This study aims to analyze the efficiency performance of conventional and Islamic rural banks in Indonesia, specifically, Bank Perkreditan Rakyat (BPR) and Bank Pembiayaan Rakyat Syariah (BPRS). Using a DEA approach, the results indicate that both BPR and BPRS are still inefficient in terms of the intermediation role but are efficient in production. Furthermore, the Tobit estimation show that these two efficiency results are positively affected by location and the capital adequacy ratio (CAR). These rural banks operating in cities tend to have a higher level of efficiency than otherwise. Moreover, the higher the capital, the more efficient both Islamic and conventional rural banks in terms of production and intermediation.

Purpose – This paper aims to investigate the effectiveness of Baitul Maal wat Tamwil (BMT) in reducing poverty. Design/methodology/approach – The case study approach on BMT MMU Sidogiri (located at East Java Province) is taken. Two important and dominating products of BMT MMU Sidogiri (i.e. ba’i bithaman ‘ajil (BBA) and mudarabah) are examined carefully on how much they have helped the customers in reducing their poverty. The paper goes beyond data measurement using descriptive statistics, paired t-test and some poverty measurement indexes such as headcount index; poverty gap; Sen index; and Foster, Greer and Thorbecke Index to investigate the effectiveness of the BMT in reducing poverty. Findings – This paper reveals that BMT financing is effective in reducing poverty. Most of respondents can increase their income after receiving BMT financing. Products of BMT, especially BBA and mudarabah, to empower the poor in various productive businesses have been able to reduce the extent and severity of poverty. This paper also discloses some interesting and important findings related with how BMT’s work, so that it can contribute more to the knowledge enrichment, as well as the development of BMTs, in general, in realising their mission. Originality/value – The establishment of the so-called BMT in the form of an Islamic microfinance is intended initially to effectively help the poor. At present, there are around 3,874 BMTs operating around the country. Although the BMTs have been existing since more than ten years, no research has been conducted to examine their effectiveness in alleviating the poverty. This study in aimed at fulfilling this important gap.

This study aimed to calculate the breadth, depth, and overall outreach score with case studies of several Islamic cooperatives in East Java. Generally, the level of this outreach is not too high, but it continuously showed an increase from 2014 to 2018. Those cooperatives with relatively small assets tend to have high outreach scores. Meanwhile, those with large assets have a lower outreach level. Therefore, this study utilized the Tobit regression analysis in order to investigate the factors that influence outreach score. The results showed that size, non-performing financing (NPF), number of branches, grants, financial leverage, and age have a significant impact on Islamic cooperatives' outreach. An interesting finding is that size has a negative effect. This is in contrast with the spirit to develop cooperatives in Indonesia. Also, a high NPF can significantly decrease the level outreach. Meanwhile, the increase in the number of grants appears to have a positive impact. Thus, through action research since 2012 and FGD on the management of Islamic cooperatives, this study provided an explanation on why these conditions can occur.

The opening of the Indonesian Trade Promotion Center is one of the policies implemented by the government to increase Indonesia's non-oil and gas exports. However, fluctuations in the value of non-oil exports make the role of the ITPC doubtful. This study aims to analyze the impact of Indonesia Trade Promotion Center as Export Promotion Agency (EPA) on the value of Indonesia's non-oil and gas exports globally, to developing countries, and developed countries from 2000 to 2018. The method used in this study is the Random Effect Model and gravity model. Estimation results show that EPA Indonesia (ITPC) has a positive and significant effect on the value of Indonesian non-oil exports in all models. Foreign direct investment (FDI) has a positive effect and significant for global and developing countries model. GDP per capita and Free Trade Agreements have a significant positive effect on non-oil exports in all models. The geographical distance variable has a negative impact for Indonesian non-oil exports in all models, except for the developed countries model.

The study analyses the impact of non-cash payment on demand for real money in Indonesia from 2010 to 2015. Utilizing the Error Correction Model (ECM), the results reveal that the use of both debit and credit card influence the demand for real money in the long term. Moreover, debit card also significantly affects the demand for real money in the short term, while the use of credit card does not have the implication.