This study aims to seek the impact of zakat accounting standards (PSAK Shariah No.109) adoption on the financial performance of zakat institutions. This study employed the Difference in Difference (DiD) test and Panel data regression using the data from 5 national scale zakat institutions in Indonesia from 2006 to 2019. This study found a difference in zakat institution performance between the pre and post-adoption of PSAK Shariah No.109, both in the DiD test and Panel data regression model.

this study aims to evaluate the characteristics of zakat institution and proposes the adoption of international financial reporting standard (IFRS) since it has developed and provides various product i.e zakat for productive purpose. This is important, considering that one of the measurement of accountability and transoarency of an institution is providing brief financial report toward its benericaries.

Objectives: Human Development Index (HDI) has multidimensional aspects of life. In fact, HDI measures only physical aspects that are needed by human such as education, health and wealth. Accordingly, discussing on human must cover material, physical and spiritual aspects. Maqāṣid is needed as a wasilah (medium) to promote the benefit of human (maslahat), which contains of daruriyyat, hajiyat and tahsiniyat. By then, this study aims to analyze maqāṣid based development variables of Umer Chapra perspective on economic growth in 9 selected OIC member countries. Method: The methodology of the study used mixed methods: qualitative and quantitative. The quantitative applies panel data regression analysis with 9 selected OIC countries (Indonesia, Jordan, Kazakhstan, Kyrgyzstan, Mesir, Pakistan, Togo, Turkey and Uzbekistan) with time series from 2004 to 2013. For qualitative applies content analysis approach by using tafsir of Ibnu Katsir. Results: The finding shows that all independent variables, which are literacy rate, enrollment of school, poverty rate, gini index, life expectancy at birth, rule of law and voice accountability have significant effect on economic growth in 9 selected OIC member countries, both simultaneously and individually. Conclusion: This study concludes that HDI which is bounded by maqāṣid approach affects on increasing of economic growth in 9 of OIC member countries significantly

Islam is the way of life which guides mankind to attain the happiness in here and the hereafter (falah). It is also a religion of peace through the submission to the will and laws of God, advocates the establishment of ethic and social justice in order to achieve peace. In the history of Islam, enforcement of law was implemented to preserve good ethic and justice in the society. Therefore, it is needed to know how the implementation of Islamic law enforcement regarding ethic and justice in Islamic framework. This paper aims to study how the Islamic state in the early of Islam pays attention to ethic and justice of society in its government affair or administration and how the wilāyat al mazālim and hisbah as Islamic institution will stand for law enforcement to promote justice and higher ethic in the society. Moreover, finding of the study states that the Justice and ethical values have been still concerned by Islamic State. The administration of justice carried out by Muslim should consist of the application of Shari’ah in name of God without any temporal consideration. Enforcement of law regarding ethic and justice is manifested in hisbah and wilāyat al-mazālim. Each institution has different duties, but has mutual relation to administrate the state toward welfare state. The hisbah institution plays its role to command good action (amar ma’ruf) and prohibit evil (nahi munkar). It has a responsible for the implementation of Shari’ah principles in society. Furthermore, wilāyat al-mazālim is an institution that carries out the justice around the society. This institution looks into the cases which are not included in common court authority, such as persecution matters which are committed by the authority, judges or member ruling family.

This study entitled Maqasid Shari’ah’s View and Its Solution on Foreign Debt in Indonesia, aims to know the concept of debt from Islamic perspective and to analyze current issues foreign debt in Indonesia. Since economic crisis happened in European countries, Indonesia needs to be more careful in considering the impacts of the crisis. One of the causes was because of the high level of interest of the debts. It made most of crisis happened in many countries hard to pay back their debts. Therefore, it is needed to know how Islamic principles see the concept of debt and give the solution to the problem of debt by using Maqasid's approach. It can give comprehensive solution to the debt because it covers five dimensions: religion, self, intellect, family and wealth, which are very important in human life to attain the happiness and welfare on earth. The study will conclude with some suggestions for future research.

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.

Price is one of the vital factors in economic studies, either at a micro or macro level. In general term, the concept of price can be found in primary (Al Qur’an and Sunnah) and secondary such as tafsir, fiqh, kalam, philosophy and history. Therefore, this study aims to find out the concept of price determinants developed by earlier Islamic economics scholars and compare it with the price theory in modern economics, which refers to Western economic thought. This study using a qualitative methodology using library research and content analysis. The results are the price determinant in the Islamic economy are according to the agreement of Islamic scholar based on demand and supply then shapes the price and volume of transactions. The other factors influencing the price mechanism are inventory, geography or places, consumption time, quality of goods, quantity and cost. The differences with the western economic view lie in the worldview aspect or the world view in understanding the price concept.

This research attempts to find the concept of had kifayah (the sufficiency line) in classical Islamic texts (turasts) written by Muslim scholars and to be analysed it in the contemporary relevance of zakah management. It employs a qualitative method by exploring the concept of had kifayah of early Muslim Scholars and analyzing its relevance in the current condition. Moreover, the findings are clearly stated that the concept of had kifayah is derived from the works of early Muslim scholars that gives a fundamental philosophical framework toward the development of had kifayah study in zakah management.The existing research covers the study of had kifayah focusing on formulating the measurement of had kifayah with some additional Islamic values that based on the maqasid Shari’ah approach. However, the comprehensive study on the had kifayah based in Islamic perspective has been not executed very much in this regard. This research will contribute to the development of Islamic economics because the concept had kifayah related to the development of zakah management.

Zakat is an important pillar in Islam that has a dimension of worship, but economical value that gives the benefit of the muslim community. In the current management of zakat in addition to gathering problems, but also the distribution of zakat. In Islamic history, the successful example of management of zakat was exemplified by the prophet, and was followed by caliph al-rasidun. One of the pros and cons of the centralization and decentralized problems of zakat. Therefore, this study tried to analyze zakat distribution policy in the time of Umar because it is a successful example in the management of zakat. Results of the study explained that the distribution system of zakat conducted by caliph Umar ibn Khattab use the desesntralization of zakat. This is chosen because it is more direct to the community in which the region is collected by zakat by the government-appointed zakat agency. Also more effective and efficient to do than zakat centralization. Furthermore, the priority distribution of zakat target is permissible according to the condition and state of mustahik zakat in a region. Not to be imposed with the distribution of zakat for the eight ashnaf or in part is adjusted to the state of mustahik.

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.