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

The gap between demand and affordable supply has led to a housing backlog, especially in Indonesia. Solution is needed, especially to provide housing for low-income earners. This study discusses the potential for implementing a new financing scheme that combines Sukuk Linked Waqf, Cash Waqf Linked Sukuk, CSR, and non-halal funds for housing development in the long-term using the Benefit, Opportunities, Cost and Risk-Analytical Network Process (ANP-BOCR) method. The results of this study indicate that under this alternative scheme, the benefits and opportunities for all parties involved in housing development outweigh the costs and risks. Therefore, the combination of SLF and CWLS has significant potential to solve backlog problem in Indonesia.

This study discusses priority problems, priority solutions, and priority strategies in increasing the number of halal certifications in the culinary sector in South Bangka Regency. The research method uses the Analytical Network Process (ANP). Based on the research results, the priority problem faced by South Bangka MSME actors is the lack of information dissemination and socialization related to halal certification. The priority solution that can be offered in increasing the number of halal certifications in South Bangka is to hold training related to halal certification, starting from filing to issuing halal certification. And the priority strategy implemented in increasing the number of halal certifications in South Bangka is to increase information, education, and socialization related to halal certification to business actors

Productive zakah program that run by BAZNAS and LAZ was a real contribution to reduced poverty. Productive zakat aimed to made mustahiq became more productive. However, these goals had not been achieved maximum. There were two main problems in running productive zakah program. They were problem from internal party of BAZNAS/LAZ and problem from external party of BAZNAS/LAZ. Among the internal problems were: 1) Immaturity of program planning, 2) Less of capable human resources, 3) No fixed success indicators. The external problems were: 1) Lack of zakat institution management, 2) Lack of entrepreneurial spirit among mustahiq, 3) Mustahiq was not understand about the rule of productive zakah program. This study concluded that the dominant problem was an internal problem of the BAZNAS / LAZ – with priority problem lied in 'immaturity of program planning'.

The sale of pawn broking certificate is one of long-existing phenomena in Malaysia. This raises the question on what is the real purpose of this kind of transaction and the position of Shariah towards this activity. The authors undertake this research to examine this activity and to comprehend the issue from the Shariah point of view. The authors employ both semi-structured interview and observation methods. The research found that this kind of transaction actually refers to the sale of pledged asset by the pledgor (pawner) in case he experiences financial difficulties to redeem his asset under pledge. The proceeds will be used to pay the debt as well as the storage fee. The excess of proceeds (if any) is the exclusive right of the pledgor while the asset, previously used as pledge, is owned by the broker who purchased the certificate.

Takaful (Islamic insurance) is an alternative concept to conventional insurance, which the Shari’ah prohibits because it contains elements of usury (riba), features of substantial uncertainty (gharar) and gambling (maysir). The present study examines the issue of unequivocally prohibited riba in conventional insurance and how the takaful structure resolves this issue. The study suggests that the takaful model, which is structured based on the concept of mutual assistance, as rooted in the tabarru’ principle, can eliminate all riba arising from the exchange features of conventional insurance. The study concludes with a set of actionable policy recommendations.

The present study aims to examine the role of zakat in addressing unemployment and inflation, while also revisiting A.W. Phillips’ trade-off theory. The study adopts a qualitative methodology, using library research to critically analyse how zakat could address unemployment and inflation. The study argues that the optimal application of zakat could overcome the issue of unemployment while maintaining price stability. This is true since zakat can be distributed in two forms: consumptive and productive. Therefore, an increase in aggregate demand will always be followed by a rise in aggregate supply; the distribution of zakat in the consumptive form will increase aggregate demand, while the distribution of zakat for a productive purpose will increase aggregate supply. An increase in aggregate demand would in turn increase production, thus absorbing more labour as a result. This is where zakat addresses unemployment. On the other hand, a rise in aggregate demand will initially inflate the aggregate price. However, since the increase in aggregate demand is simultaneously followed by an increase in aggregate supply due to the distribution of zakat in its productive form, the price remains stable. Aggregate demand and aggregate supply cross at an equilibrium point. More importantly, the price is stable while the quantity of production is at its highest level. The findings of the study serve as a reference point for regulators formulating fiscal policy embedded in the zakat system.

The paper aims to examine the relevant provisions of the newly released BNM Shariah Governance Policy Document relating to the board of directors, Shariah Committee and senior management of the Islamic Financial Institutions (IFIs) in Malaysia. The study is qualitativebased research. It reviews two documents, i.e. BNM Shariah Governance Framework 2010, and BNM Shariah Governance policy 2019. It uses a content analysis approach to understand and compare the two frameworks from the perspective of the board, the Shariah Committee and senior management. The study finds that SGP 2019 enhanced features of the preceding SGF 2010 revolving around enhanced board oversight and roles over Shariah governance, strengthened Shariah Committee (SC) requirements in providing independent and sound advice to IFIs, as well as a greater expectation for the board and senior management in promoting Shariah compliance culture. This paper examines the areas which have been addressed by the new framework to improve several issues which have been highlighted during the implementation of the previous framework, SGF 2010.

hariah compliance is an important aspect of all Islamic financial instruments and transactions. With the growth of innovation in the finance industry, Islamic fintech's presence has added players, such as digital platforms, which need to comply with shariah. Therefore, this study aims to examine Islamic Peer-to-Peer (P2P) financing activity implementation as part of the fintech business model. Through a descriptive qualitative approach, a thorough analysis was conducted of digital contract papers, prospectuses, and the positions of parties involved in six Indonesian Islamic fintech companies. This involved analysing the shariah compliant quantitative characteristics of a company's prospectus, with financial reports related to interest, debt, and non-permissible income screening. The shariah compliance implementation is not only the duty of Shariah Supervisory Boards, but also involved all interested parties, namely investors, providers, partners, and business owners/borrowers. The results of the study show that shariah compliance in Islamic P2P platforms has been well enforced, therefore avoiding usury (riba), uncertainty (gharar), and gambling (maysir), while ensuring that businesses are offering halal products. Also, the results are expected to provide insight into shariah compliant fintech and how it can continue to develop in terms of Islamic financial products and services. In addition, this study can become a benchmark in the implementation of shariah compliant fintech products.

Successfully passing the 1998 crisis, the DSN MUI fatwa mentioned that interest is haram, religious image, and the principle of profit sharing are the main things that legitimize the operations of Islamic banks in Indonesia. However, the public is not quite sure about the legitimacy of Islamic banks. This is marked by many criticisms of Islamic banking products which are considered similar to conventional bank products, questionable contributions to society, and fraud that occurs within the Islamic bank itself which increasingly makes the public question regarding the operational practices of Islamic banks. This study takes a fully public point of view in analyzing the public legitimacy of BSM (Bank Syariah Mandiri) with the content analysis method of variable disclosure that the public wants to know through the annual report released to the public. The results of the study show that although there are still many things that are not disclosed by BSM in its annual report, BSM is still quite legitimate as a Sharia bank

The study examines the determinants of Islamic financial inclusion in Indonesia by applying Structural Equation Modelling (SEM) and Binary Logistic Regression. Through a field survey across Indonesia’s five main islands, the study gathered responses from 291 primary data samples. The study discovered that Islamic financial inclusion in Indonesia is determined by both the demand and supply sides. Two most significant determinants of Islamic financial inclusion in Indonesia from the demand side are financial literacy and social influence while on the supply side is human capital. The study also includes references and policy recommendations to help Indonesia’s financial regulators in formulating effective policies and strategies to foster the country’s Islamic financial inclusion agenda.

: Islamic insurance, hereafter referred to as takaful, is established on the concept of mutual assistance and mutual assurance between participating members who undertake to mutually guarantee and indemnify one another in case of a particular defined event. This concept has been widely used to structure various takaful products, ranging from general to family takaful, with features that resemble most of the features of conventional insurance. Nevertheless, the fact remains that not all conventional product features can be easily adopted and offered by takaful operators (TOs). This is evident in the absence of a Shari’ah-compliant model for retirement annuity plans with defined benefit features in the Malaysian takaful industry. This is despite its important features of providing security and peace of mind to the participants during their retirement years. The present study proposes the application of a hibah mu’allaqah (conditional gift) contract structured together with a wakalah (agency) contract for a Shari’ah-compliant retirement annuity plan. The study also identifies several potential Shari’ah issues and operational challenges entangling the proposed model. The study concludes with a set of policy recommendations