This research explores an undefined development paradigm within the frameworks related to Islamic epistemology, and on its potential to innovate and interact with global development frameworks. Building on foundational theories articulated mainly by Elmessiri et al. (2006) in Bias: Epistemological Bias in the Physical and Social Sciences, the research aims to propose a theoretical Islamic development model (Rushd), informed by principles of Islamic epistemology and its manifestation in developing Waqf institutions (Islamic Endowments). Hence, the research critically examines some contemporary approaches to waqf development that often reduce waqf to a utilitarian instrument for policy alignment and income generation, neglecting its deeper moral and social functions. This study is guided by an overarching question and a sub question: How can Islamic thoughts in societal development facilitate the construction of a development model that captures the Islamic knowledge conceptions most important principles? What principles within the Islamic epistemology can guide societal engagement to enrich this model? The focus of this paper is on the practicality of knowledge construction in contemporary development practices. It does not aim to provide normative answers to the earlier stated questions but to facilitate for exploring a reconstructive and evolving model of development that integrates Islamic epistemology with societal experiences. Keywords: Islamic Epistemology, Development Models, Waqf, Society Building, Rushd.
This study examines the impact of Palestine’s occupation on Indonesian millennials' intentions to boycott Israeli-affiliated products, focusing on attitude, perceived behavioral control, and subjective norm as determinants. Millennials are chosen as the research object based on the assumption that they represent an active workforce with relatively higher financial capability, potentially increasing their influence on consumer behavior. Using Structural Equation Modeling-Partial Least Squares (SEM-PLS), findings reveal that attitude and perceived behavioral control significantly impact boycott intention, while subjective norm is not significant. These results indicate that millennials are more influenced by personal beliefs and self-efficacy than by social pressures. Policy recommendations include enhancing educational campaigns to strengthen individual attitudes and empower millennials with resources for informed choices, possibly through collaborations with influencers and educational institutions. Future studies could explore additional factors, such as media influence and availability of alternatives, to provide a broader understanding of boycott behavior among millennials.
This study aims to analyze potential collaboration models between sharia fintech and Bank Pembiayaan Rakyat Syariah (BPRS) in Indonesia and to determine which model offers the highest strategic impact according to expert judgment. Using the Analytic Network Process (ANP), this research evaluates four alternative collaboration models identified through literature review and expert interviews. The first model is Sharia Fintech as a Technology Enabler and Referral Partner, where fintech provides prospective customer referrals to BPRS. The second model is Sharia Fintech as a Technology Enabler and Distribution Channel, functioning as a fund channeling intermediary between BPRS and customers. The third model positions fintech as a technology enabler for creditworthiness assessment, focusing solely on credit scoring activities. The fourth model is Sharia Fintech as a Sharia Peer-to-Peer (P2P) Financing Enabler, in which fintech provides a project marketplace for BPRS to fund, with financing flows conducted through the P2P platform. ANP results show that Model 4 is the most preferred option, while Model 3 is the least recommended. Managerially, BPRS should prioritize Model 4 and establish a joint coordination team with fintech under the supervision of the sharia fintech association.
Women fishers play a strategic role in contributing to the coastal economy, engaging in activities ranging from production and processing to distribution and marketing of marine products. However, they continue to face significant barriers in accessing formal sources of financing due to limited collateral assets, low levels of financial literacy, and inadequate access to financial technology in coastal areas. The development of Islamic financial technology, or sharia fintech, presents an opportunity to provide a fair, inclusive, and Sharia-compliant financing system. This study aims to analyze the potential and implementation of a digital-based Sharia financing model for women fishers in South Sulawesi within the framework of a sustainable blue economy. The research adopts a qualitative approach with a case study conducted in Pangkajene and Islands Regency, South Sulawesi. Data were collected through semi-structured interviews with groups of women fishers and administrators of Islamic financial institutions, particularly Islamic cooperatives operating within coastal communities. Data analysis was conducted using thematic analysis, assisted by NVivo 12 Pro software. The results indicate that most women fishers are still in the early stages of the innovation diffusion process—specifically, the knowledge and persuasion stages—thus the utilization of Sharia fintech remains limited. Nevertheless, the potential for adopting Sharia fintech is promising if supported by continuous education, institutional mentoring, and the integration of empowerment programs based on the blue economy. This study recommends the development of an integrated digital Sharia financing model aligned with coastal women’s economic empowerment programs to strengthen financial inclusion in support of a sustainable blue economy.
Waqf is an Islamic philanthropic instrument with significant potential to support sustainable economic empowerment in society. In Indonesia, the realization of productive waqf remains suboptimal, despite the estimated potential of cash waqf exceeding IDR 180 trillion annually. Low public participation in productive waqf is partly due to a lack of trust in waqf management institutions (institutional trust) and limited innovation in waqf practices (waqf innovation). This study aims to examine the influence of institutional trust and waqf innovation on waqf participation intention, and its impact on economic empowerment, with waqf participation intention as a mediating variable. A quantitative approach was employed using the Structural Equation Modeling – Partial Least Squares (SEM-PLS) method. Data were collected through an online questionnaire involving 150 Muslim respondents in Indonesia who are familiar with waqf programs. The results reveal that both institutional trust and waqf innovation significantly affect waqf participation intention. Furthermore, waqf participation intention positively influences economic empowerment and mediates the relationship between institutional trust, waqf innovation, and economic empowerment. These findings highlight the crucial role of enhancing trust and innovation in optimizing waqf as a sustainable and inclusive tool for economic empowerment in Indonesia.
This study aims to analyze the influence of trustworthiness and fairness on the quality of financial statements in Islamic financial institutions. Previous research that largely emphasized governance and compliance with Islamic principles shows that these ethical values need to be examined as key determinants of financial reporting integrity. Trustworthiness and fairness are considered highly relevant because they represent the moral foundation of Islamic financial practices, particularly in promoting transparency, accountability, and objectivity in the presentation of financial information. This study employs a quantitative approach using a Likert-scale questionnaire distributed to 144 respondents. The data were analyzed through validity and reliability testing as well as multiple linear regression to determine the effect of both variables on financial statement quality. The results indicate that the regression model used is statistically significant and capable of explaining the influence of trustworthiness and fairness on report quality. Trustworthiness contributes positively, while fairness demonstrates a more dominant and consistent influence in improving the quality of financial statements. Descriptive findings show average values of 74.39 (74%) for trustworthiness, 72.85 (73%) for fairness, and 73.91 (74%) for financial report quality, all categorized as high. These results confirm that trustworthiness and fairness function not only as moral values but also as strategic factors that strengthen the credibility and integrity of financial reporting.
This study examines the implementation of tax on cryptocurrency transactions from an Islamic legal perspective. Using a descriptive qualitative approach and secondary data, this research analyzes the alignment between Indonesian crypto tax regulations and the principles of Fiqh al-Mu‘āmalāt and Maqāṣid al-Sharī‘ah in the framework of Technology Acceptance Model. The findings indicate that crypto assets can be categorized as Māl Mutaqawwam, but tax implementation must consider the principles of justice and public benefit. The study recommends the necessity of a comprehensive sharīʿah guidelines for fiscal policies concerning digital assets
Indonesia with a Muslim majority inherently provides potential for the development and utilization of productive waqf as a financial instrument for social welfare and economic growth. Stock waqf is one of the productive waqf that is quite potential to be developed because it provides the potential for quite large profit sharing with minimal risk if placed in stocks that are fundamentally strong and liquid to maintain the sustainability of waqf assets in the long term. This study aims to analyze the returns and risks of sharia stock portfolios on IDX High Dividend 20 stocks and including LQ45 stocks if placed as waqf objects. In addition, it also analyzes the strategy for implementing stock waqf portfolios for wakif, nazhir and regulators. This study uses two methods to answer the problem formulation, namely Return Portfolio and Risk Portfolio. Furthermore, for the second research question, in-depth interviews and literature studies are used. The results of the study prove that the strategy of forming a portfolio based on dividend yield on stocks that fall into the criteria of IDX High Dividend 20, LQ45 and JII has been proven to consistently increase returns (yield) and total returns with increasing dividend yield. Portfolio 4 which focuses on stocks with dividend yield ≥ 5% provides the highest return (yield) of 17.06% per year, this is also a picture of the yield if applied as a stock waqf portfolio and the total return is also the highest at 18.20% per year, this is also a picture of the yield if applied as a cash waqf investment portfolio or stock futures waqf. In addition, this study emphasizes the importance of education and increasing the competence of nazir in sharia financial literacy and stock waqf management. Collaboration between stakeholders, including nazir, financial institutions, and regulators, is needed to maximize the potential of stock waqf. Effective risk management and transparency in reporting are also key elements to maintain investment stability and increase public trust.
ABSTRACT AGUS SULAEMAN, Fraud Pentagon Theory Perspective: Fraudulent Financial Reporting in Sharia Banking registered at Financial Services Authority (OJK), Magister Managemen Study Programs, College of Singaperbangsa University karawang, 2025. This research aims to examine the effect of fraud pentagon theory towards Fraudulent Financial Reporting in Sharia Banking registered at Financial Services Authority (OJK). Fraud pentagon theory includes five elements, namely Pressure proxied by financial target, financial stability, external pressure, and institutional ownership, Opportunity proxied by ineffective monitoring, and quality of external auditor, Rationalization proxied by change in auditor, Capability proxied by change in directors, and Arrogancy proxied by frequent number of CEO’s picture. This type of research is quantitative research. Samples were taken by using purposive sampling and data analysis tool used is SPSS (Statistical Package for the Social Sciences). The results of this research stated that financial target, financial stability, external pressure, institutional ownership, ineffective monitoring, change in auditor, and change in director does not affect Fraudulent Financial Reporting. While quality of external auditor and frequent of CEO’s picture has a positive significant effect on Fraudulent Financial Reporting. So its proves that Sharia Banking must carry out financial statement audits and prioritize the quality of external auditor to prevent fraudulent financial reporting. Keywords: Fraud, Fraud Pentagon Theory, Fraudulent Financial Reporting, Sharia Bank
The development of Wakaf Deposits in Indonesia holds significant potential in strengthening Islamic finance and maximizing waqf fund utilization. However, challenges related to regulatory alignment, risk management, transparency, and operational standardization hinder its effective implementation across Islamic Financial Institutions. This study aims to develop a prototype and Standard Operating Procedure (SOP) for Waqf Deposit products in Islamic Financial Institutions, with an emphasis on Islamic Banks, Islamic Cooperatives, and Islamic Fintech. This Waqf Deposit product is designed to support the optimal potential of waqf through an innovation-based and collaborative approach. This study targets the study of Islamic law and positive law related to waqf, the development of a BMC (Business Model Canvas)-based business model, the design of operational stages, and cost and benefit analysis. In addition, risk and prevention analysis is carried out in accordance with sharia principles and OJK (Financial Services Authority) regulations, including the preparation of RAC (Risk Acceptance Criteria) and waqf audit guidelines. The results of this study are expected to provide practical guidance for Islamic Financial Institutions in implementing Waqf Deposit products, as well as stimulating synergy between the banking, cooperative, and fintech sectors in supporting community empowerment and the development and improvement of the halal industry. This study contributes to the Islamic finance sector by proposing a sustainable business model, operational workflow, risk mitigation strategies, and a waqf audit framework based on Waqf Core Principles to enhance transparency and accountability. The implications of this research extend to policymakers, financial regulators, and Islamic Financial Institutions, offering a comprehensive technical guideline for the systematic implementation of Wakaf Deposits.
This research explores green waqf management, prophetic leadership implementation, and challenges faced by green waqf institutions in Indonesia, focusing on Hutan Wakaf Bogor and Greenwaqf. Using a qualitative descriptive case study approach, the findings reveal that Greenwaqf prioritizes renewable energy, while Hutan Wakaf Bogor emphasizes forest management. Both institutions have applied prophetic leadership values, though loyalty, exemplary behavior, accountability, transparency, and effective communication require further improvement. Key challenges include funding, regulatory frameworks, and nazhir resource development. The study recommends that stakeholders, particularly regulators, address these challenges by formulating supportive policies and enhancing nazhir guidance through prophetic leadership principles, fostering a stronger green waqf ecosystem.
Aceh is a province in Indonesia with a Muslim-majority region and applies special autonomy and qanun, but there is a paradoxical phenomenon in this region where a significant increase in zakat distribution, economic growth, and education is actually followed by an increase in the number of poor people. This study aims to test and analyze the effect of zakat, economic growth and education on poverty rates in 23 districts / cities of Aceh Province in 2011-2021. The research method used in this study is using a descriptive quantitative approach using secondary data. The analysis technique uses panel data regression which includes cross section data (23 districts / cities) and time series data (2011-2021). Data obtained from the official websites of Baitul Mal Aceh and the Central Bureau of Statistics of Aceh Province. The results showed that zakat and education partially had a significant negative effect on the poverty rate in Aceh, this identified that zakat and education succeeded in reducing poverty in Aceh. However, it is different with economic growth where the results show that partially economic growth has a positive but insignificant effect on the poverty rate. This indicates that an increase in economic growth causes an increase in the poverty rate in Aceh. Simultaneously, zakat, economic growth and education variables together have a significant effect on poverty reduction in Aceh.
Non-bank financial institutions are very often challenged to implement Islamic financing, especially in the standard of financial records. The purpose of this research is to evaluate the implementation of the rahn tasjily financing system, the application of sharia accounting to rahn tasjily, compliance with the DSN MUI fatwa related to rahn tasjily, compliance with Qanun on Islamic financial institutions, and the benefits of financing for members and employees at the Wangi Sari Selamat Jaya Sharia Multipurpose Cooperative (WASSALAM) Aceh Tamiang. The novelty of the research lies in the Qanun as the standard of Islamic financial institutions in Aceh. Although previous research has researched how accounting is applied to rahn tasjily, but there are still few who discuss its compatibility with the Qanun LKS This research uses a descriptive-qualitative approach with the Participatory Action Research (PAR) method, through in-depth interviews with participants. The research findings show that Wassalam Cooperative has implemented sharia-compliant financing, but is still unable to provide debt with uniform ujrah because each customer has different terms and conditions that must be met. Some aspects of this financing are also in accordance with PSAK 107, but the lack of staff understanding of accounting standards, especially PSAK 107, causes the presentation and disclosure aspects of financing to not be implemented properly. The cooperative is committed to the fatwa of DSN MUI and Aceh Qanun No. 11/2018, to ensure compliance with sharia regulations. The cooperative channelled the benefits of interest-free financing in accordance with sharia principles to empower the community's economy while enhancing sharia financial education. This implementation also encourages cooperatives as Islamic financial institutions to continue learning to minimise the risk of accounting errors and optimise financial performance. Theoretically, this research enriches the Islamic accounting and sustainable finance literature and contributes to evaluating regulations related to rahn tasjily.
This study critically evaluates the growing interest in cash waqf in Banda Aceh City during the post-COVID-19 era, with a specific focus on the influence of cash waqf literacy and religiosity. Distinguishing itself from prior research, this study rigorously examines 299 respondents through a simple random sampling method, ensuring broad representativeness. Data were processed using Structural Equation Modeling (SEM) and the Analysis of Moment Structures (AMOS) software, allowing for robust hypothesis testing. The results provide compelling evidence that both cash waqf literacy and religiosity are significant determinants of increased participation in cash waqf. This positive relationship underscores the urgent need for strategic initiatives by the Banda Aceh Municipal Government to intensify socialization efforts. Through partnerships with Sharia Financial Institutions Receiving Cash Waqf (LKS-PWU) and religious leaders, these efforts can substantially enhance public engagement and mobilize the latent potential of cash waqf. The findings not only reaffirm the critical role of literacy and religiosity in waqf participation but also emphasize the broader implications for economic resilience and community welfare in post-pandemic recovery. This study highlights the transformative potential of targeted policies to unlock the full capacity of cash waqf as a vital instrument for sustainable development.
The low level of cash waqf mobilization in Indonesia presents a significant challenge for Islamic philanthropy, attributed to various internal and external factors. This study addresses the gap in existing literature concerning the comprehensive analysis of factors that impact the low uptake of cash waqf and the strategic management approaches necessary to address these challenges. While previous research has examined aspects of cash waqf, there remains a need for a systematic approach that integrates problem, solution, and strategy analysis through the Analytic Network Process (ANP) method. The objectives of this study are to identify the key factors affecting cash waqf mobilization and to propose detailed solutions and strategies for effective management. Utilizing the ANP framework and the Problem-Solution Model, the study collects data from a sample of 7 experts and 7 practitioners. The analysis considers four dimensions—human resources, institutional frameworks, government, and society—and is organized into three clusters: problems, solutions, and strategies, with a focus on both internal and external factors. Key findings indicate that the low mobilization of cash waqf is primarily due to weak management systems within institutions. The study proposes that enhancing the Indonesian Waqf Board (BWI) through governmental support is a critical solution, while the application of information technology is identified as the main strategic priority. The study underscores the need for the government (particularly BWI) and waqf institutions (nazhir) to prioritize a robust cash waqf ecosystem through improved management, professionalization, literacy, and resource allocation. This research contributes to the limited body of literature on cash waqf mobilization by providing a comprehensive model for addressing both internal and external challenges, thereby offering valuable insights for Islamic finance policymakers and practitioners.
This study aims to empirically validate the theoretical foundations of Islamic international trade through a panel data approach. Building upon Islamic economic principles, particularly Al-Shatibi’s classification of human needs, we investigate the impact of exports and imports categorized into necessities, needs, and luxuries on GDP growth. A panel dataset covering 53 developing and 28 developed countries over the 2005–2015 period is analyzed. Using Herfindahl-Hirschman Index to measure monopolistic competition, the study employs fixed effects panel regression models. The findings reveal that international trade according to the priorities concept of Al-Shatibi has a significant influence on economic growth, with varying impacts across categories and regions. This paper contributes to bridging Islamic trade ethics with modern empirical economics.
Penelitian ini menggunakan pendekatan kuantitatif untuk menganalisis faktor-faktor yang memengaruhi literasi keuangan Islam dan perilaku keuangan serta dampaknya terhadap ketahanan keuangan pada pasangan muda pasca-COVID-19. Dengan menggunakan metode Structural Equation Model-Partial Least Squares (SEM-PLS), data dikumpulkan melalui kuesioner dari 250 responden. Hasil penelitian menunjukkan bahwa literasi keuangan Islam berpengaruh positif terhadap ketahanan keuangan dan perilaku keuangan Islam. Menariknya, tingkat toleransi risiko memiliki pengaruh negatif terhadap perilaku keuangan Islam. Selain itu, perilaku keuangan berpengaruh positif terhadap ketahanan keuangan.
This study aims to analyze the determinants of public interest in the use of QRIS in Sharia Banks with a focus on Langsa City - one of the cities in Aceh which is a province that implements the Islamic financial system. The independent variables tested included promotion, religiosity, education, and financial ability. Shariah financial literacy is considered as an intermediary variable that plays a role in connecting independent variables with dependent variables, namely interest in using QRIS. Considering that literacy and interest in using digital finance in Aceh, especially Langsa City, are still low, this research is important in understanding the factors that affect public interest.This study involved 100 respondents from Langsa City who were randomly taken with a quantity determined through the method of determining the number of Slovin. The analysis method used in this study is the Structural Equation Modeling - Partial Least Squares (SEM-PLS) Method which serves to identify whether the effect of independent variables on dependent variables occurs directly, or through intermediate variables (intermediation). The results of the study show that promotion, religiosity, education, and financial ability significantly affect financial literacy, which then has a positive impact on interest in using QRIS.These findings are expected to help Islamic banking and the government in designing strategies to increase the adoption of digital financial services in Aceh, especially Langsa City.
This study aims to analyze the factors influencing individual investors' decision-making in the Indonesian Islamic Stock Exchange (BEI). The observed factors include Islamic financial literacy, Islamic investment literacy, and Islamic behavioral investment. This research employs descriptive analysis and causality testing using Structural Equation Modeling (SEM). A sample of 500 active retail investors in the Indonesian Islamic Capital Market was collected via Google Forms, and the data were analyzed using Confirmatory Factor Analysis (CFA). Hypotheses were tested through composite reliability analysis. The findings reveal that Islamic financial literacy, investment literacy, and behavioral investment have a positive and significant influence on investment decisions, with a determination coefficient of 0.79. However, the study also found that religious factors did not significantly affect investors' decision-making behavior. Keywords: Islamic Financial Literacy, Islamic Investment Literacy, Islamic Behavioral Investment, Investment Decision
Financial planning has been increasingly significant where income levels are rising, the financial industry is becoming more complicated and financial products are becoming more complex. With higher income levels and fund excesses, people demand financial assistance services to manage their financial matters. The activities of financial planners continue to grow in line with the varying demand of customers. Conventional financial planning had developed during the 1970s, while the Islamic financial industry had just emerged. From an Islamic perspective, a financial planning framework would require Shariah-compliant products and services and a deep understanding of Islamic values and principles governing economic activities. This study aims to understand to what extent Islamic financial planning has been communicated and shared by financial planners/advisors and to understand their preferences and financial priorities in providing financial advice. This qualitative paper explores the social media of chosen financial planners and Islamic financial planners. Financial planners share their thoughts and ideas on their social media. Several influential financial planners were selected through some stages. Understanding their social media content will provide a picture of their financial planning. Discussion of Islamic financial planning is scant. The paper explores and offers a novel approach of whether financial planners and so-called Islamic financial planners have different financial planning. Using the particular framework of Islamic financial planning, Islamic financial planners are expected to have different financial planning emphasizing Islamic values and principles.
