This paper attempts to assess the demand and supply of liquidity in Islamic banks. Firstly, it starts by identifying the sources of short-term demand and supply of liquidity. Secondly it assesses the historical performance of the bank to manage liquidity. Thirdly this paper predicts the short-term future performance and investigates the resiliency of the industry against any liquidity pressure. ARIMA models are used for such purposes particularly to produce the estimated numbers. The paper finds that the industry has historically managed the liquidity very well. Nevertheless, the resiliency against liquidity pressures is not strong enough because it does not perform well when the irregular demand of liquidity or liquidity run occurs. As such, this paper suggests to Islamic banks to strengthen their liquid instruments, improve the liquidity management, business operations and further educate the Islamic banking principles to the public.

One of the Government's strategies is to promote the welfare aspect of the community's economic life. Economic development can be carried out with various strategies. One of them is empowering the wealth of natural resources that have been created by God. The government can open mines of gold, silver, coal, kerosene, gas, tin, etc. that are stored in the bowels of the earth as a form of natural empowerment. From another dimension, to maximize the ability of the economy, the government can make monetary and fiscal policies. In this paper, the author will explain how the government's monetary and fiscal policies in economic empowerment. Broadly speaking, the Islamic version of monetary policy is different from the non-Islamic version of monetary policy. This article focuses on the discussion of monetary policy in the history of Islamic economic thought, which will discuss how monetary policy was carried out in the early days of Islamic rule, starting from the time of the Prophet, his companions, to classical and contemporary economic thinkers. The explanations and descriptions that will be presented in this article can provide benefits both theoretically and practically regarding monetary policy in classical civilization, and its suitability for the present. The method used in writing this article uses a literature review approach, is used to collect relevant information related to monetary policy in the history of Islamic economic thought, secondary data in this article is collected from various research reports in order to obtain an explanation more comprehensive. The impact of monetary policy on the economy at the beginning of the Islamic Government was seen by the increasing demand for Aggregate Demand from the community after moving to Medina by bringing together muhajirin and ansar. With this brotherhood, each ansar is responsible for the muhajirin so that the distribution of income from ansar to muhajirin increases and has an impact on increasing the total demand of the community and resulting in an increase in resources, labor, land and capital.

This study aims to analyze the investment decision of banks and measures their investment preferences in IILM sukuk with IILM sukuk preference index. The investment decision is investigated from several factors, such as the structure of IILM sukuk, the currency used in the transaction IILM sukuk, tenors of IILM sukuk, covenants used in the transaction, marketability of IILM sukuk and IILM sukuk rating. This study also attempts to inform the features that can attract banks to invest in IILM sukuk. This study used quantitative method to calculate the index of banking investment decision on IILM sukuk. The result of this research explains that the index of banking investment decisions includes in the high category. The index investment decisions show a high index, but up to now banks have not invested in IILM sukuk. This needs in-depth education and socialization to banks related to IILM sukuk, and providing periodic information is really essential, so banks can get the latest information about IILM sukuk. Another factor that restricts bank investment in sukuk IILM is internal bank policies. Until now, banks still manage their funds by using investment instruments issued by the state or domestic sukuk. The recommendations for sukuk is related to IILM first appointment of primary dealers, and the institutions are expected to appoint IILM primary dealers located in Indonesia in order to facilitate buying and selling transactions of IILM sukuk. Furthermore, the selection of IILM tenor sukuk is expected to have miraculous tenor selection to meet the needs of banks. Further provision of rating is expected to not only IILM sukuk but also the standardized IILM institution to create more reliable institutions that are able to add the investors.

This study examines the impact of global economic factors including interest rates, exchange rate, world oil prices, and world gold prices on local currency sovereign conventional bonds and sukuk indices in the Indonesian bond market. The study covers the period August 2009 to December 2018 and uses of the monthly data by applying the dinamic econometric models. The results of this study prove that the movement of the exchange rate, world oil prices, and world gold prices have a significant impact on the movement of the local currency sovereign conventional bonds and sukuk indices in the Indonesian bond market. While global interest rates does not have an effects on the movement of the local currency sovereign conventional bonds and sukuk indices in Indonesian bond market. Based on this study, bond and sukuk holders need to pay attention to exchange rate, world oil prices, and world gold prices movements. When the bond market conditions are good, gold can be used as an instrument for portfolio diversification, but not vice versa. In maintaining the performance of conventional bonds and sukuk, the Government needs to maintain stability of exchange rate volatility, maintain oil prices to control inflation, and strengthen the domestic investor base. In addition, this study can also enrich the literature in the capital market, especially the Government bond market, both SUN and SBSN.

The purpose of this article is to analyze how effective the Islamic monetary policy system is in maintaining or improving the performance of the real sector. And how Islamic monetary economic policy is able to maintain stability between the real sector and the monetary sector compared to the implementation of conventional monetary economic policy. The research design uses library research design (library study design). namely a research by studying, researching and reviewing relevant library materials. The data collection method used in this study is documentation, namely the method of data collection by reviewing various books (literature) that are relevant to the subject matter to be studied. With data analysis techniques using content analysis techniques, (Content Analysis) is research that is in-depth discussion of the contents of a written or printed information in the mass media. Which in the analysis it was found that Islamic monetary policy is effective in improving the performance of the real sector.

In Islamic economics, the monetary sector and the real sector must be able to go side by side. Even the monetary sector must follow developments for the real sector. The goal of Islamic economics is the creation of economic justice through equitable distribution of income, one of which is seen from the growth of the real sector, which is a representation of the level of productivity and welfare of the community. This is directly related to the business world. Therefore, when the level of community productivity increases, it will aggregately affect economic growth. On the other hand, one of the monetary instruments in Islamic economics is Islamic banking. This means that the increasing performance of Islamic banking must be in line with the increase of the real sector. The purpose of this study is to analyze the contribution of increasing Islamic banking performance to economic growth through a literature study related to a qualitative approach, where the collected literature is analyzed by content analysis and the data is triangulated to make a conclusion. The findings of this study indicate that Islamic monetary instruments in the Islamic banking case contribute to economic growth through an increase from the real sector

The purpose of this study is to examine and analyze the effect of financial performance as measured using Return On Assets (ROA), Current Ratio (CR) and Earning Per Share (EPS), macroeconomic indicators using the BI rate, exchange rate and inflation as well as adding systematic risk as the intervening variable on sharia stock returns in the manufacturing sector on the Indonesian Sharia Stock Index (ISSI). The research sample was 51 companies with a range of observations from 2016 to 2020, using the Structural Equation Modeling (SEM) method and IBM AMOS (Analysis of Structural Moment) V.22 software for testing the available data. The findings of the direct test results show that financial performance and systematic risk have an effect on Islamic stock returns, while macroeconomic indicators have no effect. The test results through the intervening variable found that financial performance had an effect, but macroeconomic indicators still had no effect on Islamic stock returns through systematic risk. Activities in the consumer goods industry and basic industry which have always been the main needs are the reason why issuers in the manufacturing sector at ISSI are not affected by changes in macroeconomic indicators.

(“UUS” – Unit Usaha Syariah) in each conventional bank must begin preparing for spin-offs process following the OJK policy which they must be spin-off before July 2023. However, there are still many “UUS” that need to be spin-off into BUS, where UUS is part of the Islamic Business Unit in every conventional bank (“BUK” – Bank Umum Konvensional).The aim of this paper is to provide a comprehensive analysis of business strategy for supporting the spin-off process “UUS” become “BUS” and business strategy for Islamic banking growth by utilizing the Canvas business model approach. This research was conducted using SWOT analysis methods to confirm the effective business strategies for spin-offs through analysis of existing business strategies at “UUS” with utilizing the nine blocks of Canvas's business model (Customer Segment, Value Proposition, Customer Relations, Channel, Revenue Stream, Main Activity, Main Resources, Major Partners and Cost Structure). The results of this study show that business strategy on "Growth Strategy" and "Rapid Growth Strategy" are aligned with "Leveraging with Dual Banking Leverage Model" that has been implemented in "UUS". The results showed that business strategy with dual banking leverage model (DBLM) is an effective strategy to support spin-off and growth of Islamic Banking.

Indonesia has had some Islamic monetary instruments such as Bank Indonesia Islamic Certificate (SBIS), Bank Indonesia Islamic Facility (FASBIS), SBIS repurchase (repo), Government Sukuk (SBSN) repo. However, IILM (International Islamic Liquidity Management), as the global short term Sukuk (Islamic investment securities) issuer, has a unique Sukuk model which can become a reference model to further diversify the Islamic monetary instruments (central bank Sukuk) in the country. The paper attempts to propose a Sukuk model for the Islamic monetary instrument (central bank Sukuk) referring to the IILM Sukuk model. Particularly, it proposes not only the model (structure and cash flow) but also formulas accompanying the issuance of the proposed Sukuk referring to the IILM Sukuk structure and cash flow. This proposed central bank Sukuk for the Indonesian monetary authority could diversify the current Islamic monetary instruments and support the Islamic monetary operations as well. Taking into account the IILM Sukuk model has never been adopted in the Indonesian Islamic monetary instrument, this paper could be the first one proposing the a new model for the central bank Sukuk in the country.

It is common knowledge that the economic crisis is caused by the failure of paper money to maintain price stability, devaluation, and redistribution effects. Exchange rate fluctuations severely hamper international trade and finance. On the other hand, gold has a more stable exchange rate and is relatively exchangeable for various needs. Gold has the same intrinsic value as any other commodity. However, it can serve as an international unit or units of account. The funds can be used as settlements in international trade payments. In the context of the optimum currency area (OCA), trade barriers between countries are increasingly being removed, including forming a common currency. The use of gold as a form of union currency would facilitate payments and benefit member states. International payment arrangements can also be made within the framework of bilateral and multilateral payment agreements. We support the analytical model of Ahmed Kamel Mydin Meera which reveals that the gold dinar can replace the fiat money as a payment transaction, as well as as a settlement in international trade with a note after economic and monetary integration is formed

Study aims to analyze the form and impact of monetary policy transmission on the business world and MSMEs. The data used in the analysis related to the topic of the study were taken from various literatures, both from books and journal articles. The data from various sources were then analyzed using a literature review approach. Based on the results of the analysis, it was found that there were several forms of transmission of sharia monetary policy and other results found that transmission of sharia monetary policy had a positive and significant impact on the real and financial sectors in general and in particular had a positive and significant impact on the business world and MSMEs.

This study focuses on the money market under sharia principles, which are financial transactions (without interest) in the short term carried out by money market participants or money market players. Due to the purchase of securities is only short term, the transaction is carried out on the basis of trust. The money market that is allowed is the money market that does not use the interest system, this is to avoid usury nasi‟ah because the loss (danger) of interest is greater than the benefit. In addition, because Islam prohibits the buying and selling of money as a commodity or speculation. The design of this research is quantitative based on published journals related to the theme in this study Islamic Perspective on Money Markets and Sharia Money Market Operations. This research method is a literature study using secondary data in the form of 20 published journals during the 2011-2021 period which have been published as scientific journals both nationally and internationally to find out Islamic views on money markets and Sharia money market operations. The results showed based on a literature study of 20 published national and international journals based on the year the majority of journals were published in 2016, there were 5 journals (25%), the majority of descriptive research types were 15 journals (75%), the majority of journal areas were from Indonesia, 12 journals (60%), and based on journal subjects, most of them are Islamic Money Market and Interbank Islamic Money Market with 6 journals each (30%)

This study is to examine and analyze the effect of financial performance as measured by Return On Assets (ROA), Current Ratio (CR) and Earning Per Share (EPS), macroeconomic indicators using the BI rate, exchange rate and inflation as well as adding systematic risk as an intervention variable to the Islamic stock returns in the manufacturing sector on the Indonesian Sharia Stock Index (ISSI). The research sample was 51 companies with observations from 2016 to 2020, using the Structural Equation Modeling (SEM) method and IBM AMOS (Analysis of Structural Moment) V.22 software to test the available data. The direct test results show that financial performance and systematic risk have an effect on Islamic stock returns, while macroeconomic indicators have no effect. The test results through the intervention variables show that financial performance has an effect, but macroeconomic indicators still have no effect on Islamic stock returns through systematic risk. The activities of the consumer goods industry and basic industry which have always been the main needs are the reason why issuers in the manufacturing sector at ISSI are not affected by changes in macroeconomic indicators.

Upon the progressive and healthy Indonesian Islamic banking industry, there is a potential of liquidity risk to be aware and anticipated. Its industry characteristics, depositor’s behaviors and high banking performance requested by public are some factors to be carefully aware. On top of that, current macroeconomic condition along with interest based economic system, free capital mobility and dual banking system are some other factors to be anticipated as well. At the end, some anticipative actions and preparations should be thought by Islamic banking industry to maintain and guarantee its promising prospect.

Pasar Sukuk maupun pasar uang syariah Indonesia masih belum berkembang, ditandai oleh masih terbatasnya instrumen pasar keuangan syariah dan pelaku pasar keuangan syariah. Sukuk yang diperdagangkan juga masih terbatas kepada Sukuk pemerintah (PBS, Sukuk Ritel, SPN-S) sedangkan Sukuk korporasi belum aktif. Instrumen moneter syariah Bank Indonesia (SBIS dan FASBIS) juga tidak dapat diperdagangkan di pasar keuangan syariah. Paper ini mengkaji kemungkinan sekuritisasi SBSN menjadi instrumen pasar keuangan syariah baru (disebut SSBSN) yang akan: (i) mengembangkan pasar keuangan syariah (pasar modal dan pasar uang syariah), (ii) menjadi alternatif operasi moneter syariah dan, (iii) meningkatkan partisipasi publik dalam pembangunan nasional melalui SBSN. Model S-SBSN yang diusulkan adalah: (i) S-SBSN sale and agency dengan akad bay wal wakalah, (ii) S-SBSN sale and trusteehip dengan bay wa wadiah yad dhamanah dan (iii) S-SBSN sharing ownership dengan akad musyarakah. Sementara itu, Sukuk pemerintah yang menjadi underlying adalah PBS, Sukuk Ritel maupun SPN-S dengan konstruksi dan mekanisme pembayaran imbalan, perdagangan di pasar keuangan syariah maupun jangka waktu tertentu. Akhirnya, tiga modal S-SBSN diharapkan akan semakin meningkatkan perdagangan SBSN, menambah instrumen pasar uang syariah, menjadi alternatif operasi moneter syariah maupun mendukung pembangunan nasional melalui investasi dan perdagangan di surat berharga syariah.