This This study aims to investigate the robustness of prediction model by comparing artificial neural networks (ANNs), and support vector machine (SVMs) model. The study employs ten years monthly data of six types of macroeconomic variables as independent variables and the average rate of return of one-month time deposit of Indonesian Islamic banks (RR) as dependent variable. Finally, the performance is evaluated through graph analysis, statistical parameters and accuracy rate measurement. This research found that ANNs outperforms SVMs empirically resulted from the training process and overall data prediction. This is indicating that ANNs model is better in the context of capturing all data pattern and explaining the volatility of RR.

This paper attempts to analyze the economic development and fiscal policy in Indonesia. Especially, it investigates whether Wagner and/or Keynes law(s) of economic development apply in the country and what variables determine the economic growth and fiscal policies. Technically, the paper uses econometric model called Autoregressive Distributed Lag model and Vector Auto Regression model to analyze both short and long run periods. The main finding is that both Wagner and Keynes law(s) occur in the Indonesian economy. Particularly, economic growth is influenced by government expenditures variables, namely employment expenditures, good expenditures and non tax income. Meanwhile, government expenditures are determined by exports of oil, imports and payment of debts. As such, the paper suggests that policy makers use employment expenditures as the fiscal policy variable while imports and exports of oil are the aggregate economy policy variables.

Purpose – The purpose of this paper is to formulate both withdrawal risk and bankruptcy risk to mitigate the risks and to find the equilibrium area of revenue sharing to depositors. Taking the case of the Indonesian Islamic banking industry, this work might benefit the Islamic banks, banking regulators and all stakeholders to manage the risks and maintain the robust development of the industry. Design/methodology/approach – First, the application of revenue sharing ratio in Islamic banks is studied. Withdrawal risk might happen because of the displaced commercial risk and bankruptcy occurs when the banks fail to manage such withdrawal risk. Referring to that, by using a mathematical approach, the formulas of withdrawal risk and bankruptcy risk are created with some underlying scenarios. Finally, mathematical formula and three dimensions area of the equilibrium revenue sharing ratio are developed. Findings – The paper generates the financial mathematical formulas to assess the vulnerable and invulnerable conditions of the withdrawal risk and the bankruptcy and solvency conditions of the bankruptcy risk to be used by decision makers to mitigate the risks. The ultimate output of the paper is the equilibrium area of the revenue sharing ratio, which locates Islamic banks in a proper condition of no withdrawal risk and bankruptcy risk. Originality/value – To the best of the author’s knowledge, this is the first paper trying to analyze the issues under the Indonesian case

Purpose – The purpose of this paper is to propose the Islamic monetary instruments as an Islamic approach for the central banking monetary operation. It is assumed that the central bank may not deal with the uncertain return of the project (asset) and its ultimate monetary policy target is to stabilize the economy by utilizing the excess (idle) liquidity in the economy. This theoretical study benefits the central bank from the assessment of the usage of every proposed Islamic monetary instrument with respected to the monetary operation purposes. Design/methodology/approach – The paper exercises four feasible Islamic monetary instruments based on the characteristics of Sharia contract which suit the nature of the current central banking monetary operation. Every instrument is elaborated mathematically to analyze its monetary impact and the possible reaction of depositors. Finally, the paper suggests the deterministic factors to successfully offer such Islamic instruments. Findings – The exercises find the unique operation of every Islamic monetary instrument. Based on the monetary impact of each instrument, the central bank can now have an alternative monetary policy based on the Sharia principles and operation. Research limitations/implications – The paper has so far found the feasibility of four Islamic monetary instruments. There might be other Islamic monetary instruments which can be viable to be exercised. Originality/value – To the best of the author’s knowledge, this is the first paper trying to exercise the alternative of the Islamic instruments for monetary operation

Murabahah is a dominant financing instrument in most Islamic banks all over the world. However, price volatility of the good being financed opens a chance for entrepreneurs to gain profit by pretending to be default (moral hazard). Assessment on condition triggering such moral hazard and probability of entrepreneurs to take risk of pretending to be default are being analyzed. Finally, Islamic bank can mitigate it through appropriate bank’s investigation and charging some cost as well as penalty.

Purpose – The paper attempts to analyze the volatility of returns and expected losses of Islamic bank financing. In particular, it takes the case of Indonesian Islamic banking industry. Design/methodology/approach – The paper uses Value at Risk (VaR) approach to compute the volatility (risk) of returns and expected losses of Islamic bank financing. In particular, it uses variance-covariance method to calculate VaR of multi-asset portfolios (groups of equity-, debt- and service-based financing). Findings – First of all, equity and debt-based financing produce sustainable returns of bank financing. Moreover, they are also very resilient during unfavorable economic conditions. Second, the performance of service-based financing is very sensitive to the economic conditions. Lastly, VaR computation on the volatility of returns and expected losses of bank financing finds that risk of investment and expected losses are well managed. Practical implications – The paper demands Islamic banks to keep intensifying equity-based financing rather than only debt-based financing and improve the banking services to support the performance of service-based financing. Originality/value – To the best of the author’s knowledge, this is the first paper to assist the volatility of returns and expected losses of the Islamic banking financing in Indonesian

Purpose – Islamic banks need to manage depositors’ deposit withdrawals in a well manner in order to be able to optimize depositors’ funds in their portfolio financing. Taking into account the Indonesian Islamic banking industry as a study case, this paper attempts to analyze the depositors’ withdrawal behavior. Moreover, it also analyzes the responses of Islamic banks to mitigate such deposit withdrawals. Design/methodology/approach – First, the paper accommodates the flow of funds of the Indonesian Islamic banking operations. Second, it formulates a liability side model of the competitive Islamic banking industry referring to some ideas from the conventional models. Then, the paper uses linear probability model (LPM) to identify depositors’ withdrawal behavior and to analyze the responses of Islamic banks to mitigate deposit withdrawals. Findings – It is found that depositors withdraw their money if: Islamic banks do not generate incomes from their financing; interest rate goes up; and total deposits tend to decrease. As such, Islamic banks have to anticipate this withdrawal behavior by doing two actions: reserving some liquidity and adjusting return sharing ratio to depositors. The output of this paper should benefit the policy markers and Islamic banks to understand depositors’ behavior in withdrawing money and determine appropriate policies to manage it. Originality/value – The best of author’s knowledge, this is the first paper trying to analyze the depositors’ withdrawal behavior with LPM model taking into account the Indonesian Islamic banking industry.

In Indonesia, Islamic banking shows a progressive performance with a robust performance of banking indicators. Its operations engage non bank financial institutions, Islamic money and capital market and takaful (Islamic insurance) with the ultimate target of financing the real sector and improving the economy. However, there are still some challenges to be solved in particular the small market share, lack of human resources and, lack of product development. Some recommended actions are proposed in the paper to mitigate those problems and foster the development of the Islamic banking industry.

Purpose – The purpose of this paper is to analyze and evaluate the present liquidity management in the Indonesian Islamic banking industry. It also proposes an integrated and comprehensive program of liquidity risk management which captures and assimilates the whole aspects of the issue and brings the industry into a better way of managing liquidity risk based on sharia principles. Design/methodology/approach – The paper first examines the organizational structure of Islamic banks and Islamic windows in managing liquidity. Second, it investigates the characteristics of the depositors, their investment behaviors and expectations followed by the banks efforts and policies to manage the liquidity. Then, it identifies the potential liquidity problems and Islamic liquid instruments. Finally, it proposes an integrated and comprehensive program for managing liquidity. Findings – The paper suggests institutional deepening; restructuring the liquidity management on the liability and asset sides; and revitalizing the usage of the Islamic liquid instruments, in the integrated program. Originality/value – This is believed to be the first paper to propose a liquidity management improvement program in the Indonesian Islamic banking industry.

Purpose – The purpose of this paper is to assess liquidity risk management (LRM) practices in Indonesian Islamic banking industry during the period 2000-2007. Design/methodology/approach – The paper constructs the LRM index (100 scale) which is composed of individual index of asset side; liability side; LRM policies; and the overall LRM index. Findings – The index produces a “good” grade for the liquidity management practices in the Indonesian Islamic banking industry, represented by three Islamic banks which capture 82 percent of the total market share of the industry. However, the breakdown of the index of every Islamic bank suggests various achievements. Research limitations/implications – It is found that the practices of LRM are not optimal yet based on some considerations explained in this paper. Further progressive actions have to be taken by the regulators and all industry’s players to improve the LRM practices. Originality/value – To the best of the author’s knowledge, this is the first paper trying to assess how good the LRM in Indonesian Islamic banking is.

Financial performance as a measuring instrument to know the process of implementing financial resources owned by the company. The Covid-19 pandemic has impacted the banking sector, resulting in poor financing due to debtors' disbursements as a result of the large number of people losing their jobs and difficulties in financing payments. This research aims to analyze the financial performance of Islamic Banks during the Covid-19 pandemic, using records of annual financial statements from 2011 to 2020 through Multiple Linear Regression testing and linearity testing of the model used Ramsey test. As a result of this study, the results of the t test found that the Capital Adequacy Ratio (CAR), Operating Costs to Operating Income (BOPO), Financing to Deposit Ratio (FDR) had a positive and significant effect on financial performance (ROA) while Not Performing Financing (NPF) had a negative and insignificant effect on financial performance (ROA). Furthermore, simultaneously capital adequacy ratio (CAR), Operating Costs to Operating Income (BOPO), Financing to Deposit Ratio (FDR) and Not Performing Financing (NPF) significantly influenced the financial performance (ROA) of Sharia banks in Indonesia

This research aims to analysis the dropshipping model according to Islamic jurisprudence. The research is focused in completeness of the terms and conditions of sale and purchase in dropshipping system and how its related to three economic disaster namely zhulm, riba and ghoror. The novelty from this research is dividing the object of transaction into two categories, ribawi goods and non ribawi goods and critisize the arguments that allowed dropshipping transaction. Literature study is used to define the dropshipping model, normative descriptive is used to define the contract in dropshipping according to Islamic jurispridence, content analysis is used to find the syar’i solution for dropshipping. The result shows that the origin law in dropshipping is prohibited (haram) because its contain of riba nasi’ah for ribawi goods and selling before ownership for non ribawi goods. The syar’i solutions that found for dropshipping are modification in ijab qobul, wakalah bil ujroh (the dropshipper become wakil from consumer) and ba’i salam, but the last solution is marjuuh, because the capital is not handed out at the beginning of majlis

This study aims to analyze the effect of work environment, compensation and religiosity on turnover intention of Islamic Banking employees in Indonesia. The questionnaire was filled out by 209 employees of Islamic banks in Indonesia and the data obtained was processed using Structural Equation Modeling (SEM) method with SmartPLS software version 3.2. Work environment and compensation negatively affect turnover intention. Religiosity is the only variable that posit ively influences turnover intention. This paper is one of the pioneer research in the field of Human Resource Development (HRD) focusing on the matter of turnover intention which combining three independent variables (work environment, compensation and religiosity) with at least 50% Islamic Banks in Indonesia took place as samples. This research is expected to benefitting management in Islamic banking so they could establish proper strategic policy in the field of employment, especially those related to turnover intention to control employee turnover rate in order to improve the performance of Islamic banking in Indonesia in the future.

The study aims to determine the effect of Collectivism, Eco-Literacy, Green Advertising, Spirituality and Environmental Concern on the intention to buy environmentally friendly products All Fresh on Indonesian Muslim consumers. The research consisted of three stages namely the study of literature. Then a field study was conducted by distributing questionnaires to 270 respondents. The analysis method used is Structural Equation Modeling (SEM) using AMOS. The results showed that the variables Collectivism, Eco-Literacy, Green Advertising and Spirituality showed a significant and positive effect on Environmental Concern. Furthermore, these variables show a significant and positive relationship to the attitude toward green products (ATGP) of Indonesian Muslim consumers.

This study aims to analyze the determinants of millennial employees’ decisions in the Provinces of DKI Jakarta and West Java on the payment of zakat on income and services. The study analyzed the behavioral variables of millennial employees which included zakat literacy, the influence of social media and religiosity and the characteristic factors of millennial employees which included: muzakki education level, type of institution where zakat was paid, frequency of zakat payments, and experience in zakat as factors for millennial employees in doing decision to pay zakat on income and services. The millennial working population is represented by residents aged 20 - 39 years. The distribution of questionnaires is done through Google forms. Respondents who filled out the questionnaire were 400 persons whom 64 people of them live in DKI Jakarta Province and 64 people of them live in West Java Province. Data analysis using SEM PLS. The decision to pay zakat on income and services among millennial employees in DKI Jakarta Province and West Java Province is influenced by social media and religiosity factors. Information about zakat on social media is believed to be valid by the millennial generation so that it becomes a determining factor in paying zakat on income and services. Another factor that determines the millennial generation in paying zakat on income and services is the literacy aspect, namely understanding the amount of zakat and the terms in zakat, mustahik, muzakki, amil, nishab. Furthermore, millennials who regularly follow studies on Islam tend to pay more attention to paying zakat on income and services. Thus, the aspect of religiosity becomes one of the determining factors. Then the decision to pay zakat on income and services among millennial employees is also influenced by factors of education level, type of zakat payment preference institution, frequency of zakat payment, and experience in zakat. Where the higher the education, the higher the ability to pay zakat and trust in zakat management institutions/institutions are also believed to be factors for millenials as muzakki to pay zakat. Then the frequency of zakat payments that have been made and experience in paying zakat are believed to have an influence in the decision to pay zakat on income and services.

Research on funeral funds on a homeowner association has never been performed before. Meanwhile, previous studies on the funeral fund in insurance companies, 'rukun kematian,' and mosques are used as a reference. The research aims to analyze whether the funeral funds managed by informal institutions correspond with the micro takaful principle. Method is a descriptive analysis is used by comparing the survey in two groups, namely residential and village areas, of 31 communities spread across Java Island. The research variables developed include calculation, collection method, and amount of funeral fund contribution, alongside the calculation and amount of benefits. Although the funeral funds' variables have not fulfilled the micro takaful principle, there are interesting findings. These include that the calculation of contribution for the two groups, namely the residential and village areas, is performed by mutual agreement through community deliberations. In the village, the collection method is by direct payment from members of the public to the officers, which is different from the residential areas, where it is picked up by the officers. Furthermore, the amount of funding contributions to the community in the villages is around Rp. 3.001 and Rp. 5,000, while the total is over Rp. 10,000 in residential areas. The informal funeral funding scheme (IFFS) has become a mutually beneficial culture of Indonesian society, which fosters strong humanity and brotherhood. This scheme can be formulated in micro-takaful cooperatives to ensure that the benefits trickle down for every member of the community, including Muslims and non-Muslims.

The study aims to develop Maslahah Performa (MaP) as methodology of wealth management system. MaP is maqasid al-shari’ah based organizational performance management system (Firdaus & Mukhlis, 2014). The objective of shariah (maqasid alshari’ah) is to protect and preserve: religion, life, progency, intellect and wealth, could be developed as foundation of organizational performance management system. Aspects of maslahah daruriyah those are religion, life, progency, intellect and wealth, to be developed into various of organizational performance orientation. 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. 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

The purpose of this study is to analyze the effect of attitude has a significant influence on agent intentions, the influence of subjective norms on agent intentions, the effect of self-control on agent intentions in marketing halal mart products. This study uses the Theory Planned Behavior method and structured equation modeling (SEM) to see the effect of agents on the intentions and performance of agents to market halalmart products through measurement in terms of attitudes, subjective norms and self-control. The results of the research data show that attitudes, subjective norms and self-control have a significant and positive influence on the intentions of the agents to improve performance in marketing halalmart products

The purpose of this study is to provide information about the Sharia equity fund performance with Sharpe, Treynor and Jensen-Alpha methods in Indonesia. This study is a descriptive study using a quantitative approach. The study population was Sharia equity fund in 2015 to 2018. Samples of this study were 21 mutual funds by purposive sampling method. The analysis tool in this study is the method of measuring performance based on risk adjusted return that includes Sharpe, Treynor, and Jensen-Alpha with Microsoft Excel application. During the observation period (2015-2018) there was Sharia equity fund outperform compared with markets (IHSG and ISSI). Best Sharia equity fund is HPAM Syariah Ekuitas, OSO Syariah Equity Fund, and Lautandhana Saham Syariah.

There are several programs under the Ministry of Research, Technology and Higher Education and Ministry of Religious Affairs of the Republic of Indonesia in many areas which decreased its performance level until it ended at the closing of the operational permit and even the revocation of the college permits concerned. Organizational performance is a series of performance starting from level of the organization, working units to individuals. The research on performance organization uses university based on maslahah with case study at Institut Agama Islam Tazkia. Purpose this study aims to develop a performance model based on maslahah using the framework of BAN-PT Accreditation, Maslahah Performance (MaP), and Quality Management System (QMS) ISO 9001. Methods of collection of sample are purposive sampling. Primary data collection techniques by collecting documentation directly and by distributing questionnaires to the ranks of the lecturers and the management of STEI Tazkia. Data analysis techniques by calculating the results of the questionnaire with Likert scale. The results showed that the development model of performance began with the preparation of the vision and mission, strategic objectives. It is suggested to all universities that offer the program of Islamic economics, finance, banking, and accounting; it should have a good vision, mission and objective