Indonesia Conference Directory

Corresponding Author
Faiza Husnayeni Nahar

Institutions
Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Indonesia

Faculty of Economics and Management Sciences, International Islamic University Malaysia, Malaysia

Faculty of Management, National Chiayi University, Taiwan

Abstract

Keywords
Remittances, Economic growth, ASEAN, Panel Data.

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/EVaADF2bWfUm

Corresponding Author
Agustine Dwianika

Institutions
Student Phd Doctoral of Trisakti University, Jakarta
Lecturer Department Accounting of Universitas Pembangungan Jaya, Tangerang

Abstract
Fiscal policy is often regarded as important in stimulating investment in many aspects. Such as for capital expenditure, fiscal policy offering incentives to firms to invest in capital assets is seen as a useful tool to boost growth, particularly in times of weak economic performance. It is also seen as helpful in improving productivity through encouraging the use of more efficient capital assets. Given the changes that Indonesia SMEs tax policy has seen over the last two years that have made the available incentives more generous than they were, it is important to investigate the impact of this policy on decisions to assess its success, and recommend ways of improving the policy if appropriate in Indonesia SMEs conditions. This study aims to know about the effect of financial conditions, types, and size on tax compliance of SME in Bintaro with a reduction in tax rates (Tax Facilities) as a moderating variable. The population are respondents in the Bintaro, South Tangerang area. Data collection is done by giving questionnaires to respondents. The number of samples chosen using purposive sampling amounted to 70 respondents. Hypothesis testing is done using multiple linear regression methods. The results showed that partially the financial condition and size did not affect taxpayer compliance. While the type affects taxpayer compliance. Simultaneously, the financial condition, type, and size of the UMKM taxpayer compliance in Bintaro with a decrease in tax rates as an influential moderating variable.

Keywords
Financial Condition, Type, Size, Taxpayer Compliance, and Tax Facilities.

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/VrkJYpZX4n8f

Corresponding Author
IMA MASPUPAH

Institutions
The Institute of Islamic Religion Cipasung, Indonesia

Abstract
The problem of banking efficiency is happening now and in the future, because competition in the banking realm is getting tighter, problems that arise as a result of reducing of resources and increasing customer satisfaction standards. So that the analysis of banking efficiency needs to be done to find out and determine the causes of changes in the level of efficiency and take corrective action so that it can improve efficiency as it should. This research aims to redevelop previous studies in calculating and comparing in maximizing their output in order to provide the best productivity to customers in Indonesian and Malaysian Islamic banks. The method used is Data Envelopment Analysis (DEA), which is a non-parametric approach to calculate relative efficiency with the intermediation approach, based on the assumption of variable return to scale (VRS). The statistical tool used is the Mann-Whitney U-Test to compare the level of efficiency at Islamic banks in Malaysia and Indonesian Islamic Commercial Banks. The population in this study were Islamic banks listed at Bank Negara Malaysia and Sharia Commercial Banks registered at Bank Indonesia. The sample is 10 Islamic Banks in Malaysia and 10 Islamic Commercial Banks in Indonesia according to the specified criteria. The observation period of this study is from 2007-2017. Input variables in research are savings, assets, and labor costs, while the output variable is financing and income.

Keywords
Keyword: efficiency, Indonesian and Malaysian Islamic banks.

Topic
International Conference of Islamic Economic and Financial Inclusion

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

Corresponding Author
Anis Rahmawati

Institutions
Universitas Sebelas Maret

Abstract
An eco-friendly home, well known as green home, is a home building that pays attention to sustainability aspects of the environment, both in the construction process and during the use of the building. This article reviews the efficiency of energy costs from building use activities in a green home. The analytical study was used to calculate the energy requirements and energy costs of green home design which gain a platinum rating according to greenship home from Green Building Council Indonesia. The results showed that a platinum rating green home produce 48% energy savings compared to a home without an environmentally friendly concept.

Keywords
102

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/tj6N7R23dzLr

Corresponding Author
Meirna Puspita Permatasari

Institutions
Department of Accounting, Faculty of Economics and Business, Universitas Brawijaya
Malang, Indonesia

Abstract
Agricultural financing remains a prominent obstacle many farmers in Indonesia are currently struggling with. Financial aid from formal institutions is often inaccessible for small farmers. In addition to this phenomenon, farmers in Indonesia still have to deal with the middlemen, causing farmers to suffer from price injustice upon their harvested commodities. Referring to the era of Prophet Muhammad SAW in which masjid (mosque) served as the center of economic activities, this paper aims to revive the former power of masjid to solve the ongoing agricultural problems and to bring out more prosperity to small farmers as a part of the whole ummah. A case study was conducted in Indonesia by employing literature survey of agricultural financing cases and the role of masjid as an economic entity built upon and underpinned by Islamic law. This research finds that the revival of masjid as the center of economic activities can be carried out by optimizing the funds they receive in the form of infaq and shadaqah. Mainly, the collected funds are allocated for renovation process of the masjid itself. Only a small portion of it goes back to the community. We designed a scheme to turn infaq and shadaqah into something more productive which may empower farmers. Thus, they may have the chance to detach themselves from middlemen and access more funds to finance their farming works. This is called establishing brotherhood between masjid. Inspired by the establishment of brotherhood between Muhajirin and Anshar back then, the brotherhood between masjid sheds a light on how infaq and shadaqah from one masjid can be transferred to another masjid and used as aids for farmers. Such bond of brotherhood may also open a new pipeline to distribution of agricultural products. Regarding to the fact that this research is in conceptual context, a suggestion made for future researchers and practitioners to verify this concept in actual condition.

Keywords
brotherhood between masjid; infaq; shadaqah; agricultural financing; distribution of agricultural products

Topic
International Conference of Islamic Economic and Financial Inclusion

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

Corresponding Author
fatmawati sungkawaningrum

Institutions
STAINU Temanggung

Abstract
Abstract Indonesia has the most Muslim population in the world. This encourages Indonesian people to choose to live in sharia. Sharia is very closely related to the halal industry. Islamic banking can encourage halal industries in Indonesia. With the enthusiasm of the community to run a sharia system, it encourages banks to disburse financing to develop a halal industry. Global economic conditions should be developed in all sectors, but this sharia market share is not yet wide. The halal industry should be able to encourage the sharia of the Islamic banking market to develop broader sharia-compliant good and services. The research method used is descriptive quantitative method and literatur review. From the results of the analisis of the role of banks, it is not limited to finwithout training, guidance and usury, but also includes halal regulations, halal consumption of product, halal industry intelligence and lawful governance. The governmenthas a role as a regulator between Islamic banking, business actors and MUI so that the ekonomic potential and halal industry according to sharia can be realized.

Keywords
halal industry, sharia banking, government

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/jKywGaQF369A

Corresponding Author
Syadan Ismail

Institutions
Department of Agribusiness Management and Entrepreneurship
College of Economics and Management
University of the Philippines Los Baños

Abstract
The Philippines is considered to have one of the worst land tenure problems in the world (Vargas, 2003). Agricultural families have more poverty incidence than non-agricultural households in the Philippines where land access is limited for poor farmers and agricultural tenancy is still the common practice (Ravanera, 2017). Agriculture remains as the main source of livelihood for Filipinos in rural areas, thus access to land is a necessity in alleviating poverty and attainment of food security. People are considered food secure when they have availability and adequate access at all times to sufficient, safe, nutritious food to maintain a healthy and active life (Word Food Program, n.d.) Food security has four main dimensions: 1) food availability; 2) food access; 3) food utilization; and 4) stability (Burchi et.al., 2011). This study explores the association of land tenure to food access in selected barangays in the municipality of Pigcawayan situated in the North Cotabato province of the Mindanao peninsula. The Municipality of Pigcawayan is a highly agricultural area where the main crops are rice and corn. The three barangays covered in the study were North Manuangan, Bulu-an and Bulucaon. North Manuangan and Bulu-an are generally peaceful areas. North Manuangan, however, is near Liguasan marsh where the Bangsamoro Islamic Freedom Fighters (BIFF) and the Moro Islamic Liberation Front (MILF) traverse to get to their camps. Thus, farming in these two barangays is occasionally affected by military and rebel conflicts. Bulucaon, on the other hand, is a flood prone area adjacent to conflict areas where hostage takings happen from time to time. More frequent disruptions in farming activities occur in this barangay. Using the chi square test of association on land tenure variables (zero harvest payment agreement, confidence in tenancy, range of number of sacks sold, and percent payment) and food variables (experience hunger with no money, experience credit for food, and days without enough food), results showed a significant association at alpha 0.05 between zero harvest payment agreement and confidence in tenancy with days without enough food. At alpha 0.10, results showed a significant association between zero harvest payment agreement and confidence in tenancy with experience hunger with no money and days without enough food. Based on the focus group discussion conducted on 56 respondents, the study showed that while the farmers can eat three times a day, their access to food can only be sustained if they would continuously work, even on land recovery days, in order to generate enough income to buy food for household consumption.

Keywords
Farming

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/ZwLFhB8ET2Rd

Corresponding Author
Sahat Aditua Fandhitya Silalahi

Institutions
a)Research Center, The House of the Representatives of Indonesia, House of Representatives Complex, Nusantara I building 2nd fl, Gatot Subroto st, Senayan, Jakarta.
sahatsilalahi81[at]gmail.com

b)Research Center, The House of the Representatives of Indonesia, House of Representatives Complex, Nusantara I building 2nd fl, Gatot Subroto st, Senayan, Jakarta.
muchaddam[at]yahoo.com

Abstract
Sharia financing services for Small and Medium Enterprises (SMEs) have experienced positive developments. Some factors that make SMEs increasingly interested in sharia financing schemes are fair profit-sharing schemes and conformity with Islamic law. However, other factors that affect customer satisfaction and loyalty such as service quality should not be ignored. This study aims to examine the influence of conformity with Islamic Sharia, service quality, and perceptions of a more equitable financing scheme on customer satisfaction and loyalty both directly and indirectly. This study involved 114 SMEs in Bogor regency who were using sharia financing services. This research uses path analysis to study the influence of each variable on satisfaction and loyalty. The results showed that service quality and a more equitable perception of the scheme had a significant influence on customer satisfaction and loyalty. While the perception of conformity to Sharia does not have a significant influence on customer satisfaction and loyalty. The results imply that even though conformity with Islamic sharia may deliver advantages in winning the Muslim entrepreneur segment; the financial services providers should not ignore the service quality and fair financing factors.

Keywords
Sharia; Financing; SMEs; Satisfaction; Loyalty.

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/j4D82yhwzYQ9

Corresponding Author
Imam Wahyudi Indrawan

Institutions
State Islamic University of Sunan Ampel of Surabaya; International Islamic University of Malaysia

Abstract
The existance of so called dilemma between non performing financing (NPF) and needs of financing, particularly in microfinance has become a great homework for banking industry and cooperatives along with its related instruments. It is plausible to look for the causes of NPF as well as its implications to micro and small enterprises. Research purposes are twofolds, to figure out and analyze factors influencing Non Performing Financing of Islamic banking as well as to generate suggestions on its implications toward Lembaga Pengelola Dana Bergulir Koperasi dan Usaha Kecil Menengah (LPDB KUKM). This research is conducted in quantitative approach. It covers two variables, macroeconomy and Islamic banking financial performance (BUS, UUS, and BPRS) in Indonesia towards Non Performing Finance (NPF). The research findings include several factors, such as current depreciation, increase in quantity of Islamic micro financing, and inefficiency of Islamic banking operation, that contributes to the rising NPF in Islamic banking in Indonesia. However, the increase in Islamic banking office networks can tackling potensial growth of NPF. The research implicates in policy associated to Lembaga Pengelola Dana Bergulir Koperasi dan Usaha Kecil Menengah (LPDB-KUKM), as General Service Agency (Badan Layanan Umum or BLU) at the Ministry of Cooperation and Small and Medium Enterprises. LPDB KUKM, in allocating revolving funds for Islamic micro enterprises with Islamic scheme, can cooperate with Islamic banking, either BUS, UUS, and BPRS considering that Islamic banking has developed number of networks which could expand the reach of Islamic micro financing programs.

Keywords
Non Performing Financing (NPF); Islamic banking; implication; LPDB-KUKM

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/nN3wgkGKAaQV

Corresponding Author
Layli Amatullah

Institutions
University Muhammadiyah of Yogyakarta

Abstract
Penelitian ini bertujuan untuk menganalisis pengaruh variabel Emisi CO2 dari transportasi (% dari total pembakaran bahan bakar), Jumlah kedatangan pariwisata internasional, Pendaftaran Sekolah Menengah terhadap Penerimaan pendapatan pariwisata internasional (% dari total ekspor) di Indonesia. Teknik analisis data yang digunakan adalah ECM dengan periode penelitian dari tahun 1988 sampai dengan tahun 2017. Berdasarkan analisis data yang digunakan dalam penelitian, diketahui dalam jangka panjang semua berpengaruh terhadap Penerimaan pariwisata internasional dalam jangka pendek varibel Emisi CO2 dari transportasiberpengaruh negative dan Jumlah kedatangan pariwisata internasional berpengaruh negatif, sedangkan Pendaftar Sekolah Menengah tidak berpengaruh terhadap penerimaan pendapatan pariwisata internasional di negara Indonesia.

Keywords
Emisi CO2, Jumlah Pariwisata, Pendapatan.

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/9ZWpeGLumCd3

Corresponding Author
Eksa Rusdiyana

Institutions
a) Faculty of Agriculture Universitas Sebelas Maret (UNS)

Jl.Ir.Sutami 36 A Kentingan, Jebres, Solo, Jawa Tengah, Indonesia

Abstract
This research aimed to find out the farmers perception on rice importing policy and the measure they take to deal with the policy. This study was a descriptive qualitative research with structured interview, documentation, and focus group discussion being the techniques of collecting data. Informant consisted of farmers and head of farmer group with rice farming business. Data validation was carried out using source triangulation. The result of research showed that the farmers perception on rice import was divided into two. Few farmers understood that rice importing policy was developed by government due to uneven rice production in order to make the rices price lower and affordable to the people. Meanwhile, most farmers did not know the governments rationale in importing the rice amid the abundant rice production of local farmers. Both groups had no option other than being submitted and keeping continuing their farming business recalling rice is the basic need the sale of which can be postponed and can be consumed themselves.

Keywords
farmer, import, paddy, rice

Topic
International Conference of Islamic Economic and Financial Inclusion

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

Corresponding Author
Elis Nurhasanah

Institutions
Siliwangi University

Abstract
Abstract: This paper aims to measure the feasibility of distributing community-based zakat funds in Garut Regency. This research is to measure the condition of village-based community, whether it is feasible or not to receive zakat funds, and to recommend a zakat program that is relevant, if it is worthy of receiving the zakat community development program. This study uses an instrument adopted from the Center of Strategic Studies of The National Board of Zakat (BAZNAS) that is the Zakat Village Index (ZVI). By using mixed method approach and purposive sampling. The results show that both Mekarsari and Sagara villages can be considered to be assisted by the Zakat Community Development program with the same ZVI value of 0.55 points. Each dimension values in the Mekarsari village are 0.39 points of economic dimensions, 0.54 points of health dimensions, 0.64 points education dimensions, and the da-wah and social and humanity dimensions each score 0.68 and 0.55 points. Whereas the scores of each dimension of Sagara Village are 0.26 points of economic dimension values, 0.60 points of health dimensions, and the values of the dimensions of dawah and social humanity are 0.69, 0.69 points. Thus, based on the values of the five dimensions above, the priority of the zakat community development program focuses on improving the economy of the mustahiq community through empowering the potential based on community.

Keywords
Feasibility study, Zakat Community Development, Zakat Village Index

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/T6JEn8bxWNKQ

Corresponding Author
Indri Supriani

Institutions
a) Faculty of Economics and Busniess, Airlangga University
Jl. Airlangga No.4, Airlangga, Gubeng, Kota SBY, Jawa Timur Indonesia 60286.
*indri.supriani-2018[at]pasca.unair.ac.id
b) Faculty of Economics and Busniess, Airlangga University
Jl. Airlangga No.4, Airlangga, Gubeng, Kota SBY, Jawa Timur Indonesia 60286.

Abstract
The purpose of this paper is to compare the effects of conventional banking development and islamic banking development on the economic growth in the case of Indonesia. The resistance of Islamic banking and finance in Indonesia to economic crises had been proved in 1998, when Bank Muamalat Indonesia was able to withstand the global crisis while conventional banks suffered losses. The increasing presence of Islamic banking and finance in Indonesia based on fair profit-loss sharing (PLS) and risk sharing is supposed to have a stronger contribution to encourage real economic growth compared conventional banking and finance which applies fixed interest rate with the main goal being maximizing profit without regard to clients bussines condition. In order to empirically compare and investigate the impact of financial development on performances of macroeconomic indicators, this study applies Auto-Regressive Distributed Lag (ARDL) approach on monthly data set for Indonesia covering the period from 2011 to 2013. The results signify a rejection to the hypothesis that Islamic finance significantly contribute to the acceleration economic growth compared to conventional banks. In the long run, Bound F-test cointegration demonstrates that there is statistical eviedence of a relationship between conventional banking and economic growth. However no significant relationship was observed between islamic banking development and growth. To increase the role of Indonesian Islamic banks as financial intermediaries that faciliate the capital accumulation and the economic growth, the paper suggests both the government and especially society to be more aware of commence in using islamic banking products that represent our values as muslim ummah. Moreover, islamic banks itself, should be required to improve the percentage of mudharabah and musyarakah in allocation of their financial deposito. The limitation of this study is the lack of commercial and syariah banks performance data before the economic crisis in indonesia.

Keywords
Islamic banking, Conventional banking, Real Economy, Indonesia, ARDL.

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/VD4NEYKyX8Fg

Corresponding Author
Ida Wijayanti

Institutions
Universitas Airlangga,
Universitas Airlangga,
Universitas Islam Negeri Sunan Ampel

Abstract
This research aims to reveal the financial inclusion occurs in zakat institutions within zakat empowerment program in Indonesia and Brunei Darussalam. This study will show a comparison of financial inclusion processes practiced by zakat institutions in two countries and then analyze how they can improve zakat management in both institutions. The object of this research are the government zakat institution in two countries, namely Indonesia (BAZNAS) and Brunei Darussalam (BAKAZ). This study uses a qualitative explanatory method within multiple case strategy. Data collection in this study was carried out through in-depth interviews with several expert informants of BAZNAS and BAKAZ and also mustahiq of each institution. This study shows how the financial inclusion process is carried out through the synergy of zakat institution with financial institutions in each country, so as to produce a sustainable impact to the mustahiq life through the implementation of zakat financial inclusion.

Keywords
Financial Inclusion, Zakat Empowerment Program, Mustahiq, BAZNAS, BAKAZ

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/K9RGme48LtTn

Corresponding Author
Aufar Fadlul Hady

Institutions
Universitas Airlangga

Abstract
This study aims to develop a financial measurement model to assess the performance of waqf managers (nazhir). Performance measurement is important to evaluate whether a nazhir has managed the waqf assets in accordance with the laws and regulations, the objectives of the institution, the wishes of the donors (wakif) as well as the benefits of the beneficiaries (mauquf alaih). This study uses a financial ratios approach which is compiled into a comprehensive financial statement analysis model. These financial ratios are developed based on Indonesian Accounting Standard No 112 concerning Accounting of Waqf that have just been ratified. The results of this study provide an objective and informative financial performance measurement model that can be used by stakeholders to make decision in managing waqf assets. Furthermore, the Badan Wakaf Indonesia (BWI), as waqf authority, can adopt this model as a part of reporting standard for waqf institution.

Keywords
Performance Measurement, Financial Ratios, Waqf, Waqf Institution, Nazhir

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/jZGYt7xgFhwW

Corresponding Author
Nurfarizan mazhani Mahmud

Institutions
Universiti Teknologi MARA, Kampus Tapah

Abstract
This research aims to investigate the effectiveness of machine learning in predicting financial reporting fraud among listed companies in Malaysia. Ten financial ratios are used as fraud risk indicator to predict financial reporting fraud. The samples of 20 fraudulent firms and 20 non fraudulent firms which financial data are available from 2010-2018 are used using match pair in this study. The findings reveal that machine learning is effective in predicting both fraudulent and non fraudulent firms compared to traditional approach of financial reporting fraud detection.

Keywords
Financial reporting fraud, fraud detection, machine learning,

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/F8EuACqvGmXU

Corresponding Author
Tiara Nirmala

Institutions
Universitas Lampung
Universitas Gadjah Mada

Abstract
The startup business in Indonesia continues to grow, one of which is now rapidly advancing is a new industry of financial technology or commonly called Fintech. Reporting from Wikipedia, Fintech is a new technology and innovation with the aim of competing with traditional financial services and facilitating public access to these services. Fintech aims to make it easier for people to access financial products, facilitate transactions and also improve financial literacy. In Indonesia, Fintech companies are dominated by startup companies with great potential that develop in various sectors, starting from payment startups, lending, financial planning (personal finance), retail investment, crowdfunding, remittances, financial research , and others. In September 2015 the Association of Fintech Indonesia (AFI) was established which aims to provide a reliable and reliable business partner to build the Fintech ecosystem in Indonesia. Globally, the Fintech industry also continues to grow rapidly, as evidenced by the emergence of startup companies in this field and Fintech users also continue to grow significantly, from around 7% in 2007 to 78% in 2017. Based on statistical data, the total value of Fintech transactions reaches US $ 18.65 billion (Rp. 252 trillion) or grew 24.6% from the previous year. The number of users recorded per 2017 is 135-140 companies. As a result of the predicted development of Fintech, Bank Indonesia as the payment system authority holder is shown by the formation of the Fintech Office in 2016 which made regulations to regulate the running of this new sector safely and comfortably. Jagtiani and Lemieux (2016) found that technology has enabled lending, increased the ability of large banks to provide small dollar loans to consumers and business. The other result found an increase in bank lending in areas where larger banks do not have a physical presence. Research motivation in this paper, we will investigate the advantages and disadvantages of consumer loans made by a large fintech lender and similar loans that were originated through traditional banking channels in Indonesia.

Keywords
FinTech, Financial Inclusion, Banking

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/FYeVrj6Ag3fP

Corresponding Author
Hanafi Guciano

Institutions
UIN Syarif Hdayatullah

Abstract
Finance is the weakest part of Muslim community since the financial sector is apparently dominated by non-Muslim. The sharia banking so far has not quite successful in helping Muslim-s to develop their businesses. Worse, for so many years, they have been trapped onto borrowing loan from loan sharks or depended on the middlemen who controls land, funding, logistic, transport, pricing, quality grading, fertilizers and seedling for rural farmers who becoming labor in producing commodities. Base on statistical data, most of the Muslim are poor and live in rural areas; isolated from economic activities and financial services, and therefore has limited power of influence. They depended on government grant aid, subsidy, and this condition has not been changed since colonial era. About 70 percent of Indonesian – mostly Muslim - still has no bank accounts, and the role of Micro Finance Institutions (MFIs) and rural bans (BPR) so far has been limited and therefore financial inclusion is a big issue. This situation needs to be addressed and Indonesian government established a Financial Inclusion Agency in 2017 with target to cover those 70 percent unbankable population by 2019. But, coordinating 10 government agencies was not easy and so far, no one is certain where the progress at. Telecommunication technology, on the other hand, expanding rapidly and covering wider areas, including those isolated rural areas - the home of farmers and women micro enterprises. They are now able to communicate with external parties, get the latest information and find out what the customer needs. They can now have access to financing (and to transport and logistics companies and the buyers/traders, SMEs and supermarket and hotel chain), increase certainty and reducing their dependency to the middlemen and loan sharks, as they are now able to contact finance services and customer directly. This is where FinTech becoming an important partner. The problem having to go to bank branches to apply for loan, leaving their family for a day trip to closest bank branch, and have to go through cumbersome documentation and time consuming with no guarantee they can get credit approval: is now solved by FinTech. With speedy process 24 hours 7 days per week, instant approval based on big-data and social-media profiling for KYC and credit scoring, and everything is now possible via mobile applications. It is very important for Muslim community to use this opportunity to participate in financial technology, cutting the banking back-log or middlemen charges, by direct access to funding source and their customers, with short period of time, wider access and lower cost. With FinTech crowdfunding or P2P lending and digital supply chain, hopefully they can be free from vicious cycle of finance. It will improve financial inclusivity and empowering women and Muslim communities enabling them to work collaboratively with better supply chain higher and value. Apart from that, digital finance can also be used for social and religious purpose, better access to health and educational services; but also to meet their obligation like paying zakat and shadaqa.

Keywords
Islamic Financial Technology, Financial Inclusion, Social Finance

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/VbgmUrXG3aNZ

Corresponding Author
Diah Setyawati Dewanti

Institutions
International Program of Islamic Economic and Finance
Faculty of Economics and Business
Universitas Muhammadiyah Yogyakarta

Abstract
This study aims to examine and explain the effect of halal foods awareness on purchase decision with religiosity as a moderating variable. The sample in this study is Muslims consumers in Indonesia and Thailand. Purposive sampling technique was applied by criteria of samples required is Muslim consumers in Indonesia and Thailand. The number of samples is 200 respondent, included 150 Indonesian respondents and 50 Thai respondents. The analysis is done using Moderated Regression Analysis (MRA) with SPSS 23.0 software. The finding of this study shows that respondent has a high-level awareness of halal foods in Indonesia and Thailand. Halal foods awareness has a positive and significant impact on purchase decision for Muslims living in Indonesia. Halal foods awareness has a positive and significant impact on purchase decision for Muslims living in Thailand. Finally, the higher level of religiosity cannot strengthen the effect of awareness on purchase decision.

Keywords
Halal Food Awareness, Religiosity, Purchase Decision

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/wWmuxHDUT6bE

Corresponding Author
Mirta Kartika Damayanti

Institutions
School of Economic and Business, Telkom University
Jl. Telekomunikasi No.1, Kab.Bandung 40267, Indonesia
norarizal[at]telkomuniversity.ac.id, mirtakartika[at]googlemail.com

Abstract
Indonesia Stock Exchange contains Islamic stocks for Muslim investors who want to invest. The first Islamic stocks index in Indonesia is Jakarta Islamic Index or JII. It consists of thirty of the most liquid Islamic stocks. The market capitalization of the JII tends to increase every year. This paper investigate the existence of herding behavior in emerging market specifically Islamic stock market of Indonesia using daily return of Indonesia Composite Index and JII from 10 October 2000 to 5 October 2018. Herding behavior in stock market can trigger shifting market prices from equilibrium values. Herding behavior can be identified from relation between dispersion of stock return and market return. Dispersion of stock return is measured using Cross Sectional Absolute Deviation or CSAD. Generalized Auto Regressive Conditional Heteroskedasticity or GARCH model is used to detect the existence of herding behavior. GARCH does not see heteroscedasticity as a problem, instead uses it to make a model. The result indicates that herding behavior exist in Islamic stock market of Indonesia. This result is similar to Chaffai and Medhiob who find evidence of herding behavior in the Islamic Gulf Cooperation Council stock markets.

Keywords
herding behavior; CSAD; GARCH model

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/ewGT2zy9APNB

Corresponding Author
Endah Saptutyningsih

Institutions
(a) Universitas Muhammadiyah Yogyakarta, Indonesia
Jalan Brawijaya, Tamantirto, Kasihan, Bantul, Indonesia
*endahsaptuty[at]umy.ac.id
(b) Universitas Mataram, Indonesia
Jalan Majapahit No.62 Mataram, Indonesia

Abstract
Landslide hazard causes severe consequences on people properties including damage on infrastructure, changing on land structure, relocation of buildings and roadways, reduction on water quality in streams and irrigation facilities, etc., Household mitigation for landslide hazard would be necessary to reduce this hazard intensity and minimize the impacts if it occurs. This study analyzes households willingness to pay for landslide hazard mitigation in a high potential risk for landslide hazard regency in Central Java Indonesia, namely Purworejo. Contingent Valuation Method (CVM) was employed to capture the household willingness to pay (WTP) for landslide hazard mitigation. Determinants of the household WTP was estimated using the Logistic regression model. For the respondents of this study, 270 households were chosen using a purposive sampling technique. This study found that 95.2 percent of respondents were willing to pay for an average of IDR 4,500 (USD 0.32) for landslide mitigation. Household income, distance to the landslide location, the frequency of landslide, and educational attainment have significant effects on the WTP. This study recommends the local government to pay more attention to the landslide hazard mitigation programs.

Keywords
landslide; contingent valuation method; disaster mitigation; willingness to pay

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/2Ap9hz8yHn6X

Corresponding Author
Arni Surwanti

Institutions
Magister Management
Universitas Muhammadiyah Yogyakarta

Jl. Brawijaya, Tamantirto Kasihan Bantul D.I. Yogyakarta. Indonesia

Abstract
This study aims to analyze the influence of bank performance based on RGEC system of Banking Industry that listed on Indonesian Capital Market. In accordance with Bank Indonesia Regulation Number 13 Year 2011 the Banks performance is assessed based on Risk Profile, good corporate governance, Earning and Capital (RGEC). The regression model used in this analysis. Therefore, to increase the companys stock price, the banking industry needs to pay attention on bank characteristics especially risk control and profitability factors.

Keywords
bank performance, risk profile, good corporate governance, earnings, capital, stock price.

Topic
International Conference of Islamic Economic and Financial Inclusion

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

Corresponding Author
Dimas Kusuma

Institutions
Universitas Muhammadiyah Yogyakarta

Abstract
The aim of this research is to analyse the influence of Islamic Financial Technology towards the change of Debtors Preference on Bangun Drajat Warga Islamic Rural Bank Bantul, Special Region of Yogyakarta. The influence of Islamic Financial Technology is measured by using several variables, including Perceived Financial Technology, Service Feature, Perceived Ease of Use, and Perceived Risk. This research took case study on Bangun Drajat Warga Islamic Rural Bank Bantul, Special Region of Yogyakarta from September to October 2018. The type of data is primary data collected by using questionnaire and interview. The primary data was processed using SPSS 15 and analysed by using Multiple Linear Regression. The results show that Perceived Financial Technology, Service Feature and Perceived Ease of Use partially have significant and positive influence towards the change on Islamic Rural Bank Debtors Preference. The variable Perceived Risk is the only variable that has insignificant and negative influence towards the change of Islamic Rural Bank Debtors Preference. Overall, the independent variables simultaneously share significant influence towards the change on Islamic Rural Bank Debtors Preference. The independent variables can explain 63,3% of dependent variable, while other 36,7% is explained by other variables outside the model.

Keywords
Financial Technology, Debtors Preference, Islamic Rural Bank, Linear Regression, Yogyakarta

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/XxaYzfdnVRt6

Corresponding Author
Iwan Hermawan

Institutions
Expertise Agency and Secretary-General of Indonesian House of Representative, Jakarta-Indonesia

Abstract
Indonesia-s digital economy is projected to become the largest in Southeast Asia. One of efforts to realize that path, Indonesia has signed the 10th Package of ASEAN Framework Agreement on Services. The commitment increases to trade in services cooperation. However, the Indonesia-s readiness is highlighted by many parties, such as lack of human resources skill, poor infrastructure, and affordability uneven. It is worrying that would become boomerang for economic growth. The purpose of this study is to analyze Indonesias readiness for digital economy through trade in service in ASEAN level. This study employs quantitative approach with Gravity Model. The secondary data in panel data period 2014-2016 and includes ASEAN-6. The variable digital economy readiness is represented by networked readiness index. While data sources come from Comtrade, IMF, World Economic Forum, and Indonesian Ministry of Trade. The analytical method uses Poisson Pseudo Maximum Likelihood and resolved with Stata 13. Based on the interim results indicate that the level of Indonesias readiness for digital economy will affect the flow of trade in services in the ASEAN market. Therefore, it is important for government to ensure that there are prerequisites that must be prepared in grabbing benefits of momentum of the digital era.

Keywords
Trade, Service, Digitalization, Gravity Model

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/cV8N2Jnkhg7R

Corresponding Author
Sandy Dwi Laksana Putra

Institutions
Diponegoro University

Abstract
The strict competition between banks and fintech does not only occur in developed countries, but also in emerging markets. However, this competition has not been observed in detail in Indonesia. The purpose of this literature review is to evaluate the fintech implementation progress in Indonesia and the readiness of the community to use fintech services. However this is such a new topic, the research method used is a literature review of various library sources, especially from Financial Services Authority (OJK) and Bank Indonesia. Literature review shows that the presence of technology-based financial services in Indonesia cannot be rejected and avoided in line with the development of information and communication technology. The Indonesian people are still not ready to use services provided by fintech, but prefer banking services due to ignorance of fintech services in Indonesia related to innovations and new financial products.

Keywords
fintech, innovation in financial services, competition, banks, industry 4.0

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/JhPg83VLKQFx

Corresponding Author
Layli Amatullah

Institutions
University Muhammadiyah of Yogyakarta

Abstract
The Indonesian state crisis in 1997 was a failure to control three sectors (economic and political and social) for their immaturity. Although nt entirely the fault of Indonesia because the Asian crisis is also very volatile, but this is a lesson that should not be repeated in Indonesia and even world. From the hypotheses of various journals and books, the authors look at thee channel six variables in determining health in a country, namely brith rate, employment rate, net export, investment, government expenditure, and taxes not directly. The author will use the VECM method (data from 1985 to 2018)

Keywords
economic, employment, net export, investment, government expenditure

Topic
International Conference of Islamic Economic and Financial Inclusion

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

Corresponding Author
rindra yusianto

Institutions
Department of Agro-Industrial Technology IPB University, Indonesia

Abstract
Indonesia is the largest potato producer in Southeast Asia with an average growth rate of 8.4% per year and an average annual production of 1.09 million tons. Potatoes are one of the most important plants that contribute to national economic development and improve the welfare of horticultural farmers. However, there was no increase in potato production, which ranged between 955,488-1,094,232 tons / year. Likewise, productivity is still relatively low, ranging from 16.4 - 18.22 tons / ha. In addition, price fluctuations occur so that farmers only receive and cannot determine prices, lack of coordination between institutions involved in the supply chain and management of institutional groups that are still weak. This paper uses the Interpretive Structural Modeling (ISM) method for Green Logistics Implementation in Potato Agro-Industry in Central Java. The results of the study are to provide scientific advice on how to choose the main factors for modeling the location of a green logistics distribution center by considering price fluctuations, mapping the relationship between location factors in the hierarchy graph, building ISM Green Logistics and explaining ISM to contribute to the development of Green Logistics in Potato Agro -Industry in Central Java.

Keywords
ISM, green logistics, potato agro-industry, central java

Topic
International Conference of Islamic Economic and Financial Inclusion

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

Corresponding Author
Naviah Khusniati

Institutions
Universitas Muhammadiyah Yogyakarta

Abstract
Financial inclusion is a strategic issue in the economy. Each country is trying to provide access to financial services to encourage productivity. It is also countries that members of the Organization of Islamic Cooperation. This paper aims to determine access to financial inclusion in big ten highest national income OIC member countries, problems they have faced in the way to pursue the financial inclusion, and how to solve it. The analysis technique uses the Logit Model with secondary data from the World Data Bank. This paper is a mixed methodology with data processing using Stata software and empirical studies of the problems studied. Based on secondary data collection techniques through library research that has been analyzed, interpreted, and clarified so that it can be a scientific paper that can be justified.

Keywords
Financial Inclusion, Organisation of Islamic Cooperation, National Income, Logit Model

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/PERVJu7aBvHW

Corresponding Author
Muhammad Izzam Bin Mohd Khazar

Institutions
Shariah Management of Maybank Islamic Berhad Kuala Lumpur

Abstract
Islamic banking as one of the financial institutions are highly required to maintain the prudent approach to ensure that any financing given is able to generate income to their respective shareholders. As the default payment of customers is probably occurred in the financing, having a prudent approach in recovery process is a must to ensure that financing losses are within acceptable limits. The objective of this research is to provide the best practice of recovery which is anticipated to benefit both bank and customers. This study will address arising issue on the current practice of recovery process and followed by providing humanising recovery solutions in the light of the Maqasid Shariah. The study identified main issues pertaining to Islamic recovery process which can be categorized into knowledge crisis, process issues, specific treatment cases and system issues. Knowledge crisis is related to direct parties including judges, solicitors and sales person, while the recovery process issues include the process of issuance of reminder, foreclosure and repossession of asset. Furthermore special treatment for particular cases also should be observed since different contracts in Islamic banking products will need different treatment. Finally, issues in system used in recovery process is still unresolved since the existing technology is still young in this area to embraced Islamic finance requirements and nature of calculation. In order to humanize the financial services in Islamic banking recovery process, we have highlighted four main recommendation to be implemented by Islamic Financial Institutions namely; 1) early deterrent by improving the awareness, 2) improvement of the internal process, 3) reward mechanism, and 4) creative penalty to provides awareness to all stakeholders.

Keywords
recovery process, humanizing financial services, Maqasid Syariah, Islamic finance

Topic
International Conference of Islamic Economic and Financial Inclusion

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

Corresponding Author
Pramudia Yuli Eka Permana

Institutions
Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia.

STAI Miftahul Ulum, Pamekasan, Indonesia.

Abstract
Geographically, the territory of Indonesia is located in a ring of fire where 1,200 km of track from Sabang to Papua are the boundaries of three large plates of the world: the Indo-Australian, Eurasian and Pacific slabs will potentially trigger various natural disasters the big one. Indonesia is also in three mountain systems (Alpine Sunda, Pacific Circum and Australian Circum). Indonesia has more than 500 volcanoes, of which 128 are still active, and are an archipelagic country because 2/3 of Indonesias area is sea, has nearly 5,000 large and small rivers and 30% of them cross densely populated areas. On the other hand, Indonesia as a country with the largest Muslim population in the world with 207.45 million people, has a great potential for Islamic philanthropy such as zakat, infaq, shadaqah, waqf and grants. Optimizing the implementation of philanthropy to help disaster victims need cooperation from related parties, for example Government Institutions, Zakat Institutions, Waqf Institutions, Waqf Managers (Nazhir Wakaf), Islamic Financial Institutions (LKS) and Wakifs. There are four realistic schemes to be applied in supporting disaster victims, namely land waqf mechanism, cash waqf mechanism, direct financing financing system, and indirect financing system. The type of writing of this work is descriptive qualitative writing using secondary data. The method of data collection uses the literature study method. Meanwhile, the data analysis process occurs in several stages, namely data collection, data processing, and data presentation.

Keywords
Islamic Philanthropy, Disaster Risk Management

Topic
International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/Wa7tzTkdH38C