Islamic Waqif has an important role as one of the instruments in the economic empowerment of the people. In history, awqf played an important role in the development of social, economic and cultural life of the people. Both laws and regulations in the form of Law No. 41 of 2004 and Government Regulation No.42 of 2006 regulating the interests of worship, education, social and more important are the interests of the people's economic welfare. This study has a general purpose to formulate productive awqf management strategies in Indonesia, with specific objectives as follows: a.Identify constraints in developing productive awqf in Indonesia; b. Formulate productive awqf management strategies in Indonesia as literacy efforts in the field of da'wah in the community. Research examines the factors that influence the productive awqf management in Indonesia, through interviews of experts and regulators. Then analyze the policy. With the ANP and SWOT methods, that found the Strengths factors are Regulations / Laws and the largest Muslim population in the world. While Weaknesses are a lack of socialization and traditional mindset about awqf. Elements in the SWOT method, which is an opportunity to develop awqf (Opportunity) is the collection of endowments as the main element of worship and Professionalism in managing waqif funds. And the Threats in waqif management are materialistic lifestyle (hedonism) and non-Islamic education patterns. It is expected that the results of this study can provide input to the Regulators (Government and Legislature), Academics, Wakif and the Community beneficiaries of the awqf itself.

The number of illiterate populations in 2019 aged 15-59 years was 3,474,694 people spread throughout the Regency/City in Indonesia. Since 2005 the government has published an independent business literacy program as part of efforts to eradicate illiteracy, poverty and ignorance. This study aims to determine the implementation of the program with the CIPP evaluation model. Using a qualitative approach with a case study method in six community education institutions in five sub-districts in Bogor Regency. Data obtained through interviews, observation and documentation. The results showed that the Kekasaraan Usaha Mandiri program was carried out in a dense, illiterate environment in rural and mountainous areas. The main cause of illiteracy is the low economic income of the family which has an impact on dropping out of school and a short way of thinking of the community, with the perception that the most important thing is to be able to make money even though you have to be a manual worker. Organizers have an understanding of the literacy education development as part of efforts to educate the nation’s life. Educational literacy in the implementation of learning using product packaging and marketing materials that are not delivered optimally because the competency and entrepreneurial experience of the teacher is insufficient. Learning innovations that can integrate literacy education, business activities and religious education need to be done. Then it is necessary to improve entrepreneurship competencies for tutors, as well as collaborating with microfinance institutions or local entrepreneurs.

Human as social being is required to earn the wealth obtained from factors of production to survive in his life. One of the important factors is land, which has been mostly used in economy such as infrastructure, agriculture and mining. Unfortunately, the use of land tends to give more benefit to capitalist or land-owner than others in todays’ world. It impacts to inequality distribution of income in the society faced in third world country that is mostly in Muslim countries. In Islam, administration of the land has been concerned in primary sources (Qur’an and Sunnah) and Islamic literatures and practiced into action in the state such as iqta, ihya al-mawat, zakah, rikaz, muzara’ah, salam, musaqah and other instruments. These instruments are mostly used in agricultural field in the Islamic age. Another instrument can contribute to sustainable agricultural development is tax land: al-kharaj and al-’usyr. However, the result of this study states that to optimize the agricultural land, the state and Islamic banks can contribute together to solve the farmers problem such lack of financial support, shortage of water irrigation, lack of training and technology use by integrating appropriate Islamic financing and police of land tax that gives benefit and just to the farmers.

Every nation attempts to provide welfare for its citizen such as better economic growth, social security and better life. All economic systems either Capitalism or Socialism has the same objective to provide welfare for its nation. In Islam, welfare lies in complete justice, mercy, welfare, and wisdom; anything that departs from justice to injustice, from mercy to harshness, from welfare to misery and from wisdom to folly has nothing to do with the Shari’ah. The Islamic concept and values on welfare of the society are related to Islamic economic history that can be found from Qur’an and Sunnah and Islamic literatures such as history, fiqh, philosophy, kalam, and tasawwuf. it is assumed that there are some Muslim scholars whose works are related to role of state on welfare. Therefore, the study attempts to know the role of state on social justice derived from Ibn Sina and give some critical study on his thought. To achieve its objectives; this study employs qualitative research that refers to the meanings, concepts, definitions, characteristics, metaphors, symbols and descriptions of the matter understudy. Moreover, it is used content and descriptive analysis to get finding of the study. The data collection is generated from Islamic sources. The finding of this study is that Ibn Sina’s thought on state role to promote social justice containts of providing law, job opportunities and social security. These roles of state can contribute to harmony, peace and welfare of the society.

The purpose of this paper is to analyze the role of Islamic banks as providers of Islamic wealth management product in relation with the enhancement of waqf funds.The authors use qualitative research that refers to the meanings, concepts, definitions, characteristics, metaphors, symbols and descriptions of the matter understudy by employs content and descriptive analysis in order to get finding of the study. The data collection is generated from Islamic sources: Qur’an, Sunnah and some Islamic literatures, and other sources such as books, journals, report documents, magazines and articles from internet. These sources will be put in to coding and analyzed to answer the research problem of study. The role of Islamic wealth management is not only focusing on worldly investment helping the clients’ need, but also hereafter investment. One of the instruments of wealth distribution that can be used for hereafter investment is waqf that helps the clients’ wealth to obtain blessing (barâkah) of Allah. By waqf, Islamic wealth management instrument can accomodate all models of waqf funds from cash waqf, insurance waqf, corporate waqf, etc. There are three options to of putting their wealth in waqf funds, they are: (i) family waqf, (ii) public waqf, and (iii) combination of waqf. All benefits of these waqf can contribute the the development of ummah. This paper is one of the very few conceptual studies concerning the practice of Islamic banking in implementing the product of wealth management for social purposes which is enhancement of waqf funds for the benefit of ummah.

Islamic banks are the financial institutions that carry out their activities based on sharia principles. Elimination of interest in the Islamic banking system is one of the parts of the element governed by the Shari’ah. As an Islamic business entity, profit is not solely the main objective of Islamic banks but also other values such as honesty, social justice (equity), and fairness (equity) as they are have been established in the Qur’an and Sunnah. Therefore, Islamic banks, besides looking for profits, are also expected to contribute to improving the welfare and economic level of the people. This is the underlying philosophy that distinguishes it from conventional banks. However, in practice, the concept does not look optimally implemented. Islamic banks, as if carried away, focused on seeking profits by ignoring the underlying philosophy. This can be seen from the various products offered, which are dominated by Murabaha products. Does the basic philosophy of Islamic banking have to be maintained like an idealized concept that is doctrines or should it be modified with a more pragmatic approach? This paper tries to analyze the philosophy of Islamic banking in terms of theory and practice in real terms in sharia banking activities that have been carried out so far.

Rationalism is one of the philosophical schools originated from Greek Civilization. Two prominent scholars developed the theory, namely Plato and Aristotle. The ratio is a crucial way to approach truth. The rationalism has influenced all knowledge and sciences developed by other scholars in different time and place. The study aims to know the influence of rationalism toward economic development in Indonesia. To obtain a clear answer, the study used thematic analysis to identify, categorize, and report the qualitative data related to the study. The finding says that rationalism has been adopted by Indonesia when it used either capitalism or socialism in the development of economic in Indonesia. The existence of Islamic economics in Indonesia gives a new paradigm of the method in understanding and solve the economic problem by using ratio in the framework of Islamic revelation. By then, there is a fundamental difference of philosophical underpinning related to the development of economic in Indonesia, starting from a conventional one to Islamic economics combining ratio and revelation to solve the economic problem of society.

The first International Conference on Islamic Economics was held in Makkah, in 1976. Economists, jurists and scholars met together to discuss issues of Muslim ummah. However, there was many books written related to Islamic economics in the history of Islamic civilization, especially in the period of Abbasid caliphate. The fact, development of knowledge in Islamic medieval had established the epistemology of Islamic economics itself. Moreover, the epistemology is a study of the theory of knowledge, the source of knowledge, the application of knowledge and limitation of knowledge. Therefore, this paper aims to explore the contribution of earlier Muslim thinkers to the source of Islamic economics and to identify the epistemology of Islamic economics as proposed by the Muslim thinkers in medieval period. As a result, this paper will propose the epistemology of Islamic economics by integrating Islamic heritage and modern economics that is not conflict with Islamic principles and values. To achieve its objectives; this study employs qualitative research by applying content and descriptive analysis. The finding of this study is that the earlier Muslim thinkers have contributed to the construction of epistemology in Islamic economics. Then, to construct the genuine of Islamic economics, tawhid must be put as a core of Islamic economic epistemology that directs the sources of knowledge which are rooted firstly from revealed and then rational knowledge by using appropriate methods

Tujuan dari penelitian ini adalah ingin menguji secara empiris, apakah perilaku nasabah perbankan Islam di Indonesia dan di Malaysia terpengaruh oleh kebijakan moneter yang dikeluarkan oleh bank sentral pada masingmasing negara. Selain itu, apakah negara dengan karakteristik ekonomi dan kebijakan yang hampir sama – Indonesia dan Malaysia -, akan menghasilkan perilaku nasabah terhadap deposito perbankan Islam yang sama atau tidak. Metode analisis yang digunakan dalam penelitian ini adalah yang pertama , metode ekonometrika VAR (Vector Auto Regression) yang bila terjadi kointegrasi pada data yang stasioner di 1st difference akan dilanjutkan pada VECM (Vector Error Correction Models) dan yang kedua, analisis elastisitas permintaan deposito perbankan Islam terhadap variabel-variabel yang diuji dalam penelitian ini pada periode Januari 2005 sampai dengan Desember 2009. Hasil dari penelitian ini menujukkan bahwa dalam jangka panjang variabel moneter di Indonesia berpengaruh secara signifikan terhadap deposito perbankan Islam. Berbeda dengan di Malaysia di mana variabel moneter tidak berpengaruh secara signifikan terhadap deposito perbankan Islam. Begitupun hasil analisis elastisitas permintaan deposito perbankan Islam di kedua negara. Dengan demikian dapat disimpulkan bahwa deposito perbankan Islam di Indonesia lebih sensitif terhadap perubahan kebijakan moneter, dibandingkan dengan yang ada di Malaysia

Islamic microfinance is a growing sector that is expected to provide a long-term solution to poverty in the Muslim world. The role of microfinance institutions in poverty alleviation is still debatable, however established literature provides assurance that microfinance does contribute to the development of financial sector and reduction of poverty in developing countries. The rise of competition in the microfinance sector has forced many microfinance institutions to resort to commercial funding and lending activities, which according to some studies has led microfinance institutions to become riskier. The paper explores portfolio and default risk of Islamic Microfinance Institutions (IMFIs) and find that they are facing relatively lower risks than conventional MFIs. Using Ordinary Least Squares regression to analyse portfolio risk of IMFIs, the research finds unexpected result. Since IMFIs are facing challenging working environment and are operating in some of the poorest countries in the world with frequent natural disasters or armed conflicts, we predicted that they will be riskier. We also find that IMFIs are also less vulnerable despite their clients are from the poorest segment in the society, often with lower educational level, and the nature of Islamic financial products are relatively unknown to most clients. Many of the IMFIs and their clients live in countries considered to be high risk or have histories of instability, either politically or economically.

This study aims to compare the level of efficiency of zakat collection and distribution by Zakat Institution in Indonesia. It is hoped that this research can find out what factors affect inefficiencies in the process of collecting and distributing zakat by National Zakat Institution. This study is quantitative research using Data Envelopment Analysis (DEA) with output orientation. Financial statements of 8 zakat institutions during 2012-2018 were analyzed. In zakat collection the input variables are administrative and general expenses, amil fee, number of branches, and socialization cost while the output variable is zakat collected. In terms of zakat distribution process, the input variables are administrative and general expenses, amil fee and zakat collected against the output variable, zakat distributed. This study found that zakat collection has a higher efficiency score (72.32%) compared with zakat distribution (61.45%). Using potential improvement analysis, zakat institutions are adovacated to do more in zakat collection while handling inefficient socialization cost. In the same time, they should distribute more zakat funds while optimizing their staff/amil in zakat distribution.

The purpose of this study is to examine the relative efficiency of national zakat organizations in Indonesia. Data was collected from decision-making units (DMU) consisting of 14 national zakat institutions in Indonesia listed on the BAZNAS website and selected using purposive sampling technique. The information was derived from the DMU's publicly accessible financial reports. This study utilized the Data Envelopment Analysis (DEA) output-oriented approach to maximize output with the same level of input when analyzing the data. In selecting input variables, this study consulted previous research. In addition, it utilized Tobit regression based on the outcome of Maximum Likelihood (ML) to evaluate the determinants of the efficiency value (dependent variable) as the score ranges from 0 to 100. The result indicates that the efficiency of zakat institutions fluctuates slightly throughout the observation period. In addition, the significant efficiency determinants are size and community membership. Therefore, zakat organizations must maintain and increase their donors' loyalty. It is anticipated that the findings will contribute to the advancement of practice and knowledge regarding the study of zakat literature.

: The crisis caused by the COVID-19 pandemic is more severe than other crises that have occurred before such as the crisis in 2008. This is because of the speed and scale it has created. The purpose of this study was to determine the effects of the COVID-19 pandemic crisis on changes in the behavior of Muslims in Indonesia, namely accelerating the payment of zakat during the Covid-19 pandemic. The data used in this study is primary data, where data were collected through questionnaires to respondents who were selected purposively throughout the big islands of Indonesia and collected as many as 256 respondents. By using the Structural Equation Modeling (SEM) Partial Least Square approach, it is found that several variables have an influence on the behavior of Muslims to accelerate paying zakat, including the Attitude variable and the Perceived Behavioral Control variable. However, it was found that the Subjective Norm variable was not proven to significantly influence the behavior of Indonesian Muslims to accelerate paying zakat during the COVID-19 pandemic crisis. The limitations of this study are that the sample that dominates is only from the island of Java and the age proportion of the respondents is dominated by millennials and generation z.

This paper aims to investigate the intention to accelerate zakat payment during COVID-19 pandemic among muslim youth. This study examines the Theory of Planned Behavior model. Partial Least Square Structural equation modeling (SEM-PLS) approach is used to test structural models and measurements. In the structural model, SEM-PLS was chosen because of its effectiveness in estimating direct and indirect effects in a model. In addition, although the sample size is relatively small and the SEM-PLS complex model can work efficiently. Online questionnaires were distributed to purposively selected respondents throughout Indonesia, which consists of all major islands. In total, there are 242 respondents collected. This study found that Attitude variable and the Perceived Behavioral Control variable affect the intention to accelerate zakat payment during the Covid 19 Pandemic among muslim youth. In addition, Subjective Norms variable is not significantly proven as the determinant. This study has limitations, namely the sample is representative of all islands in Indonesia, but the scattered sample is dominated by the island of Java.

The purpose of this study is to find out what are key elements of constraint, strategies and stakeholders and to construct some strategies that may help enhance the role of zakat in achieving SDGs. This study uses a mix method, combining Delphi method and Interpretative Structural Modeling (ISM) by conducting literature studies and In-depth interviews with experts, practitioners and academicians. In realizing Sustainable Development Goals (SDGs), it requires the greater role of Zakat as a financing instrument. Experts, practitioners and academicians agreed that Strategy to Enhance Zakat Role to Support Sustainable Development Goals (SDGs) requires synergy between stakeholders. This is in line with 17th goal of SDGs, partnerships for the goals. In managing zakat, innovation is needed by utilizing fintech in zakat information system. The process of strengthening and monitoring zakat management must go through structured strategic steps to realize the acceleration of zakat management development. Researchers provided an analysis that BAZNAS and LAZ should collaborate with related parties to collect zakat such as fintech companies and coordinate with other institutions to distribute social funds to reduce overlapping distribution and to link programs or activities with SDGs.

Potensi Zakat, Infaq dan Shadaqah (ZIS) di Indonesia sangat besar dan diyakini dapat menciptakan keadilan distribusi kekayaan masyarakat. Sayangnya, dana ZIS yang berhasil dikumpulkan masih jauh dari potensi yang ada. Oleh karenanya dibutuhkan optimalisasi potensi zakat, salah satunya dengan efisiensi. Penelitian ini bertujuan untuk mengetahui tingkat efisiensi Organisasi Pengelola Zakat (OPZ) secara relatif menggunakan Data Envelopment Analysis (DEA) dengan pendekatan produksi. DEA merupakan metode nonparametrik yang digunakan untuk mengukur tingkat efisiensi unit pengambil keputusan secara relatif. Metode ini mengukur rasio antara output dan input yang diperbandingkan antar OPZ yang diteliti. Variabel output yang digunakan meliputi dana terhimpun dan dana tersalurkan, sedangkan input-nya adalah biaya personalia, biaya sosialisasi dan biaya operasional lainnya

This study examines the role of the POJK stimulus policy No. 11/POJK.03/2020 on the decision of financing in Indonesia Islamic banking. Furthermore, the study aims to be able to assess the financing behavior of Islamic banks. Accordingly, we design a quantitative approach with panel data analysis method. With case studies on 12 Islamic Commercial Banks with a time period from quarter 1- 2017 to quarter 4-2020. We found that the total financing of Islamic banks experience significant changes after the period of economic recession that hit Indonesia. Then, the study found that the role of stimulus regulation has a positive and significant effect on the distribution of total bank financing. This shows that the stimulus regulation through financing relaxation or financing restructuring does not prevent banks from continuing to channel financing to the public. This study also found that Islamic banks do not behave pro-cyclicality behavior towards the business cycle.

Based on Islamic Banking Law Article 1 paragraph 2 funding was the main activity for Islamic banking in its function as a financial intermediary and drived real sector. This study was aim to determine how much the influences of SBIS, amount of DPK, Non Performing Financing and the exchange rate of dollar against the Islamic banking financing as well as the contribution of Islamic bank financing for the agricultural sector in Indonesia by using VAR/VECM approach. VECM results indicated variables that affected agricultural financing in the short term was variable LNER and SBIS. While in the long term variable lnDPK and lnNPF statistically significant against to agricultural financing. The results of IRF showed that lnDPK, lnNPF and LNER responded positively influencing the contribution of financing on Islamic bank for the agricultural sector in Indonesia. As for The contribution of financing on Islamic bank for the agricultural sector in Indonesia, LNER gave the largest contribution to the Islamic bank financing for the agricultural sector in Indonesia, followed by the variable SBIS, lnDPK, and lnNPF. The higher value of rupiah would increase the financing by the islamic banking for Agricultural sector, as would as the lower of rate SBIS would increase the financing of islamic banking.

This study attempts to analyze the determinants of sukuk and bond rating in Indonesia. The purpose of this study is to determine factors influencing sukuk and bond rating using separate test. The study uses financial and non financial ratios such as company growth, firm size, profitability, liquidity, leverage ratio, and sukuk and bond maturity. This study examines corporate sukuk and bond that listed from 2004-2006 (9 sukuk and 15 bonds) at Indonesian Stock Exchange for the period of 2007-2009. This research employs ordinal logistic regression. The result of the study reveales that only firm size variable determines sukuk rating while others are not (growth, profitability, liquidity, leverage ratio and maturity). Firm size, profitability, and maturity influences the bond rating above 5 years while growth, liquidity, and leverage ratio are not significantly influence the bond rating.

Objective – The objective of this paper is to analyze the profit distribution method applied in Islamic banks in Indonesia and to propose better method in order to improve sharia risk compliance. Methods – Employing a descriptive quantitative method and literature review. This paper evaluate weaknesses of the current profit distribution method and proposes daily revenue index to solve the problems arising from using current method which is unfairness between bank and customers. Results – By the two current profit distribution methods which use monthly revenue index calculated only at the end of the month, there are potential injustices occur. Therefore, instead of using monthly index, daily index is proposed. There are two steps in calculating profit distribution by using daily revenue index: (1) Accumulating Source of Fund (SoF), Reserve Requirement (RR), and Source of Fund after Reserve Requirement (SoFaRR), and (2) Determining Average Financing (AF), Revenue Index (RI), Cost Index (CI), Revenue Sharing Index (RSI), and Profit Sharing Index (PSI). Conclusion - Daily revenue index will solve the unfairness problems arise from current profit distribution method applied in Islamic banks. Daily revenue index is also applicable if Islamic banks apply profit and loss sharing instead of revenue sharing