Journal of Islamic Monetary Economics and Finance (JIMF)
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Muslim Millennial’s Intention of Donating for Charity Using Fintech Platform
Get PDFFinancial Technology (fintech) has been a part of human life. Fintech becomes a solution of human needs without limits of space and time. Fintech makes it easy for people especially millennials to make donation. This study aims to explore the factors that influence Muslim millennial’s intention in giving donation through fintech. This study uses an integration model of Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB). Online survey is used in this research including 115 Muslim millennials as sample. Data analized by Structural Equation Model (SEM) using Smart PLS. The results indicate that Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) have no significant effect on Attitude Towards Usage (ATU), Attitude Towards Usage (ATU) has no significant effect on Behavioral Intention (BI), Perceived Usefullness (PU), Subjective Norm (SN) and Perceived Behavioral Control (PBC) significantly have a positive effect on Behavioral Intention (BI). Overall fintech improves Muslim millennial’s intention to make donation easily and almost all of respondents know about fintech, even not all of the use fintech to donate. This research contributes both theoretically and practically
Modelling a Sustainability Model of Islamic Microfinance Institutions
Get PDFIslamic microfinance institutions (IMFIs) – such as Baitul Maal wat Tamwil (BMT - with
cooperative legal entities), established in Indonesia as part of the shariah-compliant
financial industry sector (part of the halal sector) – need to maintain their sustainability
in order to encourage poverty alleviation and economic growth. In observing the
sustainability of BMT, there has been relatively little research involving aspects of the
quality of the human resources that carry out internal activities. Therefore, the aim of
this study is to create a model that is useful for predicting the sustainability of IMFIs,
especially BMT, based on variables that are considered important, namely financing
growth, Islamic human capital, fraud and Islamic leadership. The model was analysed
using multiple regression analysis based on the stepwise method. The primary
data (cross-sectional) were obtained in 2019 using questionnaires completed by 105
respondents comprising the administrators and managers of BMTs in Semarang and
Pekalongan, Central Java, Indonesia. We found that only two variables have a significant
influence on the sustainability of IMFIs: financing growth and Islamic human capital.
Practitioners can apply the results of the study to improve the performance of Islamic
microfinance, especially BMT, through the distribution of funding in the context of
economic improvement (especially micro-enterprise), spiritual strengthening for
human resources, risk prevention and appropriate leadership criteria
Financial and Social Efficiency on Indonesian Islamic Banks: A Non-Parametric Approach
Get PDFThis paper explores financial and social efficiency in one assessment framework. In order to measure efficiency level of Islamic Banking Industry, this study uses Data Envelopment Analysis (DEA) and Free Disposal Hull (FDH) methods. The results show that the level of financial efficiency of Islamic banks in Indonesia from 2013 to 2018 tends to decrease. On the contrary, the level of social efficiency of Islamic banks in Indonesia has a tendency to increase. Furthermore, the value of social efficiency of Islamic banks in Indonesia was relatively lower compared to the value of financial efficiency. Within the Financial-Social Efficiency Quadrant framework, the study classified two Islamic banks in quadrant 1, three in quadrant 2, two in quadrant 3, and four in quadrant 4. It is imperative for Islamic banks that are in the low level of ‘social efficiency’ to develop a policy to keep in line with the five factors of maqashid sharia apart of maintaining efficiency in order to reach maslahah. For the regulators, the social efficiency measurement framework could be an alternative in considering Islamic bank performance beyond financial efficiency
Determination of Professionalism and Transparency and Its Implications for the Financial Performance of Zakat Institutions
Get PDFThe objective of this study is to determine the influence of the professionalism and
transparency of zakat management on financial performance, especially in the case of
the Amil Zakat Institution of Daarut Tauhid Peduli Jabodetabek. The method used in
the research is SEM (structural equation modeling) using AMOS, with 156 respondents.
The results show that: (1) professionalism has a negative and insignificant impact on the
transparency of zakat management; (2) professionalism has a positive and significant
impact on financial performance; and (3) the transparency of zakat management has
positive and significant impacts on financial performance. Moreover, the indicators
of competence have the highest loading factors of professionalism; the indicator of
information on fund management has the highest loading factors of transparency;
while the indictor of measurement of economics has the highest loading factor of
financial performance. To sum up, this research suggests that zakat institutions should
improve their transparency and professionalism in order to improve their financial
performance in the future
Cash Waqf Investment and Poverty Alleviation: Case of Tabung Masjids in Malaysia
Get PDFRecent investigations of the financial management practices of mosques in Indonesia have influenced this study, which investigates the ability of mosques in Malaysia to invest cash waqf for development activities. The impact of cash waqf investment is further extended to study the importance of such cash waqf donations toward poverty alleviation. 100 mosques in Melaka and Terengganu are selected for the purpose of conducting a survey using a self-developed questionnaire. Data collected from the survey are tested for their validity and reliability before conducting Structural Equation Modelling (SEM) analysis using Smart PLS 3.0. This study finds that cash waqf donation plays a positive role in increasing the ability of the selected states to alleviate poverty. The negative relationship between cash waqf investment and donation raises the need for a rigorous analysis. A conceptual model integrating cash waqf investment, donation, and poverty alleviation is provided in this study, which is the first of its kind. The results provided by the study will allow regulators and mosque fund managers to understand the significance of cash waqf donations and the importance of effective cash waqf management. Efficient investment of cash waqf can ensure sustainable and perpetual income that will allow a mosque to play a vital role in improving the living standards of the Muslim Ummah. The findings of the study cannot be generalized for all states in Malaysia due to the limitation of purposive sampling
THE Role of Halal Certification on Purchase Intention Towards Food Products from MENA Countries: A SEM Study
Get PDFKullu Halal (all Halal) is a concept that is highly applied in the Middle Eastern and
North African (MENA) region as the majority of the population is Muslim. Many
products from non-Muslim countries are also exported to the MENA countries and
some of them are exposed to animal-based ingredients. Halal certification studies in the
MENA region are found to be quite minimal to non-existent. The paper is designated
to analyze the effects of Halal certification towards the purchase intention of Muslim
consumers on food products from Muslim majority countries in the MENA countries.
Theory of Planned Behavior (TPB) was used as a platform to predict the consumers’
intention to purchase the Halal certified products. A self-administered questionnaire
was selected as a method and the respondents are the Muslim consumers living in
certain areas of Klang Valley, Malaysia. Five hundred questionnaires were distributed,
and 417 questionnaires were considered usable. Structural Equation Modeling (SEM)
was used as a method in this research. Attitude, Subjective Norm, and Perceived
Behavioral Control showed a strong correlation with Purchase Intention and the results
were statistically significant at p < 0.05. Algeria was found to be the least trustworthy
country by the respondents, followed by Iran, Lebanon, Iraq, and Bahrain. The results
indicate that the presence of Halal certification is important and will be profitable for the
food industry players in the MENA region. Despite being Muslim majority countries,
it is important to ensure the presence of Halal certification in the products from MENA
countries, especially from those that received low scores in the country of origin study
Strengthening National Economic Growth and Equitable Income Through Sharia Digital Economy in Indonesia
Get PDFThe rapid progress of information and communication technology (ICT) creates a new look of the Indonesian economy, transforming from the conventional economy into a digital economy. The part of the digital economy currently developing worldwide, include in Indonesia is, Fintech (Financial Technology) and E-commerce. Additionally, Indonesia contributes to 4 percent of total e-commerce sales around the world. The development of Fintech in Indonesia is still at early stages, as many industries have not developed such a practice. Besides, there are many opportunities that have not been explored to its full potential. The research employs Input Output (I-O) analysis, using shock of IDR 3.90 trillion in investment of the sharia e-commerce subsector, we found through this study that the national economic growth grew by 0.048 percent or the economic output increased by IDR 5.08 trillion. As for the impact on gross value added (GVA) grew by 0.072 percent or increased by IDR 3.72 trillion. In addition, national labor income increased by IDR 795.36 billion with investment in sharia e-commerce subsectors. After an additional shock to the Fintech and the trade sector, economic growth increased by 0.052 percent or IDR 5.48 trillion. Sharia e-commerce and sharia Fintech should be able to have a big impact on the economic growth, increasing the amount of labor needed so that it can absorb more national labor. Thus, economic growth, increased income, and job creation will potentially reduce poverty and inequality in that the implications in the long term will further strengthen sustainable national economic growth
Developing Halal Travel and Halal Tourism to Promote Economic Growth: A Confirmatory Analysis
Get PDFThe purpose of this paper is to identify the factors of various backgrounds in the literature having to do with halal purchase intention of Muslim travellers on halal travel and tourism sector. It also aims to investigate which antecedents, among all, that have the dominant determinants toward the development of halal travel and tourism purchaseintention. A total of 255 respondents originating from several major cities of West Java were involved in random sampling technique to measure their personal perception on the determinant factors of halal purchase intention. Data were collected through structured questionnaire with a five-point Likert scale. The questionnaire has been divided into two main parts, the first part identifies the respondent identity, while the second part provide 6 main sub-part statements on halal awareness, personal societal perception, religious belief, halal marketing, halal travel & tourism, and infrastructure. Confirmatory Factor Analysis (CFA) will be used to acquire the most critical to the least critical indicators in explaining purchase intention on halal travel and tourism industry sector. The paper concludes that most customers rely on halal marketing, making it the dominant determinant factor. Meanwhile, the second dominant determinant is halal travel and tourism. Then, the third determinant is halal awareness. Religious beliefs and personal societal perceptions are the last two priorities. This paper offers a detailed insight into various behaviors of customer’s purchase intention on halal travel and tourism sector as well as delivers a new model of purchase intention through detailed latent-variables. Finally, the relevant stakeholders, in particular government, should enhance the halal marketing on travel and tourism through various programs and activities, such as massive promotion, socialization, and literacy
THE Prospects for Islamic Social Banking in Indonesia
Get PDFDespite significant growth and development in recent years, Islamic banking (IB)
continues to face widespread criticism due to its apparently weak social outcomes. This
study investigates the social performance of Islamic banking in Indonesia, including its
justification as an IB objective and the means of improvement. We surveyed 506 current
and potential Islamic banking customers across six Indonesian provinces, combined
with in-depth interviews with 10 Islamic banking experts consisting of regulators,
practitioners, Sharia scholars, and academics. The findings strengthen previous results
on the topic in that 42.89% of respondents consider that IB in Indonesia is socially
defensive (doing the least that is required in terms of social outcomes), while 6.92%
believe that it is reactive (doing less than that required). Of the remaining respondents,
34.78% consider the social performance as accommodative (doing all that is required)
and 15.42% see it as proactive (doing more than is required). Most respondents (52.96%)
suggest improvement by combining corporate social responsibility and the ZIS (
Zakat, Infaq, shadaqah)- Waqf system. Only some (7.11%) suggest the establishment of Islamic
social banking, whose main feature would be to design an alternative to collateral so
that low- and middle-income customers could more readily access bank financing. We
recommend that regulators and practitioners take action to address these challenges
through incentives and long-term strategic planning
Herding Behavior in the Indonesian Islamic Stock Market
Get PDFIndonesia Stock Exchange provides Islamic stocks for Muslim investors who want to invest, with the first Islamic stock index in Indonesia being Jakarta Islamic Index or JII that consists of thirty of the most liquid Islamic stocks. The market capitalization of JII tends to increase every year. This paper examines the presence of herding behavior in emerging Islamic stock market of Indonesia using daily return of Indonesia Composite Index and JII from October 6, 2000 to October 5, 2018. Herding behavior could generally trigger shifting market prices from equilibrium values. Herding behavior may be identified from the relation between stock return dispersion and market return. Stock return dispersion is measured using Cross Sectional Absolute Deviation or CSAD. Generalized Auto Regressive Conditional Heteroskedasticity or GARCH method is used to detect herding behavior. GARCH does not see heteroskedasticity as a problem, instead uses it to make a model. The result indicates that herding behavior exist in Islamic stock market of Indonesia. Asymmetric herding occurs in Indonesia Islamic stock market where herding behavior exists during falling market condition only