Otoritas Jasa Keuangan (OJK) found that the poor and low income people were reluctant to join as insurance participants. OJK has conducted many socialization activities about microinsurance for low-income people which aimed to increase their literacy of insurance. SMES (Sederhana – Mudah – Ekonomis – Segera) services aim to increase insurance inclusion. The study aims to propose a model of value-based service on microtakaful. The service refers to SMES (Sederhana – Mudah – Ekonomis – Segera) and Maslahah Performa value. SMES value to explain the value expected by takaful participants. Maslahah performa to explain the fulfillment of needs to sharia demands by takaful operator. The SMES variable is developed into various sub variables according to SEOJK. Maslahah performa is elaborated to get worship orientation variables and internal process orientation which then be developed into various sub variables. The subvariable weight is determined according to the importance level of each sub variable. The research finds that a value-based microtakaful service model can be derived from the SMES approach and maslahah performa. There is a linkage between the value-based microtakaful service according to participant expectation and spirituality and sustainability. The reasearch will contribute to increase literacy of microinsurance.

This research generally describes the application of performance measurement in Baitul Maal wat Tamwil (BMT) based on orientation to benefit all stakeholders (stakeholders & shareholders), but studies that specifically measure aspects of the methodology for implementing performance measurement are still limited. Therefore, Maslahah Performa is used as an instrument in the application of performance measurement in BMT Umat Mandiri. The study aims to determine the implementation of performance measurement Maslahah Performa issues on BMT Umat Mandiri. Knowing the results of the analysis of the application of process performance measurement and benefit-based performance results in BMT Umat Mandiri. The methodology used in this study is qualitative and quantitative research methods with case study design. The research findings indicate that six benefit orientations exist in BMT Umat Mandiri. These orientations include worship, internal processes, talents, learning, customers, and property. The six orientations found in this research have a foundation of benefit in realizing strategic objectives for the achievement of benefit. BMT Umat Mandiri has a process performance of 0,400 and performance results of 0,656 which means that BMT Umat Mandiri provides less benefit to stakeholders.

Purpose – The study aims to determine the role of trust, image and customer satisfaction in improving customer loyalty to Islamic banks. Research examined new indicators related Islamic banks to conventional banks. Study also analyzed differences in the loyalty of two groups of observation, deposan and financing, loyal customer and dual customer. Design/methodology/ approach – The study consisted of 3 stages: in-depth study of literature, interview and survey. The unit of analysis is seven major Indonesin Islamic Banks: Bank Muamalat, Bank Syariah Mandiri, BNI Syariah, etc. The analysis methods used in testing the hypothesis is Structural Equation Modeling by using Partial Least Square. Findings – Customer trust has positive and significant impact to develope customer loyalty. Both Image and customer satisfaction significantly influence on building customer trust. Image also has a significant effect on increasing customer satisfaction. The new indicator for image, improvement and innovation as well as strategic and sustainability proved to be valid and reliable in measuring the image of Islamic banks. The new indicator for trust, legal compliance proven valid and reliable in measuring customer trust dimension. Research also shows differences loyalty between groups of depositor customer and financing customer.

This study aims to analyze the influence of Total Quality Management (TQM) implementation to competitive advantage and company’s performance, especially to small and medium manufacturing company. Using Partial Least Square (PLS) tested the hypothesis of Structural Equation Modelling (SEM). There is significant influence between TQM implementation to competitive advantage. Likewise with a competitive advantage to the company’s performance there is significant influence. But there is no significant influence directly between TQM to the company’s performance. The study discusses about the implementation of TQM in small and medium manufacturing companies. In the practice, implementation of TQM in small and medium manufacturing companies are not as smooth as the large manufacturing company

The Muslim population of Indonesia in 2010 reached 207 million, while the number of poor people reached 27,76 million. On the other hand, Indonesia is prone to natural disaster. By 2015 there are 16,830 villages hit by floods, 3,827 villages experiencing earthquakes, and 7,861 villages experiencing landslides. It is important for Indonesian people to pool fundraising to help each other (ta'awun). One of the schemes is through the microtakaful program. The next issue is the inability of the poor Indonesian to pay a pooling fund. The research is conducted with the aim to analyze the appropriate model of microtakaful in Indonesia using infaq/sadaqah and zakah fund as an alternative payment of subsidy of microtakaful contribution. The research is conducted with several methods, namely the study of indepth literature on the utilization of infaq/sadaqah and zakah fund. The proposed models of utilization of infaq/sadaqah and zakah fund to subsidy ta’awun fund, validate the model through interviews to experts, practitioners and fund managers, process the data through Analytic Network Process (ANP), and determine the best model in utilizing infaq/sadaqah and zakah fund to subsidy ta’awun fund. Fund management model to become the object of research are microtakaful model and subsidy fund from the government model. The study shows that: Firstly, Ta'awun's fundraising in Indonesia is in line with the shariah objectives of protecting the soul, protecting religion, protecting intellect, protecting wealth, and protecting progeny. Secondly, the microtakaful model implemented in Indonesia is a microtakaful model by institution independently, a microtakaful model with a subsidy from infaq/sadaqahfund, a microtakaful model with a subsidy from zakah funds, ta’awun fund management model with a subsidy from the government and microtakaful model with a subsidy from other institution. Third, an important component in microtakaful is aqad, participant, underwriting process, investment, donor party and facility needs. The proper aqad in ta’awunfundraising is mudharabahmusytarakah.The simple Underwriting process is required. Parties that act as donors are zakah institution and government. Participants as beneficiaries of the contribution are poor and needy.

Purpose – The purpose of the study is twofold: first, it is to develop each aspect of ma
sla
hah
darūriyah (essential needs), i.e. dīn (faith/religion), nafs (soul), ʿaql (intellect), na
sl (descendants) and mal (wealth), into various aspects of organisational essential needs; second, it is to formulate ma
sla
hah-based performance measurement. Design/methodology/approach – The research is an exploratory study that uses a two-stage design: defining the research question and developing the research design. The research question is how each element of ma
sla
hah
darūriyah can become an element of organisational essential needs. The research design developed is to formulate ma
sla
hah-based performance measurement. Findings – The study concludes that ma
sla
hah
darūriyah could be developed as a basis for identifying organisational essential needs. The five elements of ma
sla
hah
darūriyah are developed into the following organisational essential needs: worship orientation, internal process orientation, talent orientation, learning orientation, customer orientation and wealth orientation. Ma
sla
hah-based performance measurement uses five variables: strategic objective, measure, formula, target and strategic initiatives and applies the modified plan – do – check – action cycle: performance planning, performance implementation, performance evaluation and performance action. Practical implications – Organisational essential needs can be developed by Islamic financial institutions (IFIs) into performance measurement. IFIs have six essential needs that can be developed into performance variables. Key performance indicators that can be developed for each need are worship orientation (social responsibility, regulatory compliance and Sharīʿah compliance); internal process orientation (innovation process, digital adaptation and employee satisfaction); talent orientation (career development, talent pool, compensation and benefits); learning orientation (training programme, training evaluation and return on training investment); customer orientation (customer engagement, customer satisfaction, customer survey and promotion programme); wealth orientation (profitability, cost-cutting, share prices, dividends, cost efficiency and financial sustainability). Originality/value – This paper contributes to new knowledge. The study attempts to discuss the organisational essential needs based on the ma
sla
hah
darūriyah concept, while previous studies discussed organisational needs based on Maslow’s hierarchy of needs. In developing performance measurement, organisational performance is measured in a balanced manner. According to the concept of ma
sla
hah, not only financial factors but also worship, internal processes, talents, learning and customers define © Achmad Firdaus. Published in ISRA International Journal of Islamic Finance

This study aims to analyze the criteria for investing in Hajj funds and alternative investments that provide benefits to Muslims so that they have an impact on economic growth. By using the Analytic Network Process (ANP) approach, alternative investments offered are Infrastructure, Property, Financial Sector, and Real Sector. Data were collected using a questionnaire consisting of pairwise comparisons between groups and their assessment indicators. A total of 7 (seven) expert speakers (experts) who became respondents successfully collected and processed using the ANP method. The results showed that investment in infrastructure and the real sector provides benefits to Muslims economically, so as to improve the welfare of Muslims which in turn can encourage economic growth.

Kinerja bisnis berbasis syariah yang diukur dengan sistem pengukuran kinerja konvensional cenderung memperoleh hasil bias. Penelitian ini dilakukan untuk mengukur kinerja bisnis berbasis syariah dengan menggunakan sistem pengukuran kinerja berbasis maqasid al-shariah yaitu maslahah scorecard (MaSC). Pengukuran diterapkan melalui dua kegiatan: pengukuran kinerja proses, yaitu dengan membandingkan kinerja bisnis terhadap standar MaSC, dan pengukuran kinerja hasil, yaitu dengan membandingkan pencapaian target setiap orientasi kemaslahatan terhadap target kemaslahatan yang ditetapkan. Rentang kinerja hasil MaSC adalah dari 0,000 (bisnis tidak memberikan kemaslahatan) sampai 1,000 (bisnis memberikan kemaslahatan). Hasil penelitian menunjukkan bahwa kinerja hasil PT Asuransi Takaful Keluarga (ATK) adalah sebesar 0,691 yang berarti PT ATK cukup memberikan kemaslahatan. Nilai didapat dari orientasi ibadah 0,110, orientasi proses internal 0,166, orientasi tenaga kerja 0,083, orientasi pembelajaran 0,166, orientasi pelanggan 0,083, dan orientasi kekayaan 0,083. Rentang kinerja proses MaSC adalah dari 0,000 (bisnis tidak menerapkan MaSC) sampai 1,000 (bisnis menerapkan MaSC secara penuh). Kinerja proses PT. ATK adalah sebesar 0,666 yang berarti PT ATK telah menerapkan MaSC tetapi belum penuh. Nilai didapat dari proses mengidentifikasi fondasi kemaslahatan 0,111, mendapatkan perilaku kemaslahatan 0,111, menentukan sasaran strategis 0,111, menentukan ukuran maslahah 0,111, menetapkan target 0,000, menentukan inisiatif strategis 0,111, melakukan pengukuran kinerja 0,111, melakukan evaluasi hasil 0,00, dan melakukan perbaikan dan peningkatan 0,000.

Muslims are encouraged to plan their lives economically and financially in order to achieve the objectives of Shariah. The intention to conduct Islamic economical and financial planning must be aligned with the application of Maqasid Shariah, which emphasizes on the protection of essential needs of Muslims that include preservation of wealth. Furthermore, goal of wealth management is to achieve falah. Objective of wealth management is to get maslahah. Maslahah based wealth management can be derived from cycle of acquiring and utilizing wealth (Firdaus, 2014). Acquiring wealth can be carried out by fullfilling worship orientation, internal process orientation, talent orientation, learning orientation, customer orientation and wealth orientation. Utilizing wealth can be carried out by allocating asset to wealth orientation, customer orientation, learning orientation, talent orientation, internal process orientation, worship orientation. This study proposes the framework of Maslahah Performa as wealth management system in order to highlight its contribution to more comprehensive, rational and realistic answers to contemporary public policy issues in Islamic economic system and to thereby increase awareness of Maslahah Performa approach in structuring and developing public policy products. For this purpose, the authors examine the position of the Maslahah Performa concept in public policy. They also present the essential elements of Maslahah Performa and explain how this approach may contribute to better solutions for various public policy issues and challenges.

The aims of this study are to understand the causes and impacts of consumerism on personal finance and find the solution to this problem by using Islamic wealth management. By using thematic analysis this study reviewing consumerism from the perspective of personal finance in Islamic wealth management approach. This study found that the causes of consumerism involve both external and internal factors. The impacts of consumerism on personal finance are the debt trap, no productive and charity allocation. An exact number of maximum consumption cannot be set for every individual or family, but they are all agreed that allocating income should be based on the right priority scale. The second finding is we propose Islamic Wealth Management (IWM) approaches in reducing the problem of Consumerism.