Islamic Economics Journal

Analysis of Factors Affecting Profitability of Islamic Banks in Yogyakarta

Ratri Zhohratun Aini, Rusdianto Rusdianto — Sun, 29 Dec 2024 00:00:00 +0700

Islamic banks have a strategic task to encourage economic growth and national progress. The greater the contribution of banking, it is estimated that the more advanced a country’s economy will be. As a financial institution, Islamic banks must also pay attention to their performance to operate well and develop rapidly in Indonesia, one of which is by paying attention to financial performance through financial reports. Profitability is an assessment aspect used to measure bank performance in generating profits. This study aims to determine the results of the effect of mudharabah and musyarakah financing on bank profitability as measured using ROA by comparing the company's net income with the total assets it has as a whole. The data analysis method uses secondary data obtained from the monthly financial statement data of Islamic Banks on mudharabah financing and musyarakah financing with the help of SPSS 27 software. The results showed that mudharabah and musyarakah financing had a positive and significant effect on the profitability of Islamic Banks in 2018-2022. This shows that the increasing value of the contract distributed also contributes to increased profitability. It is hoped that a significant increase in profitability can attract investors to invest more in Islamic Banks.

Literature Review: Factors Influencing Purchasing Decisions in the Service Industry

Sun, 29 Dec 2024 00:00:00 +0700

This research focuses on the factors that interact with each other and influence consumers' purchasing decisions, as well as how implementing effective marketing strategies can influence these decisions across various industry sectors. The purpose of the study is to examine studies that are relevant to purchase decisions, this study uses a qualitative method with a systematic literature study approach, which is an assessment and analysis of previous research related to purchase decisions, using the keywords "Purchase Decision" and "Travel" in the period from 2004 to 2024 (20 years). The results of the study found that purchasing decisions are influenced by cognitive dissonance, social influence, corporate alliances, brand equity, brand preferences, gender roles: female dominance, online forum browsing, price, online reviews, promotions, demographics, travel preferences, domestic family decisions, brand decisions, price decisions, circle of acquaintance decisions, compromises, temporal constructions, perceived ease of use, electronic word of mouth, content marketing, Brand image, lifestyle, trust in tour packages, trust in payment methods, intention to purchase tour services, promotion of online tour services, place of residence, previous purchase experience, information sources used and perception of reliability, professional status, age, education level, financial situation, and perception of value.

The Effect of Macroeconomic Variables on the Profitability of Islamic Commercial Banks in Indonesia

Miftahul Huda, Azidni Rofiqo, Abdurrizqi Bin Abdul Razak, Fikriyyatun Nabila — Sun, 29 Dec 2024 00:00:00 +0700

Islamic banks as a form of banking that operates based on sharia principles, are expected to show superior financial performance when compared to interest-based conventional banks. This study aims to determine the effect of inflation, JUB, and PUAS on the profitability of Indonesian Islamic Commercial Banks. The method used in this research is a deductive quantitative method, with the Vector Autoregressive (VAR) Vector Error Correction Model (VECM) approach and the E-Views 12 test tool. The data used in this study used secondary data with time series data from the period January 2013 to April 2023, where ROA was used as an independent variable and Inflation, Money Supply, and Islamic Interbank Money Market became the dependent variable. As for the results of this study, in the long term, the variables of Inflation and JUB have a significant and negative effect on the Return on Assets (ROA) of Indonesian Islamic Commercial Banks, while the Islamic Interbank Money Market (PUAS) variable does not have a significant and negative effect on the Return on Assets (ROA) of Indonesian Islamic Commercial Banks. In the short term, the variables of Inflation, Money Supply (JUB), and the Islamic Interbank Money Market (PUAS) do not have a significant and negative influence on the Return on Assets (ROA) of Indonesian Islamic Commercial Banks.

Islamic Philanthropy and Social Services in Improving Community Welfare in Indonesia

M Makhrus, Ibnu Hasan, Selamet Eko Budi Santoso — Sun, 29 Dec 2024 00:00:00 +0700

Poverty in Indonesia has become a complex and multisectoral issue, necessitating comprehensive handling involving all stakeholders, including civil society and Islamic philanthropy managers. Islamic philanthropic activism in Indonesia continues to expand, as evidenced by a growing public understanding of the importance of channeling donations through institutions. Donations collected by Islamic philanthropic organizations are channeled into charity programs for non-urgent needs and productive programs with lasting effects on community empowerment. This form of research employs a qualitative-descriptive methodology. This study examines an Islamic philanthropic organization using documentation and observation techniques to collect data, and qualitative deductive and inductive methods to analyze the data qualitatively. The findings of this study indicate that Islamic philanthropy and social services in improving welfare carried out by Islamic philanthropy management organizations in Indonesia are manifested in various fields, including social, economic, educational, and health, and are channeled as assistance and empowerment programs to improve public welfare. The organization’s capacity to manage Islamic philanthropy is achieved by integrating its programs, policies, and services with government and private agencies with similar objectives. In measuring the impact of Islamic philanthropy and social services on enhancing community welfare, Islamic philanthropic organizations consider a change in thought patterns, attitudes, and actions in living life based on one’s abilities. Consequently, charitable social services have taken the form of empowerment programs in a society with lasting effects.

Optimization of Zakat Fundraising Realisation Based on the Measurement of the Zakat Literacy Index in Rural and Urban Communities

Adib Fachri, Citra Etika — Sun, 29 Dec 2024 00:00:00 +0700

This article compares zakat literacy between rural and urban communities in Lampung Province and explores strategies to optimize zakat fundraising based on the Zakat Literacy Index (ILZ) of each region. Using a mixed method approach with an explanatory design, 200 respondents were involved, with 100 from rural and 100 from urban areas. The independent t-test results show a difference in zakat literacy between the two groups, although the difference is not statistically significant. The ILZ in rural areas is 79.57 (medium category), while in urban areas it is 86.79 (high category), reflecting a relatively good understanding in both communities. To optimize zakat fundraising, urban areas can focus on strengthening technical management and adopting digital technology for payments, while rural areas require educational efforts and collaboration with religious leaders to enhance basic zakat knowledge.

The Implementation of Fiqh Principle in Islamic Financial Products: A Systematic Literature Review

Nafisatu Roudlotin Ni'mah, Asmuni Asmuni — Sun, 29 Dec 2024 00:00:00 +0700

The fiqh rules aim to provide a foundation for all activities carried out by Muslims, including economic activities. Through the rules of fiqh, various contemporary economic problems can be solved by drawing a red thread from the arguments that have existed before. For example, the phenomenon of online buying and selling that is currently rife can be found by linking the arguments that can be used as a reference. This implementation must be done because, with it, Islamic economic activity will be easier to achieve its goals. The purpose of this study is to find out the application of the rules of fiqh in various Islamic financial products. The method used in this study is a systematic literature review by extracting several scientific journals related to the theme. The application of the rules of fiqh in various Islamic financial products has proven to be significant and has a positive impact from various economic sides. The application of the rules of fiqh makes all economic layers have a foundation in doing something so that it does not come out of the principles of Islamic sharia.

Optimizing the Role of Kiai in Preparing Competitive Santripreneurs

Sun, 29 Dec 2024 00:00:00 +0700

Pesantren economics has increasingly gained attention from various circles, moving away from the traditional stigma of being solely traditional educational institutions. This article explores the role of the Kiai of Darul Pesantren, Menganti, in developing and preparing santripreneurs. This article employs qualitative research with a case study approach. Use the triangulation method. Data analysis was conducted through data reduction, data presentation, and verification. The validity of the findings was ensured through extended observation and methodological triangulation. The study's findings reveal that the role of the Kiai in preparing santripreneurs is carried out through several methods: a) Doctrination of students through the learning process, b) Aligning student's areas of expertise with their interests and talents, c) Establishing partnerships and collaborations with third parties, d) Incorporating santripreneurs education into extracurricular activities at the pesantren, e) Providing educational scholarships for students, f) Requiring all students to have savings in the pesantren through BMT (Baitul Maal wa Tamwil). On the other hand, the challenges faced include: a) A lack of motivation among students to learn entrepreneurship, b) Time constraints for both students and instructors, c) Limited entrepreneurial capital, and d) A shortage of human resources within the pesantren.