Shirkah: Journal of Economics and Business
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Charitable Behavior of Muslim in Indonesia during the COVID-19 Pandemic: A Tobit Model Analysis
Full text linkThe COVID-19 pandemic has caused a decline in social welfare. In such a situation, community philanthropy, including from the Muslim community, becomes critical. This study aims to explore the charitable behavior of Muslims in Indonesia during the COVID-19 pandemic. The Tobit regression was used to analyze data from online surveys to determine the pattern changes of donations during the pandemic as well as the factors affecting the amount of donation. This study uncovered that Zakat Management Organizations (BAZNAS and LAZ) were some of the main choices for distributing zakat and alms (sedekah) during the pandemic. It was found that the factors with a positive and significant effect on the probability of increasing the percentage of donations were education, length of stay, and expenses. The results of this study contribute to the policy of developing the Zakat Management Organization as institutions trusted by the community in distributing zakat funds. This study supports the fundraising of the zakat organizations in terms of offering valuable insights and clear description about the Indonesian people’s charitable behavior. More importantly, this study suggests that improving the quality of education is crucial to increase community awareness in performing Islamic philanthropy such as giving zakat, sedekah, and waqf
Acceleration of Islamic Bank Financing in Indonesian Agriculture Sector
Full text linkEconomic instability is a challenge for Islamic banks in channeling financing to various sectors including agriculture. This study aims to shed some light on the influence of economic indicators and the financing response to agriculture sector using monthly data from 2006 to 2020, including data from agriculture sector financing, interest rates, inflation, exchange rates, Islamic stock index, and composite stock index. This study employed Vector Error Correction Model (VECM) method. The results revealed that only interest rates and inflation affected Islamic bank financing in the short and long term period. Islamic bank financing in the agriculture sector reached the fastest stability when responding to exchange rate shocks. The results further showed that interest rates mostly influenced the level of diversity in Islamic bank financing in the agriculture sector. The results suggest that stakeholders need to play a crucial role in stabilizing economic turmoil to accelerate Islamic bank financing particularly in agriculture sector
The Spiritual Values of Islamic Economics in Tasawuf Modern: Scrutinizing the Work of Haji Abdul Malik Karim Amrullah (Hamka)
Full text linkIslamic economics has existed since the start of Islamic civilization. However, Islamic economic thoughts established by Indonesian scholars are limited. This exploratory research was carried out to determine the spiritual values of Islamic economics on Hamka's works entitled Tasawuf Modern. Primary and secondary data were collected from Hamka's works entitled Tasawuf Modern and from several papers or books that are relevant to the focus of the research. The data collected were analyzed by combining topics relevant to Islamic economics in modern Sufism and other secondary sources. Content analysis was used for data analysis. The results of this study revealed that, according to Hamka, the richest people are those that need the least. The true wealth lies in the contentment of the soul (qana'ah). Good wealth represents virtue and prohibiton for extravagancy and excessive consumerism. Further, humans need to be in between to carry out good deeds. The results of this study contribute to enriching the discourse of Islamic economic thought, especially in Islamic economic ethics and the role of ethics in business
Stress and Job Performance of Healthcare Workers amidst COVID-19 Pandemic: The Mediating Role of Burnout
Full text linkHealthcare workers in hospitals are one of the frontliners in handling the COVID-19 issue. However, previous studies were mostly directed on doctors and nurses, albeit many other workers are involved in managing the COVID-19 issue at a hospital. Physical and mental work pressures in performing their jobs and responsibilities potentially affect their performance. This study aims to shed some light on the direct influence of job stress on the job performance of healthcare workers during the COVID-19 pandemic with burnout as a mediating variable. This study make use of a cross-sectional approach by employing a questionnaire to gather the data from 194 healthcare workers at Aisyiyah Ponorogo General Hospital Indonesia. Drawing on the Structural Equation Modeling Partial Least Square, the results reveal that (1) job stress has a negative influence on the job performance of the healthcare workers, (2) job stress is proven to have a positive effect on the burnout of the healthcare workers, and (3) burnout is found to partially mediate the effect of job stress on the job performance of the healthcare workers. By referring to the compelling results, valuable suggestions are offered to the hospital managers and further related studies. This study’s results further contribute to providing recommendations for the hospital management as well as the government concerning on factors affecting the healthcare workers’ job performance, especially at the age of a crisis such as the COVID-19 pandemic
Determinants of Online Zakat Intention amongst Muslim Millennials: An Integration of Technology Acceptance Model and Theory of Planned Behavior
Full text linkToday’s modern civilization has resulted in the crucial role of technology in human life, including financial matter. Integrating Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB), this study sheds some light on the determinants of Muslim millennials’ intention in performing zakat payment using Financial Technology (Fintech). An online questionnaire survey was conducted to gather the required data from a group of Indonesian Muslim millennials. Employing purposive sampling technique, the sample consisted of 200 respondents. The data were analyzed with the assistance of Structural Equation Model - Partial Least Square (SEM-PLS). The results demonstrated that perceived ease of use and perceived usefulness positively and significantly affected the respondents’ attitudes. Moreover, attitudes, subjective norms, and perceived behavioral control significantly affected the intention of using Fintech to perform zakat payment. The results further revealed that there was no direct influence between perceived ease of use and perceived usefulness on the respondents’ intention to use Fintech. However, it had an indirect effect by the mediation of attitude variable. As a theoretical implication, this study contributes to the literature enhancement in the discourse of TAM and TPB models in zakat context. Practically, it assists zakat management institutions recognize the Muslim millennial community and develop digital zakat payment platforms
The Contribution of Profit-sharing Characteristics to the Performance of Islamic Banks
Full text linkIslamic commercial banks are highly identic with the profit-sharing as a sharia banking basic operational system. The profit-sharing becomes a specific characteristic of sharia banks as well as a distinction from conventional banks. Hence, this study aims to examine if the profit-sharing characteristic contributes to the performances of Islamic commercial banks in Indonesia. This study employed time series data derived from the Financial Service Authority (OJK) using regression-mixed test and auto-regressive heteroscedasticity (ARCH). The results pointed out that the profit-sharing system for the lending of Musharaka had an impact on the performance of sharia banks; while the profit-sharing for the funding of Mudaraba did not support the hypothesis with negative coefficient. The results suggest that the profit-sharing characteristic provides contribution to the performance of Islamic commercial banks through the lending of Musharaka. These results further indicate that the profit-sharing characteristic performed by Islamic commercial banks is proven to be effective in improving their performances. This study’s results have an implication for Islamic commercial banks to strengthen their profit-sharing characteristics and improve the public trust toward sharia banking system
Revisiting the Contribution of Islamic Banks’ Financing to Economic Growth: The Indonesian Experience
Full text linkThe contribution of Islamic banking towards economic growth remains debatable amongst academicians and practitioners. This study investigates the relationship between Islamic banks’ financing and economic growth in Indonesia which is the largest Muslim population country. This study adopts Autoregressive-Distributed Lag (ARDL) and utilizes time-series quarterly data from 2011Q1 to 2019Q3. The study uses four predictors: financing to deposit ratio, gross capital fixed formation, inflation, and trade openness. The results from the auto-regressive distributed lag model indicate that, in the long-run, Islamic banks' financing has a significant impact on the Indonesian economy. However, in the short-run, financing does not make a substantial contribution to Indonesian economic growth. The study’s key implication is that financing by Islamic banks still makes a limited contribution to economic growth in Indonesia. This study enhances the literature review, specifically on evaluating the contribution of Islamic banks towards economic growth. Numerous existing studies on this topic covering the crisis period data, which might suffer from data bias. Therefore, this study addresses this topic, excluding the global financial crises period such as 1998, 2008, and 2020, to demonstrate Islamic banks' evident contribution to Indonesian economic growth
Advocacy Coalition Framework of Ultra Micro Loan Policymaking in Indonesia
Full text linkAdvocating the Ultra Micro-lending concept of Indonesia's Ministry of Finance in 2017 was a tumultuous nine-year process. The present paper aims to examine the Ultra Micro-lending (UMi) program conducted by the Ministry of Finance of Republic of Indonesia using Advocacy Coalition Framework. This paper showed that Advocacy Coalition Framework could moderate the interest groups' disagreement through seven steps as follows. First, relatively stable parameters of poverty need alleviation using better financial access with empowerment. Second, the external system is inspired by Grameen Bank as the winner of the Nobel Peace Prize. Third, removing constraints and resources of subsystem actors from the internal Ministry of Finance and the Parliaments. Fourth, creating consensus for getting the Ministry of Bureaucratic Reform's permit. Fifth, policy subsystem that coalesces the need of market-rate and subsidized rate to cater to 46.7 million grassroots entrepreneurs as a 'win-win' arrangement to complement the bank-based People's Business Credit (KUR). Sixth, policy outputs as the legal product of the UMi with a 7 Trillion State budget. Seventh, policy impact's measurement after one year piloting before UMi's scaling up. This paper has a significant contribution to enhancing the efficacy of UMi program, and as a continuous effort to ensure the economic development of the country
Oman’s Islamic Banking Performance amidst Covid-19 Outbreak: Prospects and Challenges
No full textCovid-19 pandemic forced Islamic banking in Oman to slow down and to change strategies adapting to the current situation. The Covid-19 outbreak has raised various challenges for Islamic banking. In order to maintain the sustainable growth of the industry, stakeholders of Islamic banking should strive collectively to solve these challenges. Nevertheless, Islamic banking was able to maintain and manage capital and liquidity buffers. The growth for 2021 is expected to remain stable for at least a single-digit growth. However, there would be asset-quality and profitability pressure for Islamic banks within the Sultanate of Oman. This paper highlights the performance of Islamic banking in Oman amid the Covid-19 outbreak. This paper demonstrates that the industry merely recorded a single-digit growth compared to the last seven years at double-digit growth due to the pandemic. The paper further delineates on the prospects and challenges of Islamic Banks Entities (IBEs). It also suggests some practical solutions for survival. This paper contributes to providing an alluded picture of the current conditions and situation of Islamic banks in Oman as well as insights to deal with the challenges to enhancing the banking performances during the Covid-19 outbreak.Â
The Contribution of Waqf on Poverty Alleviation through Digital Platforms: A Case of Indonesia
Full text linkToday, poverty is a crucial issue and has a great impact in social and economic development. Waqf (charitable endowment) is one of the sources of Islamic economic system, which refers to the voluntary charity. Waqf has a unique presence in Islam and could potentially alleviate poverty. It was reflected in the historical lesson since prophet Muhammad (PBUH) and his companions developed a system where rich people could donate their wealth for the society development. This concept, nowadays, is adopted by developing a Waqf system that integrates digital technology. Concerning on this issue, the present study aims to snapshot a poverty situation and portray the grand design of digital Waqf system in alleviating the poverty in Indonesia. Under the procedure of qualitative approach, this study employs document analysis and observation of all instruments related to Waqf. The results show that Waqf plays an important role in decreasing poverty in Indonesia. By utilizing digital platforms, the collection of Waqf funds is effective and widely spread to the Muslim community within the country. The results suggest that digital Waqf system has a crucial role and potentially contributes to the sustainable economic development of a developing country, particularly Indonesia. This study can be used in financial inclusion through the application of digital Waqf to alleviate poverty