Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) is a peer-reviewed journal on Islamic Economics and Finance by Faculty of Shariah and law Syarif Hidayatullah Jakarta in cooperation with The Indonesian Association of Islamic Economist. FOCUS:This journal focused on Islamic economics and finance studies and present developments through the publication of articles, research reports, and book reviews. SCOPE: Al Iqtishad specializes on Islamic economics and finance, and is intended to communicate original research and current issues on the subject. This journal warmly welcomes contributions from scholars of related disciplines.

Recent Submissions

  • Islamic Business Ethics Implementation In Marketing Communication of Hajj/Umrah Travel Agency “X” Surabaya

    Prasetyo, Ari; Airlangga University; Pratiwi, Intan Kusuma; Airlangga University (Faculty of Shariah and Law, 2016-02-10)
    This research aims to explorethe implementation of Islamic business ethics in marketing communications Umrah/Hajj travel agency “X” Tour and Travel. This research uses qualitative descriptiveapproach with explanatory case studies as a type of qualitative research Islamicbusiness ethics which becomes reference in this study SIFAT (Shiddiq, Istiqamah,Fathanah, Amanah and Talbligh). The technique used is the data collectionthrough interviews with President and Marketing Manager “X” Tour and Travel,and participatory observation for two weeks at the operational office of “X” Tourand Travel. To support the data obtained from the results of the interviews as wellas participatory observation, research is also equipped with the results of interviewswith jamaah who have used the services of “X” Tour and Travel. The research resultsindicate that “X” Tour and Travel has implemented Shiddiq, Istiqamah, Fathanah,Amanah, and Tabligh in marketing communications.DOI: 10.15408/aiq.v8i1.2510
  • Etika Bisnis Islam: Konsep dan Implementasi pada Pelaku Usaha Kecil.

    Amalia, Fitri; FEB UIN SyarifHidayatullah Jakarta (Faculty of Shariah and Law, 2014-01-28)
    Islamic Business Ethics: Concept and Implementation on Medium Small Enterprise. This study is aimed at determining how the concept and application of Islamic business ethics for small businesses (SMEs). The purpose of this study is to determine how the concept of Islamic business ethics and how its implementation for SMEs. Research conducted in the form of descriptive analysis. The results showed that Kampoeng Creative, Bazar Medina and SMEs in the environment of UIN Jakarta has implemented a business ethics of Islam, both by employers and employees. In conducting its business and activities, entrepreneurs have to understand and implement the principles or values based on Islam values acoming from the Qur’an and Hadith. The implementation of Islamic business ethics comprises four aspects : principles, management, marketing/advertising and product / price DOI:10.15408/aiq.v6i1.1373
  • Asymmetric Information and Non-Performing Financing: Study in The Indonesian Islamic Banking Industry

    Rodoni, Ahmad; State Islamic University (UIN) Syarif Hidayatullah Jakarta; Yaman, Bahrul; State Islamic University (UIN) Syarif Hidayatullah Jakarta (Faculty of Shariah and Law, 2018-05-10)
    The purposes of this study are: First, to analyze the indications of moral hazard and adverse selection on Indonesian Islamic commercial banks. Second, to analyze the influence of moral hazard and adverse selection on the Non Performance Financing of Indonesian Islamic banks. Two methods were used for this purpose, a qualitative content analysis approach derived from the results of interviews with the banker from the Islamic commercial banks. Besides that this study also uses Error Correction Model (ECM), with data taken from these listed Islamic banking from 2010 to June 2016. The results show that the indications of moral hazard have a positive effect on the non-performing financing (NPF) in the short run. The indication of the presence of moral hazard occurs at the long run on GDP variable, and the allocation of Murabaha financing (RM) has a positive effect on the mudharabah (FM) profit and loss sharing. The test results also show that adverse selection that represented by the profit sharing rate (PSR) has a positive effect on the level of risk sharing toward non-performing financing (NPF) in the long run.DOI: 10.15408/aiq.v10i2.7392
  • Islamic Work Ethics and Audit Opinions: Audit Professionalism and Dysfunctional Behavior as Intervening Variables

    Suryanto, Tulus; The State Islamic Institute of Raden Intan Lampung, Indonesia (Faculty of Shariah and Law, 2016-02-10)
    This study examinesthe relationship between Islamic work ethics and auditors’ opinion, focusing onthe aspects of audit professionalism and dysfunctional behavior as interveningvariables. The research involved in Internal Auditors working of Islamic Bankingindustry in Sumatra Island. A questionnaire was used for data collection. Thestudy represents the empirical test employing census sampling. The data collectedwere analysed using Amos. The results of the study confirmed the three hypothesesexamined: there is a positive corelation between Islamic work ethics and auditors’opinions; auditors’ professionalism is an intervening variable of the correlationbetween Islamic work ethics and auditors’ opinions and dysfunctional behavioris a negative intervening variable of the correlation between Islamic Work Ethicsand auditors’ opinionsDOI: 10.15408/aiq.v8i1.2508
  • Spin Off Feasibility Study of Sharia Financing Unit: Study in Adira Finance

    Wulandari, Lita; School of Business- Bogor Agricultural Institute; Siregar, Hermanto; School of Business- Bogor Agricultural Institute; Tanjung, Hendri; Universitas Ibn Khaldun (Faculty of Shariah and Law, 2018-05-10)
    The Financial Services Authorization (OJK) as the regulator of the finance industry has issued a policy set forth in the POJK. 28 / POJK.05 / 2014 which explains that multi-finance which has sharia portfolio as much as 50% from total business or five years from POJK is lawfully obliged to do spin-off sharia. With this policy, sharia business unit can be more focus on business development. Through this research will be analyze the feasibility of sharia financing business unit in fulfilling the aspect of separation of business unit (spin-off). Beside by observation, deep interview with Sharia Supervisory Board (DPS) and literature review, the research also use ARIMA and Double Smoothing Exponential to forecast market and financial aspect. Based on the research results sharia financing unit of Adira Finance has the ability to be spin off. But it should be noted from technology and human resources aspects.DOI: 10.15408/aiq.v10i2.5781
  • Testing of The Gold’s Role as a Safe Haven and Hedge for Sharia Stocks in Indonesia

    Robiyanto, R. (Faculty of Shariah and Law, 2018-02-06)
    Gold as a commodity, since ancient time, is always viewed as a safe haven asset. This study tested the function of gold as a safe haven and hedge for sharia stocks in Indonesia. Data used in this study are a monthly closing of Jakarta Islamic Index (JII) on Indonesia Stock Exchange and monthly closing price of gold in the international market during May 2008 until September 2017. Data analysis was done by using OLS and QREG. The result of this study is gold can serve as a hedge for sharia stocks in Indonesia during the research period. The study further found that when extreme shocks occur in the Indonesian stock market, gold can serve as a safe haven asset for sharia stocks in Indonesia. Investor suggested shifting their assets into gold to secure their investment when stock market conditions experience a drastic decline.DOI: 10.15408/aiq.v10i2.6527
  • Analisis Stabilitas Dinar emas dan Dolar AS dalam Denominasi Rupiah

    Harahap, Darwis (Faculty of Shariah and Law, 2014-07-29)
    Stability Analysis of Gold Dinar and US Dollar in Rupiah Denomination. This study was aimed to (a) to know if there is a causality relation between Gold Dinar and U.S. Dolar, (b) to know that Gold Dinar more stabil than U.S. Dolar AS, (c) to know whether Gold Dinar can be alternative currency as a substitute for U.S. Dolar. The result is that the growth of Gold Dinar higher than U.S. Dolar, the result of Granger causality test shown that there was undirectional causality from Gold Dinar to U.S. Dolar. The result of Analysis of Variance (ANOVA) shown that U.S. than Dinar Gold more stabil Dolar AS that measured by Rupiah. From all of result tests, it can conclude that Gold Dinar can be a alternative currency instead of U.S. Dolar.  DOI:10.15408/aiq.v6i2.1235
  • Back Matter Vol. 10 (2), July 2018

    Al-Iqtishad, Jurnal (Faculty of Shariah and Law, 2018-05-10)
    Back Matter Vol. 10 (2), July 2018
  • Cover Vol. 10 (2), July 2018

    Al-Iqtishad, Jurnal (Faculty of Shariah and Law, 2018-05-10)
    Cover Vol. 10 (2), July 2018
  • Modified Reverse Salam Product as an Innovative alternative for mobilizing fixed deposits in Jurisdictions with Limited Shariah Compliant Investment Avenues to Promote Financial Inclusion

    Muneeza, Aishath (Faculty of Shariah and Law, 2019-08-29)
    Financial inclusion is a mian concern of the contemperory global financial landscape. It is a universal concern that needs adequate and effective solutions. Islamic financial arean is no exception to this. With the fintech solutions available in the market today, innovative ways to provide financial inclusion is needed. However, the most critical challenge in the arena is caused due to limited availability of shariah compliant investment avenues in some of the jurisdictions of the world where Islamic banking and finance has not yet fully taken-off. The main objective of this research is to introduce a universally accepted mechanism using salam, one of the most least used Islamic finance contract in commercial Islamic banking for mobilising fixed deposits which will be ideal to be used in jurisdictions with limited shariah compliant avenues. This is a legal exploratory research that aims to provide an adequate and effective product for the jurisdictions that aspires to have sophisticated fixed return guranteed investment products structured in a shariah compliant manner. Simultaneously, the proposed product in this research will serve the less previlaged community of the society whose commodities can be used as underlying asset in structuring the product. However, this social impact of the product will differ depending on the jurisdiction in which it is applied and the decision of the financial institution in which the product is offered as it is there discretionary power to choose the underlying commodity used in the transaction. Fintech can also be fused with the suggested product and as such, the product can be easily used by the population in physically remote locations in a convenient manner. It is anticipated that this research will assist the jurisdictions in the  world with limited shariah compliant investment products to introduce a new product that will be adequate to fulfill the needs of the customers.
  • A POTENTIAL OF BAITUL MAL WA TAMWIL (BMT) IN DEVELOPING THE BORDER AREA OF INDONESIA - MALAYSIA

    Maulana, Muhammad Iqbal; Akbar, Nashr (Faculty of Shariah and Law, 2019-08-29)
    Indonesia border area (West Kalimantan, Sambas) - Malaysia (Sarawak) is a potential area. Strategic location and direct borders with other countries such as Malaysia make this area easy to interact economically with neighboring countries, either in the form of Asean Economic Community (MEA) or Brunei Indonesia Malaysia Philippines - East Asian Growth Area (BIMP - EAGA). But the reality is there are still socio-political and economic disparities. An unanticipated social and economic gap will interfere and affect the pattern of national development strategies, and affect national interests. Therefore, the border area of ​​Indonesia (West Kalimantan, Sambas) - Malaysia (Sarawak) should be built and developed in order to eliminate the gaps that occur. This research tries to know the potential of Baitul Mal wa Tamwil (BMT) in developing border area of ​​Indonesia - Malaysia by prioritizing welfare approach. The decision framework is structured using the ANP approach of the Benefit Opportunity Cost Risk (BOCR) network. All BOCR elements are reviewed from a community perspective and obtained through in-depth interviews with experts (academics), regulators, and practitioners. The results of this study conclude that the benefits and opportunities aspects have significantly more weight than the load and risk aspects. Alternative strategies are also proposed in this study to maximize benefits and opportunities and minimize costs and risks. An alternative strategy considered to be the first priority to be implemented according to respondents is the capital of third parties. Keywords: ANP-BOCR, BMT, Border Area
  • Disharmonization of Wakalah Agreement in Law Number 34 of 2014 and The DSN-MUI Fatwa Number 122/DSN-MUI/II/2018

    Ali, Hasan (Faculty of Shariah and Law, 2019-08-29)
    Disharmonization of Wakalah Agreement in Law Number 34 of 2014 and The DSN-MUI Fatwa Number 122/DSN-MUI/II/2018. BPKH as a Hajj financial management institution in Indonesia has an essential role in evolving the Hajj Fund. With the biggest potential of Muslims in the world, Indonesia can administrate hajj finances in a larger scope by investing hajj finances on business lines which has accordance towards sharia principles. In contrast, the wakalah agreement as the basis used between the prospective pilgrims to the BPKH institution is interpreted differently between Law Number 34 of 2014 and the DSN-MUI Fatwa Number 122/DSN-MUI/II/2018 so it causes disharmony in the two laws. Differences in the role interpretation of representatives in both of these invasions have legal consequences in the form of differences in the recipient of responsibilities involving the government and BPKH as the hajj financial manager if they experience investment failure. This study uses qualitative methods with secondary data in the form of legislation, related books, and non-legal materials. The used technique is content analysis with normative juridical research themes that analyze principles and legal systematics.
  • Growth and Value Effect on Jakarta Islamic Index: Analysis towards Performance of Sharia Equity Mutual Fund

    Rusmita, Sylva Alif; Che Mohd Salleh, Marhanum (Faculty of Shariah and Law, 2019-08-29)
    This study provides evidence that value and stocks’ growth able to explain Net Asset Value of Shariah Mutual Fund. It is important for investment managers and investors to estimate future profit or loss that may happen on their mutual funds prior they venture into the investment platform. This study therefore is conducted to prove that factors including value and growth may affect the future profit of Shariah Mutual Funds. Based on quantitative analysis with secondary data from companies indexed in the Jakarta Islamic Index and Sharia Mutual Fund from year 2013 to 2017, it is found that both growth and value of stock have equally affected the profit of Sharia Mutual Funds. In addition, growth of stock has a larger R-Square than its value which means that the investors or fund managers would need to observe the stock growth more often than its value in order to predict future profitability of Shariah funds.  It is expected that the results of this study can provide additional insight to investment managers when choosing a portfolio for investors. For investors, this information is useful to predict the risk and return that they will receive from the investment.
  • Strategic Approach for Optimizing of Zakah Institution Performance: Customer Relationship Management

    Widarwati, Estu; Afif, Nur Choirul; Zazim, Muhamad (Faculty of Shariah and Law, 2016-12-13)
    Zakah is part of the Indonesian economy, which requires the development and structuring. The funds of zakah must be well managed by organizational zakah system which should be improved its performance. Therefore, there is a need of new approach concerning the zakah management based on muzakki’s behavior as an important resource in zakah institution. This paper explores the role of Customer Relationship Management (CRM) in zakah institution linked the important of muzakki’s contribution who use services of its. Then it aims to expand the understanding about how CRM as one of strategic approach for organization such zakah institution to improve its performance which employes three main aspect of CRM, which are form of personnel (behavior of personnel), business process, and using technology. Furthermore, this paper tries to depict how CRM is able to raise the zakah funds collection from Moslem society especially Middle Class Moslem in Indonesia by customer (muzakki) satisfaction and cost reduction of zakah institution.DOI: 10.15408/aiq.v9i1.4010 
  • PUBLIC WILLINGNESS TO PAY FOR HALAL CERTIFIED BEEF

    Fiqi, Muhammad Dzakir; Darwanto, Darwanto (Faculty of Shariah and Law, 2019-08-29)
    This research aims at analyzing the scale of public willingness to pay and the influence of age, income, awareness, perception, and religiosity on their willingness to pay the halal certified beef. This research was conducted in Jakarta with purposive sampling method and 100 respondents. The analysis method used in this research is descriptive statistical analysis, contingent valuated method and logit regression. The results show that 77 of respondents are willing to pay more for halal certified beef, while the other 23 are not. The average value of WTP obtained is 7% of the price of ordinary meat. The result of logit regression analysis shows that awareness variable has significant effect on willingness to pay halal certified beef, while the income, age, perception, and religiosity have no significant effect.
  • Discussion on Islamic Finance and Small Medium Enterprises’ Financial Accessibility

    Mohd Thas Thaker, Hassanudin; Kanan, Chandra Sakaran (Faculty of Shariah and Law, 2019-08-29)
    This study attempts to provide insights on SMEs’ financial accesibility through Islamic finance and its successfulness in Malaysia. The innovation in the Malaysia financial landscape especially Islamic finance has benefits the SMEs in accessing financial assistance without rely on traditional mode of financing. SMEs in Indonesia represent about 99 percent in all economic sector and involved labor participation of almost 95 percent but the issue of financial accessibility remain perpetual problem and block the development of SMEs in Indonesia. Therefore, the present study utilizes content analysis to critically look at the successful of SMEs Islamic financing in Malaysia and various published report and literature in generate better overview on the progression of SMEs. At the end of the study, this study provides some recommendations based on Malaysian SMEs financing successfulness for Indonesian authority to further restructure and enhance their existing financial assistance to the SMEs based on Islamic financing.
  • ISLAMIC MUTUAL FUNDS PROMOTIONAL ACTIVITIES: NORMAL APPROXIMATION OF BINOMIAL DISTRIBUTION AND TYPE I ERROR

    N/A; Mohd Isa, Mohd Yaziz Bin (Faculty of Shariah and Law, 2019-08-29)
    The paper applies normal approximation procedure to binomial probability distribution. A sample of 392 respondents are surveyed whether they agree or not agree that promotional activities determined the level of awareness of benefits of Islamic mutual funds. The paper hypothesizes the population mean µ of success effects of promotional activities at 68%, and attempts to reduce Type I error - the probability of rejecting null hypothesis when it is true.
  • HALAL INDUSTRY IN INDONESIA: ROLE OF SHARIA FINANCIAL INSTITUTIONS IN DRIVING INDUSTRIAL AND HALAL ECOSYSTEM

    Rachman, M. Aulia (Faculty of Shariah and Law, 2019-08-29)
    Halal market has emerged as a sector of new development and creating market potential in the global economy. Sharia Financial Institutions (SFI) has an important role as an intermediation between unit deficits and surpluses in the economy with sharia principles. As the development of halal products and industries make SFI have an important role in encouraging the growth, literacy and potential of the halal industry. In this paper we will present the ideas and roles of SFI in encouraging the potential of halal industry in Indonesia. The purpose of writing this paper is to provide an overview of the potential, prospects and literacy of the halal industry in Indonesia; and provide an overview and idea of the role of SFI sector in encouraging halal ecosystems and industries.Keywords: Islamic Financial Institutions, Halal Industry, Halal Ecosystem
  • INCOME INEQUALITY AND REGIONAL INDEX OF FINANCIAL INCLUSION FOR ISLAMIC BANK IN INDONESIA

    Prastowo, Prastowo; Putriani, Diyah (Faculty of Shariah and Law, 2019-08-29)
    This research is proposed to measure financial inclusion index in 2 dimensions (2D-FII) in Indonesia Islamic banks. This research contributes on the measurement 2D-FII in regional level in Indonesia. The result shows that value of FII in Islamic banking in Indonesia is still low. Previous works show one of the determinant on increasing inequality in any country is a limited access to financial sector, especially for low income household (Akimov, Wijeweera, and Dollery 2006; Kenourgios and Samitas 2007; Levine 2003; D. Park and Shin 2015).  In other words, low level of FII in Indonesia perhaps is caused by inequality of income. Therefore, this research recommends policymaker to have more concern on poverty alleviation program and open new Islamic banks branches in the regional level.
  • Who Co-Moves The Islamic Stock Market of Indonesia -The US, The UK, or Japan?

    Abd. Majid, M. Shabri; Department of Islamic Economics, Faculty of Economics and Business, Syiah Kuala University, Darussalam, Banda Aceh, Indonesia (Faculty of Shariah and Law, 2018-05-10)
    This paper explores the dominance of world Islamic stock markets of Japan, the UK, and the US over the Islamic stock market of Indonesia. Daily Islamic stock indices of the UK, the US, Japan and Indonesia over the period 2000 to 2016 are utilized in the study. Both bivariate and multivariate Granger causalities based on Vector Error Correction Model (VECM) framework are adopted to empirically identify the co-movements among these Islamic stock markets. The study found that the Islamic stock markets of Indonesia, the UK, Japan, and the US are moving towards a greater level of integration. The Japanese Islamic stock market dominantly co-moved the Indonesian Islamic stocks, as compared to the UK and the US Islamic stock markets both in the bivariate and multivariate frameworks. This further implies that any developments in the Japanese financial market have to be given more consideration by the Indonesian authority in designing policy to stabilize and promote its Islamic stock market.DOI: 10.15408/aiq.v10i2.7288

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