Islamic Economics Journal

Asset Management in Islamic Inheritance: A Solution for Economic Empowerment Obstacles

Indah Puspitasari — 2024-06-22

If inheritance assets are transferred, the economic well-being of heirs should increase. However, conflicts among heirs often prevent this, resulting in unproductive or disputed assets with unclear ownership. These disputes significantly hinder the economic progress of the heirs. This article attempts to propose a solution to the problem. According to Islamic inheritance principle, before distribution, there are three obligations must be fulfilled: handling the body's costs, repaying the deceased's debts, and executing their will within limits. Afterward, remaining assets can be distributed among entitled heirs according to Islamic inheritance laws. The remaining assets, termed inheritance, can enhance heirs economic empowerment when distributed. The asset management approach that focuses on Islamic inheritance is expected to further impetus for the economic strengthening of individual beneficiaries specifically, as well as benefit the Muslim community and the general public in the country, such as alleviating conflicts and cultivating heightened economic activity. This qualitative study utilizes a library research approach with phenomenological lens. Based on the literature review conducted, asset management based on the principles of Islamic heritage with the aim of increasing economic empowerment is: providing education to families about Islamic inheritance; accurately record ownership of property, debts, and receivables; the written documents as proof of ownership of asset, and the determination of inheritance rights and their division should be held; utilizing inheritance assets productively to establish sustainable individual or family finances.

Factors Influencing Shopee Users’ Purchase Decisions: An Islamic Economics Perspective

Rachmania Nurul Fitri Amijaya — 2024-06-01

The purpose of this study is to investigate the impact of product reviews and trust on Shopee purchasing behavior from the perspective of Islamic Economics. Data was gathered via surveys and analyzed using data analysis procedures such as the validity test, reliability test, classical assumption test, multiple linear regression analysis, t-test, F test, and coefficient of determination. This study makes use of product review factors, trust variables, and purchasing decision variables. The result indicates product review and trust are significant positives to purchasing decisions. The study emphasizes the importance of product evaluations and trust in influencing shopping decisions on Shopee within the context of Islamic Economics. Recognizing the interaction of these elements may help firms, platform operators, and legislators make strategic decisions about how to create a climate conducive to internet trade while adhering to ethical and Islamic standards.

Farmer Satisfaction with Financing Services at Sharia Microfinance Institutions Agribusiness (Sharia MFI-A)

Widya Fitriana — 2024-06-22

The total share of financing for the agricultural sector from financial institutions in Indonesia is still relatively low. It is because the agriculture sector is considered high-risk and not bankable. Even though the demand for financing from the agricultural sector is very high. Sharia MFI-A is a financing institution friendly to farmers because it has Sharia principles and shares risks. The loyalty of its customers determines the sustainability of this business. Service quality and customer expectation are affect customer satisfaction. This study aims to analyze service attributes considered necessary by customers and customer satisfaction to financing services at Sharia MFI-A. This research was conducted in West Sumatra, a province famous for its local principles of “Adat basandi sayarak, syarak basandi kitabullah”. The research was conducted on Sharia MFI-A namely in Agam Regency. The respondents were farmers who received financing in 2022. Five variables were observed: tangible, reliability, responsiveness, assurance, and empathy and measured using the Likert scale. Data analysis used Importance Performance Analysis (IPA) and Customer Satisfaction Index (CSI). The results showed that CSI’s score on Sharia MFI-A services is 88.28%, including the range of very satisfied criteria. Customers expressed very satisfaction with the performance of Sharia MFI-A services because the office is clean and comfortable, fast and friendly service, guaranteed customer confidentiality, and proft sharing transparency. This is by the principles of sharia services, namely fairness, and honesty in transactions ('adl wa tawazun), maslahah, and does not contain gharar and riba. Customer satisfaction with the services will affect farmers' loyalty to utilizing financing services from Sharia MFI-A in the future.

Investment, ZIS Funds, Mudharabah Financing and Economic Growth in Indonesia

Ichsan Hamidi — 2024-06-22

This study conducted to investigate the effect of investment, ZIS funds, and mudharabah financing towards Indonesia's economic growth during the period 2011-2021. This study uses a quantitative approach with multiple linear regression analysis of monthly time series data. The results showed that investment realization has a positive and significant effect on economic growth, in accordance with Schumpeter's theory which highlights the role of investment in encouraging economic activity. Meanwhile, the distribution of ZIS funds has a positive but insignificant effect on economic growth with 0,7127 p-value, due to a lack of public trust in zakat amil institutions in Indonesia, That caused lack of ZIS funds to be distributed in encouraging economic growth. Mudharabah financing also has a positive but insignificant effect on economic growth with 0,5224 p-value, due to a small value of financing and low public interest in applying for mudharabah financing. It is hoped that the results of this study can become a basis for strengthening the role of Islamic economics, especially ZIS and mudharabah towards economic growth in Indonesia and improving people's welfare.

Do Macroeconomic Variables Affect Deposits in Shariah Banks?

Ayunseh Retno Harini — 2024-06-01

Banks are intermediary institutions that collect funds from the public and channel them back in the form of credit and the funds collected are third party funds (TPF) which are the largest source of funds relied on by banks, including sharia banking. The challenge of sharia banking is to expand market share. Currently in Indonesia the banking market share is dominated by conventional banking. Increasing market share will increase savings in sharia banking and strengthen sharia banking as an intermediation institution. The research aims to identify the influence of macroeconomic variables on deposits in sharia banking. The research uses time-series data 2012: Q1 - 2022: Q1 and the ARDL method to estimate the short- and long-term influence of macroeconomic variables on TPF. The research results show that there are two variables that influence the short and long term, namely the GDP variable and the exchange rate. Meanwhile, inflation and interest rate variables only have an effect in the short term. The implications of the research show that increasing economic growth must be followed by increasing people's income and the stability of the rupiah exchange rate will increase people's deposits or savings in sharia banking.

The Nexus between Financial Development and Carbon Emission in OIC Countries

Mohammad Zen Nasrudin Fajri — 2024-06-01

Economic activities are important factors for the development of countries. However, many countries give too much importance to the economy without paying attention to the country's environment as a result of ongoing economic activities, such as industrial, electricity production, transportation, and commercial and residential which can cause environmental degradation with the spread of CO2 carbon dioxide emissions. The growth of a financial sector that supports those economic activities is considered the driver of carbon emissions at the macro level. However, Islam teaches Muslims to avoid corruption on earth including those leading to the rise in carbon emissions. This makes Muslim-majority countries have better concern in dealing with carbon emissions. This study aims to analyze the influences of financial institution index (FII) and financial market index (FII) on carbon dioxide emissions in the Organization of Islamic Cooperation member nations. Using the GMM estimator for a panel dataset of 36 countries between 2000 and 2021, this study unravels that the FII significantly increased carbon emissions in OIC countries. In reverse, FMI contributed to the reduction of carbon emissions in OIC countries. This paper recommends the government set regulations for banking sectors to improve eco-friendly credits for the private sector. It is also recommended that the government enrich the issuance of green securities and strengthen the financial market because it is effective in minimizing carbon emissions.

The The Effect of Islamic Financial Inclusion and Literacy on the Productivity of MSMEs: Case Study in Probolinggo

Muhammad Alfan Rumasukun — 2024-06-01

Looking at the large contribution of MSMEs to GDP growth, namely 0.2%, it can be seen that the market in this sector is supported by a fairly large portion of the workforce, reaching 96.92%. However, the low productivity of MSMEs is a concern because the input produced is not commensurate with the output produced. This research aims to investigate and understand the productivity problems faced by MSMEs (Micro, Small and Medium Enterprises) in Probolinggo, especially in Mayangan sub-district. This research covers aspects such as financial inclusion and financial literacy, with a focus on sharia approaches. This was done to understand the impact of sharia financial inclusion and sharia financial literacy on the productivity of MSMEs in the region. The study employs quantitative research methods and utilizes primary data obtained from respondent-filled questionnaires. The population consists of MSMEs in the Mayangan District, with 30 respondents selected through Probability Sampling. Then the data is processed using multiple linear regression analysis techniques using the SPSS (Statistical Package for Social Sciences) program. The results of this study indicate that Islamic financial inclusion and Islamic financial literacy have a significant effect on the productivity of MSMEs. This is evidenced by the result of the coefficient of determination analysis where the variables of Islamic financial inclusion and Islamic financial literacy affect MSMEs productivity by 84,3% and the remaining 15,7% is explained by other variables not included in this study.