Al-Amwal : Jurnal Ekonomi dan Perbankan Syari'ah
Enhancing Public Trust in Zakat Institutions Through Transparency of Zakat Fund Management
This study aims to examine the role of transparency in zakat fund management in enhancing public trust in zakat institutions. Transparency is considered a critical factor in strengthening institutional credibility, particularly in Islamic philanthropic organizations where accountability and trust are essential for sustainability. This research employs a mixed-method approach, combining quantitative data analysis and qualitative insights to provide a comprehensive understanding of the relationship between transparency practices and public trust. The quantitative data were collected through structured questionnaires distributed to zakat contributors, while qualitative data were obtained through in-depth interviews with stakeholders in zakat institutions. The findings indicate that transparency in financial reporting, information disclosure, and governance practices significantly influences public trust. Institutions that provide clear, accessible, and timely information regarding the collection, allocation, and utilization of zakat funds tend to gain higher levels of trust from the public. Furthermore, the study highlights that transparency not only improves accountability but also encourages greater participation in zakat contributions. This study contributes to the literature by emphasizing the strategic importance of transparency as a key determinant of trust in zakat institutions. It also provides practical implications for policymakers and zakat managers to enhance governance systems and adopt transparent practices in order to strengthen public confidence and ensure the long-term sustainability of zakat institutions.
Copyright (c) 2020 KMT Lasmiatun https://creativecommons.org/licenses/by/4.0
Modeling Zakāh Contribution to Sustainable Economic Development: Evidence from an Analytic Network Process Framewor
The purpose of this study is to describe theoretically and empirically zakah as an Islamic financial instrument that has one function to alleviate poverty. The function of zakah is in line with the goal of sustainable economic development which is a form of global commitment in spurring for better economic growth. Research strategy which used in this research is mixed methods with the Analytical Process Networking approach. Sampling technique used in this research is purposive sampling. Objects in the study include zakah management organizations, academics, government, and practitioners. The findings of this study are that the priority of implementing zakah distribution in supporting sustainable community economic development is the social aspect with a rater agreement W=0.36444. Four strategies can achieve sustainable community economic development, namely Improving the quality and quantity of concern for community social institutions and stakeholders; Improve disaster risk reduction comprehensively and efficiently; Improving the quality of fair law enforcement Increasing job opportunities and concern for community MSMEs.
Copyright (c) 2019 KMT Lasmiatun https://creativecommons.org/licenses/by/4.0
Strengthening the Legal Framework of Sharia Rural Bank (BPRS) to Support the MSME Resilience in Indonesia
Introduction: Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in Indonesia’s economy; however, limited access to financing and regulatory constraints hinder their optimal development. The Sharia Rural Bank (BPRS) has significant potential to support MSME resilience, yet its effectiveness remains constrained by weaknesses in the legal system. This study aims to analyze and formulate strategies to strengthen the legal system of BPRSs to enhance MSME resilience in Indonesia. Methods: This research employs a normative legal method and a qualitative approach, drawing on statutory and conceptual sources. Primary legal materials include laws and regulations governing Islamic banking, while secondary materials include academic literature and legal doctrines. Data were collected through library research and analyzed using Lawrence M. Friedman’s legal system theory, which encompasses legal structure, legal substance, and legal culture. Results: The findings indicate that the increasing trend of non-performing financing (NPF), institutional limitations, regulatory inconsistencies, and low levels of Islamic financial literacy weaken the effectiveness of BPRS in supporting MSMEs. It can be concluded that strengthening the legal structure, harmonizing legal substance, and improving legal culture are essential to optimize the role of BPRS in enhancing MSME resilience. Conclusion and suggestion: This study contributes by offering a holistic legal framework grounded in Friedman’s theory to support policy reform, institutional strengthening, and the development of Islamic financial literacy, thereby advancing MSME sustainability.
Copyright (c) 2026 Miftah Idris, Danang Wahyu Muhammad https://creativecommons.org/licenses/by/4.0
The Role of Profitability as a Mediating Variable in the Relationship between Sustainability Reporting and Firm Value in Islamic Commercial Banks in Indonesia
Introduction: This study addresses the inconsistency of prior empirical findings regarding the effect of sustainability reporting on firm value, particularly in the Islamic banking sector where financial indicators remain dominant in investment decisions. The significance of this research lies in providing a clearer understanding of how sustainability practices contribute to firm value. Therefore, this study aims to examine the role of financial performance as a mediating variable in the relationship between sustainability reporting and firm value in Islamic commercial banks in Indonesia. Methods: This research employs a causal quantitative approach using panel data from 10 Islamic commercial banks over the 2022–2024 period. Data are obtained from annual reports, sustainability reports, and financial statements. The analysis was conducted using panel data regression and the Sobel test to examine the mediating effect. Results: The findings indicate that sustainability reporting has a positive effect on financial performance. In addition, financial performance significantly enhances firm value and acts as a mediating variable in the relationship between sustainability reporting and firm value. Conclusion and suggestion: The results confirm that sustainability practices contribute to firm value indirectly through financial performance. Therefore, Islamic commercial banks are encouraged to strengthen the quality of sustainability reporting as a strategic effort to improve firm value and maintain long-term performance.
Copyright (c) 2026 Rinna Ramadhan Ain Fitriah, Samsul Muhammad La Ane https://creativecommons.org/licenses/by/4.0
Integration and Role of Islamic Business Ethics in Mitigation of Financing Risks in Sharia Rural Bank (BPRS) In Indonesia
Introduction: The high rate of Non-Performing Financing (NPF) at Sharia rural banks (BPRS) in the last five years (2021-2025) reaching 10,36% in 2025, indicates that the technical and administrative risk management approaches implemented so far have not been fully effective in addressing the problem of problematic financing Methods: This study employed a qualitative approach, employing literature studies and analyzing secondary data published by the Financial Services Authority. Results: The findings indicate that Islamic Business Ethics (IBE) strengthens financing risk mitigation in BPRS through three main mechanisms: (1) preventing moral hazard by internalizing trust, honesty (ṣidq), and responsibility; (2) Strengthening Management and Employee Integrity and increasing contract transparency through clarity and fairness while avoiding gharar; and (3) Sharia-Based Risk Culture Formation and strengthening partnership-based relationships based on taʿāwun and distributive justice. Thus, IBE functions not only as a normative-ethical principle, but as a strategic and preventive behavioral risk control mechanism that complements conventional risk management and supports sustainable financing quality and institutional stability in BPRS. Conclusion and suggestion: BPRS needs to integrate Islamic Business Ethics values ​​more systematically into their financing risk management policies. Internalizing the values ​​of trustworthiness, honesty, and responsibility is not sufficient if outlined solely in a code of ethics; it needs to be reinforced with an ethics-based monitoring and performance evaluation system.
Copyright (c) 2026 Siti Maghfiroh, Dwi Puspitasari, Lydiawaty binti Hassan Busry https://creativecommons.org/licenses/by/4.0
Islamic New Public Management Model for Excellent Service in Government Institutions
Introduction: The service of an institution is a measure of public satisfaction with employee performance. Therefore, innovation in service is needed to keep customers happy and coming back. In addition, public service is also crucial in government, because the public needs comfort in receiving service. This study aims to first explore the practice of excellent service in government institutions. Second, analyze the new public management model in services in government institutions. Third, analyze the Islamic values ​​contained in the new public management in services in government institutions. Fourth, create an Islamic new public management model in services in government institutions. Methods: This study uses a qualitative approach with a case study type. The case focused on in this study is the presence of one-stop service in Investment and One-Stop Integrated Services Agency in Jember Regency. The determination of research subjects was carried out purposively, with the criteria for selecting informants who were directly related to the one-stop service model. Data were collected using observation, interview and documentation techniques. Data were analyzed using the Miles and Huberman interactive model technique and tested through source triangulation. Results: This study provides results, first, excellent service that is carried out leads to digital transformation making licensing services faster to complete, previously 1 week to 1 month, after the transformation it became only 1 day. The innovation is to make the licensing service a one-stop service. Thus, employee performance is maximized because the public does not need to move from location to location when doing licensing. Second, the new public management model that is carried out is to present the OSS (Online Single System) system in service. Third; Islamic values ​​that are present in the practice of new public management, namely the value of siddiq (honesty) which is in the form of transparency, the value of amanah (integrity) which is the commitment of employees, fathonah (smart) which is innovative and creative, the value of discipline and the value of efficiency. Fourth, the Islamic new public management model offered to maximize excellent service, namely the model of integrating Islamic values ​​in service, so that service is not only technology-based but also ethics-based. Conclusion and suggestion: The conclusion is that digital transformation in the licensing office with a one-stop model is a model for maximizing employee performance and has an impact on public satisfaction.
Copyright (c) 2026 Nikmatul Masruroh, Halimatus Zahra , Nurul Widyawati Islami Rahayu, Muhammad Sami https://creativecommons.org/licenses/by/4.0
Fintech and Impulse: How Payment Technology is Changing the Way Cirebon Young Society Shop
Introduction: This study evaluates the impact of payment technology such as fintech payment could change the way young society shop and increase the emergence of impulse purchases with all its convenience. This research aims to explore how these fintech payment contribute to the growth and stability of the market.impulsive Methods: This study using a quantitative using SEM analysis approach with a sample size of 100 respondents. The SmartPLS programs were used to analyze the data collected for this study. tConvergent validity was examined using outer loading and AVE, and used Cronbach’s Alpha and Composite Reliability (rho_a and rho_c) as indicators of internal consistency. This study also utilizing a literature review approach and examines the impact of fintech payment and impulse buying on young society consumptive behavior, as the population. Results: The result show that fintech payment and impulse buying positively and significantly affected consumptive buying partially and simultaneously. Fintech payments have a very small influence on consumptive behavior and credit card use has the highest contribution on consumptive behavior Conclusion and suggestion: The research results shows that many young people are still unaware of the consequences of all the conveniences provided, and that all conveniences inevitably come with sacrifices. Young society in Cirebon should be given knowledge about financial literacy and financial management.
Copyright (c) 2026 Budi Rusdian, Rita Kusumadewi, Atiatul Maollah, Arphandee Hasan https://creativecommons.org/licenses/by/4.0
The Influence of Perception and Religiosity on Consumer Behaviour: An Perspective of Consumption in Al-Qur'an
Introduction: This research aims to identify the influence between perception and religiosity on consumer behaviour at Otsmani Coffee Solo, the identify whether perception and religiosity have a significant influence on consumer behaviour patterns at Otsmani Coffee Methods: This research used quantitative research approach. This research is included in survey research. This research used a quantitative analysis approach that adopts Partial Least Square (PLS) using SmartPLS version 4.1.9.4 as an analysis tool. Results: This research found that customer perception and religiosity have a significant influence on consumer behaviour to buy at Otsmani Coffee Solo. This research confirmed the idea that attitudes, subjective norms, and behavioral control influence customers intentions and decisions to purchase products. In addition, Otsmani Coffee Solo competitiveness in the market is influenced by variables such as product suitability, brand identity, customer loyalty, emotional attachment, and difference from competitors. Conclusion and suggestion: The results suggest that value-based and identity-based marketing strategies that match consumer preferences and beliefs are essential for consistently increasing customer attraction and loyalty. Furthermore, it is important for consumers to adhere to the concept of consumption in Al-Quran: consuming what is halal and thayyib; being proportionate, not being excessive (israf) and not being stingy (bakhil); and always acknowledging the blessings of Allah SWT.
Copyright (c) 2026 Devid Frastiawan Amir Sup, Mohamad Zaenal Arifin, Ziad Abdurrahman Azzahid, Ulfatun Wahidatun Nisa https://creativecommons.org/licenses/by/4.0
Who Governs Bank Stability Amid Crises? Evidence From Broad Characteristics, Risk, and Performance
Introduction: This study explores a relatively under-researched area in Indonesia, namely the influence of women board members on bank performance and risk. This study fills a crucial gap in the literature on the influence of board characteristics on bank risk-taking and performance in Indonesia, a country in Asia with characteristics distinct from those of European countries. We investigate the impact of board characteristics on bank risk and performance. Methods: We used unbalanced panel data comprising 594 bank-year observations from Bank Indonesia for 2003-2022 and tested the model using a fixed-effects model, controlling for bank and year effects Results: This study found that women board members have a positive effect on bank performance and a negative impact on bank risk. On the other hand, we find robust results related to women directors have a positive impact on bank performance and a negative impact on bank risk, even though examined with different models and proxies. On the other hand, Board size positively affects bank stability but shows no consistent impact on credit risk or performance during crises. In contrast, board independence is negatively associated with stability and weakens bank performance during crisis periods. Conclusion and suggestion: This research can contribute to the government’s attention to the importance of gender diversity on boards of directors. These study results can also guide other developing countries with similar legal systems.
Copyright (c) 2026 Linda Putri Nadia, Izza Ashsifa, Izzat Firdausi, Anton Satria Prabuwono https://creativecommons.org/licenses/by/4.0
Determinant of Moslem Consumer Purchasing Decisions at Mixue Franchise in Sidoarjo City East Java
This study analyzes the factors that influence purchasing decisions in the Sharia market, both partially and simultaneously. Partially, the study examines the influence of price, product variety, taste, and location on purchasing decisions. Simultaneously, research looks at the combined effects of these factors. The method used is quantitative with an associative research model, as well as a purposive sampling technique to select respondents according to Sharia market criteria. The research results show that price (p = 0,011), product variety (p = 0,043), and location (p = 0,018) have a significant effect on purchasing decisions, while taste (p = 0.562) has no significant effect. Overall, all these factors significantly influence purchasing decisions (p = 0,000). These findings emphasize the importance of Sharia principles in pricing, product variety, and location in improving consumer purchasing behavior in Islamic markets.This study analyzes the factors that influence purchasing decisions in the Sharia market, both partially and simultaneously. Partially, the study examines the influence of price, product variety, taste, and location on purchasing decisions. Simultaneously, research looks at the combined effects of these factors. The method used is quantitative with an associative research model, as well as a purposive sampling technique to select respondents according to Sharia market criteria. The research results show that price (p = 0,011), product variety (p = 0,043), and location (p = 0,018) have a significant effect on purchasing decisions, while taste (p = 0.562) has no significant effect. Overall, all these factors significantly influence purchasing decisions (p = 0,000). These findings emphasize the importance of Sharia principles in pricing, product variety, and location in improving consumer purchasing behavior in Islamic markets.
Copyright (c) 2026 Al-Amwal : Jurnal Ekonomi dan Perbankan Syari'ah
Traditional Markets in Pekalongan City: Imam Al-Ghazali’s Perspective and SWOT Analysis Construction
This study aims to find out how traditional markets in Pekalongan Regency are from the perspective of Imam Al-Ghazali and the construction of SWOT analysis. This research is qualitative research that combines field studies and literature studies. The data in this study were obtained from interviews, observations, documentation, and also literature reviews such as books, journals, and other sources that are considered credible and relevant to the research topic. The results of the study show that the existence of traditional markets is very important for the people of Pekalongan Regency, both from the perspective of traders and buyers. Traditional markets have become a place for some people to find a source of livelihood. And for some other people, traditional markets are places to get various goods they need. This is following Imam Al-Ghazali’s thoughts about the importance of the market and the economic system in it. However, from a practical point of view, there are also things in traditional markets that are not following Imam Al-Ghazali’s thoughts. In the construction of SWOT analysis, traditional markets have various strengths, weaknesses, opportunities, and challenges that will affect their existence and development.
Integrating Sustainability into the Strategic Management of Financial Institutions in Developing Economies
This study discusses the role of financial institution management in supporting sustainable development and strengthening the national economy. In the context of globalization and dynamic economic challenges, financial institutions have a strategic role in channeling responsible financing, managing risks effectively, and encouraging sustainability-oriented investment. This study examines how policies, product innovations, and governance implemented by financial institutions can create positive social, economic, and environmental impacts. Through a qualitative approach with literature studies and secondary data analysis, this study found that the integration of Environmental, Social, and Governance (ESG) principles in financial management can encourage inclusive and sustainable economic growth. The results of this study are expected to be a reference for policymakers and financial industry players in designing strategies that balance profitability and sustainability.
Moderating Role of Religiosity on Islamic Financial Inclusion & Literacy on the Decision to Save at Islamic Banks
The presence of Islamic banks benefits society by meeting financial needs and following Islamic principles. Based on a case study of vocational school students majoring in Islamic Banking in Yogyakarta, this research focuses on the influence of religiosity as a moderating factor on Islamic financial literacy and the decision to save at an Islamic bank. This research aims to analyze the impact of Islamic financial literacy and inclusion on the decision to save at Islamic banks among vocational school students majoring in Islamic Banking in Yogyakarta, with religiosity as the moderating variable. This quantitative research uses questionnaires to collect data, with a sample as large as the number of respondents. The data are analyzed using the Test for Moderated Regression Analysis and SPSS 2. The results aim to reveal how these factors influence the decision to save at Islamic banks and their impact on Islamic financial education. The research results show that Islamic financial literacy and inclusion partially influence the savings decisions of vocational school students majoring in Islamic Banking at Islamic banks. The moderated regression analysis test shows that religiosity can moderate Islamic financial literacy and inclusion in the decisions of vocational school students majoring in Islamic Banking at Islamic banks. Keywords: Islamic Financial Literacy, Islamic Financial Inclusion, Decision to Save, Religiosity.
Determinant Factors of Consumer Satisfaction in Syariah Hotels Service to Costumer Decision Impact
This research aims to find out the rate of consumer satisfaction regarding the decision to stay at a sharia hotel in North Sumatra. This research approach is quantitatif multivariance analysis. The population is all consumers and the sample is 100 consumers. In this research, the analysis was assisted by the SPSS 29.00 application using simple linear regression analysis to prove whether or not there was an impact provided by the independent variable on the dependent variable. The data analysis technique in this research uses the classic assumption test which includes the normality test, linearity test and heteroscedasticity test, and hypothesis testing which includes the t test. To find out the coefficient of determination, a partial test will then be carried out to test the impact that the independent variable partially has on the dependent variable. Partially, the consumer satisfaction variable has a significant effect on decisions. Keywords: Sharia Hotel, Consumer Satisfaction, Decision to Stay
The Mediating Impact of Islamic Lifestyle and Religion Perceived Behavior Control on the Infulence of Income and Consumer Behavior Among Muslimah Career
The purpose of this study was to determine how good the effect of income on consumptive behavior with Islamic lifestyle and religious perceived behavior control as intervening variables for career Muslim women in Salatiga city. The type of research used is quantitative research with data collection by distributing questionnaires using an interval scale (1-10) with a population of Salatiga career Muslim women. The sample taken was 100 respondents using the Purposive Sampling technique. The analysis technique in this study uses Structural Equation Modeling (SEM) with Partial Least Square (PLS) technique, while the analytical tool used in this study is the SmartPLS 4.0 program. The results of this study indicate that: (1) Income has a Positive and Significant Effect on Islamic Lifestyle. (2) Income has a Positive and Significant Effect on Religious Perceived Behavior Control. (3) Income has a Negative and Insignificant Effect on Consumptive Behavior. (4) Islamic Lifestyle has a Negative and Significant Effect on Consumptive Behavior. (5) Religious Perceived Behavior Control Negatively and Significantly Affects Consumptive Behavior. (6) Income has a Significant Negative Effect on Consumptive Behavior with Islamic Lifestyle as an intervening variable. (7) Income has a Significant Negative Effect on Consumptive Behavior with Religious Perceived Behavior Control as an intervening variable. Keywords: Consumptive Behavior, Income, Islamic Lifestyle and Religious Percheived Behavior Control
Determinant of Risk Financing in Peer-To-Peer Lending on Sharia Perspective
This paper aims to discuss the implementation of sharia fintech financing and risks that have the potential to occur in Indonesia. Fintech operational activities sharia with a peer-to-peer (P2P) financing model and risk mitigation can carried out to minimize the risks in Indonesia that make MSMEs as the main market segment. This paper discusses the development of sharia fintech in Indonesia and more specifically its contribution nationally. Case studies are derived from Wrong One platforms P2P Which Once get award as The best Sharia fintech in providing services to MSMEs in Indonesia. Finally, will closed with resolution sharia in finish financing problematic. This paper contributes to the development of sharia fintech Because give description difference risks fintech sharia with other sharia financial institutions because sharia fintech places more emphasis on risk sharing and not making financial intermediation institutions the only the only one risk bearer greatest liquidity.
Assessing the Health Level of Islamic Commercial Banks for the Period 2018-2022: RGEC Analysis
Â Public perception of the stability and reliability of a bank is strongly influenced by various indicators of bank health, which in turn will affect their decision to choose the bank. This study aims to analyze the health level of Islamic Commercial Banks in Indonesia during 2018-2022 with the RGEC approach. The research method uses quantitative descriptive techniques on secondary data from financial statements and GCG reports from Islamic Commercial Banks between 2018 and 2022. The findings of this study reveal that overall the Islamic Commercial Bank is at PK-3 with a fairly good predicate. The risk profile component was evaluated, as measured by the NPF and FDR ratios obtained PK-2 with a healthy predicate. The Good Corporate Governance (GCG) component, evaluated through self-assessment analysis obtained PK-2 with a healthy predicate. In the earnings aspect, which is measured through the return on assets (ROA) ratio, obtaining PK-3 is quite healthy. However, the Operating Cost-Operating Income (BOPO) ratio is categorized as unhealthy with PK-5. Meanwhile, the assessment of the capital component received PK-1 with a very healthy predicate. Keywords: Bank health level, RGEC, Islamic Commercial Bank
The Dynamics of Islamic Finance in Kazakhstan: Exploring Opportunities and Addressing Challenges
Introduction: This paper explores the burgeoning field of Islamic finance in Kazakhstan, highlighting the opportunities and challenges that lie ahead. Islamic finance, which adheres to Sharia law, provides a distinct alternative to conventional banking systems. As Kazakhstan seeks to diversify its financial sector and attract investments from Muslim-majority countries, understanding the dynamics of Islamic finance becomes crucial. This study examines the legislative framework, market potential, key players, and the socio-economic implications of Islamic finance in Kazakhstan. The case study of existing Islamic banks is given, and their financial performance is examined. Methods: This research employed a qualitative approach, incorporating a literature review and descriptive-exploratory analysis. Primary data were obtained from academic literature, official reports from international financial institutions, Kazakh government regulations, and publications related to the development of Islamic finance in Central Asia. Data analysis techniques included reduction, categorization, and thematic interpretation to identify the dynamics, opportunities, and challenges associated with the implementation of Islamic finance in Kazakhstan. This approach was chosen to provide an in-depth understanding of the actual conditions and prospects of Islamic finance, while also generating strategic recommendations for the development of the industry at the national and regional levels. Results: The research paper also highlights the obstacles faced by the Islamic finance sector and the potential for expanding its implementation. Conclusion and suggestion: The paper further recommends solutions for integrating Islamic finance into Kazakhstan’s economy.
Nexus Between Energy Poverty, Economic Growth, Ijarah Sukuk and Environmental Degradation in Nigeria
Introduction: Poor energy access leads to environmental degradation among developing countries in Africa. This study investigated the nexus among energy poverty, economic growth, Ijarah Sukuk and environmental degradation in Nigeria based on time series data covering 1981 to 2023. The study intends to explore the effect of energy poverty, Ijarah Sukuk and economic growth on environmental degradation. Methods: The variables used were environmental degradation (dependent variable), energy poverty, Ijarah Sukuk and economic growth (independent variables). Population growth and capital formation were the control variables. Autoregressive Distributive Lag and Vector Error Correction were concurrently applied. Results: The study found a long run relationship based ARDL Bound test which justifies for both long and short run estimations. The result of long run revealed that energy poverty and Ijarah Sukuk are negatively and significantly related to environmental degradation, while economic growth is positively and significantly associated. Also, the short run, result is consistent to its long run estimates even at 10%. This shows that, an increase in current value of energy poverty and Ijarak Sukuk will decrease environmental degradation but increase by an increase in one-year lag value of energy poverty, while a point growth of economy will increase environmental degradation. Finally, the Vector Error Causality result indicates evidence of uni-directional causality from economic growth and energy poverty in the short run. Therefore, the growth of economy which leads to a reduction in energy poverty will result to higher environmental degradation reflecting two-sided blades of the same razor for Nigeria. Study of this nature reveals how the interplay among poor energy consumption, economic growth and environmental degradation, and concludes that energy poverty and economic growth have significant effect on environmental degradation for Nigeria. Conclusion and suggestion: Finally, it was recommended that, policymakers should prioritize energy poverty reduction strategy through adopting economic growth and environmentally friendly technology policy framework in Nigeria.
Deprived of the Islamic Financing and Lack of Inclusion of Muslim Populated States in India: An Empirical Study
Introduction: Financing is the backbone of economic growth. It serves as the lifeblood of any business. However, any financial exclusion, especially Islamic financing exclusion driven by a socio-economic and political purpose to deprive of certain segment of society due to suspicion of terrorism or suppressions by state, makes a difference. In fact, these are banking services and financing facilities originally intended to provide socio-economic benefits to the overall citizenry and the general public, but they have certain limitations in policy prescriptions. It is crucial to make the availability of financial services the leading and primary objective of the public policy, and not discriminate on the basis of ones’ social status, caste, religio, or wealth. In March 2005, the former Prime Minister Dr. Manmohan Singh, an architect of modern Indian economic revilism who passed away recently, appointed a high-level committee to prepare a report on the social, economic, and educational status of Indian Muslims, under the chairmanship of Justice Rajendra Sachar. The Sachar Report is considered the most valuable document that delves into the social, economic, and educational status of the Muslim community of India. The findings of this report revealed a shocking testimony to decades of institutional neglect and bias that have left the Indian Muslims far behind other Socio-Religious Communities, in the fields of education, employment, access to credit, and other social and physical infrastructure. The Indian banking sector has evolved over the years in terms of performance and complexity. Despite this development and growth, a large number of people have limited access to the financial services offered by financial institutions. Methods: The concern on which this study is based is the increasing financial exclusion among the Indian population generally and the Muslims in India specifically. In this novel study, we utilized panel data covering 14 Muslim-populated Indian regions (13 states and 1 Union Territory) from 2009 to 2016 to assess the factors influencing financial inclusion in terms of credit and deposit penetration. Results: By employing an explicit econometric model for panel data, it is found that the number of banking offices, per capita net state domestic product, outstanding liabilities, social sector expenditure, number of employees, and interest payments are some of the factors that influence financial inclusion. Conclusion and suggestion: This study will benefit the policymakers, state and government officials, society in general, especially Muslim populations in the relevant areas of Republic of India.
Islamic Economics under Colonial Rule: The British Encounter with Muslim Northern Nigeria and Its Enduring Economic Legacies
Introduction: The antagonism against Islam and Muslims, once manifested through the military campaigns of the Crusades, has evolved into more subtle yet pervasive forms in the modern era – most notably, Western imperialism and colonialism. British colonial rule in Northern Nigeria exemplifies this trajectory, as it entailed not only political domination but also efforts to impose Christian missionary ideals and systematically restructure indigenous Islamic institutions. This study investigates the historical, judicial, and economic impacts of British colonialism on Islam in Northern Nigeria, with particular attention to the responses of Muslim communities and the enduring consequences for Islamic governance and identity in the region. Methods: This paper employed historical and analytical methods, drawing on archival materials, Islamic scholarly sources, and relevant secondary literature to assess the colonial encounter. It contextualizes the arrival of Islam in Northern Nigeria and the subsequent British incursion, revealing that the most critical internal weakness of the Sokoto Caliphate was the inability of successive Sultans and Emirs to uphold the reformist ideals that defined its foundation. The dilution of Shari’a authority, particularly during the pre-independence period, led to a decline in public trust due to the appointment of poorly trained and morally compromised judicial officers. At the same time, British colonial economic policies rooted in exploitation and resource extraction undermined indigenous economic structures, marginalized Islamic leadership, and entrenched structural inequalities that continue to affect the region. Results: The research highlighted that Muslim resistance to colonial rule, often framed within the Islamic ideal of martyrdom (shahāda), played a significant role in preserving religious identity and Islamic culture. This historical resilience forms a critical basis for contemporary efforts toward Islamic institutional renewal. The paper concludes by recommending the revitalization of Islamic reformist principles, the promotion of dual (Islamic and Western) education, the restoration of integrity within Shari’a courts, the empowerment of qualified Ulama, and an economic reorientation rooted in Islamic ethics. Conclusion and Suggestion: It further suggests documenting Muslim resistance history and forging strategic partnerships with development actors to advance justice, education, and institutional strengthening within Northern Nigeria.
Halal Food Production and Nutritional Value: A Study of MSMEs in Northern Nigeria
Introduction: The rapid growth of micro, small, and medium enterprises (MSMEs) in Northern Nigeria has coincided with an increase in consumer demand for halal–tayyib food products that meet both Islamic dietary requirements and nutritional criteria. This study explores the practices of halal food–producing MSMEs in Kaduna and Kano states, evaluating how they achieve compliance with Shariʿah criteria while delivering nutritionally balanced offers. For cultural, religious, and health reasons, the largely Muslim populace of northern Nigeria depends significantly on halal-certified goods. However, there is a dearth of empirical studies on how local MSMEs simultaneously manage certification, ingredient procurement, processing, and nutritional adequacy. While halal certification addresses ritual purity, it does not guarantee nutritional quality. Anecdotal evidence suggests that many small producers prioritize certification over nutrient profiling, which may potentially jeopardize public health. This study fills the gap by evaluating both halal compliance and nutritional value in the outputs of MSMEs. Methods: Using a mixed methods approach, 20 halal certified MSMEs were surveyed on their sourcing, processing, and quality control practices; 40 food samples (such as meat products, dairy, and baked goods) were analyzed in a lab to measure macro and micronutrient content; 20 in-depth interviews with MSME owners, halal certifiers, and nutrition experts provided contextual insights; quantitative data were analyzed using descriptive statistics and correlation tests; qualitative data were subjected to thematic analysis. Results: Only 40% of the sampled MSMEs met national standards for essential nutrients (protein, iron, and vitamin A), despite the fact that 90% of them maintained valid halal certification. Common obstacles to nutritional quality included gaps in regulatory oversight, limited technical capacity, and cost constraints on fortified ingredients. MSME owners expressed a strong commitment to halal integrity but lacked knowledge about nutritional guidelines. The study emphasizes the need for integrated halal–nutritional frameworks and capacity-building initiatives aimed at MSMEs. Policymakers and Islamic authorities can collaborate to develop training modules and offer incentives for nutrient enrichment, in addition to halal certification. Conclusion and Suggestion: Ensuring both halal compliance and nutritional adequacy is crucial for maintaining public health and fostering consumer trust. In Northern Nigeria, enhanced collaboration among certification organizations, nutrition organizations, and MSMEs can foster a halal food industry that is both ethically sound and health-promoting.
Fintech, Blockchain, Islamic Finance: A Systematic Literature Review
Introduction: The rapid development of financial technology (fintech) and blockchain has brought a major transformation in the global industry, including in the Islamic finance sector. However, integrating fintech and blockchain with Sharia principles remains a challenge and has not been studied systematically. This research aims to map and analyze the development of research related to Fintech, Blockchain, and Islamic finance, identifying trends, research gaps, and future development directions. Methods: This study employed a qualitative research method with a Systematic Literature Review approach, utilizing a model prism. The data source for this study consisted of published articles obtained from Scopus and Emerald. The study's results showed that 30 articles, published in Scopus and Emerald, were published between 2015 and 2024. Results: Based on the findings obtained, it is evident that blockchain technology, fintech, and digital innovation have significant potential in enhancing the efficiency, transparency, and inclusivity of Islamic finance, particularly through applications in zakat, waqf, sukuk, and crowdfunding. Despite regulatory and collaboration challenges, these technologies have been able to eradicate poverty, support economic development, and expand access to finance, including in non-Muslim countries. Technology adoption is also influenced by religiosity factors and perception of benefits, confirming the need for global regulatory and standard support to maximize its benefits. Conclusion and Suggestion: The reviewed studies suggest that blockchain technology has significant potential to strengthen trust and compliance with Shariah by enabling smart contracts, decentralized financial products, and transparent auditing mechanisms. Moreover, fintech solutions can expand financial inclusion in Muslim-majority countries and beyond, especially for the unbanked population. However, challenges remain in terms of regulatory frameworks, Shariah standardization, scalability of blockchain applications, and the readiness of financial institutions and customers to adopt these innovations. In conclusion, while fintech and blockchain present strong prospects for advancing Islamic finance, further research and practical implementation are required to fully realize their potential in providing Shariah-compliant, inclusive, and sustainable financial services.
Risk Management for the Distribution of Zakat, Infaq, and Shadaqah (ZIS) Funds on the Mentari Scholarship Programme at Zakat Center LAZISMU Gresik
This research analyzes the risks in distributing Zakat, Infaq, and Shadaqah (ZIS) funds in the Mentari Scholarship Program at LAZISMU Gresik and how risk management is applied. This research uses descriptive qualitative methods with triangulation data collection techniques: observation, semi-structured interviews, and documentation. The results showed that there are risks in the distribution of Zakat, Infaq, and Shadaqah (ZIS) funds in the Mentari scholarship program, including (1) Risk of uneven allocation, (2) Risk of lack of coordination between Zakat Management Organisations , (3) Risk of delays in distribution and the risk of findings, namely the risk of administrative delays. The application of risk management in the distribution of Zakat, Infaq, and Shadaqah (ZIS) Scholarship Mentari funds refers to the risk management model in zakat institutions in the BAZNAS and Bank Indonesia books, including the context establishment phase, risk identification, and its impact, risk measurement, risk evaluation, and risk treatment. In addition, risk management applies the principles of priority scale and transparency. The distribution of Zakat, Infaq, and Shadaqah (ZIS) funds must be guided by the SOP for the implementation of pentasyarufan / utilization activities listed in the policy book and LAZISMU management strategic plan for Gresik Regency in 2022. Â
Determinant of Customer Decisions in Choosing The Savings Products at Bank Riyal Irsyadi
Abstract The purpose of this study is to find out the factors that influence customers in choosing the Riyal Irsyadi Bekasi Islamic bank. The respondents in this study were 100 people with the provision of Sharia bank savings user Riyal Irsyadi as a sample and the place of the research conducted in the city of Bekasi. The research method uses descriptive quantitative with purposive sampling techniques. The results of this study show that the factors of religiosity, social, and marketing promotion. It is evidenced by the results of the percentage of questionnaires distributed to the sample with a value of 58% of the variables studied, 42% of the variables that were not studied where other factors were outside the variables that had been studied. Based on the results of multiple linear regression analysis, it can be stated that of the three variables studied, it turns out that the service factor variable is 143.214 which has a more dominant coefficient value than other factor variables. The second high coefficient value is the social environment with a value of 1.054 then the lowest coefficient value is the religiosity variable 0.357 It can be concluded from the results of the research that the biggest factor that influences customers to choose Riyal Irsyadi Sharia Bank savings is the service factor where Islamic bank products have excellent service, have products needed by customers, as well as the existence of offers with Islamic principles without usury, garar, and maysir, all of which include aspects of the principles of the Riyal Irsyadi's Islamic bank. Keywords: Islamic Bank, Customer Service, Savings product. Abstrak Tujuan penelitian ini adalah untuk mengetahui faktor-faktor yang mempengaruhi nasabah dalam memilih bank syariah Riyal Irsyadi bekasi. Responden dalam penelitian ini berjumlah 100 orang dengan ketentuan nasabah tabungan bank syariah Riyal Irsyadi sebagai sampel dan tempat penelitian dilakukan di kota bekasi. Metode penelitian menggunakan deskriptif kuantitatif dengan teknik purposive sampling. Hasil penelitian ini menunjukkan bahwa faktor religiusitas, sosial, dan promosi pemasaran. Dibuktikan dengan hasil presentase kuesioner yang disebarkan kepada sampel dengan nilai sebesar 58% variabel yang diteliti, 42% variabel yang tidak diteliti dimana faktor lainnya berada diluar variabel yang telah diteliti. Berdasarkan hasil analisis regresi linier berganda dapat dinyatakan bahwa dari ketiga variabel yang diteliti ternyata variabel faktor pelayanan sebesar 143,214 memiliki nilai koefisien yang lebih dominan dibandingkan variabel faktor lainnya. Nilai koefisien tinggi kedua yaitu variabel lingkungan sosial dengan nilai sebesar 1,054 kemudian nilai koefisien terendah yaitu variabel religiusitas 0,357. Dari hasil penelitian dapat disimpulkan bahwa faktor terbesar yang mempengaruhi nasabah memilih tabungan Bank Syariah Riyal Irsyadi adalah faktor pelayanan dimana produk bank syariah memiliki pelayanan yang sangat baik, memiliki produk yang dibutuhkan oleh nasabah, serta adanya penawaran dengan prinsip syariah tanpa riba, garar, dan maysir yang kesemuanya itu sudah termasuk aspek prinsip bank syariah Riyal Irsyadi. Kata Kunci : Bank Syariah Riyal Irsyadi, Nasabah, Keputusan Memilih Produk.
Dynamics of Fundamental Factors and Macroeconomics in Determining The Stock Prices of Islamic Banks in Indonesia
This study aims to analyse the influence of fundamental variables of Islamic banks in Indonesia and Indonesian macroeconomic variables on the dynamics of Islamic bank stock prices in Indonesia in the period 2020 to 2023. This study uses a quantitative method with secondary data in the form of Islamic bank financial reports and publication data from Bank Indonesia. The analysis techniques used include descriptive statistics, classical assumption tests consisting of normality tests, multicollinearity tests, autocorrelation tests, and heteroscedasticity tests, as well as panel data regression techniques. The results of the study show that EPS has a positive but insignificant effect on stock prices, NPM has a negative but insignificant impact on stock prices, inflation has a negative but insignificant effect on stock prices, and interest rates have a positive but insignificant impact on stock prices. While together, all independent variables have a positive but insignificant impact on stock prices.
The Analysis of Implementation Halal Certification for Micro, Small, And Medium Enterprises (MSMES) In Padangsidimpuan City
This study aims to analyse the implementation of halal certification for Micro, Small, and Medium Enterprises (MSMEs) in Padangsidimpuan City, focusing on the impacts, challenges, and government support in the certification process. Halal certification has excellent potential to increase the competitiveness of MSMEs in the domestic and international markets, considering that most of the residents of Padangsidimpuan City are Muslims. The results of the study show that halal certification has a positive impact on increasing sales, consumer confidence, and market expansion. However, MSMEs face several significant obstacles, such as high certification costs, the complexity of procedures, and the need to understand the importance of halal certification. Through training, socialisation, and subsidies for certification fees, government support has made a positive contribution but still needs improvement. This research provides policy recommendations to overcome these obstacles, including increasing subsidies, digitising the certification process, and public awareness campaigns about the importance of halal products. Overall, this study reveals halal certification’s great potential in encouraging halal-based MSMEs’ growth in Padangsidimpuan City. Still, a better-supporting mechanism is required so that more MSMEs can exploit halal market opportunities. Â
The Impact of Islamic Banks Productive and Consumptive Financing on Indonesia Economic Growth
This research aims to determine the role of Islamic banks institution financial programs encourages the Indonesia's real economy. The financing variable is explained in more detail through the type of financing channeled, namely productive financing, consumptive financing, third-party funds (ID) as one of the sources of funds for financing distribution by Islamic banks, and gross fixed capital formation (GFCF) variables as control variables. Panel data regression is used in this research to investigate the influence of variables in 33 provinces in Indonesia in the period 2013-2023. It was found that the growth of productive financing, third-party funds, and GFCF had a significant positive effect on GRDP growth partially, while the consumptive financing growth variable had an insignificant negative impact. Simultaneously, all four independent variables successfully influence the dependent variable significantly. According to this study findings, researchers urge Islamic bank institutions to encourage the distribution of productive type financing to increase the productivity of economic activities in Indonesia, considering that most of the Islamic financing channeled is consumptive.
The Mediating Role of Reputation on Trust, Governance and Sharia Bank Performance
This research aims to analyze the influence of trust and governance on Islamic bank performance which is mediated by corporate reputation. This research uses quantitative methods with data collection techniques through questionnaires with sampling using Accidental Sampling. Data analysis uses Partial Least Square Structual Equation Model (SEM PLS). The research results show that trust has a positive effect on the performance of Islamic banks, but trust does not act as a mediator in the relationship between governance and Islamic bank performance. Furthermore, governance variables have a significant influence on reputation. However, other variables such as governance and reputation have no effect on the performance of Islamic banks. Apart from that, governance on the performance of Islamic banks which is mediated by reputation does not have a significant influence. Overall, trust, governance and reputation play an important role, but to improve the overall performance of Islamic banks requires support from various other factors such as product innovation, operational efficiency, service quality and effective risk management. The results of this research contribute to Sharia Banking to improve company performance through the implementation of Trust, Governance and Corporate Reputation. Keywords: Trust, Governance, Reputation, Company performance Â
The Impact of FOMO on The Hedonism Attitude of Generation Z In Islamic Consumption Behavior
This study discusses the impact of the Fear of Missing Out (FOMO) phenomenon on hedonistic attitudes in Generation Z's consumption behavior, focusing on the context of Islamic economics. The 20th century witnessed technological advances that brought significant changes in people's lifestyles, especially among Generation Z who are always connected to social media. This encourages excessive consumer behavior, which can be seen as a response to social pressure to keep up with trends. This study identifies that FOMO encourages individuals to adopt a hedonistic lifestyle, which prioritizes temporary satisfaction over long-term considerations. A literature analysis approach is used to explore the relationship between FOMO, hedonism, and Islamic consumption principles. The results show that the application of Islamic values, such as justice and moderation, can help Generation Z manage their consumption behavior, avoid waste, and find a balance between material and spiritual needs. These findings are expected to provide insight for the younger generation to develop more responsible and sustainable consumption patterns.