Corruption affects almost every aspects of human life. It’s domino effect widespread on the existence of the nation and the state especially exacerbate the nation’s economic condition. Corruption is not a form of ordinary crime because it was damaging the joints of life’s most basic social ethic that even humanity. The main factor triggering corruption is the internal aspect comes from the private consists of moral aspects, such as lack of faith, honesty, shame, attitudes or behavior of consumption and social life as a family that can drive a person to behave corrupt. While there are external factors that can be traced from the economic aspect. Such as income or salary is not sufficient, political instability, political interests, power, lack of accountability and transparency, and weak law enforcement and social aspects of the environment or the people who do not support anti-corruption behavior. Therefore anti-corruption behavior cultivations can be done through integrity and anti-corruption education. The ASEAN Seminar & Conference: Education ASEAN Societies for Integrity, we hope can make higher education plays a great role in introducing Integrity Education. By collaboration of universities might also positively provide better impact to ASEAN Integrity for Integration.

The ongoing  Islamic banking gets a lot of criticisms due to its unability to become the manifestation of the Islamic values which can be utilized by all people. These criticisms can be attributed to at least some indicators such as the dominance of non profit sharing contract (Murabahah) on Islamic banking practices that can only be enjoyed by the middle to upper class of  society, or the lack of optimization of the innovative Islamic banking products that can touch the majority of  the poor. This paper would like to discuss and explore the possible role of  social intermediation that can be carried out by the Islamic banking in addition to its role of  financial intermediation. By doing so, it can answer the stigma which states that Islamic banking is not pro poor. Based on the literature review and discussion, the role of  social intermediation by using social funds which are accordance to the perspective of  Islam namely charity, infaq, Sadaqah, endowments, and grants (ZISWAH) can be applied as the additional products or policies of  Islamic banking in order to serve the poor through several strategies, namely: (1) the establishment of special units for social intermediation and (2) the cooperation with LKMS in certain programs special for the poor.

A comprehensive overview of key developments in Islamic banking In Islamic Banking in Indonesia, renowned economist Dr. Rifki Ismal explores current issues in Islamic banking and financial products with a particular focus on the danger of liquidity risk in Indonesia. It approaches liquidity risk from the conventional perspective of international banking standards, as well as from the Islamic banking perspective. Dr. Ismal also covers the issues of asset-liability balancing, liquidity risk index, organizational structures for managing liquidity, industrial analysis, withdrawal risk, bankruptcy risk, moral hazard risk, and market risk. Compiling all the latest academic research on liquidity risk and other risks in Islamic banking, the book provides a theoretical foundation for managing risk that will is highly useful for researchers on Islamic banking and practitioners and academics. Written by a renowned expert on Islamic banking who works on monetary policy at the central bank of Indonesia Covers the latest developments in Islamic banking, particularly liquidity risk, for a rapidly expanding market Ideal for European and American readers, in addition to Asian readers, who need a fuller understanding of Islamic banking institutions, markets, and products With the latest academic research and the expertise of a leading practitioner in Islamic banking, this book offers in-depth coverage of the most pressing issues in the field.

The institution of Zakah is instrument instituted by Islam to combat poverty and enhance welfare in the society. Zakah serves as a unique mechanism of compulsory transfers of income and wealth from the haves to the have-nots in the community. This paper seeks guidance from the verses of the Quran and develops a theoretical and workable model of Zakat-based Islamic microfinance institutions (MFIs), which can be used as an alternative approach to reduce poverty. The paper argues that charity-based Islamic MFIs will be financially and socially sustainable as based on the concepts of brotherhood, local philanthropy (decentralization), and volunteer services (joint liability). Zakat-based Islamic MFIs will provide and explore the money for consumption as well as productivity purposes and, thus, can broadly target the economic and social needs of the poorest of the poor. They can help minimize indebtedness and reduce unequal distribution of wealth in society, and also to enhance the ability of the poor to be more productive and not just be dependent of rich people

Tawarruq has been extensively used by Islamic financial institutions (IFIs) recently, mainly to address liquidity shortages and to structure risk management tools. The common term used in the market to denote tawarruq is “commodity murÉbaÍah” or sometimes “commodity musÉwamah”. The concept of tawarruq has gained wide acceptance among market players due to its flexibility, which allows IFIs to provide cash with predetermined fixed income, just as their conventional counterparts do.

The institution of Zakah is instrument instituted by Islam to combat poverty and enhance welfare in the society. Zakah serves as a unique mechanism of compulsory transfers of income and wealth from the haves to the have-nots in the community. This paper seeks guidance from the verses of the Quran and develops a theoretical and workable model of Zakat-based Islamic microfinance institutions (MFIs), which can be used as an alternative approach to reduce poverty. The paper argues that charity-based Islamic MFIs will be financially and socially sustainable as based on the concepts of brotherhood, local philanthropy (decentralization), and volunteer services (joint liability). Zakat-based Islamic MFIs will provide and explore the money for consumption as well as productivity purposes and, thus, can broadly target the economic and social needs of the poorest of the poor. They can help minimize indebtedness and reduce unequal distribution of wealth in society, and also to enhance the ability of the poor to be more productive and not just be dependent of rich people

“Karir dan harga diri seseorang tergantung pada seberapa amanah dia dalam hidupnya.” Ini bukan slogan kosong, orang yang tidak amanah sama saja dengan benda mati, misalnya sampah. Sifat kedua Nabi Muhammad SAW artinya tidak hanya bisa dipercaya, tapi juga sanggup melakukan setiap hal yang dipercayakan dengan baik, entah dalam bisnis, pergaulan, kekuasaan, dan sosial kemasyarakatan lainnya. Jilid 2 Ensiklopedia Pro-LM karya Muhammad Syafii Antonio ini menyimpulkan bahwa ‘pribadi yang amanah merupakan pribadi yang unggul’ sebagai modal utama dalam berinteraksi dengan mahkluk Allah lainnya. Ada 7 kandungan sifat amanah sebagai inter-personal capital yang fokus dibahas menjadi bab utama buku ini, yaitu: 1. Justice (Adil) 2. Fulfilling Commitment (Menepati Janji dan Komitmen) 3. Realiability (Dapat Diandalkan untuk Mengemban Amanah) 4. Transparency (Keterbukaan) 5. Independency (Kemandirian) 6. Emotional & Physical Fitness (Kesehatan Jiwa dan Fisik) 7. Accountability & Responsibility (Bertanggungjawab)

Pertumbuhan perbankan syariah yang mencapai 30% per tahun menjadi fenomena tertentu. Namun di lain pihak signifikansinya dilihat belum optimal karena market sharenya masih di bawah 5 % (BI, Februari 2013). Dalam hipotesis penulis, salah satu penyebab belum optimalnya market share dalam 3 tahun terakhir, adalah peran intermediasi yang diduga belum optimal. Belajar dari pengalaman bank konvensional, pernah terjadi fenomena credit crunch (1998-2000) yang menyebabkan pertumbuhan perbankan sempat melambat dalam beberapa kuartal. Isu financing crunch memang belum muncul seperti credit crunch yang kajiannya sudah cukup lengkap, oleh karena itu penelitian ini harus segera diinisiasi. Tujuan penelitian yaitu (1) mengkritisi peran intermediasi perbankan syariah di Indonesia pada kurun waktu 2008-2012 dengan mengungkap ada tidaknya financing crunchi . (2) mengkaji solusi atas permasalahan intermediasi melalui studi pemikiran ekonomi Islam dalam perspektif maqashid shariah. Metode yang digunakan dalam penelitian ini menggunakan pendekatan kuantitatif dengan VECM dan kualitatif dengan content analysis. Hasil penelitian (1) Terdapat dugaan terjadi financing crunch selama kurun waktu penelitian sehingga perbankan syariah harus mencermati kondisi ini. Jika tidak segera menjadi perhatian, maka fenomena ini dapat menjadi kenyataan yang tidak mendukung pertumbuhan perbankan syariah (2) aspek keadilan dan manfaat (mashlahah) dalam maqashid syariah merupakan solusi penting. Produk simpanan jangka panjang skala ritel harus menjadi perhatian untuk menghindari motif spekulasi para deposan sehingga akses kepada pembiayaan syariah dapat diperluas tetap dengan mitigasi resiko.

The concern over Shariah compliant transactions is firmly entrenched in activities and operation of Islamic financial institutions (IFI). As a business entity established within the ambit of Shariah, IFI is expected to be guided by values, principles, objectives and rulings of the Shariah. However ensuring effective Shariah compliance is not a straightforward matter. As financial markets are increasingly becoming sophisticated, heightened product innovations and engineering in Islamic finance entails the genuine concern over the need to strengthen Shariah compliance throughout the product life cycle. This inevitably means while a product may be deemed Shariah compliant prior to its launch (ex-ante), IFI must also be cognizant of the need to ensure the entire ex-post process including contract execution, utilization of fund, investment activities, audit and governance process are all in place. This paper focuses on the framework of dealing with Shariah non-compliant transactions in Islamic finance. The framework delineate the concept of illegitimate income and its sources from Islamic perspective insofar to develop a cohesive approach in dealing with diverse non-compliance situations based on established principles of Shariah. Although it is not expected for IFI to deliberately involve in illegitimate activities, any incident of non-compliance needs to be immediately addressed, rectified and reported. This is not only to ensure the purity of the income earned but more importantly for IFI to put in place adequate systems and controls to ensure such non-compliance with Shariah rules and principles can be averted.

This paper assesses the importance role of two monetary transmission mechanism channels in managing inflation and contributing to economic growth, by employing Structural Vector Autoregression (SVAR) model. The monetary transmission channels are interest rate channel and credit-bank lending channel. The model is then solved by implementing forecasting error variance decomposition to investigate the contribution of each variables to both inflation and economic growth. It is shown that interest rate channel plays important role in monetary transmission mechanism for maintaining inflation but has limited role in the economic growth. In the other hand, credit-bank lending channel can effectively affect economic growth

inerja bisnis berbasis shari> 'ah seharusnya diukur dengan sistem pengukuran kinerja berbasis maqasid shari> 'ah. Bisnis berbasis shari> 'ah yang diukur dengan menggunakan sistem pengukuran kinerja konvensional maka hasil pengukurannya menjadi bias. Penelitian ini bertujuan untuk mengukur kinerja PT. Asuransi Takaful Keluarga (PT. ATK) dengan menggunakan mas}lah}a score card (MaSC). Penelitian menunjukan bahwa PT. ATK memiliki kinerja hasil 0,691. MaSC memiliki range kinerja hasil: 0,000 mengindikasikan bahwa bisnis tidak memberikan kemaslahatan dan 1,000 mengindikasikan bahwa bisnis memberikan kemaslahatan. PT. ATK memiliki kinerja: orientasi ibadah (0,110), orientasi proses internal (0,166), orientasi tenaga kerja (0,083), orientasi pembelajaran (0,166), orientasi pelanggan (0,083) dan orientasi harta kekayaan (0,083). PT. ATK memiliki kinerja proses sebesar 0,666. MaSC memiliki range kinerja proses: 0.000 mengindikasikan bahwa bisnis tidak melaksanakan MaSC dan 1.000 mengindikasikan bahwa bisnis telah melaksanakan MaSC secara penuh. PT. ATK memiliki kinerja proses: Mengidentifikasi fondasi kemaslahatan (0,111), Mendapatkan perilaku kemaslahatan (0,111), Menentukan sasaran strategis (0,111), Menentukan ukuran mas}lah}a (0,111), Menetapkan target (0,000), Menentukan inisiatif strategis (0,111), Melakukan pengukuran kinerja (0,111), Melakukan evaluasi hasil pengukuran (0,00), Melakukan perbaikan dan peningkatan (0,000)

The objective of the paper is to set parameters for the application of wadi'ah concept in family takaful which is the alternative of guaranteed benefits (non-participating benefits) of life insurance for family takaful. The paper uses analytical and evaluative approach to set parameters to ensure Shari'ah compliancy of the product and therefore, classical and modern Islamic jurisprudence literatures has been reviewed. The wadi'ah-based family takaful product allows various forms of guaranteed benefits (non-participating benefits) to be offered to participants in a manner similar to their conventional counterparts. However, there are some guidelines that should be followed. Every contract should be executed separately to avoid Shari'ah prohibition. Different types of funds need to be separated as well. Takaful Operators (TOs) can provide guaranteed cash surrender benefits only from the Participants' Wadi'ah Fund (PWF). Finally, Takaful Operators (TOs) should be transparent in the dripping process and charges. Takaful Operators (TOs) should be transparent in taking charges for managing wadi'ah funds, sharing investment profit ratio under mudarabah contract and sharing surplus from the tabarru' fund. The study would serve the needs of the takaful industry, particularly family takaful, in order for them to avoid Shari'ah compliance risk. Key words: Takaful, wadi'ah, tabarru', Participants' Wadi'ah Fund, Shari'ah Parameter

Institusi bisnis berbasis shari>’ah saat ini tumbuh dengan pesatnya, namun sayang kinerjanya belum dapat diukur dengan tepat karena belum ada metode pengukuran kinerja yang cocok untuk bisnis berbasis shari>’ah. Masih minimnya penelitian tentang pengukuran kinerja bisnis berbasis shari>’ah menyebabkan kinerja bisnis berbasis shari>’ah belum dapat diukur dengan akurat. Beberapa usaha telah dilakukan untuk mengukur kinerja bisnis shari>’ah tetapi karena metode pengukurannya menggunakan pengukuran kinerja bisnis konvensional sehingga hasil pengukuran kinerja cenderung tidak tepat. Penelitian ini bertujuan untuk mengusulkan metode pengukuran kinerja bisnis berbasis shari>’ah dengan pendekatan mas}lah}ah sesuai maqosid shari>’ah. Penelitian ini merupakan pengembangan dari pengukuran kinerja bisnis Balanced Scorecard (BSC) dan Malcolm Baldrige Criteria for Performance Excellence merujuk pada konsep mas}lah}ah. Hasil penelitian menunjukan bahwa konsep mas}lah}ah dapat dijadikan sebagai dasar pengukuran kinerja bisnis berbasis shari>’ah secara tepat berlandaskan maqosid shari>’ah. Pengukuran kinerja bisnis berbasis shari>’ah dilakukan dengan sembilan langkah pengukuran kinerja: Mengidentifikasi item yang seharusnya ada pada orientasi mas}lah}ah, Mendapatkan perilaku yang dibutuhkan bagi tercapainya orientasi mas}lah}ah, Menentukan sasaran strategis orientasi mas}lah}ah, Menentukan ukuran (measures) untuk mengukur kinerja mas}lah}ah, Menetapkan target yang ingin dicapai, Menentukan inisiatif strategis yang akan dilakukan untuk mencapai target, Melakukan pengukuran kinerja, Melakukan evaluasi hasil pengukuran kinerja, Melakukan perbaikan dan peningkatan Kinerja bisnis berbasis shari>’ah diukur pada masing-masing aspek mas}lah}ah yaitu orientasi ibadah mengukur kinerja agama, orientasi proses internal mengukur kinerja jiwa, orientasi tenaga kerja mengukur kinerja keturunan, orientasi pembelajaran mengukur kinerja akal, orientasi harta kekayaan mengukur kinerja harta. Oleh karena bisnis tidak dapat dilepaskan dari pelanggan sehingga kinerja aspek pelanggan harus diukur dengan orientasi pelanggan. Pengukuran kinerja bisnis ini dinamakan Mas}lah}ah Scorecard.

Shariah-compliance could be a positive element towards the realization of the poverty alleviation in the developing economy. By this spirit, the number of Micro Islamic Financial Institutions has grown significantly. It proves the alignment between Islamic economics and the subsistence society. By February 2012, there are about 344 sharia cooperation and 5000 Islamic Micro Financial Institution spread all over Indonesia.

Other than needs for financial access, low income society also needs for insurance services. The poor face more potential risks compared to the wealthy, yet they are more vulnerable to the same risks for they don’t have enough resources to cover them.

As microinsurance until now is a relatively new concept within the microfinance industry only few MFIs offer insurance products. The first Islamic Microinsurance was established in 1997 in Lebanon (Erlbeck et.all, 2011). Later, other majority Muslim populated countries started to establish the Islamic microinsurance service providers around 2010; Indonesia, Malaysia, Sri Lanka, Bahrain and Pakistan (Patel, n.a.; ICMIF takaful, 2010). In Indonesia, there are now two existing providers and one other new comer yet to offer the Islamic microinsurance service.

This research will study the prospect and challenges for the Islamic microinsurance service in Indonesia. To achieve the goal, focus will be given to observing and exploring problems and challenges encountered in providing the service, and so the proper order of priorities and potential solutions could be given in order to broaden the untapped market segment. Thus, the significance of this research is to put effort on decreasing the gap between the big population of Muslim in Indonesia and the number of Islamic microinsurance service provider.

Both primary and secondary data are utilized to explore the problems, challenges, and alternatives of solution of providing Islamic microinsurance services. Some suggestions are made for the sustainability of the present findings. Row data will be gathered through depth interviews and questionnaires mainly containing 2 questions about the problem and potential solution in developing Islamic microinsurance in Indonesia. Interviewees included experts; some of them are managers in Islamic Microfinancial institutions, and some others are academician and researchers.

The ANP approach allows us to use quantitative and qualitative information; this makes this methodology more flexible. The method will contribute many advantages since this research counts on the experts’ perception for making estimations. The process of ANP comprises four major steps, which are: 1) Model construction and problem structuring, where the problems and challenges will be decomposed into a rational system like a network; 2) Pairwise comparisons matrices and priority vectors; 3) Supermatrix formation; and 4) Selection of best alternatives (Chung et al, 2006).

The remainder of this research will be structured as follows: Section two will discuss the theories underpinning the study. Section three will make an overview of Islamic microfinance with brief discussion on the profile of the Islamic microinsurance providers in Indonesia. Section four will discusses the methodology used for the study while section five will present the findings. Section six will highlight the limitation of the study while section seven will conclude.

This study explores the economic ideas of Ibn S!na in household and political economies. The study also discusses the relevance of Ibn Slna's economic ideas on modem micro and macroeconomics ideas. According to Sabri Orman, the economic ideas of Ibn S!na can be traced and found in his practical philosophy, which is divided into three headings: Akhlaq (ethics), 'ilm Tadbir al-Manzil (economics) and 'ilm Tadbir al-Madlnah (politics). This study explains that household and political economies should be handled together, centered on Islamic values in the state. Findings of this study explain that the economic ideas of Ibn Slna are mostly related to the literature of 'ilm Tadbir al-Manzil (economics) and 'ilm Tadbir al-Madlnah (politics) that are related to modem micro and macro economics. Firstly, Ibn S!na's microeconomics focuses on man as the agent of economy and his own activity in managing wealth. This gives us a model of managing wealth from Ibn Slna that consists of kasb (earning) and infliq (spending). The kasb (earning) is from al-tijarah (trade) and a/--ina 'at (manufacturing skills), while the infaq is the function of in{aq ijtima'I (common expenditure), in{aq dfni (religious expenditure) and al-iddikhar (savings). The kasb and the infaq are important variables of managing wealth. Secondly, Ibn Slna's macroeconomics focuses on the government's role on welfare in the state by regulating the law of economy, providing job opportunities and ensuring social security. This concept emphasizes that the state should also be responsible for social interests (ma=alih mushtarakah) and common funds (mal mushtarak) to conduct a balanced economy in society. This macroeconomics can be associated with the concept of the welfare state in today's world. Lastly, Ibn Slna's idea in economics is still relevant in the implementation of contemporary Islamic economics.

Baitul-Mal is normally known as a charitable institution. This point is true because presently Baitul-Mal role is more prominent in terms of providing assistance and charity contributions and donations to the public. In essence, the original scope of Baitul-Mal covers a wider role compared to the current concept of Baitul-Mal. If we view from the context of Baitul-Mal at the early Islam, it turns out that Baitul-Mal is the only and center for the treasury of the state, but in the Malaysian context, scope and functions of Baitul-Mal are limited by the legal constraint. This paper is aimed to analyze the legal constraint and propose some procedures to empower the function and resources mobilization of Baitul-Mal. This paper will also expose that to improve the functions it can be done by using Islamic financial instruments

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 concepts of mutual assistance and charity often come to mind when takÉful (Islamic insurance) is mentioned. This is understandable given that takÉful, in the generic sense, has played an essential role in risk sharing in Muslim history. However, another feature has been added to the modern practice of takÉful. The current takÉful scheme has added the investment element to its products, one of a number of features that it shares with conventional insurance. The investment feature has become an inherent part of takÉful activities, departing from its original core roles of providing mutual guarantee, assistance and solidarity. This is most apparent when looking at family takÉful where the participant’s fund is segregated into two pools: the participant’s risk fund (PRF) and the participant’s investment fund (PIF). The offering of a number of investment-linked products in the market has led to making the takÉful scheme more appealing and competitive. This evolution has been the result of a natural progression to ensure that takÉful operations remain continuously viable and compatible in the current economic and social environment

Most life (family) takÉful products today are structured on the form of unit-linked or investment-linked models. This essentially means that there is a clear segregation between the investment fund and the takÉful or tabarruÑ fund. Indeed, the concept of takÉful, which is premised on the principle of tabarruÑ, makes it convenient for family takÉful operators to adopt the investment-linked conventional life insurance model. However, when it comes to traditional conventional life insurance products, family takÉful seems to be lagging behind. This is due to some inherent features of traditional life insurance that cannot be replicated in family takÉful product design, such as the various guaranteed benefits, in the form of cash values, besides the normal contingency benefits (i.e., benefits linked to misfortunes of the participants such as death, disability, sickness, etc.) that are structured in traditional life insurance products. The paper studies how family takÉful can be competitively structured in a manner that allows various competitive product features demanded by the public to be offered, features that resemble those of traditional life insurance, without in any way violating SharÊÑah principles. In particular, the wadÊÑah concept is proposed to be adopted in family takÉful product design, as it will allow various forms of guaranteed benefits (non-participating benefits) to be offered to participants in a manner similar to their conventional counterparts. The paper argues that the cash values in the wadÊÑah fund are similar to the non-forfeiture benefit in a traditional life plan. However, it is important to note that there is a fundamental difference between these products, i.e. takÉful and conventional life insurance. Whilst the latter is based on a purchase-and-sale arrangement, the former is based on the principle of tabarruÑ, by which participants cooperate to help and indemnify one another on the basis of charitable spirit.

Investment activity is a new added feature in takaful operations nowadays, departing from its original role: protection. The paper aims to examine the concept and mechanism of investment initiative undertaken by takaful operators (TOs). It also identifies some issues surrounding its practice, i.e Shari'ah, operational, and legal issues. The Shari'ah issues identified in the paper are inter alia the issues of income purification, fee for managing muIErabah investment fund, investing Participant's Risk Fund (PRF), and fee for fund manager. Meanwhile, the prevailing operational issues addressed in this paper are limited investment avenue, investment fund monitoring, issue of participants’ involvement, investment cross borders, and asset liability mismatch. Furthermore, the legal issues highlighted in the paper are the issue of takaful structure and Shari'ah governance framework