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

Purpose: The main purpose of this research is to analyse factors influencing the growth of Islamic banks’ assets in Indonesia. 

Design/methodology/approach: The research adopts Granger Causality Test under Vector Auto-Regression (VAR) method and then it adopts Vector Error Correction Model (VECM) through Impulse Response Function (IRF) and Forecasted Error Variance Decomposition (FEVD) analyses. 

Findings: Granger Causality Test concludes that industrial production has a-directional relationship with asset growth that supports better economic growth stimulates investment and 41 savings. But not the other way, the test does not show that asset growth causes industrial production index in the country. The finding also confirms that market share of Islamic banks’ asset of even 3.9% in 2012 is still too small to create impact to production output in the country. The VECM model through its IRF and FEVD explains that inflation and interest rate are major variables that negatively affect the asset growth while industrial production, human capital, and office branch excluding channelling contribute positively. 

Research Limitations: This research is only limited to the discussion of the asset growth of Islamic banks and may not represent a fair assessment of overall performance of Islamic banks during the period of the research. 

Originality/value: This paper aims to offer analysis method in examining asset growth of Islamic banks in Indonesia from year 2004 to 2012 that may be useful to be applied in other country where Islamic banks also operate.

This study attempts to analyze the determinants of sukuk and bond rating in Indonesia. The purpose of this study is to determine factors influencing sukuk and bond rating using separate test. The study uses financial and non financial ratios such as company growth, firm size, profitability, liquidity, leverage ratio, and sukuk and bond maturity. This study examines corporate sukuk and bond that listed from 2004-2006 (9 sukuk and 15 bonds) at Indonesian Stock Exchange for the period of 2007-2009. This research employs ordinal logistic regression. The result of the study reveales that only firm size variable determines sukuk rating while others are not (growth, profitability, liquidity, leverage ratio and maturity). Firm size, profitability, and maturity influences the bond rating above 5 years while growth, liquidity, and leverage ratio are not significantly influence the bond rating.

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

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.

The Quran prohibits interest and encourages trade and charity as alternates. This article seeks guidance from the verses of the Quran and develops a theoretical model of charity-based Islamic microfinance institutions (MFIs), which can be used as an alternative approach to reduce poverty. The article argues that charity-based Islamic MFIs will be financially and socially sustainable as these are to be based on the concepts of brotherhood, local philanthropy, and volunteer services. Charity-based Islamic MFIs will provide money for consumption as well as production 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.

Religion and work are seldom discussed. The two have caused scholars to question the religion’s role with work. This paper reviews research on the integrate between religion and work by examining issues of concept, definition, measurement, and reviewing research that examines the relationship of work and religion with respect to: different times, types of people, organize human interactions and sources of knowledge. We then discuss the methodological requirement for reintegrating work studies into social institutional theory and indicate what the conceptual payoffs of such integration might be. These payoffs include breaking new conceptual ground, resolving theoretical puzzles and envisioning the nature of new social institutions.

By reading this book, you might understand liquidity management, risk management and deposit characteristics of Islamic banks. Also, you will have a better understanding on Islamic monetary operations in case of Indonesia and from theoretical perspective.

This paper studies characteristics of banking depositors referring to some survey literatures on Indonesian Islamic banking industry. Then, the output of such literatures is used to construct and propose an integrated program to develop the Indonesian Islamic banking industry. Particularly, the paper investigates the understanding of depositors with regard to Islamic banking institution, segmentation of depositors, depositors’ investment and liquidity behavior. Finally, an integrated program is composed of:(a) socializing the operations and benefits of Islamic banks;(b) educating the banking depositors and;(c) maintaining the loyalty of depositors.

Cara budidaya jamur tiram bisa kamu praktikkan di rumah. Sebagai salah satu jamur yang bisa dikonsumsi dengan berbagai manfaat kesehatan, jamur tiram digemari banyak orang. Tidak heran, banyak yang membudidayakannya. Jamur tiram identik dengan bentuknya yang putih, lebar, tumbuh bergerombol seperti payung, dan bentuknya yang menyerupai cangkang tiram. Ada banyak jenis jamur tiram, mulai dari jamur tiram abu-abu, tiram putih, cokelat, dan juga emas

Buku ini menghadirkan wacana baru tentang investasi syariah dengan bahasa yang renyah dan aplikatif.  Materi yang disampaikan dalam buku ini cocok bagi siapa pun yang membutuhkan panduan atau rujukan terkait cara berinvestasi. Cara-cara tersebut disampaikan dengan tetap berdasar pada prinsip kehalalan dan disesuaikan dengan hukum Islam.

Penelitian ini merupakan penelitian deskriptif qualitative yang bertujuan untuk mengetahui ada tidaknya pengaruh dari Current Industry Relative Performance (CRP), Future Industry Relative Performance (FRP) dan Leverage (DEBT) terhadap praktik manajemen laba pada Perbankan Indonesia. CRP, FRP dan DEBT diukur dengan mengggunakan rasio keuangan. Manajemen laba diukur dengan menggunakan total akrual. Data yang digunakan adalah data sekunder dengan karakteristik data time series yang berupa laporan keuangan triwulan bank (BM, BRI, BSM, BMI, dan BSMI) tahun 2004 sampai dengan 2008. Dengan menggunakan regresi berganda dengan taraf nyata 5%. hasil penelitian menunjukkan bahwa pada bank konvensional berdasarkan Uji Simultan, peubah CRP, FRP dan DEBT mempengaruhi praktik manajemen laba (AD), sedangkan berdasarkan Uji Parsial, hanya peubah CRP dan DEBT yang mempengaruhi praktik manajemen laba. Pada bank syariah, berdasarkan Uji Simultan, peubah CRP, FRP, dan DEBT tidak ada yang mempengaruhi praktik manajemen laba (AD), sedangkan berdasarkan Uji Parsial, peubah CRP, FRP dan DEBT tidak mempengaruhi praktik manajemen laba

The autonomy the local government is based on the political decision which was reformed from bureacratic centralistic to participatory decentralistic of government system. The Law no 22,1999 on the Local Government has created a new paradigm in the practice of local autonomy that the execution of power must be on the regency or town authorities. On the other side, Indonesia’s Islamic economy is powered by entities of islamic law based of banking system (Bank Syari’ah) that emerged its right moment in the post 1998 Indonesia’s economic crisis. After that moment, the Syariah’s financial industry was on rapid development in this country. And in line with that development, th ere have been many banking institutions grow in the regions. This article has intention to describe the role of economy based on Islamic law in the socio-economic development of the local governments. It also tries to look from finance as well as non finance aspects and other push factors, and its implication toward macro national economic.

This paper appraises demand and supply of liquidity in Islamic banking industry. The author has particularly attempted to consider the future scenario vis-à-vis Islamic banking and check the resiliency of the industry against any liquidity pressure. The paper starts with identifying and analysing sources of demand and supply of liquidity and uses ARIMA models to produce a future estimated number. The paper finds that the industry is managing the liquidity very well as of now. Nevertheless, its resiliency against liquidity problems is not fully satisfactory. Permanent liquidity mismatch might possibly exist during unpleasant economics conditions. Finally, the paper suggests Islamic banks to strengthen their liquid instruments, improve the liquidity management as well as business operation and further educate the public about Islamic banking principles.

This paper attempts to assess the demand and supply of liquidity in Islamic banks and to check the resilience of the industry to liquidity pressure. Firstly, it identifies the sources of short-term demand and supply of liquidity. Secondly, it assesses the historical performance of banks to manage liquidity. Thirdly, this paper predicts the short-term future performance and investigates the resiliency of the industry against any liquidity pressure by using ARIMA models and Bayesian technique. The paper finds that the industry has historically managed liquidity very well. Nevertheless, the resiliency against liquidity pressures is not strong enough because it does not perform well when irregular demand of liquidity or a liquidity run occur. As such, this paper suggests to Islamic banks that they intensify education of the public on Islamic banking principles, improve banking facilities, products and services, and optimize bank financing.

Water is a public good and Islam perceives it as such. However, after the emergence of the Dublin Principle in 1992, water is viewed as an economic good, thus it could be owned privately. This principle led private sectors to enter into the water management field and commercialise water resources. The main research question investigated is to find out whether there is any difference between the Islamic water management and current water privatization system. The objective of this paper is to find out and analyze if there is any difference between Islamic water management as it was implemented in the Prophet's era and the current water privatization system. The paper concludes that there are some differences between water management in Prophet's era and the current water privatization system. Unlike the Prophet's era, today water is perceived as economic good. Under water privatization system, water resource could be owned and treated privately and exclusively for profiteering purposes. The access of the poor to the water is restricted by their inability to pay. In pursuit of continuous and increasing profit, over extracting of water has endangered water sustainability. While the use of water in the Prophet's era was based on priority with domestic need fulfillment at the top level, under water privatisation the priority of water use is biased towards the sectors that are able to pay for it.

The paper attempts to construct the model of islamic monetary operation for liquidity management in islamic banking. Particularly, the model investigates variables that determine the role of the central bank in managing liquidity. Firstly, it explores the related conventional models and chooses one to find general variables involved in monetary operations for managing liquidity. Secondly, it formulates the islamic model after considering the islamic monetary operation principles, characteristics of both islamic monetary instruments and Indonesian islamic banking industry. Specifically, it models Bank Indonesia’s islamic monetary instrument called Bank Indonesia Sharia Certificate (SBIS). Thirdly, the model points out that the volume of SBIS is influenced by reserves requirement, currency in circulation, and prior auctions of SBIS. It means that the application of islamic OMO is not significantly different from monetary instrument in conventional OMO. Therefore, the paper suggests the issuance of islamic investment monetary instruments to implement the ideal islamic monetary instrument and OMO

The writing is based on my concern on the monetary policy in Indonesia which is not fully in accordance with the Islamic teaching. Among all, the monetary policy doesn’t pay attention to the real sector. It can be seen from the sectorial dichotomy between the real and monetary sectors whereas in Islamic economics, monetary policy is only a representative of the real sector. The paper is a literary research with the approach of comparative study between Islamic monetary policy and the monetary policy employed in Indonesia. The research result is a composition of a transmission model from the perspective of Islamic economics which is based on BI Return (sharing) by creating a diagram and then explaining some thoughts of Muslim and western economists such as Stieglitz to create a monetary policy which gets along with the real sector. The model is an observational result to the monetary condition in Indonesia which is then compared to Islamic monetary thought. This model will gain good result when all transmissions of monetary policy are applied effectively.