The aim of this paper is to revisit on the possibility to reintroduce the waqf as policy instruments for economic development. This study is motivated by our findings that waqf are considered as economic matters in three aspects: ownership, tools for intergenerational transfer, investment and sources of revenue and expenditure. Subsequently, we suggest to record these activity in the State of National Account. However, the current practices of transmitting the waqf via NPO and Islamic microfinance lead us to narrow the scope of recommendation to only fiscal policy. The related policy that could contribute to a very large and significant development and welfare of the community is being left out. Therefore, in this paper, we suggest a social security policy, which is intended to achieve the prosperity of society.

Religious is an essential factor to be studied because it is one of the most universal social institution and influence, it has a great influence on people's attitude, values and behavior at the individual and society. Religion also affect human attitude towards the various activities of daily life as well as in economics. Many studied show that religious values of human beings directly or indirectly will affect the choice of action or human economic behaviour. Therefore, religion has significant influence in economic life. In conventional perspective, the influence of religion seen in human economic behavior, as well as in Islamic economics view. Behavior in economic theory based on assumptions of rationality that adopted by economic modern today. The theory of rational economic man embraced the concept of self-interest and materialism which denies the existence of religious values and ethics in the economic area. Thus, in this context this paper intend to investigate and find the answer on how Islam (Qur’an) envisage human economic behaviour?. This paper also demonstrates and confirms the Islamic principle of human economics behaviour from the source divine Al-quran and hadist as evidence the influence of religious values in the economic life of Islam.

The commercial sector has been dominating the development of the Islamic finance since its emergence. As a matter of fact, Islamic finance has a social sector that is potential to further drive the commercial sector and reciprocally has tremendeous benefits in term of societal welfare to the social sector. This reciprocal relationship could become a potential catalyst for sustainable economic development and also one of Islamic financial deepening efforts. For doing so, project based sukuk with the spirit of real sector development through social sector can be innovated. Particularly, an awqaf linked sukuk with awqaf assets as part of underlying assets is proposed to finance governmental projects and infrastructure development. This paper explores the potential issuance of the awqaf linked sukuk structured through strategic alliance across government institutions and corporates through Public Private Partnership (PPP) to contribute to sustainable economic development and social welfare. It is hoped that the realization of awqaf linked sukuk could become an impetus to the global sukuk issuance within Islamic finance landscape

Perbankan syariah adalah institusi yang memberikan layanan kepada masyarakat baik melalui penghimpunan dana (investasi), penyaluran dana (pembiayaan) dan jasa perbankan lainnya yang berdasarkan syariat Islam. Dalam menyalurkan dana, antara produk yang ditawarkan adalah pembiayaan talangan haji dengan skim qardh dan ijarah. Makalah ini bertumpu kepada pembahasan kedua akad tersebut, dimana produk talangan haji yang bersumber dari fatwa Dewan Syariah Nasional (DSN) Majelis Ulama Indonesia (MUI) No. 29/DSN-MUI/VI/2002 menuai perbedaan pendapat dari banyak ulama kontemporer di Indonesia. Hasil kajian dijangka dapat menghasilkan kerangka konseptual berkaitan kesesuaian penggabungan antara akad qardh dan ijarah yang difatwakan oleh DSN MUI dengan pendapat para ulama baik ulama klasik maupun ulama kontemporer di Indonesia.

Handbook on Islam and Economic Life is a unique study, one of the first of its kind to consider Islam within a broader economic sphere. Covering a wide breadth of topics and research, it explores how Islam impinges upon and seeks to shape major aspects of economic life including economic organisation, business and management, finance and investment, charity, mutuality and self-help, and government. It concludes by analysing the link between religion and development, the present economic situation in Arab countries and the causes of underdevelopment in Muslim countries.

Poverty is a complex socio-economic problem that has existed as long as mankind has existed, and is unlikely to be solved soon. It has a direct effect not only on the life of the individual concerned but also on the community and on the level of material progress and civil development (Usmani, 2000). Many countries, international organizations and non-government bodies have introduced many programs to alleviate poverty, such as by promoting infrastructure development, constructing good roads to make transport and communication easy, promoting agriculture and farming, which are the main sources of income in rural areas, creating employment opportunities by constructing small-scale industries to enable people to get access to jobs, opening market opportunities to enable the rural population to sell their goods at favorable prices, and attempting to establish good governance and effective administration (Singh, 1999). The World Development Report 1990 (World Bank, 1990) recommended a dual approach to reducing poverty involving: a) efficient labor-intensive growth based on appropriate market incentives, physical infrastructure, institutions and technological innovations; and b) adequate provision of social services, including primary education, basic health care and family planning services. In fact, the reality proved that all programs were only temporary, casuistic and not significant. Against this background, we are interested in the opinion suggested by Roar Bjonnes (2002), the founder of the Center for Sustainable villages, who said that to alleviate poverty there are some longterm matters that need to be addressed, 

Medical tourism is a trend in the tourism market. However, not many companies providing medical tourism services follow by shariah compliant. As an Islamic country, Malaysia has potential to offer shariah medical tourism as another attraction to medical tourists. In line with this development, the paper will adopts two case studies into assessing of practice of Shariah compliant among government and private medical tourism operators in Malaysia which is a government hospital have been identified as “Hospital Mesra Ibadah”. The selected from government hospital is HUSM Kubang Kerian, Kelantan and from private hospital; Al-Islam Specialist Hospital, Kampung Baru, Kuala Lumpur. An overview of shariah medical tourism practice such as the treatments, facilities, services and the management of the hospital will also present.

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

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

Artikel ini akan menjelaskan konsep teoretikal tadbir urus dalam koperasi di Malaysia. Kami menjurus kepada membangunkan ciri-ciri tadbir urus di kalangan lembaga pengarah dalam koperasi. Penilaian teoretikal ciri-ciri tadbir urus berdasarkan Kod Tadbir Urus Korporat Malaysia (Malaysian Code On Corporte Governance), Index Tadbir Urus Korporat Malaysia (Malaysia Corporate Governance Index) dan Akta Koperasi Malaysia 2007 telah diaplikasi untuk membentuk tadbir urus koperasi. Berdasarkan peranan utama lembaga pengarah yang berkesan dalam meneraju dan mengawal organisasi yang dimiliki oleh ahli seperti koperasi, kami mencadangkan bahawa elemen epistemologi Tauhid boleh digunakan untuk mencipta item tadbir urus bercirikan Islam yang menggalakkan perilaku, moral dan sikap lembaga pengarah yang ikhlas dan jujur. Tambahan lagi, kajian ini boleh menyumbang beberapa pandangan dalam perspektif Islam sebagai satu liputan baru tadbir urus koperasi di Malaysia.

Purpose

The purpose of this paper is to analyze individual financing instruments and portfolios of instruments, and find the location of the most efficient portfolio financing. The Indonesian Islamic banking industry is very promising with four dominant financing instruments, namely, Mudarabah, Musharakah, Murabahah and Istishna. Each instrument has unique pattern of return, expected return and risk. Moreover, the variances of two, three and four financing instruments suggest the importance of identifying the most prospective financing instruments. Further, the most efficient portion of the most prospective financing is determined by constructing an efficient portfolio financing frontier.

Design/methodology/approach

Technically, it uses risk and return theory to compute risk, return and variance of an instrument and set of financing instruments. In addition, it uses an efficient portfolio frontier curve to locate all combination of the most progressive portfolio financing and finds the most efficient portfolio financing.

Findings

It finds some interesting finding with regard to the pattern of return, characteristics of a financing instrument and groups of financing instruments. The most essential finding of the paper is the location of the most efficient portfolio financing.

Research limitations/implications

The information and finding of this paper benefit the Indonesian Islamic banking industry to optimize the performance of an individual and groups of financing instruments. Particularly, for the most progressive financing instruments, it proposes the combinations of portfolio financing which give optimum output.

Originality/value

To the best of author’s knowledge, this is the first paper trying to analyze and construct an efficient portfolio financing frontier of the Indonesian Islamic banking industry

Secara garis besar, pembahasan pembahasan dalam buku ini terbagi menjadi tiga bagian pertama bersifat konseptual yang membahas teori itu sendiri kedua bersifat kajian sistem ekonomi yang ada, tiga bersifat pengembangan ekonomi Islam yang berbasis pada pendekatan muqasid syariah. Hasil dari pembahasan ini memberikan gambaran yang komprehensif mengenai ilmu ekonomi Islam itu sendiri karena realisasi Falah dalam ekonomi Islam sangat berhubungan dengan syariah dan tujuannya .

Murabahah telah dipraktikkan sejak abad pertama Hijriah. Di dunia keuangan modern, Murabahah telah dimodifikasi menjadi murabahah lil aamir bisysyiraa/Murabahah Kepada Pemesan Pembelian. Akad Murabahah mendominasi akad dalam pembiayaan di bank syariah, termasuk di Indonesia. Pada dasarnya praktik murabahah diperbolehkan selama sesuai dengan dalil Naqli, Fatwa DSN, dan kaidah Akuntansi. Implementasi Akad Murabahah di Bank Syariah B dilengkapi dengan Akad wakalah. Berdasarkan hasil penelitian ini diketahui bahwa terdapat perbedaan antara pemahaman dan praktik pelaksanaan akad pembiayaan murabahah konsumtif oleh para nasabah di bank syariah B, dan bank syariah B sendiri belum melaksanakan akad pembiayaan tersebut sesuai dengan kaidah syariah dan pedoman internal yang ada. Penelitian ini adalah penelitian deskriptif. Pendekatan yang digunakan dalam penelitian ini adalah pendekatan normatif-empiris dan pendekatan akuntansi. Metode penelitian yang digunakan adalah desk study, kuesioner dan interview

This study proves: first, concept of maqasidal- shariah(al-Shatibi, n.d) is preservation and protection of: religion (hifzu „ala al-din), life (hifzu„ala al-nafs), progeny (hifzu„ala al-nasl), intellect (hifzu„ala al-„aql) and wealth (hifzu„ala al-mal) couldbe used as basis to develop maslahah based organization. Aspects of maslahahdaruriyah, they are: religion (al-din), life (al-nafs), progeny (al-nasl), intellect (al-„aql) and wealth (almal) can be developed into a few of organizationalorientation. Maslahah Performa consists ofsix organizational orientations. Worship orientation is as perspectiveon preservation and protection of religion within organization. Internal process orientationis as perspectiveon preservation and protection of life of organization. Talent orientation is asperspectiveon preservation and protection of progeny of organization. Learningorientationis asperspective on preservation and protection of intellect of organization. Customer orientationis as perspectiveon preservation and protection of customer relation.Wealth orientationis as perspectiveon preservation and protection of wealth of organization

This chapter’s goal is to define the kind of seeds to be planted for moving forward in the safe and stable drive toward a leading central banking role directed at achieving a sustained Islamic banking and finance development within the global financial system. The system witnessed the input of Islamic banking with its fruitful contribution as a feasible banking structure in both implementing agreed reforms and shaping the next steps directed toward crisis prevention and crisis resolution.

The adopted approach is based upon scientific conceptual basis as well as the practical experience related to the central banking role and Islamic banking evolution. This chapter will define the strategic role of Central Banks and highlight the conceptual basis governing the leading role of central banks as well as the practical basis derived from our central banking and Islamic banking experience.

In light of the conceptual and practical basis for enabling an efficient and effective role of Central Banks as a regulatory body in shaping the future of the Islamic Financial System. Legal, institutional and managerial strategic determinants for this role have been defined.

The analytical work of this chapter crystallises in a pioneering initiative the main determining factors governing the role of central banks as the main regulatory body for Islamic banking, and how this role could be effective in affecting the future role to be played by the Islamic banks in the global financial system. Also, to this end, the integrated required role by central banks, public policies, multilateral institutions and Islamic banks are illustra

Energy and cooperative hard work and commitment from all players, including the regulators of Islamic banks supported by public policies, international and multilateral institutions and members of the Islamic banking family is thought to be the main determining factor for transforming the Islamic banking family into one that will make the Islamic people and all humanity – through the global financial system – live with more stability, welfare and happiness.

The Muslim population is expected to increase by 26% to 2030 to approximately 2.2 billion, and currently have a 7.7% share of global GDP which is expected to grow to 8.7% by end 2016. Therefore, the need of wealth management from Islamic way is growing rapidly. Hajj is one of Islamic pillars that Muslim people should concern on it. This hajj is performed depending on the ability of person in term of health and wealth. Moreover, the government plays a major role in management and service of hajj in many Muslim countries. The hajj fund can contribute significantly to economic development of the country. One of the possible mechanisms can be used for managing the hajj fund is by using wealth management as the instrument in managing the fund. Moreover, this study will employs qualitative research that refers to the meanings, concepts, definitions, characteristics, metaphors, symbols and descriptions of the matter understudy by using content and descriptive analysis to get finding of the study. The finding of the study is that the concept of Islamic wealth management differs from Conventional one. It is very comprehensive that cover all philosophical foundation; ontology, epistemology and axiology. Semantically, it is different from the Conventional, because Islamic wealth management has its own paradigm and philosophical underpinning, derived from Qur’an and Sunnah, and secondary source can traced through Islamic literatures such fiqh, tasawwuf, kalam. In practice level, it can be implemented in Indonesian Islamic banking especially in managing the hajj fund to contribute to economic development of ummah

In mainstream economics, distribution concerns who gets what. “Who” refers to the personal distribution of income among individuals or the functional distribution of income among suppliers of productive factors. Also mainly concerned with the factors which affect the wealth of nations. Issues of justice, elimination of poverty and deprivation are secondary. On other side, Islam not only concern to who gets what, but also concern to how the human gets what equally and justify. Therefore this study uses an analytical approach to present principles and concept of justice distribution derived from the guidance of revelation; Qur’an and Sunnah. The study is derived into two main themes. The firts one deals with theory of juctice and a teview on distribution theory in non-Islamic Paradigm, the second one is the taxonomy of economic distribution theory in Islam

Education is un-separated part of the human society as old as life itself. Human societies time bytime have had vested interests in education. The societies always agree to acknowledge theimportance of education, even a large number of them fail to provide sufficient resources thatcan be used as support to educational institutions and activities. Waqf as an institution andIslamic finance instrument has a direct and un-direct effect to upgrade the capabilities of theneedy and enhance their quality of life by providing access to education facilities. Hence, theWaqf institution surely can accommodate the issue of financing for government’s educationexpenditure in its effective and comprehensive approach. Thus, the main objective of this paperis to propose the model of Waqf financing for reducing government’s education expenditure byusing cost benefit analysis. The methodology of this research is a qualitative research towardsliterature related to Waqf. The general finding of this paper shows that there is should a strongwillingness from government to devote and make Waqf institution as one of financing capitalfor education expenditure.

The main operation of Indonesian Islamic banks is microfinance. Based on Bank Indonesia's Islamic banking model up to May 2013, the performance and estimation of the total assets, financing, and third-party funds are on track for the near future, with scenarios ranging from optimistic to moderate to pessimistic. This chapter investigates the effects of internal and external factors on the performance of the Islamic banking industry, such as its funding and financing activities. It elaborates on the factors affecting Islamic bank financing and nonperforming financing. The chapter assesses the resilience of the Indonesian Islamic banking industry, and recommends policies to be taken. Finally, it explores other Islamic financial institutions and the performance of the Islamic financial market, particularly sukuk and regulatory issues. Besides Islamic banking institutions, nonbank financial institutions—such as insurance (takaful), pawnbroking, mutual funds, and multifinance—also exist in Indonesian Islamic finance and have survived during unfavorable economic conditions.

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. Hasilnya menunjukkan bahwa efisiensi OPZ pada tahun 2005 masih lebih baik dari tahun 2006 dan 2007 baik secara teknis (94,52%), skala (75%), dan overall (71,27%). Perhitungan terhadap 9 OPZ tahun 2007 dengan asumsi CRS, menunjukkan hanya 2 OPZ yang efisien, yakni BMM dan Bamuis BNI.Penyebab utama inefisiensi adalah dana tersalurkan dan dana terhimpun, yakni menyumbang 43,1% dan 36%. Sedangkan pengukuran dengan orientasi input menyatakan bahwa sumber inefisiensi adalah biaya operasional lain sebesar 34,9% dan biaya sosialisasi sebesar 31,1%.