link: https://ifory.id/abstract/nuzFK8g94hRH

Corresponding Author
Dinda Imani Khamasasyiah

Institutions
HHP Law Firm, 35th Level, Pacific Century Place, Sudirman Central Business District, South Jakarta, Indonesia
dinda.khamasasyiah[at]bakermckenzie.com/dinda.khamasasyiah[at]gmail.com

Abstract
This paper discusses the Islamic perspective applied under Indonesian Law on the idea of restructurization when originators of corporate sukuk are declared to be insolvent. Up until now, there is no corporate sukuk bankruptcy case in Indonesia. However, there are plenty of cases where originators are requested to restructure their sukuk debts by their investors. It is common for conventional bond originators to restructure their debts using some mechanisms, i.e., reducing the debts, rescheduling the payment date by increasing the interest and swapping the debts to equities. This paper tries to analyze how Islamic perspective applied under Indonesian Law responds to each mechanism in the context of sukuk default. It seems the mechanism to reschedule the debt payment and therefore obliges originators to pay higher margin is arguably prohibited under Islamic perspective. At the end, this paper shows the most proper models should be used to conduct restructuring approaches to sukuk defaults.

Keywords
Sukuk, Default, Restructuration, Mechanism, Islamic Compliant, Islamic Perspective, Indonesian Law

Topic
Sukuk

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

Corresponding Author
Shinta Maharani

Institutions
Islamic Business and Economics Faculty
State Institute of Islamic Studies Ponorogo1
,
Tarbiyah Faculty, State Institute of Islamic Studies Ponorogo2

maharani1979[at]gmail.com

Abstract
Indonesia has more than 17,000 islands spreading between pacific and Indian Ocean and over 200 ethnic groups, about 300 spoken languages. The position bridging continents of Asia and Australia, it makes Indonesia as a land of endless spectacular wonders because a multitude of amazing landscapes and biodiversity stretching along the equator line. As natural world class tourism destinations, it brings advantages and challenges to Islamic business growth. There is lack research trying to relate about Islamic business growth, Halal tourism, government revenue and accelerate economic growth itself. The purposes of this paper are: First, exploring the causal relationship between accelerates Islamic business growth and Halal tourism. Second, explaining the impact of social media on Halal tourism as good influence. Third, proving how Halal tourism is the fastest government revenue through Islamic business growth. Islamic business brings together parties related to Halal tourism: academics, innovative activities, social media, government, e-services, accommodations and transportations. The findings of the paper showed that accelerate Islamic business growth of Halal tourism would affect significantly to the whole economic growth in Indonesia trough government revenue.

Keywords
Islamic Business, Government Revenue, Halal Tourism, Economic Growth

Topic
Islamic Business and Entrepreneurship

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

Corresponding Author
hamdi agustin

Institutions
fakultas ekonomi universitas islam riau pekanbaru

Abstract
The purpose of this study is to calculate the feasibility of investing in the financial aspects by using an Islamic perspective namely Hamdi-s Method. Hamdi-s Method uses the calculations of gold value method (GVM) and gold index (GI) which is a substitute for calculations in conventional concept, namely net present value (NPV) and profitability index(PI) The GVM method is a new method for calculating financial aspects in determining the feasibility of investing in an Islamic perspective. The calculation of the GVM and GI methods uses the gold standard based on the word of Allah ta-ala in the letter At Taubah verse 34. From the word of Allah ta-la this was developed by Ibnu Khaldun who stated that gold and silver are measure of value. In this paper try the case of opening a business an English course by using the Hamdi-s Method which then compares investment feasibility decisions using conventional method namely NPV and PI. The calculation results show that the business of English course is feasible using the Hamdi-s Method. The result is the same as using NPV and PI calculations. Thus calculating the feasibility of investing in the financial aspects by using an Islam perspective namely the Hamdi-s Method can be used as a new method in academic field.

Keywords
Hamdi-s Method, Islamic perspective and financial aspects

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/LcNqKmBRCn64

Corresponding Author
SUKMA KUKUH PRIBADI

Institutions
Magister Manajemen, Universitas Indonesia, Jakarta
Sukma.kukuh[at]gmail.com, Wibowo_buddi[at]yahoo.com

Abstract
Sukuk has become one of alternative financing for corporate. The development of Sukuk provides the flexibility choices of company-s funding decisions that required their needs and capabilities. Sukuk market in Indonesia is the second largest in emerging East Asia in terms of size but the number of issued Sukuk lower than a conventional bond. This study aims to obtain empirical evidence that the characteristics of the company influence the decision of the company in issuing Sukuk and bonds using the logit model. The results of this study conclude: (1) leverage has a negative influence and significant (2) size of the firm has a positive influence and significant (3) fixed assets has a positive influence and significant to the decision of the company in issuing Sukuk.

Keywords
Sukuk, Bonds, Financing Company Decisions, Characteristic Company, Logit Model.

Topic
Sukuk

Link: https://ifory.id/abstract/TrCXxWmG8wuv

Corresponding Author
Shofie Azzahrah

Institutions
Universitas Indonesia, Depok, 16424

Abstract
Indonesia is a country that is rich in natural resources, such as oil, gas, and coal. The three sectors of that mining is also high demanded in this country. It-s the reason why there are many company who wants to do mining activities. Although government has the right to regulate the company to do Environmental Impact Analysis (AMDAL) and Corporate Social Responsibility (CSR), but the control isn-t strict enough for the mining companies to do the activities. We would like to see the affect of increasing the mining companies and mining production of oil, gas, and coal to the socio-economic welfare that estimated using the data of SUSENAS 2016 and SUSENAS 2017.

Keywords
Mining, AMDAL, CSR, SUSENAS

Topic
Sustainable Development in Islamic Perspective

Link: https://ifory.id/abstract/QzqpmfMHwT4X

Corresponding Author
Adhitya Ginanjar

Institutions
Institute of Islamic Banking and Finance International Islamic University Malaysia

Abstract
Abstract: Financial inclusion has implemented by Financial Services Authorities (OJK) since 2014 in Indonesia by starting with 6 public banks and become 18 conventional banks and 2 Islamic banks in 2016. On the other hand, roles of Islamic Microfinance Institutions (IMFIs) more likely in implementing financial inclusion. More than 56.5 million Micro Small Medium Enterprises (MSME) contributed greater than 50% of Gross Domestic Product (GDP) and 23.551 microfinance institution are be able to deliver financial access to the poor in rural area. Financial inclusion has agenda in alleviating poverty, creating wealth and maintaining sustainability of financial services. This study purposes to observe the determinants influencing IMFIs in improving financial inclusion from the perspective of the IMFIs in view of their direct contribution in the process and having rich information about financial issues facing the borrowers. The managers also understand about financial inclusion agenda as well as financial guidelines and regulations issued by the relevant authorities. A total of 362 managers of Baitulmaal Wa Tamwil (BMTs), which registered under the Sharia Cooperative Centre (INKOPSYAH) are taken as respondents that representative of entire Indonesia cooperative from the Jakarta, Bogor, Depok, Tangerang, Bekasi (JABODETABEK), West Java, Middle Java, East Java, DI Yogyakarta and Lampung areas. The first instrument was a survey questionnaire, and the second one was an in-depth interview to outline data related to the model design. The findings of this research are expected to contribute to better decision-making for the policy makers especially Financial Services Authorities (OJK) to further develop IMFIs role in improving financial inclusion. The findings also elaborate several dimensions to improving financial inclusion among BMTs environment including consumption in term of financing, adopting well management, accepting subsidize, expanding businesses, implementing internal BMTs policies, enhancing community development and training financial education. This research highpoints the need for a variety of strategies to license success of improving financial inclusion by BMT.

Keywords
Financial Inclusion; Islamic Microfinance Institutions; Baitulmaal Wa Tamwil, Islamic finance

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/ZLynqcxrg7Ud

Corresponding Author
Ernawati Ernawati

Institutions
(1,2)Departement of Economics, Halu Oleo University, Kampus Bumi Tridharma Anduonohu Kendari, Indonesia
(3)Department of Informatics Management, STMIK Catur Sakti Jl.Abdullah Silondae Kendari, Indonesia
erna_unhalu[at]yahoo.com(1), nusantara.uho[at]gmail.com(2), Mansyur.asri[at]yahoo.co.id(3)

Abstract
The enormous potential of the Muslim population has not been able to drive the development of the Islamic finance industry triggered by low-level awareness. This research was conducted to determine the effect of awareness on the Islamic finance industry. The study used secondary data based on the publication of Thomson Reuters report in the period 2014 to 2017. Data analysis was data panel regression. The research findings showed that the countries with most of the size of Islamic finance assets are Malaysia, Saudi Arabia, and Kuwait, respectively. The leading connectivity of the Islamic financial industry was in Malaysia. The main interconnectivity in the regulation of the Islamic finance industry was Qatar and Saudi Arabia. Awareness and social factors have a significant positive influence on the size of Islamic finance, but regulation has not significant. The awareness was an entry point for the development of the Islamic finance industry. Social factors can also encourage Islamic financial with a smaller impact than awareness.

Keywords
awareness; social; regulation; financial; Islamic

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/dxEXnfz2YUcy

Corresponding Author
Putri Ayu

Institutions
a) Economic of Development , Faculty of Economics, Campus II Payakumbuh Universitas Andalas
H. Rasuna Said 192, Kubu Gadang, Payakumbuh 26213, Indonesia
*putri.ayu[at]mail.ugm.ac.id
b) Magister Science in Economics, Faculty of Economics and Business, Universitas Gadjah Mada
Bulak Sumur, Yogyakarta 55281, Indonesia
c) Management , Faculty of Economics, Campus II Payakumbuh Universitas Andalas
H. Rasuna Said 192, Kubu Gadang, Payakumbuh 26213, Indonesia

Abstract
As the largest Muslim population in the world, Indonesia has an excellent opportunity to lead the Islamic economy in the world, one of which is through Financing Sharia. The financing Sharia of Sharia Commercial Bank and Sharia Business Unit in Indonesia have always increased and even have a mission to contribute to the 17 pillars of sustainable development, one of which is a partnership for the goals. This study aims to analyze the influence of Sharia Commercial Bank and Sharia Business Unit financing of musharakah, mudharabah, murabahah and inflation to the exports Indonesia to Japan and the total export in Indonesia. The period of analyses from 2011q1-2018q4 using the ARDL-ECM method. The results show that the financing of musyarakah, mudharabah, murabahah and inflation together have significant on the exports to Japan and the total exports in Indonesia in the long-term effects. Partially in the long term, musyarakah significantly influences the exports to Japan and total exports in Indonesia, inflation significantly positively affects exports in Indonesia, while other variables are not significant. In the short term, the mudharabah positively affects total exports in Indonesia and the total exports to Japan, musharakah affect the total exports to Japan, and the rest do not affect in the short term. The existence of long-term relationships is expected that the government continues to develop Islamic finance through the three pillars of sharia development, especially the financing of musyarakah and mudharabah investments which significantly affect exports.

Keywords
musyarakah, mudharabah, murabahah, export, ARDL-ECM

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/hEBjnJtZ9XQe

Corresponding Author
Muhammad Sanusi

Institutions
a) Master Candidate of Islamic Economic, Faculty of Economic and Business, Universitas Airlangga, Surabaya, Indonesia
*sanusiekis171[at]gmail.com
b) Departement of Islamic Economics, Faculty of Economic and Business, Universitas Airlangga, Surabaya, Indonesia

Abstract
This paper investigates the impact of bank-specific and macroeconomic variables on the profitability of Islamic rural bank (BPRS) in Indonesia. Using monthly time series data from January 2010 - December 2018. The estimation model used is a vector error correction model to analyze the long-term and short-term relationships between bank-specific and macroeconomic variables on the profitability of Islamic rural bank. The results showed that in long-run CAR and LnTA had a positive and significant relationship, while NPF, BOPO and IPI had a negative and significant relationship to the profitability of Islamic rural banks. But FDR and Inflation variables are not significantly related to the profitability of Islamic rural bank. The results leave implications for policy makers, investors and banking sector managers. Based on evidence that bank profitability is more influenced by internal banks (as specific as banks), this research can help Islamic rural banks to help them understand which factors are important to be analyzed to obtain higher profitability.

Keywords
Bank-specific, Islamic rural bank (BPRS), Macroeconomic, VECM

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/2ZnBrKpz7fCX

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

Corresponding Author
Ali Aljadba

Institutions
University Sians Islam Malaysia (USIM)

Abstract
Allah forbade fraud and manipulation of financial transactions in verse 29 Al-Nisa-a Surah. This verse provides at least two dimensions related to the theme of this paper. Firstly, it is considered as an evidence to band managers in practicing earnings management (EM). Secondly, this verse considered as a command to minimize the conflict between stockholders themselves which in turn improve the performance of the business and decrease EM level as well. Hence, this paper seeks to provide a conceptual framework investigating the role of political instability on the relationship between ownership corporate governance mechanisms (CG) and EM in the Palestinian non-financial listed companies. Indeed, the political environment significantly influences the effectiveness of CG. Based on political theory, the political instability can influence the practices of EM and impair the effectiveness of CG mechanisms. CG mechanisms (board of directors characteristics, audit committee characteristics and ownership structure) plays a crucial role in constraining EM practices. In addition, agency theory and political theory were used to develop the hypotheses. Accordingly, it can be observed that the effectiveness of the CG may negatively affected by political instability particularly in Palestine. Unlike most of the previous literatures on the developing countries, this paper uses the political instability as a moderating variable to conceptualize the relationship between CG mechanisms and EM practice.

Keywords
Corporate Governance, Earnings Management, Political Instability, Political Theory, Agency Theory, Palestine

Topic
Islamic Governance and Ethics

Link: https://ifory.id/abstract/H6LhydBzVpxM

Corresponding Author
Devi Yulia Rahmi

Institutions
a) Department of Management, Faculty of Economics, Campus II Payakumbuh Andalas University
H. Rasuna Said 192, Payakumbuh 26213, Indonesia
*deviyuliarahmi[at]gmail.com
b) Department of Management, Faculty of Economics and Bussiness, Universitas Gadjah Mada
Bulak Sumur, Yogyakarta 55281, Indonesia

Abstract
In the philosophy of Islam, leadership and management are very fundamental. This is because leadership is a very significant instrument in realising an ideal society. The purpose of this study is to see the idea of leadership in sharia banks in Indonesia. This was accomplished by a research model to see the effect of servant leadership on employee performance and the influence of Islamic work ethic as mediation in the relationship between servant leadership and employee performance in the sharia banking in Indonesia. In line with the general purpose mentioned, the explanatory approach was used to test the preposition. Analysis of data obtained from 150 questionnaires was distributed to empoyees of sharia bank in Indonesia. After the data was collected, then it is analyzed using simple regression anlysis and regression analysis MODMED PROCESS. The expected of current study show that servant leadership have a significant effect on islamic work ethic, and Islamic work ethic have a possitive effect on employee performance. Additionally, Islamic work ethic plays as mediating effect between servant leadership and employee performance in sharia bank industry. This current study offes leaders of sharia banks the opportunity to create an ethical and Islamic work environment and build leadership qualities that protect and serve members who are led. The originality or value of the study offers the reflection of one of the leadership styles that are in accordance with the principles of leadership in Islam.

Keywords
employee performance, Islamic work ethic, servant leadership, sharia bank industry

Topic
Islamic Management and Leadership

Link: https://ifory.id/abstract/zujKhm4XQNR2

Corresponding Author
umma saidah

Institutions
a) MUC Consulting Group (Registered Tax Consultant)
ummasaidah18[at]gmail.com

b) University of Malaya
r.anggrainizr_unj[at]yahoo.com

Abstract
The role of Islamic Moderation Work Ethics (IWE) the relationship between Organizational Commitment, Job Satisfaction and Intention to Turn Over: Studies in Islamic Banking in Jakarta. Understanding business ethics from an Islamic perspective becomes important for several reasons. Muslims make up the largest population with about 22.5% of the world population and the global Muslim population is growing 1.5 times faster than the general population (Johnson and Grim 2013). See the phenomenon and the results of previous studies, the researchers were motivated to conduct research under the The Moderating Role Of Islamic Work Ethics (Iwe) In Relationship Between Organizational Commitment, Job Satisfaction And Turnover Intention: Study In Islamic Banking In DKI Jakarta. The research model is in contrast to previous studies. This research study is basically back from (Arshad Mahmood, 2015). In a previous study using the Public Sector places in Pakistan. While in this study, researchers used the Islamic Banking Sector in Jakarta as a place of research and Job Satisfaction adding variables as suggested by previous researchers. With the number of respondents was 109 then produced few results until eventually there is a significant effect with the Islamic Work Ethics there also does not produce significant results with each other. The Methodology that used in this paper are Structural Equation Modelling (SEM) with Smart PLS &SPSS Application.

Keywords
Islamic Work Ethics, Islamic Banking, Turnover Intention

Topic
Islamic Management and Leadership

Link: https://ifory.id/abstract/7vqAQBhyaGnr

Corresponding Author
MONTHER YAHYA ELDAIA

Institutions
a* PhD candidate, Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia [USIM ]
Bandar Baru Nilai, 71800, Nilai, Negeri Sembilan, Malaysia, Email: my.eldaia[at]alaqsa.edu.ps
b Professor of accounting, c Assistant Professor of Finance

Abstract
ABSTRACT Corporate governance (CG) issue remain a continuous process that required an efficient and long-term solution. Using Shariah Committee Quality (SCQ) as a moderating variable on the relationship between board of directors (BOD) characteristics and Malaysian takaful performance is remain an area unexploited in CG research. This relationship can effectively measure by the extent of SCQ interactions between BOD and Malaysian takaful performance. Despite various studies on CG mechanisms, firm performance, SCQ implementation level, and BOD characteristics, the empirical results appeared inconclusive and the findings are inconsistent. None of the studies have addressed the role play by SCQ as a moderator between BOD, and firm performance. It is demonstrated that the SCQ has the potential to moderate between the different BOD characteristics and Malaysian takaful performance, and this moderation has never been reported in the literature. It is expected that this SCQ moderation may considerably improve corporate performance by determining the strength or weakness of the relationship between BOD characteristics and firm performance. Thus, this paper, with regards to available literature, conceptualized that ‘SCQ- moderates the relationship between Board Size, Board Independence, CEO duality, Meting frequency total number of women on the board, and Malaysian takaful performance.

Keywords
Board of Director, Financial Performance, SCQ, Moderating, Malaysian Takaful

Topic
Islamic Governance and Ethics

Link: https://ifory.id/abstract/Ghb74Ex2FdDj

Corresponding Author
Nikmah Mentari

Institutions
(a,b) Post Graduate Law Faculty, Universitas Airlangga
Jl. Dharmawangsa Dalam Selatan, Surabaya, Indonesia

Abstract
The rapid development of Sharia Banking has become an exciting market to become a Conventional Banking industry entrepreneur who is passionate about Sharia Business Unit as diversification in banking transactions. However, the existence of a Sharia Business Unit will be ended in 2023 due to the mandate of the Sharia Banking Act which requires a spin-off. Therefore, the Sharia Business Unit will become an independent Sharia Bank. As part of the parent bank, it is should for the conventional bank to prepare the readiness of Sharia Business Unit before spin-off so that they can compete in the global era based on the SDGs principle and still maintain the sharia compliance. The issue of this study, "What is the urgency of Conventional Bank that implements the principle of SDGs to Sharia Business Unit Pre-Spin Off 2023 and How to implement SDGs Pra-Spin Off by Sharia Business Unit become Bank Umum Syariah". The method applied is normative juridical, which relates to the prevailing norms and legal principles. The approach taken is the statute approach. The outputs are produced by focusing the objectives on SDGs goals which are correlated with Sharia Banking and Good Corporate Governance principles of Sharia Business Unit with Conventional Bank.

Keywords
Coventional Bank, SDGs, Sharia Business Unit, Spin Off

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/9F7udzM4tvqf

Corresponding Author
Aprilya Fitriani

Institutions
IAIN Jember

Abstract
As a follow-up to the global agreement of MDGs, the United Nations launches the SDGs to end poverty, reduce gaps and protect the environment. SDGs can be achieved through the role of Islamic Microfinance in muslim countries including Indonesia. Islamic Microfinance institutions are institutions that are born, grow, and thrive in the community. One model of Islamic Microfinance institution in Indonesia is Baitul Mal Wat Tamwiel (BMT). BMT is a uniqueness of the Islamic Microfinance that has the role of integrated Islamic commercial and social finance, which could better achieve triple-bottom-line of SDGs, including economic development, environmental sustainability, and social inclusion, especially for the poor and Micro Small Enterprises in the rural area. The main purpose of this research is to explore the relevant conceptual framework in the Islamic Microfinance in the achievement of the SDGs. The methodology of this study based on the analysis of the relevant literature. This research identifies the potential financing of sustainable infrastructure investments through Islamic Microfinance. The results indicated that the Islamic Microfinance, especially the Baitul Mal Wa Tamwiel (BMT), which is rooted in the community, has the potential to develop independent community capabilities.

Keywords
SDGs, Islamic Microfinance, Baitul Mal Wa Tamwiel

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/abuJjHQNLTw7