The level of public literacy of financial services is still relatively low in Indonesia, according to the Indonesian Financial Services Authority based on its data for 2016. Financial literacy in Indonesia on a national scale only reached 29.7% with students accounting for only 23.4%, not in line with the financial inclusion that increased to 67.8%. The lack of Islamic finance literacy directly leads to the slow development of the Islamic fi nance market share in Indonesia

The purpose of this study is to find out what factors influence and which factors play the most powerful role in influencing efforts to improve the competitiveness of Small and Medium Enterprises in Eastern Indonesia via a comparative qualitative research method. The results of this study found that there are several factors influencing efforts to improve the competitiveness of Eastern Indonesia Small and Medium Enterprises. In conclusion, the dominant factor is that policy and infrastructure want to illustrate the extent to which the implementation of policies and infrastructure in locations around MSMEs operate can support or hinder businesses to operate.

This research was conducted with the aim of elaborating some Islamic economic and financial policy solutions and roles that could be offered to face of the Covid-19 pandemic in Indonesia. This research used descriptive qualitative approach with content analysis techniques and library research. The results of the research show that among the solutions that can be offered within the framework of the concept and system of Islamic Social, Economics, and Finance are: (1) by distributing direct cash assitence from zakat, infaq, and alms; (2) by strengthening waqf in the form of money waqf, productive waqf, sukuk linked waqf or waqf for infrastructure; (3) through capital assistance of leading venture for the business sector or micro, small, and medium enterprises (UMKM); (4) through the scheme of qardhul hasan; (5) improvement of Islamic economic and financial literacy; (6) through the development of Islamic financial technology

This paper investigates the impact of financing contracts on Net Profit Margin (NPM) of the Islamic banks. Focussing on two financing contracts of Bai’ Bithaman Ajil (BBA) and Al-Ijarah Thumma Al-Bai’ (AITAB), the paper employs static panel data of Malaysian banks over 2008 to 2018. Controlling for bank and market-specific factors, the results indicated that AITAB exerted significant impact on the NPM. The paper further found that risk aversion, operating cost, liquidity and asset quality improves the NPM. In addition, the results show that the market structure influence the level of NPM. The Islamic banks may control these variables in setting for their preferred NPM level. Finally, the banks may need to carefully examine the types of financing contracts offered as they have different characteristics and may affect NPM

Zakat is an element of the five pillars of Islam. Zakat also plays a very important role in taking and pleasing Muallaf to follow Islam's way of life more comfortably. Besides connecting us with God, zakat can also connect us with humans. The study of the distribution of zakat to the asnaf of the muallaf is highly emphasized because those who are new to Islam, the muallaf, require spiritual and physical assistance. The objective of this study is to identify and examine the relief given to the asnaf muallaf via the amount of zakat given to the asnaf muallaf to maintain the belief and thoughts of Islam in Kuala Terengganu. The method of this study uses descriptive and inferential statistic analyses. It aims to describe the characteristics of the variable and investigate the correlation between the amount distribution of zakat and three dependent variables namely the faith, the understanding of the Islamic Syariah and the effectiveness of zakat to asnaf muallaf. This study found that there is a significant correlation between the amount of zakah distribution with three dependent variables namely the faith, the understanding of the Islamic Syariah, and the effectiveness of zakat to asnaf muallaf. In conclusion, this study has successfully identified that the distribution of zakat to asnaf muallaf can help them increase their faith and thoughts towards Islam due to apart from help in physical form, they also need spiritual assistance.

Unemployment is one of the significant challenges faced by most developing countries, especially in ASEAN. This study aims to investigate the relationship between gross domestic product, foreign direct investment, inflation rate and unemployment in selected ASEAN countries. The panel data collected from the World Bank covering the period of 1980-2017 for Malaysia, Indonesia and Thailand. The data were analysed using static panel regression. The results of this study showed that Method Random Effect Model (REM) is more appropriate and that gross domestic product has a negative relationship with unemployment. Further, foreign direct investment and the inflation rate positively correlatewith unemployment in Malaysia, Indonesia and Thailand. The overall findings of this study can guide policymakers to consider the unemployment fluctuations faced by ASEAN and establish policies to realise ASEAN Community

To mobilize new sources of capital to achieve the goals stated in the SDGs, blended finance is one of the most important and new approaches to utilizing public funds. In addition, the blended finance model can also be used to attract private investment. In Islam, blended finance is a way of using public capital or Islamic social funds to increase private sector investment in developing countries to realize the SDGs. Blended finance allows for-profit or non-profit organizations to co-invest with one another while achieving their own goals (social impact, financial return, or a combination of both). This study proposes waqf as a source of funds to be included in the blended finance model and creates investment opportunities in developing countries, especially Indonesia, as a country with the largest Muslim population in the world, which in particular can have a significant development impact on SMEs and those in need. This study contributes to practical discussion on how to maximize the potential of waqf fund and it’s institution through blended finance model for SDGs.

The objective of this paper is to analyze the short and long run relationship between Islamic financial development and income inequality in Indonesia over the period of 2000-2020. The study has employed the Auto Regressive Distributed Lag (ARDL) bound testing approach and the Error Correction Mechanism (ECM) to examine the existence of long-run and short-run relationship, while variance decomposition (VDC) technique is used to provide Granger causal relationship between the variables. The cointegration tests show that there is a long run relationship between Islamic financial development, economic growth, inflation and income inequality in Indonesia. However, Islamic financial development itself is found to be not statistically significant in influencing income inequality during the sample period for long-run. This study found a positive and statistically significant (10%) effect of Islamic financial development in explaining the changes in income inequality in the short run. In terms of policy, enhancing financial access is needed to ensure that financial development fully supports the reduction of income inequality in Indonesia.

Artikel ini akan menjelaskan konsep teoretikal tadbir urus dalam koperasi di Malaysia. Kami menjurus kepada membangunkan ciri-ciri tadbir urus di kalangan lembaga pengarah dalam koperasi. Penilaian teoretikal ciri-ciri tadbir urus berdasarkan Kod Tadbir Urus Korporat Malaysia (Malaysian Code On Corporte Governance), Index Tadbir Urus Korporat Malaysia (Malaysia Corporate Governance Index) dan Akta Koperasi Malaysia 2007 telah diaplikasi untuk membentuk tadbir urus koperasi. Berdasarkan peranan utama lembaga pengarah yang berkesan dalam meneraju dan mengawal organisasi yang dimiliki oleh ahli seperti koperasi, kami mencadangkan bahawa elemen epistemologi Tauhid boleh digunakan untuk mencipta item tadbir urus bercirikan Islam yang menggalakkan perilaku, moral dan sikap lembaga pengarah yang ikhlas dan jujur. Tambahan lagi, kajian ini boleh menyumbang beberapa pandangan dalam perspektif Islam sebagai satu liputan baru tadbir urus koperasi di Malaysia.

Poverty is a complex socio-economic problem that has existed as long as mankind has existed, and is unlikely to be solved soon. It has a direct effect not only on the life of the individual concerned but also on the community and on the level of material progress and civil development (Usmani, 2000). Many countries, international organizations and non-government bodies have introduced many programs to alleviate poverty, such as by promoting infrastructure development, constructing good roads to make transport and communication easy, promoting agriculture and farming, which are the main sources of income in rural areas, creating employment opportunities by constructing small-scale industries to enable people to get access to jobs, opening market opportunities to enable the rural population to sell their goods at favorable prices, and attempting to establish good governance and effective administration (Singh, 1999). The World Development Report 1990 (World Bank, 1990) recommended a dual approach to reducing poverty involving: a) efficient labor-intensive growth based on appropriate market incentives, physical infrastructure, institutions and technological innovations; and b) adequate provision of social services, including primary education, basic health care and family planning services. In fact, the reality proved that all programs were only temporary, casuistic and not significant. Against this background, we are interested in the opinion suggested by Roar Bjonnes (2002), the founder of the Center for Sustainable villages, who said that to alleviate poverty there are some longterm matters that need to be addressed, 

Religion always go hand in hand with economic science, moreover the both is un-separated part of analysis to explain behaviour of economic. In the western and mainstream economic, the significance impact of religion in socially, politically, and economically complex world standing lag behind the perception of religion and economic itself. Beside interconnected between religion or ideology to economic science, this paper tries to examine some philosophical determinants of economic consequences of Islam, and through its worldview and epistemology, Islamic economic is an outstanding economic science because the religion and ideological matter coherently in its body of science.

In mainstream economics, distribution concerns who gets what. “Who” refers to the personal distribution of income among individuals or the functional distribution of income among suppliers of productive factors. Also mainly concerned with the factors which affect the wealth of nations. Issues of justice, elimination of poverty and deprivation are secondary. On other side, Islam not only concern to who gets what, but also concern to how the human gets what equally and justify. Therefore this study uses descriptive and synthetic approach to present principles and concept of justice distribution derived from the guidance of revelation; Qur’an and Sunnah. The study is derived into two main themes. The firts one deals with theory of juctice and a review on distribution theory in secular Paradigm, the second one is the taxonomy of economic distribution theory in Islam

This chapter bridges the concepts of microfinance and Zakat, and proposes a conceptual framework as a potential strategy to solve poverty. This study employs qualitative approach. Specifically, it performs content analysis on related manuscripts, and conducts a structured interview with selected stakeholders of Zakat institutions. The study proposes that Zakat institution must have a clear definition about which Zakat fund portion should be used for the program. Authors propose the use of amil for the program and it must be given by amil voluntarily and there must be clear mechanism on which deserving categories (asnaf/mustahik) should be prioritised to be the part of the program. In practice, amil can be considered as investors (where Zakat institution distributes and becomes Islamic microfinance institution) or financial intermediary (where the amil distributes and becomes Islamic microfinance institution appointed by the authority)

Garbage is a classic and unsolved problem in Indonesia. According to data from the Ministry of Environment and Forestry (KLHK), Indonesia's amount of waste reaches 67.8 million tons consisting of 57% organic, 15% plastic, 11% paper, and 17 other waste. However, a garbage bank has established, even though its role still minimal compared to the City Waste Power Electric (PLTSa). By using ANP (Analytic Network Process) this qualitatively descriptive paper shows that the essential aspects from PLTSa are Institution and community. The problem of PLTSa is divided into three aspects such as expensive, 3T, and environment. In this case Waqf institutions such as education, socialization and cost. The issues of society are literacy, habits, lazy. Mapping solutions, in-depth studies, collaborations, webinars. Strategies in improving the environment security, among others, are the synergy of waqf institutions with the government, BOT system between Waqf Institutions and private businesses, and the last collaboration between waqf institutions and waste banks.

The purpose of this paper is to resolve and examine the possible modus operandi of riba on selling and loan contract according to the Sharia’s precepts. This paper investigate the Qur’an, hadith, and juristic views on such relevant issues based on the survey done on the several sources, i.e., previous studies, Al-Qur’an and Al-Hadith and juristic views and deviate from the existing studies in two aspects, i.e., the selling and buying of goods do not involve riba and also the banks provide loan without riba. The findings of this paper are: First, the concept of interest in lending is widely accepted both in theory and practice. Second, riba exists in selling and lending. Third, the categorization and application of extensive and complex subjects of riba in economic life bring all speculative and usurious transactions under the rubric of riba prohibition. This paper important because express and disclosure riba in both exchange of goods and loans, also the social and economic developments. This is an original undertaking of this paper.