This Study aims to investigate decision in the interbank money market based on islamic principles.

This research is motivated to study the phenomenon of the financial health of state-owned enterprises (SOEs) who are healthy but still dependent on government subsidies. Based on these phenomena, the aim of this study is to determine the factors that affect the company’s financial health. In order to achieve this aim, the present research will employ the purposive sampling method of seven SOEs with observations during the last 11 years. The data analysis employed involves the use of linear regression model and its management through software SPSS-Amos 23. As a result, the study found that subsidy is significant and negatively affects financial health, which means that the financial health of the SOEs is getting down when funding is still maintaining subsidy every year. Instead, financial health would be enhanced if the government limits the subsidies gradually and gives broad authority to decide on the pricing structure and control of resources to support the cost of efficiency. The study also found that firm size strengthens the link between subsidies to financial health with a positive coefficient and is exhibited significantly, which means that the larger the firm size, the stronger the effect of subsidies on the financial health SOEs. This means that the SOEs that have a good asset capability tend to have a better financial health, especially because efficient opportunities are supported by the control of resources and a more economical business scale.

: The purpose of this paper is to investigate the effects of predominant cultural values on banking disclosure. On one hand, Islamic banks have practiced Islamic principles which are universal for all countries. Islamic banks are expected to provide transparent information especially in terms of social and Shariah(Islamic) compliant information as Islamic banks claim themselves to have social objectives as the prime consideration. Islamic banks also have Shariah supervisory body to ensure that the banking activities and business operations are in line with Islamic requirements. On the other hand, Hofstede‘s cultural dimensions and Gray‘s hypotheses have rendered remarkable contributions in financial and accounting practices among different nations. Examining 45 Islamic banks in 11 Moslem majority countries, this paper focuses on four particular cultural dimensions namely individualism/collectivism, masculinity/femininity, uncertainty avoidance, and power distance and whether these dimensions have an impact on transparency. This study found that two out of four national cultures still have significant effect on the transparency level in Moslem majority countries.

Penelitian ini bertujuan untuk mendeskripsikan berbagai faktor penyebab kemiskinan di Kota Dumai. Penelitian ini juga bertujuan untuk menganalisis peranan Pemerintah Kota Dumai dalam usahanya mengurangkan kemiskinan di tempat penelitian. Metode penelitian yang digunakan adalah metode kualitatif. Teknik pengumpulan data dilakukan melalui wawancara, observasi dan tinjauan dokumen. Hasil penelitian menunjukkan bahwa pelaksanaan program kebijakan Pemerintah Kota Dumai sedikit banyak berhasil mengurangkan kemiskinan meskipun belum sampai ke tahap yang maksimal. Analisis data menunjukkan bahwa faktor agama yang melibatkan unsur dosa dan pahala perlu diperhitungkan dalam mengelola program Pemerintah Kota Dumai untuk menampilkan karakteristik kepentingan umum daripada kepentingan pribadi. Implementasi kebijakan Pemerintah Kota Dumai sedikit banyak juga telah berhasil meningkatkan sistem layanan kepada masyarakat dan meningkatkan standar hidup masyarakat setempat yang diukur oleh faktor dari dalam yang mencakup perbaikan mental masyarakat miskin, bidang pendidikan dan kesehatan, serta faktor dari luar yang meliputi bidang politik, sosial budaya dan bidang ekonomi

This thesis critically explores the reflexivity and resistance of Indonesian Islamic Financial Institutions (IIFIs) towards International Accounting Standards Board (IASB) and Accounting and Auditing Organisation of Islamic Financial Institutions (AAOIFI) financial reporting standardization projects. The motivation of this study derived from two conflicting arguments as to whether or not Islamic financial institutions require specific financial reporting standards to accommodate their specific Islamic finance transactions. Most of the financial reporting researches adopt a narrative approach in their attempt to answer the ‘Why’ question, but neglect further investigation to respond to the ‘What is going on here?' question. This thesis fills the gap by answering the latter question and unveiling doubts on the required financial reporting standards for IFIs as well as the IIFIs and suggesting way forward for an enhanced stability of the global financial systems, through harmonization of financial reporting regimes. The data of this study was collected from semi structured interviews with 32 participants who are well versed with the knowledge on financial reporting standardization projects for IFIs/IIFIs, Shariah issues, and public policy. One of the chapters employs secondary data from conceptual framework and financial reporting standards issued by IASB, AAOIFI, and Indonesian standard setter. The aspect of reflexivity is examined on the extent of IFRS and AAOIFI adoptions by the IIFIs. It begins with the development of IASB and its promoting journey of IFRS that contains political lobbying in the Indonesian institutional arena. Likewise, the aspect of resistance towards AAOIFI is revealed through exploration of the institutional arena that reflects dissimilar finding with that of IFRS. The study involves not only conventional political discourse but also Islamic political interaction that influences the future of Islamic based financial reporting standardization. In other facet, an analysis of the three reporting standards using Maqāsid ul-Shari’āh lens supports the early assumption on the need of a specific financial reporting for the IIFIs. As a way forward, International Islamic Financial Architecture (IIFA) institutions are also examined to explore what supports required to have Islamic based financial reporting standards for IFIs in general and for the IIFIs in specific.

The thesis makes four main contributions, both to theories and literatures. Firstly, it shows how the hegemonic political economy of accounting exists within the area of financial reporting standardization, which is not simply by identifying the types of isomorphism that influence the organizations’ involvement in the financial reporting standardization. Secondly, in the context of Islamic financial institutions, the different interpretations of Shariah very much dominate in determining the direction of IFIs towards the implementation of Islamic based financial reporting due to the political influence in the respective countries where Islamic finance operates. Hence, the thesis proposes “Islamic Political Economy of Accounting” as a new theoretical framework to analyse similar discourse. Standard setters and regulators of IFIs are required to be tactful when looking into this issue. Thirdly, as the Islamic finance industry is now at continuous growth and maturity while also facing rising challenges, there must be a different approach to regulate the financial reporting standards. The hybrid way may not be appropriate any longer. This is shown in the analysis of the contents of the standards, where low level of Maqāsid ul- Shari’āh compliance is apparent. Lastly, this thesis also constructs an assumption about the attitude of dominant political leading countries towards the development of Islamic finance. As there is currently no real leadership in the area of Islamic finance, it would require influences from dominant leaders with congregated visions and a mission in line with Islamic values.

This study aims to analyze the difference in earning quality and potential bankruptcy of Islamic banks before and after the adoption of IFRS and to analyze the relationship of earnings quality and potential bankruptcy to the operating cash flow of Islamic bank. Data obtained from the financial statements of 12 Islamic banks in Indonesia and 17 Islamic banks in Malaysia with financial reporting period from 2010 to 2016. Earning quality is measured by discretion of loan loss provision and the potential bankruptcy of Islamic banks is measured using the Altman z score model. The results show that the earning quality of Islamic banks did not have significant differences between before and after IFRS adoption. While Islamic banks in Malaysia have significant differences between before and after the adoption of IFRS. Islamic banks in both countries do not have the potential bankruptcy difference between before and after IFRS adoption. The earnings quality decreased when the potential bankruptcy at high levels.

This research aims at investigating the potential of Bait al-Māl wa Tamwil (BMT) in the development of border areas of Indonesia-Malaysia by prioritizing the welfare approach. Primary data was obtained through in-depth interviews with respondents from academics, practitioners, and regulators. The Analytic Network Process (ANP) method and Benefit Opportunity Cost Risk (BOCR) network are used to review the interview results. The results reveal that BMT is able to help the development of the border areas. Moreover, the aspects of benefit and opportunity in exploiting BMT is more significant than the cost and risk aspects. There are three alternative strategies to be implemented in order to maximize the benefits and opportunities and also minimize the costs and risks, namely the capital of third parties, linkage programs, and special regulations

The purpose of this study is to find out what factors influence and which factors play the most powerful role in influencing efforts to improve the competitiveness of Small and Medium Enterprises in Eastern Indonesia via a comparative qualitative research method. The results of this study found that there are several factors influencing efforts to improve the competitiveness of Eastern Indonesia Small and Medium Enterprises. In conclusion, the dominant factor is that policy and infrastructure want to illustrate the extent to which the implementation of policies and infrastructure in locations around MSMEs operate can support or hinder businesses to operate

The discourse in integrating social and financial functions of Islamic financial institution has emerged as an intellectual critique since the practice of Islamic finance has arguably deviated from the moral expectation of Islamic economy. This argument is further supported by the advent of the interest of combining Islamic finance with impact investing, which should have been in the endogenous facet if Islamic finance since its very beginning. We found several of research papers with theories that Islamic financial and economic institutions, as distinct organisations, require a distinct management framework to be able to achieve their multidimensional purposes. This paper argues that a hybrid organisational management framework could be the most appropriate existing framework to be utilized regarding mission drifts and dysfunctional effects that might happen within such organisations. Hence, this paper provides notions for leaders to develop hybrid organisation culture in terms of time needed for leaders to develop selective criterion in hiring, different types of organisational structures, and the need of a new set of parameters.

The purpose of this study is to find out what factors influence and which factors play the most powerful role in influencing efforts to improve the competitiveness of Small and Medium Enterprises in Eastern Indonesia via a comparative qualitative research method. The results of this study found that there are several factors influencing efforts to improve the competitiveness of Eastern Indonesia Small and Medium Enterprises. In conclusion, the dominant factor is that policy and infrastructure want to illustrate the extent to which the implementation of policies and infrastructure in locations around MSMEs operate can support or hinder businesses to operate.

We analyze the role of earnings quality in mediating the relationship between corporate governance and market response. We also observe the relative impact of earnings quality of Islamic and non-Islamic stocks on market response, using 138 firm-years of data from listed companies registered in the Indonesian Institute of Corporate Governance Award from 2008 to 2016. To test the mediating role of earnings quality, we use path analysis, and we use moderated regression analysis to examine the impact of earnings quality on the market for both Islamic and non-Islamic stock. The results show that corporate governance does not directly have a significant impact on market response. However, corporate governance indirectly has a significant influence on market response mediated by earnings quality. The evidence also demonstrates that the better the quality of corporate governance, the better the quality of earnings. The lower the quality of earnings as indicated by the high accrual values, the higher the value of Tobins’ Q as a proxy of market response. These findings suggest the existence of an accrual anomaly in the Indonesian capital market. Finally, this study finds evidence of a higher positive market response to the earnings quality of Islamic stocks than of non-Islamic stocks

In Indonesia, the last few years have seen the privatization of many industries previously owned by the state. The surge was requirement of International Monetary Fund (IMF) to lend its fund in order to support Indonesian economy after monetary crises between 1997 and 1999. However, this phenomenon causes some novel polemics amidst stakeholders. Most of nation‟s wealth is brought by multinational companies to overseas without rendering great benefit to citizen. Therefore, inhabitant cannot savour many adventages from their abundant natural resources. In line with this privatization case, Islam as a way of life which is universal and comprehensive has a particular discussion on assets ownership that should be utilised according to its status. There are three concepts of ownership in Islam, namely individual, public and government ownership. The main objective of this paper is to point out the best scheme of natural resources ownership, whether should be owned by public, private or state based on siyāsah sharī„ah approach. The author utilizes descriptive qualitative methodology to find the appropriate pattern of natural resources management in Indonesia, particularly firms which manage the basic need of human being.

Food security is an issue worldwide, including in Indonesia a developing agricultural country. Yields from farming are deemed insignificant and take time. Farmers and land owners tend to sell their land for fast cash. Access to capital is also a major issue since crops, such as rice, mature in several months, which constrains the banking industry from financing farmers. Baitul Maal Wat Tamwill, Demak, Indonesia, offers a financing mode that accepts payment after harvest. This research analyzes benefit, opportunity, cost, and risk (BOCR) elements of product implementation. Analytic network process (ANP) is applied. All elements are observed from farmers’ perspective and the IFIs/BMT’s wide in-depth interviews. Results from pairwise comparisons indicate that the benefit and opportunity of this product have more significant weight compared to cost and risk elements. Alternative strategies for maximizing bene

Since 1934, the idea to establish an Islamic bank has arisen. It began with the concept that the banks’ interest is haram. Then the establishment of Bank Perkreditan Rakyat (BPR) which used zero interest in its operational system. MUI banking team was established in 1992, after Lokakarya Bunga Bank MUI, to manage the establishment of first Islamic bank, namely Bank Muamalat Indonesia on 1 November 1991. In era law no. 10 of 1998, dual banking system appeared, and the acknowledgement of three banking types existence began in law 21 of 2008 because those were mentioned in law no. 21 of 2008. The method used in this research is a historical method, in which search for data and facts from past that has correlations with the implementation of Islamic banking from the first establishment until 2014 (1992-2014) then recite it in this research. The finding revealed that the existence of legal act (Law No. 21 of 2008) have been giving an increase in the number of Sharia Commercial Banks which were originally only three Islamic Commercial Banks (BUS) up to 14. This can be an input for the government that for all sharia-compliant matters such as sharia insurance, sharia mutual funds, Islamic capital markets, and others, it requires legal aspects from the government that regulate it so that the development of Sharia economy in Indonesia will accelerate.

This paper proposes a model to conduct macro-stress tests of credit risk for conventional and Islamic banking in Indonesia based on scenario analysis. The aims are to investigate and to compare the financial system resilience of the two banking systems from various macroeconomic shocks. It used NPL and NPF to measures credit risk of conventional and Islamic banking. It considered several exogenous macroeconomic variables, namely Gross Domestic Product, Exchange Rate, Consumer Price Index, and Interest Rate. It applied the ARDL Model which is estimated for each type of bank credit portfolio that splits into 9 sectors. It found that a decreased in GDP, exchange rate depreciation, an increased in CPI, and interest rates contributed to encouraging a rose in both NPL and NPF levels. CPI was the biggest source of vulnerability to credit risk in both groups of banks, followed by GDP, exchange rates, and interest rates. This evidence indicates that the vulnerability of the financial system in both groups of banks did not only depend on the internal performance in each bank but also depend on the external shocks. It also confirmed that although Islamic banks and conventional banks used different operating systems, they could not be separated from macroeconomic shocks.

Financial technology is an activity that focuses on providing financial services ideas using software. Which is fintech, it expected that various facilities can be obtained later. The development of fintech began since the discovery of blockhain and cryptocurrency. In addition, this development is also one of the developments in digital-based technology and is a new innovation and his impact on all economic activities, especially in the Islamic economy. As for Fintech Syariah, of course it must be based on an Islamic perspective and refer to Maqashid Syari'ah al-Khams and contain benefits for every transaction carried out by the contractor. All forms of economy and business transactions originating from the Qur'an and the Sunnah are clear, paying attention to and protecting the rights of each individual in order to uphold justice and eliminate injustice in transacting through the shariah fintech.

Wakaf  produktif  adalah  pengembangan  dari  wakaf  yang  telah  sedia  ada.  Selain  wakaf  produktif  bertujuan  untuk  mengurangkan  keprihatinan  yang  dihadapi  oleh  golongan  fakir  dan  miskin,  wakafproduktif juga mempunyai objektif meningkatkan sosioekonomi masyarakat. Selain itu, wakaf produktifmempunyai  peranan  dalam  meningkatkan  taraf  hidup  masyarakat  di  Jakarta  Selatan  khususnya  taraf  pendidikan,  kesihatan  dan  taraf  ekonomi.  Sumbangan  yang  diberikan  sama  ada  dalam  bentuk  uang  tunai  bagi  keperluan  sekolah  dan  berobat  maupun  dalam  bentuk  kemudahan  belajar  secara  percuma  di  Lembaga  Pengembangan  Insani  (LPI)  dan  kemudahan  berobat  secara  percuma  di  Layanan  Kesehatan Cuma-Cuma (LKC)

The use of  rule that origin of muamalah is ibahah (allowed) often causes the practice of sharia banking to be un-creative and not careful about things that are subhat or even haram. Impersonation or modification in addition to the product side also occurs in accounting treatment practices for transactions that occur in Islamic banking. One of them is the treatment of foreign currency denominated transactions that occur in sharia banking. This research uses qualitative method by studying and analyzing fiqih rules on foreign currency denominated transactions that occur in sharia banking. Using the classical fiqh study approach the study concludes that foreign currency-denominated transactions can be grouped into three things: first valuation at the balance sheet date and free of usury, valuation at balance sheet date but prone to usury, and valuation at balance sheet date but not allowed to add assets or corporate earnings. In addition, foreign exchange gains or losses incurred from currency-denominated transactions should take account of the source of the profit / loss first before categorizing it as part of revenues in the sharia bank profit and loss statement.

The functions of zakat collection and distribution are carried out by both government and private institutions in Indonesia. As those institutions work without coordination, zakat integration become the main issue. This condition resulted in a zakat distribution gap. The center of economy such as Java may have significant zakat collection and zakat distribution , while remote area with limited resources and worse economic level may face both low zakat collection and zakat distribution. The enactment of Law No. 23 of 2011 concerning the Zakat Management brings hope for integration between government and private zakat operators. This study aims to find out the problems in implementing the Zakat Law, provide solutions and strategies to optimize the effort towards integrated zakat management. The method used in this research is the Analytic Network Process (ANP). The results indicate that there are two clusters of problems; internal and external. Internal issues sorted by priority order are: lack of human resources performance, lack of coordinator capacity, the different level of understanding, and lack of commitment of the zakat operators. External issues sorted by priority order are: lack of information technology development, lack of zakat management standard, lack of information dissemination, and lack of technical regulation. The solutions proposed to solve internal problems according to priority ranking are: coordinator capacity building, internal education on zakat integration, human resource monitoring and evaluation, and zakat operators’ commitment building.  Finally, according to the respondents, the solution proposed based on priority ranking are: zakat management SOP setting, zakat law information dissemination, IT system building, and zakat technical regulation.