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


    sekolah pascasarjana; Muslimin, JM (Faculty of Shariah and Law, 2019-12-30)
    Economics and the law are the two inseparable things. There is always a relationship between the two. These two things can influence the development of people's welfare. This writing explores that during his life (1332-1406 AD), Ibnu Khaldun spent almost his whole time to read, learn and produce a distinctive work regarding socio-historical development of the existing government and community, as well as the type of local entity. Moreover, for some researchers, the role of Ibnu Khaldun in paving the way for creating foundations of sociological study can’t be neglected. According to him, the role of law in economic activity in general can be seen from two sides, in two equal interests, namely: a. Law is seen from the dimensions of economic activity; and b. Law is seen from the dimension of the state over its authority. Departing from the economic goals, in fact to obtain the maximum profit, the law is merely seen as a useful external factor and can be utilized to secure the economic activities and objectives to be achieved. The research proves that the essence of Ibnu Khaldun’s thought is still relevant to the modern time. Departing from his ideas and comparing them to the western and modern ones, one may conclude that Ibnu Khaldun’s philosophical analyses could be reinterpreted and contextualized. If it is so, then his theories are more identical to Stiglitz than to Smith and Marx.
  • The Effect of Financial Ratios, Maqasid Sharia Index, and Index of Islamic Social Reporting to Profitability of Islamic Bank in Indonesia

    Hosen, Muhammad Nadratuzzaman; Jie, Ferry; Muhari, Syafaat; Khairman, Muhammad (Faculty of Shariah and Law, 2019-12-30)
    This study aims to analyze the performance of Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Net Income Margin (NIM), Operating Expenses Ratio (OER), Maqasid Sharia Index (MSI), and Index of Islamic Social Reporting (ISR) to influence the level of profitability. The main purpose of this study is to complete the previous research with try to add the variables MSI and Index of ISR to estimating the change of profitability of Islamic banks in Indonesia. The study conducted eight Islamic Banks to be analyzed in the period from 2010 to 2012. The tool of analysis is used multiple linear regression for predicting the level of profitability. The results of the study show that all of the independent variables are significantly affected simultaneously to the level of profitability. Partially, NIM and OER are significantly affected by the level of profitability. The low level of Maqasid Sharia Index and Islamic Social Reporting implementation of the Islamic banks in Indonesia in the period of the study proves that these two variables are not the main indicator or a major achievement of most Islamic banks, even though Islamic banks should refer to attain mashlalah (public interest).Keywords: CAR, FDR, NIM, OER, MSI, and Index of ISR. Penelitian ini bertujuan untuk menganalisis kinerja yang ditunjukkan oleh rasio Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Net Income Marging (NIM), Biaya Operasional terhadap Pendapatan Operasional (BOPO), Indeks Maqashid Syariah (MSI), dan Indeks Islamic Social Reporting (ISR) terhadap profitabilitas bank syariah di Indonesia. Tujuan dari penelitian ini adalah melengkapi penelitian-penelitian sebelumnya dengan menambahkan variabel MSI dan ISR untuk mengestimasi profitabilitas bank syariah di Indonesia. Penelitian ini menggunakan data tahunan pada delapan bank syariah diperiode antara 2010 hingga 2012 dimana penelitian ini menggunakan metode regresi linear berganda. Hasil penelitian ini menunjukkan bahwa secara simultan seluruh variabel independen mempengaruhi profitabilitas bank syariah secara signifikan. Secara parsial, hanya NIM dan BOPO yang berpengaruh signifikan terhadap profitabilitas. Lemahnya pengaruh Indeks Maqashid Syariah dan Indeks Islamic Social Reporting mengindikasikan bahwa kedua variabel tersebut bukanlah faktor utama dalam pencapaian bank syariah, meskipun bank syariah juga harus memperhatikan faktor mashlahah. Kata kunci: CAR, FDR, NIM, OER, MSI, and Index of ISR.

    Rosdiana, Haula; Murwendah, Murwendah; Inayati, Inayati (Faculty of Shariah and Law, 2019-12-30)
    Philanthropy is not merely a fund-raising activity. It means an activity that has strong relation with social activity. Philanthropy is significant to consider in building public participation in governance or at least in helping the government’s role to implement the allocation function related to social welfare. In Indonesia, tax incentives for philanthropy are categorized into two, namely tax exemption and tax deduction. Tax exemption applies to donations or income derived from non-profit organizations, while tax deduction applies to the donor or philanthropists, both individuals and companies. In addition, there are incentives for property taxes and tax on motor vehicles provided by the provincial/ local government. In practice, philanthropy still leaves tax-related issues that must be shouldered by donors, recipients, and donation collectors. This issue is crucial because it has the potential to reduce the attractiveness of tax incentives to encourage people to engage in philanthropy activities in Indonesia.   This study aims to evaluate the tax policy on philanthropy in Indonesia. This study applied constructivism paradigm. The data are collected through documentation, literature review, and field studies through in-depth interviews and focus group discussions (FGD). The data are analyzed using mixed approach. The findings of this study indicate that the lack of dynamics in current tax policy is not in harmony with the rapid development of increasingly varied philanthropic activities. Therefore, the donors and recipients face uncertainty related to taxation on philanthropy including tax treatment and tax incentives that can be obtained from the government. Applicable tax policies have not been able to provide incentives for various types of taxes but Income Tax in the form of tax deduction and tax exemption. Unfortunately, this type of incentive is relatively unappealing to philanthropic activists. In other words, the policy of tax incentives on philanthropy activities has not been a pull factor for the community to be more actively involved in philanthropy activities.  Furthermore, the issues associated with tax administration are still found in its implementation. Regulatory improvement is necessary, including accommodation of incentives for all types of taxes on philanthropy in Indonesia, as an appreciation for citizens who have strengthened the government's role in the prosperity of society.

    Rusydiana, Aam Slamet; Devi, Abrista; Hasib, Fatin; Rani, Lina (Faculty of Shariah and Law, 2019-12-30)
    According to Law no. 21 Year 2008, the Sharia Business Unit (SBU) owned by a Conventional Commercial Bank (CCB) is required to separate from its Parent Bank before year 2023. Some Sharia Business Units have initiated a separation step from Conventional Commercial Bank. On the other hand, they are required to keep the level of efficiency in running its business operations. This paper is intended to analyze the efficiency level of Sharia Business Units that have separated from its parent and then compare whether there is difference of efficiency level between before and after separation. The method used is Data Envelopment Analysis (DEA) and Paired Sample t-Test. The results show that based on the total average efficiency of all sharia banks spin off (in this case four sharia banks namely BNI Sharia, BRI Sharia, BJB Sharia and Bukopin Sharia Bank), there occur a decrease in efficiency technically and also pure the technical itself in sharia banks starting from before and after the spin off. This can be read because in the early periods of spin off there was a cost adjustment on the shariah bank spin off. Sharia banks require a 'weaning' from their parents. Nevertheless, there is no statistically significant difference in efficiency levels between before and after the spin off. This should be a booster for other Sharia Business Units to take the decision to spin off immediately, of course, accompanied by careful and prudent planning and implementation.
  • Social capital and economic growth: empirical evidence from OIC countries

    Dumairy, Gadjah Mada University, Department of Economics and Business; NOTOLEGOWO, Hantoro Ksaid; Saleh, Samsubar (Faculty of Shariah and Law, 2019-12-30)
    This research investigates the effect of constructive social capital such as religious tolerance, political participation, and marriage; and destructive social capital such as the corruption culture and discriminatory behavior towards the economic growth rate of member countries of the Islamic Cooperation Organization (OIC) 2014-2017. The results of the research estimation using the technique of fixed effect (FE) from the panel data of the OIC countries show that religious tolerance measured using the freedom of religion index (FRI) shows a positive and significant effect on the economic growth rate; political participation as measured by political rights index (PRI) has a significant negative effect on the economic growth rate; marriage measured using the percentage of married woman (PMW) has a positive effect on the economic growth rate but is not significant; corruption culture measured using the corruption perception index (CPI) has a negative and no significant effect on the economic growth rate; and discrimination behavior measured using discrimination and violence against minorities index (DVI) shows a negative and no significant effect on the economic growth rate.
  • The Impact of Macroeconomic Indicator on Islamic Insurance Demand in Indonesia

    Ayyubi, Salahuddin El; Widyastutik, W; Anditta, A. (Faculty of Shariah and Law, 2019-12-30)
    This research aimed to determine the development of Islamic insurance industry in Indonesia and analyze the influence of macroeconomic indicators Islamic insurance demand in Indonesia. Ordinary Least Square (OLS) was used in this research with monthly time series data from January 2014 to December 2016. The results of this research indicated that the variables of money supply, interest rate, GDP per capita, and education had a positive (significant) effect to the Islamic insurance demand in Indonesia. Moreover, the inflation variable and dependency ratio had a negative (significant) effect to the Islamic insurance demand in Indonesia.

    Financial Service Authority; Abdullah, Zaki; Susamto, Akhmad Akbar (Faculty of Shariah and Law, 2019-12-30)
    Investment-based crowdfunding can be used as an alternative financing tool for Micro, Small and Medium Enterprises in Indonesia. Since the population in Indonesia is dominated by Muslim, Islamic financial technology companies that provide crowdfunding services are continue to emerge and develop. The development of these services also encourages the progress of the halal industry because both have integrated relationships. However, not all funding campaigns for crowdfunding services are successful. This study aims to analyze the development of Islamic crowdfunding business in Indonesia and factors affecting the success of funding campaigns in these services using multiple linear regression methods. Primary data obtained through interviews and literature review while secondary data is collected from 39 funding campaigns in 4 Islamic crowdfunding online services. It was found that the regulation of Islamic financial technology did not yet exist though in practice it was already widely found. On the other hand, crowdfunding models in Indonesia still need improvement in its scheme. By using a quantitative approach, it was found that funding target, campaign duration, payback periods and rate of return have a positive effect on campaign success, while a minimum amount of investment has a negative effect which means the minimum amount of investment available in the crowdfunding service is appropriate. After conducting research with a qualitative and quantitative approach, SWOT analysis was conducted at the end of the study to find out the challenges and opportunities for the halal industry in utilizing such Islamic crowdfunding service.

    Nofitasari, Wiwit Ayu; Endraswati, Hikmah (Faculty of Shariah and Law, 2019-12-30)
    The purposes of this study are to examine the effect of company size, profitability, board of commissioners, proportion of independent commissioners, and frequency of meetings on the level of Islamic Social Reporting (ISR) in Indonesia and Malaysia and to test whether there is difference ISR in Indonesia and Malaysia. The sample of this study are 10 companies that issued sukuk at Indonesia Shariah Stocks Index and 8 companies on Malaysia Stock Exchange in 2013-2017. Multiple regression and different tests are used in this research as analysis techniques. The results show that the size of the company effects on the level of ISR in Indonesia positively but not in Malaysia. Profitability, board size, and the proportion of independent commissioners does not effect on ISR levels in Indonesia and Malaysia. The frequency of board of commissioners meetings effect on ISR levels in Indonesia and Malaysia positively and there is difference ISR in Indonesia and Malaysia. The implication of this research is that there is a need for regulations that regulate ISR disclosure in Indonesia to improve the quality of ISR disclosure to the stakeholders

    Universitas Internasionalo Semen Indonesia; The Ministry of Research, Technology and Higher Education of The Republic of Indonesia for The 2017 Research Grant; Hudaifah, Ahmad; Tutuko, Bambang; Tjiptohadi, Sawarjuwono (Faculty of Shariah and Law, 2019-12-30)
    This research is aimed at discovering a stable financial schemingformula or model that would be compatible with the natural characteristics ofa paddy farming cycle in Tuban. The qualitative research employs the use of anactive participatory community through the means of a focus group discussion, anin-depth interview and face to face interviews with respective stakeholders andkey informants. The Salam contract, which is highly beneficial is a prospectivefinancial scheme that terminates the long business chain found in most businessesin Indonesia. The Corporate Social Responsibility which is managed through theSyariah approach (I-CSR) from a company, can become the solution to bridgethe gap found in the implementation of funds for a Salam contract. The Salamcontract applicability is dependent on the Islamic farmer cooperatives (BMT), aunit of joint venture organization serving as the key players in the execution ofthe function of a paddy warehouse-trading agent and direct financing to farmers.Strong support also comes from the zakat, infāq, and shodaqoh institution (LAZ)whose role is educating and encouraging the paddy farmers’ skills and competency,especially to enable them access end-user markets using the aid of informationtechnology. Penelitian ini betujuan untu menemukan formula skema pembiayaanpertanian yang stabil sesuai dengan karakteristik alamiah pertanian padidi Kabupaten Tuban. Metode penelitian kualitatif dipergunakan dalammenyelesaikan penelitian ini dengan partisipasi aktif komunitas melaluimedia diskusi kelompok, wawancara mendalam tatap muka dan observasikepada informan kunci dan pihak yang terlibat secara langsung dalam tata-niaga pertanian padi di Kabupaten Tuban. Kontrak salam adalah skemapembiayaan yang sangat menguntungkan bagi petani dan pada aplikasinyamampu mengambil peran pembiayaan distributor dalam tata niaga pertanianpadi. Islamic Corporate Social Responsibility (I-CSR) yang dikelola berdasarkanprinsip ekonomi Syariah dari perusahan yang beroperasi di wilayah Tuban bisamenjadi solusi dana yang dikembangkan untuk pembiayaan pertanian yangdihindari oleh perbankan karena siklus bisnis yang berbeda. Keberlangsungan kontrak salam pertanian untuk komoditas padi akan bergantung pada koperasipetani yang terdiri dari koperasi simpan pinjam Syariah (BMT), gudang padi,penggilingan padi dan unit perdagangan yang kesemuanya disebut sebagai KUB(Kelompok Usaha Bersama). Dukungan yang kuat juga berasal dari Lembagazakat, infāq dan shodaqoh, yang memiliki peran untuk melakukan pelatihankeahlian petani dan membantu memenuhi kebutuhan dasar petani yang menjadianggota dalam KUB.
  • Non-Performing Finance in Sharia Financial Institutions in Indonesia: A Case Study Of BPRS Adeco (Aceh Development Corporate)

    Hidayah, Nur; Tabrani, Tabrani (Faculty of Shariah and Law, 2019-11-21)
    High level of Non-Performing Finance (NPF) has become one of risks facing intermediary financial institutions including Islamic banks. Indonesia’s Financial Authority found that NPF ratio of Islamic banks is relatively higher (4,12%) that the one of conventional banks (2,96%) (OJK 2017). Literature indicate the influence of bank’s internal and external factors on high NPF. This study aims to analyze the factors that influence the high level of NPF and its settlement and strategies to reduce the level of NPF in Sharia Rural Banking (BPRS/Bank Perkreditan Rakyat Syariah). Taking BPRS Adeco (Aceh Development Corporate) in Langsa City District, Aceh, as a case study, this research takes a qualitative approach. Through a survey to 26 BPRS Adeco employees and semi-structured interviews with 4 employees, this study found three factors leading to an increase in the NPF ratio, namely weak bank’s financing risk management, changing economic conditions and regulations, and the conditions of customers who are vulnerable to socio-economic change. It found that the NPF can be gradually resolved by intensifying the communication to the delinquent customers followed by policies of restructuring the customers’ financing. It also found that the strategies to reduce NPF ratios include improving bank risk financing management, upgrading the quality of human resources in risk management, and providing business mentoring and coaching to the customers. It can be concluded that the strategies made by the BPRS ADECO succeeded in reducing the NPF rate from 15.62% in the June 2012 period to 3.60% in the December 2018 period. The finding implies that Islamic financial institutions, including BPRS, urgently need good finance risk management, particularly in monitoring the financed customers’ business and in mitigating external conditions of the economy and their changing related regulations in order to settle the problem of non-performing finance and to strengthen their finance risk management.
  • Political Economy From the Perspective of Ibn Khaldun

    Muslim, Bukhari; Saepullah, Saepullah; Widayatsari, Any (Faculty of Shariah and Law, 2019-11-21)
    Te political economy encompasses the management of revenues and spending to achieve the social welfare of the community. Hence, development is not solely emphasized economic growth but also equity. Tis article discusses the political economy according to Ibn Khaldun, written in his book, Muqaddimah. Tis study concludes that that political budgets must be carried out in a balanced manner by establishing budget certainty and increasing the discipline in use of the budget. Legislators make laws, referring to the creation of income sources so that the community will be able to meet their needs independently, and thegovernment can gather capabilities to carry out their duties and functions. Ibn Khaldun saw budget management as a means to solve public matters while also factoring the interests of rulers and governments.
  • 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
  • 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
  • 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
  • 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 

    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
  • 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.

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