Purpose The purpose of this study is to identify and explore the role of Islamic financing in supporting development of halal industry in Indonesia. Design/methodology/approach This research is divided into two studies. The first study uses survey-based quantitative method and the second study uses focus group discussion (FGD) method. Using a purposive and proportional sampling technique in the first study, this research collected 1,985 samples of Islamic financial products of business owners (demand-side) from all parts of Indonesia. The data were analyzed using the partial least square structural equation modeling approach. The authors also conducted FGDs, involving 35 participants from government, financial, social and education institutions (supply-side) as well as business owners (demand-side) in three separated times. Findings In the first study, it can be identified that literacy on Islamic finance, attitude and awareness strongly affect business owners’ intention to use Islamic financial products. It is also found that subjective norm significantly influences literacy, attitude and awareness. Interestingly, religiosity does not significantly affect attitude toward Islamic financial products. According to the FGD in the second study, this research generates several factors motivating business owners’ preference to choose conventional rather than Islamic financial products, including expensive pricing, less developed technology, bad service quality and the halal status of the products. The reason for insignificant results of religiosity on attitude in the first study is explained in the second study. Most users are utilitarians who mainly perceived the products based on the sought benefits provided by the products. Practical implications This research offers the government a road map showing the strategy to build Islamic financial ecosystem in Indonesia. The road map integrates supply-side, which includes government, financial industries, social and education institutions and scientific organizations, and demand-side, which includes business owners or entrepreneur associations. Originality/value This research provides a wide range of samples derived from business owners’ respondents of halal industry in all representative islands in Indonesia. Therefore, it gives more holistic and representative findings. In addition, the analysis in this research covers not only the demand-side but also the supply-side perspective. Lastly, this research provides an Islamic financial ecosystem model that integrates all stakeholders to improve halal industry performance as a whole.
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to discuss Islamic laws which are relevant to finance. More specifically, it covers the types of contracts as foundation for the distinctive Islamic financial products. The current institutional framework of financial institutions seems to be incompatible with the nature of these Islamic contracts. Design/methodology/approach -This is a conceptual paper describing the link between finance and economic growth in the present of Islamic contracts, which have various types from contract of partnership, buy-sale contract, to contract of usufructs. The nature of Islamic contract is to avoid riba (i.e. interest system), because it is unjust and prohibited, meanwhile under conventional system they rely very much on the interest system. Findings -The conclusion of the paper is that the distinctive character of Islamic contracts applied by Islamic banking and finance relies mostly on the profit and loss sharing mechanism which contains the cooperative spirit, in the contracts such as mudharabah (profit-sharing), musharakah (partnership). The development of equity partnership instruments in the financial system necessitates a different set of regulation and institutions in order to achieve Islamic goal through economic/financial activities. Research limitations/implications -This paper opines that the current framework of financial institutions does not match with the nature of Islamic contracts. Practical implications -This paper suggests that a new framework for financial institutions is necessary in order to accomplish the maqasid-al-shariah, by implementing the true spirit of cooperative through various Islamic contracts. Consequently, the rules and regulations and other relevant elements also need to adjust. Originality/value -The paper indicates a possible different consequence on the link between finance and growth in the presence of Islamic contracts, i.e. a more positive relation.
Some researchers have argued that the financial system has a vital role in economic growth. Islamic banking that has existed widely in many countries is expected to have a positive role in economic growth. This study aims to examine the impact of Islamic bank financing on economic growth in QISMUT countries. To compare with other full Islamic banking systems, Iran and Sudan also included in this study. By using annual panel data (2005-2015), this paper utilizes an approach to multiple mediating analysis models. The findings demonstrate that Islamic banking financing does not significantly impact economic growth directly. However, Islamic banking financing can possibly influence economic growth indirectly through investment and consumption spending.========================================================================================================Bagaimanakah Peran Perbankan Syariah dalam Pertumbuhan Ekonomi? Beberapa peneliti berpendapat bahwa system keuangan memiliki peran penting dalam pertumbuhan ekonomi. Perbankan Islam yang telah ada secara luas di banyak negara diduga memiliki peran positif dalam pertumbuhan ekonomi. Penelitian ini bertujuan untuk menguji peengaruh pembiayaan bank Islam pada pertumbuhan ekonomi di negara QISMUT. Iran dan Sudan dimasukkan dalam objek penelitian ini sebagai pembanding penggunaan sistem keuangan Islam. Menggunakan data panel tahun 2005-2015, penelitian ini menggunakan pendekatan analisis media dengan banyak faktor. Hasil penelitian menunjukkan bahwa pembiayaan bank Islam tidak dapat mempengaruhi pertumbuhan ekonomi secara langsung. Akan tetapi, Bank Islam dapat mempengaruhi pertumbuhan ekonomi secara tidak langsung, yaitu melaui investasi dan konsumsi.
This study aims to develop a performance measurement system for zakat institutions from the perspective of maqashid al-Shariah and Islamic enterprise theory. This study embarks from previous studies focusing on the performance measurement methods applied to the zakat institutions. The understanding of maqashid al-Shariah in this paper refers to the concept formulated by Al Ghazali and Ibn Ashur. The basis of selecting so is their widely known concept in the contemporary research. This paper concludes that the performance measurement based on maqashid al-Shariah for Islamic bank can be adopted in zakat institution by making various adjustments according to the characteristics of the institution. In addition, this study also designed a performance scorecard to assess the performance of zakat institutions based on maqashid al-Sharia and Islamic enterprises theory. This scorecard method can calculate the index of zakat management of the related institution from a broader perspective.
This study aims to build a performance measurement system of zakat institutions from the perspective of maqashid sharia and sharia enterprise theory. This study embarks from previous studies focusing on the performance measurement methods applied to the zakat institutions. Understanding of maqashid sharia in this paper refers to the concept formulated by Al Ghazali and Ibn Ashur. Their applications in contemporary research can be found in various studies. This paper concludes that performance measurement based on maqashid sharia for Islamic bank can be used by zakat institution, by making various adjustments according to the characteristics of zakat institutions. In addition, this study also designed a performance scorecard to assess the performance of zakat institutions based on the perspective of maqashid sharia and sharia enterprises theory. From the scorecard, the zakat institution can calculate the zakat management index from a broader perspective.
Mudharabah Deposit is one of Islamic banking products, which is the biggest contributor to sharia banking compared to other collecting products. In addition, according to Bank Indonesia's report, the number of Islamic banking deposits each year has increased significantly. Therefore, in this study, the authors want to know the factors that are expected to affect the number of mudharabah deposits. There are 6 factors that are expected to affect the number of deposits, namely the profit-sharing rate, the interest rate, the promotion rate, the inflation rate, the FDR, and the number of offices. The authors use a weighted average in terms of rate of profit sharing and interest rate and data processing using multiple linear regression. The results of these regression calculations, simultaneously show positive and significant results for all variables. This value resulted from the four regression has a value of sig-F 0.000 is smaller than 10% significance. Partially, profit sharing, promotion cost and number of offices show significant and positive effect on total mudharabah deposit, while interest rate, inflation and FDR show no effect on mudharabah deposit amount. AbstrakDeposito Mudharabah di bank syariah memiliki karaktersitik yang berbeda dengan produk deposito di perbankan konvensional. Akad mudharabah yag digunkana berimplikasi pada pembagian bagi hasil yang tidak menentu. Akan tetapi, dilihat dari laporan Bank Indonesia, jumlah deposito perbankan syariah setiap tahunnya mengalami kenaikan yang cukup signifikan. Tujuan dari penelitian ini penulis ingin mengetahui faktor apa saja yang dapat mempengaruhi jumlah deposito mudharabah. Variabel yang diuji yaitu tingkat bagi hasil, tingkat suku bunga, baiya promosi, inflasi, FDR, dan jumlah kantor. Penulis menggunakan rata-rata tertimbang dalam menghitung tingkat bagi hasil dan stingkat suku bunga dan mengolah data menggunakan regresi linier berganda. Hasil pengujian regresi linier secara simultan menunjukan hasil yang positif dan signifikan semuanya. Hal ini dibuktikan dari keempat regresi tersebut mempunyai nilai sig-F 0,000 yang lebih kecil dari signifikansi 10%. Secara parsial, tingkat bagi hasil, biaya promosi dan jumlah kantor menunjukan hasil signifikan dan berpengaruh positif terhadap jumlah deposito mudharabah, sedangkan tingkat suku bunga, inflasi dan FDR menunjukan tidak berpengaruh terhadap jumlah deposito mudharabah.
Abstract Purpose – This study aims to analyze the effect of macroeconomic factors and bank characteristics on the profitability of Islamic banks in Indonesia. Methods – This study analyzes ten Islamic commercial banks in Indonesia in the first quarter of 2010 to the second quarter of 2019 using the Panel Data model. Findings – The results of this study indicate that external factors have no effect on the profitability of Islamic banks while internal factors have an influence on the profitability of Islamic banks. Implication – The results of this study have implications for financial ratios as indicators that can measure the extent to which the performance and performance of Islamic banks and Islamic banks need to maintain any increase in operational costs that must be followed by an increase in operating income. Originality – This study analyzes the impact of external and internal bank factors that affect the profitability of Islamic banks in Indonesia and uses a Data Panel approach. Abstrak Tujuan – Penelitian ini bertujuan untuk menganalisis pengaruh faktor makroekonomi dan karakteristik bank terhadap profitabilitas bank syariah di Indonesia. Metode – Penelitian ini menganalisis sepuluh bank umum syariah di Indonesia pada periode kuartal I 2010 sampai dengan kuartal II 2019 dengan menggunakan model Data Panel. Temuan – Hasil penelitian ini menunjukkan bahwa faktor eksternal tidak berpengaruh terhadap profitabilitas Bank Syariah sementara itu faktor internal memiliki pengaruh terhadap profitabilitas Bank Syariah. Implikasi – Hasil penelitian ini berimplikasi terhadap rasio keuangan merupakan indikator yang dapat mengukur sejauh mana performa dan kinerja bank syariah dan Bank syariah perlu menjaga setiap kenaikan biaya operasional yang harus diikuti dengan peningkatan pendapatan operasionalnya. Orisinalitas – Penelitian ini menganalisis dampak faktor eksternal dan internal Bank yang mempengaruhi profitabilitas Bank Syariah di Indonesia dan menggunakan pendekatan Data Panel.
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