Journal of Islamic Economics and Philanthropy

Synergy of Zakat and Taxes Viewed from Fiscal Policy Objectives

Tue, 21 May 2024 00:00:00 +0700

Until now, taxes are still the main instrument in fiscal policy in Indonesia. Meanwhile, zakat, which has considerable potential, has not yet become an instrument of fiscal policy. Maximization and efficiency can be achieved if the synergy of zakat and taxes is maximized. This study, it will examine how the synergy of zakat and taxes is when viewed from the objectives of fiscal policy, namely maintaining stability and developing the country's economy, improving the quality of human resources, maintaining price stability, and increasing investment. Qualitative methods were used in this study and library research as an exploratory approach and study. The results of this study are: First, the synergy of zakat and taxes can complement each other and can help achieve fiscal policy goals, and can reduce the risk of problems that can come at any time, such as inflation and economic recession. Second, zakat and taxes both have the same potential and can synergize together in helping achieve fiscal policy goals.

Impact of Risk and Competition on Indonesian Islamic Bank Performance: Panel Data Evidence

Issa Hamadou — Tue, 21 May 2024 00:00:00 +0700

This paper examines the impact of banking risk and competition on the performance of Islamic banks in Indonesia. The study used financing to deposit ratio (FDR) as a representation of liquidity risk, non-performing financing (NPF) as a representation of financing risk, and the operating expense ratio (BOPO) as a representation of operational risk. Regarding competition, market share (MS) and market concentration (MC) proxies by the Hirschman–Herfindahl Index (HHI) were used. Time series data were collected from 14 Islamic banks operating in Indonesia for the period 2010–2020 and the Least Square method was used. It was found that liquidity risk affects positively the profit of Islamic banks, while financing risk and operational risk impact negatively the variation of the profit. Only market share, influences the variation in the profit of Islamic banks in terms of competition level. Therefore, the Indonesian government should apply a competition policy to the Islamic banking sector in order to increase their profitability and improve economic growth. For future research, it is recommended to include other Islamic finance institutions like Islamic rural banks and Islamic takaful (Islamic insurance) to analyse these effects in a general way.

Factors Influencing Islamic Social Reporting in Indonesian Sharia Banking Compliance

Fatima Az-zahra Wairooy, Zaimudin Al-Mahdi Mokan, St. Umrah — Wed, 22 May 2024 00:00:00 +0700

The rapid development of Islamic banks certainly urges researchers to reveal secrets, especially those relating to financial performance (FP), governance, and disclosures from companies or institutions, whether they are in accordance with halal standards or vice versa. This research aims to assess the suitability of halal standards. in the sharia banking industry sector, apart from that, in principle, when a bank has a high value of non-halal income, it can be predicted that the bank will still have high interest-based debt, and vice versa, All Syrian Commercial Banks registered with the OJK in 2014-2021 constitute the research population. 96 samples were collected from 12 BUS using purposive sampling. The findings show that the indicator of Halal Life Style, namely Non-Halal Income (X1), has no effect on ISR disclosure, while the Sharia Financial Performance indicator consisting of FDR (X3), CAR (X4), and DER (X5) has no effect on ISR disclosure (Y), while ROA (X2) influences ISR disclosure (Y). The result of this research show that companies in the halal industrial sector, especially Sharia Commercial Banks in Indonesia, are still lacking in paying attention to and minimizing non-halal income as well as other indicators such as FDR, CAR, and DER.

Investment Risk Management in Sharia Banking : A Literature Study

Nani Suhartini, Radhya Arsy Tamika, Azhar Nor — Mon, 20 May 2024 00:00:00 +0700

An incident that carries the possibility of causing financial loss is called a risk. In banking, investment risk is the risk that necessitates the bank to take a portion of the losses from a customer's business that has been financed through profit-sharing arrangements that include the profit and loss sharing and net revenue sharing methods. The purpose of this study is to examine the factors that influence investment risk and how they affect Islamic banking, as well as how investment risk management is applied there. The present investigation employs a literature study methodology to address the research objectives. Content analysis is the analytical technique employed in this study. According to the study's findings, there are variations in the investment risks associated with Islamic banking, namely between mudharabah and musyarakah investment risks.

Business to Business (B2B) Model from an Islamic Economic Perspective

Fadly Yashari Soumena, Nur Afifa, Indri Nur Amanah, Antoni Julian — Tue, 21 May 2024 00:00:00 +0700

The development of online technology has given birth to many types of businesses, including online businesses. These various forms of online business include business-to-business (B2B). B2B is a typical business that connects business actors in a business transaction. Business-to-business (B2B) in a sharia economic perspective refers to transactions between companies that are in accordance with sharia economic principles. It involves the exchange of goods and services between business entities that comply with the laws of Islamic economics. The main principles of sharia economics that must be adhered to in the B2B context include the prohibition of usury (interest), the prohibition of maysir (gambling), and the prohibition of gharar (uncertainty or excessive speculation). B2B transactions in the Islamic economy must also comply with the principles of justice, fairness, and compliance with Islamic laws. So the journal we are writing about will discuss and study business-to-business (B2B), especially from a Sharia economic perspective. The method used in this re-search is a study of primary sources taken from academic journals and relevant published literature. Due to these limitations, analytical studies regarding B2B practices outline Sharia principles and protocols with Islamic business ethics in online commerce.