This study critically examines the dynamics of legitimacy in the development of the Indonesian halal industry through an Islamic political economy approach. This article presents a multidimensional analysis of the intersection between political power and Islamic values by integrating Neo-Institutional Sociology Theory (emphasizing the role of norms and institutional legitimacy) with the classical views of Ibn Khaldun (governance, justice, wealth, and sharia law). The findings indicate a shift in halal sector governance from fulfilling sharia-based economic justice to political interests and power consolidation that have created inequality between sub-sectors influenced by selective regulation, political intervention, and instrumentalization of Islamic norms. Three conceptual frameworks are offered: (1) Islamic Political Economy in the Halal Industry; (2) The Urgency of Re-Islamizing Halal Governance; and (3) State Politics in the Formation of Islamic Economic Institutions. All three are synthesized in the Islamic Political Economy Model as a critical analytical tool to evaluate the dynamics of power and institutional legitimacy in the halal economy.

This paper aims to explore how neoliberal ideology is rooted in Indonesian infrastructural powers through the process of international financial reporting standardisation and the forces that divert Islamic Financial Institutions (IFIs) in Indonesia from fulfilling their religious and socio-economic objectives of transparency, justice and accountability, to their stakeholders. This paper, taking a critical perspective, interviewed key actors involved in standard setting in Indonesia to gain insights on their perceptions and experience on the opportunities and challenges from the decision to adopt International Financial Reporting Standards (IFRS) and the impact on sharīʿah standard setting for IFIs in the country. The analysis is informed by the logic of neoliberalism in supporting the IFRS project and suppressing any form of local resistance. The neoliberalism agenda to capture the potential rise of an alternative competing local standards for IFIs was successful through external cohesive powers aided by political and professional elites in ensuring organisations in the country mimic their capitalist counterparts.

The Sustainable Development Goals (SDGs) aim to eradicate extreme poverty by 2030 and reduce at least half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. This chapter reviews extant empirical studies in the area of Islamic microfinance in orderto analyse the contribution of Islamic microfinance to SDGs by mapping research direction on the SDGs. The studies are categorized based on the discussion on research paradigm, countries being researched, methods employed and results that lead to action for achieving MDGs and SDGs. It finds that the studies under review mostly employ poststructuralism and interpretivism paradigm with countries being researched are mostly Bangladesh, Malaysia and Indonesia. Finally, the chapter offers insights on future research aiming to promote the achievements and issues faced in the implementation of SDGs.

Theoretically, Islamic accounting plays a significant role to expose meaning of accountability; however, not much of Islamic accounting studies have been well exposed. This paper aims to provide future research direction in the area of Islamic accounting by promoting accountability and sustainability after examining 150 articles published in 38 leading journals. The map portrays the flow of debates from 1986 to 2017 to answer what has been researched, what are research directions and what is the level of analysis. The paper finds that the role of Islamic accounting researchers to support the meaning of accountability and sustainability is still insignificant. The finding shows that research on standardization of Islamic accounting and testing the accounting information on the annual reports have become the main research focus with countries under study are Bangladesh, MENA and Indonesia. Contribution of this research is to help future research capture the role of Islamic accounting in the emergence of Islamic economics and finance.

Puji dan syukur kita panjatkan kehadirat Allah SWT karena atas rahmat, karunia dan hidayah-Nya, Pusat Kajian Strategis Badan Amil Zakat Nasional (PUSKAS BAZNAS) dapat mempersembahkan buku “Panduan Penghitungan Zakat: Konsep, Aplikasi, dan Contoh Kasus di Indonesia”. Secara umum buku ini mencoba menyajikan panduan umum akuntansi zakat, mulai dari konsep, aplikasi, serta contoh kasusnya di Indonesia. Kehadiran buku ini diharapkan menjadi acuan dan sumber informasi tentang bagaimana pelaporan dana zakat dilakukan dengan akuntabel. Kami berharap bahwa buku ini dapat menjadi amal ibadah dan sumbangsih nyata bagi perkembangan kontribusi dunia perzakatan Indonesia. Semoga Allah SWT senantiasa melimpahkan taufik, hidayah, rahmat dan maghfirah-Nya kepada kita semua. Amin.

Kali ini sakinah finance ingin berbagi beberapa pendapatan yang harapannya dapat dijadikan Bujukan untuk mengelola keuangan pribadi atau keluarga kita. Siapa tahu salah satu atau sebagian prinsip prinsip gitu dapat menjadi solusi masalah keuangan kita selama ini. Menurut penelitian dan observasi kami, ada tiga prinsip dalam mengelola keuangan syariah yaitu (1) memasang niat, (2) memastikan apa yang dihasilkan dan dibelanjakan adalah halal dan toyib (3) mulai bekerja atau berbisnis di waktu masih pagi (4) Silaturahim (5) menunaikan zakat Infaq, sodaqoh, hibah wakaf, (6) tobat jika ada kesalahan dan (7) selalu sabar dan syukur. dalam Islam, terkait penggunaan harta, kita diajarkan untuk tidak berlaku pelit atau boros, karena keduanya merupakan sifat yang tercela. Sementara itu sampai hari ini belum ada seseorang dikatakan pelit atau boros dalam penggunaan harta. Kenapa? Karena harta, Tuhan, dan kelas sosial setiap orang selalu berbeda. Lantas bagaimana agar kita tidak terjerumus ke dalam sifat atau situasi politik dan boros tersebut? Kita butuh perencanaan yang tepat berdasarkan prinsip syariah, dan itulah alasan utama kenapa buku ini dihadirkan untuk anda sebuah buku seri sakinah finance tujuh prinsip pendapatan.

Purpose: The main purpose of this research is to analyse factors influencing the growth of Islamic banks’ assets in Indonesia. 

Design/methodology/approach: The research adopts Granger Causality Test under Vector Auto-Regression (VAR) method and then it adopts Vector Error Correction Model (VECM) through Impulse Response Function (IRF) and Forecasted Error Variance Decomposition (FEVD) analyses. 

Findings: Granger Causality Test concludes that industrial production has a-directional relationship with asset growth that supports better economic growth stimulates investment and 41 savings. But not the other way, the test does not show that asset growth causes industrial production index in the country. The finding also confirms that market share of Islamic banks’ asset of even 3.9% in 2012 is still too small to create impact to production output in the country. The VECM model through its IRF and FEVD explains that inflation and interest rate are major variables that negatively affect the asset growth while industrial production, human capital, and office branch excluding channelling contribute positively. 

Research Limitations: This research is only limited to the discussion of the asset growth of Islamic banks and may not represent a fair assessment of overall performance of Islamic banks during the period of the research. 

Originality/value: This paper aims to offer analysis method in examining asset growth of Islamic banks in Indonesia from year 2004 to 2012 that may be useful to be applied in other country where Islamic banks also operate.

Purpose

This study aims to analyze IFIs’ stakeholders’ perception on Shariah harmonization for financial reporting standards inIndonesia as a part of the development effort of linking the emerging global Islamic banking to Indonesian financial and industrial markets.

Design/methodology/approach

A sample of 160 respondents, who were stakeholders of Islamic banks, was taken from Jakarta, the capital city of Indonesia and its surrounding major districts to examine the stakeholders’ perception on Shariah harmonization effort toward the implementation of a uniformed financial reporting standard for Islamic financial institutions. Data for this study were collected using a structured questionnaire.

Findings

Through this study, the authors found several measures to be taken to ensure Shariah harmonization efforts in Indonesia such as deep understanding on the fatawā brought into practices and strict monitoring on the Islamic banks in applying the financial reporting standards that imply practicing the fatawā, both de jure and de facto. However, the respondents differ in their opinion on the possibility of Shariah harmonization, both de jure and de facto. The role of various actors involved in the financial reporting standardization may impede Shariah harmonization to take place.

Research limitations/implications

The study is only looking at one case study, which is Indonesia. Therefore, future studies should consider more countries and significant number of respondents. Different research instruments to measure the perception can also be an interesting research exploration. In addition, adopting deep Islamic political economy of accounting theory may support better analysis on the issue of financial reporting standardization for Islamic financial institutions.

Originality/value

This paper has practical significance for financial reporting standard setters for Islamic banks and policy-makers to understand the key behavioral and demographical dimensions of their stakeholders and using these dimensions to effectively position important aspects in financial reporting standards setting.

Purpose

This paper aims to explore the alignments of the Takaful industry between the Islamic and the International Financial Reporting Standards (IFRS) requirement and the subsequent social and political consequences.

Design/methodology/approach

Meta-analysis of thorough examination of 1* to 4* relevant peer-reviewed journals in the academic journal guide 2015 of the Association of Business School from the period when first IFRS was issued in 2005 to 2012 and where Indonesia declared to fully adopt IFRS. The examination also includes some other appropriate Indonesian and Islamic accounting publications. The paper employs comparative analysis between IFRS, Auditing Organization for Islamic Financial Institution and the financial reporting standards practiced by Takaful industry to examine the hindrance towards the standardization process.

Findings

It is shown that the literature emphasis not only on the technical matters related to financial reporting standardization but also on the complex arrangement in different country settings. Learning from Indonesian experience, the literature suggests that neo-liberalism is piercing through different parts of economic and political setting of the country’s infrastructural powers leading up to the influence of financial reporting standardization process.

Originality/value

The paper contributes to the existing ontological arguments whether the Takaful industry is a mere business entity that has no specific requirements for financial reporting standards.

The purpose of this study is to examine whether the quality of Accounting Information System affects the quality of accounting information in Islamic insurance companies in Indonesia. The research population is 59 sharia insurance companies in Indonesia, analyzed using descriptive statistics and PLS-structural equation modeling (PLS-SEM). The result shows that in Islamic insurance companies in Indonesia, top management support and user competency had a significant effect on the quality of accounting information systems. Meanwhile, the organizational culture has no significant effect on the quality of accounting information systems. The quality of accounting information systems also has a significant effect on the quality of accounting information. The study concludes that the accounting information system has not reached the expectation because the support of top management has not been maximized and user competence is still inadequate. Likewise, the accounting information produced is not qualified yet due to the low quality of the accounting information system.

This study aims to propose a model of Zero Waste Accounting in Islamic Financial Institutions in Indonesia and how it is relevant to the achievement of Sustainable Development Goals (SDGs).  Due to the nature of the research that is exploration thus the research adopts interpretative approach that is essential to validate the research with “convincingness” approach rather than positivist measures of the reliability, validity of data and the generalization of results. The finding documents that Zero Waste Accounting is in vein with the spirit of Maqashid ul-Shariah that has been embedded as a part of the purpose of Islamic financial institution establishment. Statement of Sources and Uses of Zero Waste Accounting should become one of the additional disclosures. The paper sheds a light the need on Zero Waste Accounting for the accounting standard setters.

Purpose

This study aims to measure levels of Sharīʿah-compliance in Islamic financial institutions (IFIs) financial reporting standards with the objective to investigate the application of Maqāsid ul-Sharīʿah as a compliance measure reflected in the reporting standards.

Design/methodology/approach

This paper adopts Maqāsid ul-Sharīʿah’s model to measure levels of Sharīʿah-compliance amongst three available financial reporting frameworks and presentation standards; international financial reporting standards (IFRS), accounting and auditing organization for Islamic financial institutions (AAOIFI), Pernyataan Standar Akuntansi Keuangan (PSAK) Syariah. NVivo 10 software is used in this paper to help measure quantitatively the compliance level of each standard.

Findings

The findings suggest that the use of Maqāsid ul-Sharīʿah leads to a more complete understanding of how the meaning of Sharīʿah and its values can be integrated into the demands of financial reporting, and hence, offering greater convergence between ethics and accounting regulations amongst IFIs.

Originality/value

It documents different context of content analysis that takes examples of Islamic financial reporting studies and uses both classical and contemporary theoretical bases. The main outputs are designed for standard setters and policymakers with expectation for Sharīʿah objectives (i.e. Maqāsid ul-Sharīʿah), to be embedded in the preparation of financial reporting standards for the IFIs. Hence, they will be able to show their full accountability then gain better trust from the stakeholders.

This research has objectives to investigate political, social, economic and cultural factors in accounting development in Western, Asian and Islamic countries as well as to study the impact to Islamic financial institutions. Using Interactive Analysis as the research method, this paper focuses on Indonesia, Britain and Saudi Arabia, as the countries of analysis due to their signifiant growth in Islamic finance. The analysis shows that accounting development in all countries under study is influenced by several factors such as history, politics and culture. These factors also lead the countries’ policies how to develop shariah based accounting 

The theory of wealth management suggested that investors and households always behave like rational economic agents and take rational decisions and maximize their utility. However, they have certain constraints based on their socio-economic environment. Their ultimate objective is to get economic, social, psychological, and religious security. Therefore, they expect that the market should behave efficiently to earn a good return. However, since 1987, the financial markets all over the world have suffered several financial crises; in the resultant outcome were numerous bankruptcies and huge fertilities. This posited rather market inefficiency, asymmetric information, or irrational behavior of the market agents. It is also leading to a major problem for the old retired individuals. These dysfunctions are a disposition effect, regret aversion, loss aversion, cognitive dissonance, anchoring, mental accounting, overconfidence, over-and under-reaction, reference-dependent preferences, confirmation biases, herding behavior, hindsight bias, and many other behavioral biases. All these attributes made the financial markets extremely complex. Over and above asymmetric information contributed more to this apathy due to moral hazards and adverse selection.

The aim of this study was to analyze the application of accounting at BI partner pesantren and to analyze internal external factors that influence the application of accounting guidelines. boarding school. The object of the research was the partner pesantren of BI which had participated in the socialization with a sample of 31 pesantren using purposive sampling method. Quantitative research methods with data processing using the PLS Structural Equation Modeling (SEM). The results showed that 84% of the sample recorded the acquisition value of land, buildings (mosques, madrasas, offices) and petty cash and 94% of the samples did not revaluate the value of these assets. Internal factors which include awareness of sharia recording, organizational commitment, availability of technological devices, competence of human resources, Islamic boarding school funding structure, organizational structure, and managerial abilities of leaders jointly influence the implementation of pesantren accounting guidelines. External factors which include authority policies, policies of the parties providing assistance/cooperation, socialization of guidelines, technical training and technical assistance collectively affect the implementation of the pesantren accounting guidelines. In order to support the application of these accounting guidelines, apart from the need for socialization, training on technical assistance in making financial records is also necessary.