The Development of Human Resources in Islamic Financial Industries From Economic and Islamic Financial Graduates

Abstract

The Development Of Human Resources In Islamic Financial Industries From Economic And Islamic Financial Graduates. The purpose of this article is to determine the absorption level of Islamic economics programme graduates into the Islamic financial industry, in Jakarta and West Java. This research used exploratory studies method and Alignment Index (AI). The overall research results, of 2011 until 2014 graduates showed a low level of absorption into Islamic finance industry. Research result showed absorption level in University of Muhammadiyah Prof. HAMKA is by 20%, Islamic University 45 bekasi absoption level continues to increase from year to year, and Juanda University Bogor absoption level is below 40%. This occured because the universities curriculum is still dominant in the application instead of the application of soft skills hardskill.

Sustainability of Islamic Banking Human Resources Through the Formulation of an Islamic Accounting Curriculum for Higher Education: Indonesian Perspective

“…The Challenges of Creating Human Resource (HR) for IFIs Some previous studies have been stated the challenges of fulfilling the need of human resources for Islamic financial industry. This study identifies the main problems that currently emerge in creating quality human resources for Islamic banking: First, there is low synergy between the HEI and Islamic business practitioners in Indonesia to develop an education program for students that fulfill the needs of Islamic financial industry (Huda et al, 2016;Zakiy, 2017). It is undeniable that there has been some collaboration between educational institutions and Islamic financial institutions, but this phenomenon is only limited to sporadic actions by individual institutions and has not long-term vision.…”

“…Third, study programs that have special competencies such as Islamic accounting have not been popularly offered because of the narrow market in the eyes of prospective students. Huda et al (2016) reveal that many universities in Indonesia initially offer subjects of concentration and research interest in the field of Islamic economics, finance, and Islamic accounting. However, in general, these initiatives are still partial and not standardized so that the level of curriculum variation offered is very high between the universities.…”

“…The development of those IFIs has consequence to the need of a lot of human resources, especially with special competences such as Islamic economic, Islamic finance and Islamic accounting and auditing. Indonesia faces challenges related to the limitations of human resources who have competencies according to the needs of the Islamic financial industry (Amalia, 2014;Huda et al, 2016). The increasing of IFIs requires large human resource, not only in terms of numbers, but also the competencies in accordance with the needs of IFIs.…”

The Alignment and Misalignment of the Islamic Economics Curriculum With the Indonesian Government Policy

“…It has been mentioned in the literature that the shortage of skilled Islamic economists and Islamic finance professionals has been becoming an issue within the global Islamic economy (Alim, 2014;Amalia, 2014;Beik, 2013;Huda et al, 2016). It is also found in several countries that there is a mismatch between the skills needed by the industry and the skills of Islamic economics and finance graduates obtained during their studies (Redha, 2014;Hidayat, 2015b;Huda et al, 2016). Therefore, education, especially its academic curriculum, needs to be reviewed and adjusted to overcome the above issue.…”

“…In fact, this has caused low absorption of Islamic economics and finance graduates in the labor market. For example, in Indonesia, the country with the biggest number of Islamic economics and finance degree providers, the absorption rate of the graduates within the Islamic financial industry stood below 40 % (Huda et al, 2016). Meanwhile, most Islamic economics and finance programs offered by Islamic higher education also face the problem of limited budget and facilities from the government, which result in difficulty having qualified researchers and conducting scientific activities (Sa'adi, 2011).…”