International Journal of Islamic Finance
International Journal of Islamic Finance (IJIF) is open access, peer-reviewed journal whose objective is to publish original research papers related to Islamic Finance. The studies highlight Islamic Finance issues like Complexity of Shariah Compliance, Lack of Standardization, Limited Product Diversity, Risk Management Challenges, Costs and Profitability, Innovation and Technology, Global Regulatory Framework, Lack of Awareness, Ethical Concerns, Integration with Conventional Finance. Despite these challenges, Islamic finance has been steadily growing and evolving. Efforts are being made to address these issues and promote greater awareness and adoption of Islamic financial principles in both Muslim-majority and non-Muslim-majority countries. Title : IJIF: International Journal of Islamic Finance Abbreviation : IJIF ISSN : 3031-8068 DOI Prefix : Prefix 10.14421 Ed. in Chief : Darmawan Man. Editor : Anniza Citra Prajasari; Izra Berakon Publisher : FEBI UIN Sunan Kalijaga Frequency : Biannual, May & November Citedness in : Google Scholar |Dimension | Garuda
Department of Islamic Financial Management, Faculty of Economics and Islamic Business, Sunan Kalijaga State Islamic University, Yogyakarta, Indonesia.
A Fundamental Transformation of Sustainable Business Model: Roles of Islamic Banking in Accelerating MSMEs Industry
Abstract Background: This study analyses the role of Islamic banking in supporting and accelerating MSMEs industry in Indonesia, remembering this industry holds a significant role in sustaining Indonesia’s national economic growth. Nevertheless, several challenges remain steady such as limited access to financial products, lack of financial and digital literacy and so ford making this industry difficult to be agile. Objectives: This study aims to examine and analyse the role of ESG at Islamic banking industry in Indonesia to boost the portion of financing for MSMEs by considering the role of green bond as moderating variable. Novelty: This study tries to examine the ESG performances by integrating it with moderating effect of green bond, remembering that most previous researches only focuse on financial performance of Islamic banking industry to increase its’ contribution for MSMEs agility. Research Methodology / Design: This is explanatory research with quantitative approach and documentation method, employing panel data from 15 Islamic banks registered by Otoritas Jasa Keuangan from 2020-2024 as the main sample, obtaining from annual report. Furthermore, Moderated Regression Analysis (MRA) is used to analyse the data and figure out the most suitable estimation model. Findings: The finding reveals that environmental performance shows negative impact in to increase the amount of financing for MSMEs. However, the other performances such as social and governance show conversely. Implication: The result is expected to shed the light the essential role of ESG and green bonds representing the goals of Indonesia Sustainable Finance Taxonomy to support sustainable finance behavior among Islamic banking industry as financial institution and MSMEs enhancing national economic growth.
Copyright (c) 2026 International Journal of Islamic Finance
Determinant on Investment Decision Making in the Sharia Capital Market with Sharia Financial Literacy as a Moderating Variable
Background: Driven by the rapid development of the Islamic capital market and the significant role of psychological factors in shaping investor decision-making, this study explores the behavioral dynamics influencing investment strategies. Objectives: This study aims to determine the effect of cognitive dissonance bias, regret aversion, and framing effect on investment decisions in the sharia capital market with sharia financial literacy as a moderating variable (case study: in the Special Region of Yogyakarta Province). Novelty: Departing from conventional investment studies, this framework specifically examines the moderating role of sharia-compliant financial knowledge in navigating psychological biases during decision-making. Research Methodology / Design: The sampling technique used is purposive sampling with predetermined criteria, which was carried out on 200 respondents of sharia capital market investors in the Special Region of Yogyakarta Province. This study uses a quantitative method with PLS-SEM analysis with SmartPLS. Findings: The results of this study indicate that cognitive dissonance bias and regret aversion have a positive and significant effect on investment decisions in the sharia capital market, while the framing effect does not have a significant effect on investment decisions in the sharia capital market. Sharia financial literacy as a moderating variable successfully weakens the effect of cognitive dissonance bias on investment decisions in the sharia capital market but fails to weaken the effect of regret aversion bias and framing effect on investment decisions in the sharia capital market on investors domiciled in the Special Region of Yogyakarta Province. Implication: This study implies that improving investment decision-making in the Sharia capital market requires not only enhancing Sharia financial literacy but also addressing behavioral factors. The findings offer guidance for developing more comprehensive investor education programs to promote more rational and sustainable investment decisions.
Predicting the Future of Halal Industry through Search Engine Analytics: A Maqashid Shariah Framework
Background: The global halal industry has transformed from a faith-based sector into a dynamic, multi-sectoral market encompassing food, cosmetics, tourism, and Islamic finance. Rapid digitalization and online consumer behavior have reshaped market demand, yet most analyses remain descriptive, overlooking predictive insights and ethical evaluation through Islamic economic frameworks. Objectives: This study aims to predict future trends in the global halal industry from 2026 to 2030 by analyzing search engine data (2020–2025) within a Maqashid Shariah framework. It seeks to bridge digital consumer behavior with Islamic economic values and sustainability, providing evidence-based foresight across halal sectors. Novelty: This research pioneers the integration of search engine analytics and Maqashid Shariah as a predictive framework, filling gaps in the literature where empirical digital trends are rarely interpreted through Shariah objectives. It uniquely combines time-series forecasting with ethical evaluation to inform strategic decision-making in the halal economy. Research Methodology / Design: A mixed-methods approach was applied. Quantitative analysis utilized Google Trends to capture global search interest in “halal food,” “halal cosmetics,” “halal tourism,” and “Islamic finance” from 2020–2025. Time-series forecasting models (ARIMA and Prophet) projected trends to 2030. Rising and breakout keyword analyses identified emerging consumer intentions. Qualitative interpretation employed a Maqashid Shariah–based analytical lens to connect digital patterns with Islamic ethical principles for ensuring coherence between empirical signals and value-driven interpretation. Findings: The study finds that global interest in the halal industry continues to strengthen across all major sectors, driven by rising digital engagement and increasingly value-driven consumer intentions. Search behavior shows a shift from basic informational queries toward action-oriented, trust-seeking, and ethically motivated searches. Each sector including food, tourism, cosmetics, and Islamic finance demonstrate distinct post-pandemic recovery patterns and growing recognition of halal as a global ethical standard. Predictive modeling indicates continued expansion and deeper cross-sector reinforcement, where growth in one segment amplifies interest in others. Interpreted through a Maqashid Shariah lens, these trends align with human well-being, ethical consumption, responsible finance, and sustainability. Implication: Findings provide actionable insights for policymakers, halal certification authorities, and entrepreneurs to align governance, strategy, and innovation with both consumer behavior and Shariah-based sustainability.
Effectiveness of Green Waqf in Supporting Local Climate Projects: Governance and Sustainability Analysis In West Java
Background: Climate change and environmental degradation, intensified by rapid urbanization and industrialization in West Java, underscore the urgent need for innovative Islamic social finance instruments to support sustainable local development and climate action. Objectives: This study aims to assess how the effectiveness, governance, institutional design, and resource allocation of green waqf initiatives support local climate action, environmental sustainability, and community welfare in West Java Province. Novelty: This study empirically integrates Data Envelopment Analysis (DEA) with institutional governance evaluation to link governance quality and green waqf efficiency, demonstrating the contribution of Islamic social finance to SDGs 6, 7, 13, and 15. Research Methodology / Design: This study applies a mixed-method approach, integrating Data Envelopment Analysis (DEA) to assess the efficiency of five green waqf projects based on financial, human, and asset inputs with their social and environmental outputs, and content analysis of institutional and policy documents to examine governance quality, transparency, and community participation. Findings: The study shows that green waqf projects with strong governance, transparency, and community participation achieve higher efficiency and sustainability through better institutional capacity and multi-stakeholder collaboration. Implication: These findings contribute to the development of Islamic social finance by strengthening the theoretical understanding of the link between efficiency and governance in green waqf management and providing practical recommendations for BWI, the Ministry of Religious Affairs, and the West Java Provincial Government to enhance governance frameworks and integrate sustainability indicators in future evaluations.
Reconstructing Islamic Finance Through Maqashid Shariah and Green Economy: An Agent-Based Adaptive Model
Background: The global financial landscape is evolving toward greater ethical, social, and environmental accountability. However, Islamic finance originally a moral alternative to capitalism often mirrors conventional systems with limited Shariah depth. Bridging the gap between maqāṣid al-sharīʿah ideals and practice requires reconstructing Islamic financial governance through an integrative model aligning Shariah principles with green economy sustainability. Objectives: This study aims to reconstruct an Islamic financial model grounded in maqashid al-shariah and green economy principles through the Agent-Based Modeling (ABM) approach, in order to understand how green fiscal policies such as carbon taxation and green subsidies affect the investment behavior of Islamic financial institutions and the dynamics of economic sustainability. Novelty: This research introduces a novel conceptual framework called the Maqashid Green Adaptive Finance System (MGAFS), which operationalizes maqāṣid al-sharīʿah within the context of adaptive financial governance. Unlike prior studies that are predominantly descriptive or institutional, this study employs ABM to dynamically simulate multi-agent interactions among regulators, IFIs, and consumers in response to green fiscal policies. The model represents a methodological and theoretical innovation by bridging Islamic ethical foundations with computational systems thinking, thereby transforming maqāṣid al-sharīʿah from a normative doctrine into an empirical tool for sustainability analysis. Research Methodology / Design: This study employs an experimental computational approach based on Agent-Based Modeling (ABM) involving three primary agent groups: regulators, Islamic financial institutions (IFI), and consumers. The main parameters include the number of consumers, number of IFI, simulation periods, carbon tax rates, and levels of green subsidies. Two policy scenarios high green subsidy and high carbon tax are compared to analyze the systemic responses to different policy interventions. Findings: The simulation results indicate that green subsidies have a more significant impact on enhancing green investment and total income compared to carbon taxes. However, the combination of both policies produces a synergistic effect on the long-term stability of the Islamic financial system. Implication: These findings provide an empirical foundation for policymakers to integrate the principles of maqashid shariah with green economic instruments, thereby strengthening sustainable and adaptive governance within the Islamic financial system amid the global ecological transition.
Copyright (c) 2025 International Journal of Islamic Finance
Economic Growth and Islamic Financial Inclusion in OIC Countries: Evidence with Spline Approach
Background: Digital financial inclusion is presently one of the most acknowledged domains of international development. Financial inclusion is pertains to the accessibility of inexpensive financial services for individuals and enterprises to fulfill their requirements. Objectives: This study aims to analyze the effect of Islamic financial inclusion on economic growth in Organisation of Islamic Cooperation (OIC) member countries, focusing on the importance of financial infrastructure and digital adoption in Muslim-majority nations. Novelty: This study presents a novel methodology by analyzing the correlation between economic growth and Islamic financial inclusion in the context of OIC (Organization of Islamic Cooperation) nations with a Spline regression model. This research explicitly examines Islamic financial inclusion, a neglected aspect that adheres to the norms and practices of Sharia law, in contrast to traditional studies that address financial inclusion in a general sense. Research Methodology / Design: The research employs the Spline regression approach to capture the non-linear relationship between Islamic financial inclusion and economic growth. The dependent variable is economic growth represented by GDP per capita, while the independent variables consist of the number of ATMs, Islamic bank branches, mobile phone usage, and internet access. The study uses data from 47 OIC member countries, with independent variables from 2022 and the dependent variable from 2023. Findings: The results indicate that the maturity level of financial infrastructure and the adoption of technology significantly contribute to economic growth. The separation of indicators based on their influence provides valuable insights for policymakers to design more targeted financial inclusion strategies. Furthermore, the findings highlight that access to financial services, digital adoption, and Islamic financial practices play a transformative role in improving GDP per capita across OIC countries. Implication: The findings provide both theoretical and practical implications by demonstrating that tailored financial inclusion policies are needed to accommodate diverse national contexts and stages of economic development in OIC member states.
Does Islamic Social Reporting Enhance the Profitability of Islamic Banks? Evidence from Selected OIC Countries
Background: Awareness of social responsibility within Islamic banking has grown rapidly in recent years, driven by increasing expectations for Islamic financial institutions to fulfill not only financial but also social and environmental obligations. This evolution reflects the growing importance of legitimacy and trust among stakeholders. Countries with a majority Muslim population, such as Indonesia, Malaysia, and the Gulf states, are expected to lead in implementing Islamic-based social responsibility practices and transparent reporting through Islamic Social Reporting (ISR) Objectives: This research aims to examine the impact of Islamic Social Reporting (ISR) disclosure on the profitability of Islamic banks in selected Organization of Islamic Cooperation (OIC) member countries. Novelty: The novelty of the study lies in its cross-country comparative analysis of ISR practices among Islamic banks within OIC member nations. While prior studies have explored the relationship between ISR and financial performance, limited research has examined how cultural, regulatory, and institutional contexts across Islamic economies shape this relationship. This study contributes to the literature by providing empirical evidence on how ISR may entail short-term trade-offs with profitability but serve as a foundation for long-term sustainability and ethical accountability. Research Methodology / Design: A quantitative research approach was employed using secondary data derived from the financial statements and sustainability reports of Islamic banks from 2021 to 2024. Data analysis involved classical assumption testing, simple linear regression to test the relationship between ISR and profitability (ROA, ROE), and one-way ANOVA to identify cross-country differences. Statistical analysis was performed using SPSS software. Findings: The findings reveal that ISR disclosure has a significant negative influence on Islamic banks’ profitability as measured by both ROA and ROE. Additionally, ISR disclosure levels vary significantly across countries, with Indonesia demonstrating higher levels compared to Malaysia and the Gulf states. These results indicate that while ISR strengthens ethical accountability and transparency, its financial benefits are not immediate but may accumulate over time. Implication: The study implies that Islamic banks must strategically balance their social and financial objectives. Theoretically, the findings support the legitimacy theory and stakeholder theory by emphasizing that socially responsible behavior enhances institutional credibility. Practically, policymakers and banking regulators should encourage standardized ISR frameworks to ensure that social responsibility reporting contributes not only to ethical governance but also to sustainable financial performance in the long term.
Generation Z’s Investment Interest In Indonesia’s Blockchain-Based Green Sukuk
Background: As sustainable finance gains prominence, blockchain technology has emerged as an innovative tool to enhance transparency, efficiency, and trust in Islamic capital markets. Blockchain-based Green Sukuk is one of the applications in finance and has the potential to attract investment interest from Generation Z, a demographic characterized by a strong openness to innovation. Objectives: This study aims to examines the determinants of Generation Z’s investment interest in Indonesia’s blockchain-based Green Sukuk. Novelty: This study addresses the relationships between digital financial literacy, Islamic fintech, and Generation Z’s investment interest in blockchain-based green sukuk. Research Methodology / Design: This research adopts a quantitative approach, collecting survey data from Generation Z respondents with knowledge or experience in digital financial services. The study focuses on two main predictors: digital financial literacy and Islamic fintech adoption. Findings: Findings reveal that higher digital financial literacy significantly increases the likelihood of investing in blockchain-based Green Sukuk, as it equips young investors with the ability to assess risks, understand product features, and navigate digital investment platforms. Furthermore, Islamic fintech serves as an enabler by providing Sharia-compliant, user-friendly, and accessible channels for sustainable investment products. The integration of blockchain in Green Sukuk issuance is found to strengthen investor confidence by ensuring accountability and traceability of funds toward environmentally beneficial projects. Implication: The results offer practical implications for policymakers, Islamic financial institutions, and fintech providers seeking to engage younger generations in sustainable Islamic finance. By combining sustainability goals, Sharia compliance, and emerging technology, this study contributes to bridging the gap between environmental objectives and the evolving investment preferences of Generation Z in Indonesia.
Modeling the Determinants of Islamic Banking Adoption Among Indonesian Civil Servants: A Multigroup Structural Equation Modeling Approach
Background: Despite Indonesia being the world’s largest Muslim-majority country, the penetration of Islamic banking remains low, especially among civil servants who represent a strategic and financially literate segment. Limited understanding of behavioral, technological, and trust-related factors constrains the expansion of Islamic banking in this group. Objectives: This study aims to model the determinants influencing Sharia banking adoption among Indonesian civil servants by examining the effects of religiosity, perceived usefulness, service quality, trust, social influence, and financial literacy on behavioral intention and actual usage behavior. Novelty: The study integrates the Theory of Planned Behavior (TPB), the Technology Acceptance Model (TAM), and trust-based frameworks into a unified model specifically tailored for public-sector employees. It contributes to the literature by offering empirical evidence on Islamic banking adoption within an underexplored yet influential demographic segment. Research Methodology / Design: A quantitative approach using Structural Equation Modeling (SEM) and Multigroup Analysis (MGA) was employed. Data were obtained through a nationwide survey of 412 civil servants representing diverse educational and employment backgrounds. Findings: Trust and religiosity emerged as the strongest determinants of adoption intention, followed by perceived usefulness, service quality, financial literacy, and social influence. Behavioral intention significantly affected actual usage. Multigroup analysis revealed gender, education, and institutional differences in adoption behavior. Implications: The study advances theoretical understanding of Islamic banking adoption and offers practical insights for policymakers and Islamic financial institutions to enhance financial literacy, trust, and service quality among civil servants.
Digital Shariah Governance and the Future of Islamic Finance: A Framework for AI-Driven Shariah Compliance in a Global Regulatory Environment
Background: Digital transformation in Islamic finance offers significant opportunities while simultaneously challenging the sustainability of Sharia principles, particularly in governance, transparency, and compliance. Although Artificial Intelligence (AI) enhances operational efficiency and decision-making accuracy, its application raises ethical and juridical concerns due to the gap between technological innovation and maqasid al-shariah values. Objectives: This study aims to develop a conceptual model of AI-based digital Sharia governance by integrating the Technology Acceptance Model (TAM), Institutional Theory, and Maqasid al-Shariah to explain technology acceptance, institutional legitimacy, and the realization of public welfare objectives. Novelty: The novelty lies in integrating these three major frameworks, which are rarely combined in Islamic finance studies, by bridging user acceptance, institutional pressures, and Islamic normative values within a unified digital Sharia governance model. Research Methodology / Design: This study adopts a conceptual-theoretical approach through systematic analysis and synthesis of reputable international literature in Islamic finance, financial technology, and ethical governance. The model links perceived usefulness, institutional legitimacy, and maqasid orientation without employing empirical data. Findings: The proposed model indicates that the success of AI-driven digital Sharia governance depends on the synergy between user acceptance, institutional compliance, and alignment with maqasid al-shariah values, particularly justice, public welfare, and the protection of collective interests. Implication: Theoretically, this study contributes to the literature on the integration of technology and Islamic ethics. Practically, it provides a strategic reference for regulators and Islamic financial institutions in designing AI-based digital governance frameworks that are not only technologically efficient but also Sharia-compliant and ethically grounded.
Determinants of Islamic Banking Profitability: A Cross-Country Panel Analysis from IFSB Data (2016-2024)
Background: Islamic banking plays a crucial role in promoting financial inclusion and economic stability across member countries of the Islamic Financial Services Board (IFSB). However, the variability in profitability across nations raises questions regarding which internal financial factors most strongly influence performance at the industry level. Objectives: This study aims to analyze the influence of CAR, NPF, CIR, and LR on the ROA of Islamic banking industries across twelve IFSB member countries during 2016-2024. Novelty: This study provides a cross-country industry-level analysis of Islamic banking profitability, revealing that efficiency and credit risk management are stronger determinants of performance than capital strength. Research Methodology / Design: This research employs panel data regression using secondary data from IFSB. The sample includes 12 countries with consistent financial reporting from 2016–2024. Findings: The results reveal that NPF and CIR have significant negative effects on profitability, while LR has a significant positive effect. CAR shows a positive but statistically insignificant relationship. Implication: Theoretically, the study reinforces the efficiency and risk management theories within Islamic financial systems. Practically, regulators should prioritize policies enhancing operational efficiency and credit risk governance, while banks should optimize liquidity without compromising profitability sustainability.
Integrating Maqasid al-Shariah and Sustainable Development Goals Islamic Financial Planning: A Framework for Ethical Wealth Distribution
Background: The global financial system faces escalating challenges in reconciling ethical wealth distribution with sustainable development, particularly within Islamic economies. Despite the shared emphasis of Maqasid al-Shariah (objectives of Islamic law) and the Sustainable Development Goals (SDGs) on justice, equity, and environmental stewardship, their integration remains fragmented. Islamic financial institutions (IFIs) often prioritize Shariah compliance over proactive contributions to sustainability, while regulatory fragmentation and gender-environment gaps hinder systemic progress. Objectives: This study aims to: (1) analyze the structural alignment between Maqasid al-Shariah and SDGs in Islamic financial planning, (2) identify systemic barriers to their integration, and (3) propose actionable strategies to optimize Islamic finance’s role in ethical wealth distribution. Novelty: The research fills critical gaps in Islamic academic discourse by: Introducing the Maqasid-SDG Integration Theory, which recontextualizes classical Islamic jurisprudence within modern sustainability frameworks. Developing a Maqasid-SDG Index to evaluate financial products’ socio environmental impact, addressing the absence of standardized metrics. Resolving debates on adaptive jurisprudence (e.g., redefining daruriyyat to include climate action) and gender inclusivity in Islamic finance. Research Methodology / Design: A mixed-methods sequential explanatory design was employed, combining Qualitative Analysis: Thematic coding of classical texts (e.g., al-Shatibi’s Al-Muwafaqat), 45 semi-structured interviews with Shariah scholars and policymakers, and case studies of Malaysia and Indonesia. Quantitative Analysis: PLS-SEM modeling of secondary data from 30 IFIs (2015–2023) and regression analysis of SDG progress metrics (e.g., poverty rates, CO2 emissions). Comparative Jurisprudence: Cross-referencing Hanafi, Maliki, Shafi’i, and Hanbali interpretations of wealth distribution ethics. Findings: SDG Alignment: Shariah-compliant mechanisms like Zakat and green Sukuk reduced povertyby 12.7% and emissions by 2.3 million metric tons annually, respectively (β = 0.42, p < 0.01). Institutional Barriers: Regulatory fragmentation limited SDG-aligned financing to 28% in GCC countries versus 64% in Malaysia. Gender disparities persisted, with only 12% of Islamic banks offering women centric products. Theoretical Advancements: The Maqasid-SDG Index revealed a 63% explanatory power (R² = 0.63) for ethical outcomes, while juristic reinterpretations of maslaha (public interest) enabled blockchain-based Sukuk innovations. Implication: Theoretical: The study bridges Islamic ethics with sustainability science, offering a dynamic framework for adaptive jurisprudence. Practical: Policymakers should prioritize (1) cross-border regulatory harmonization, (2) financial literacy campaigns, and (3) gender-environment nexus products (e.g., Takaful for women-led green enterprises). Policy: Centralized Shariah governance, as seen in Malaysia’s Value-Based Intermediation framework, enhances SDG alignment but requires balancing with grassroots inclusivity (r= -0.58).
Review of Sharia Perspective of Online Forex and Gold Trading Through MetaTrader 4 and MetaTrader 5 Platforms at Futures Brokers in Indonesia
Background: The COVID-19 pandemic significantly impacted society’s economy. Various industry sectors stopped operating, which resulted in widespread layoffs. As a result, society tends to make online financial transactions, particularly with forex and gold. Objectives: This study examines Islamic law's perspective on online forex and gold futures trading, which is increasingly popular among the public. Novelty: Academic literature specifically conducting a juridical deconstruction (takyif fiqh) of the 'rolling contracts' offered in Indonesia and identifying them as Contracts for Difference (CFDs) remains scarce. A 2021 study noted that "no legal and jurisprudential study has been conducted over this new trade", and a 2024 thesis confirmed a legal vacuum in Indonesia as existing fatwas are considered "not relevant". This research fills this critical gap by providing a precise analysis of these specific derivative instruments, moving beyond the generalized discussions prevalent in current literature. Research Methodology/ Design: The research method used is qualitative analysis with a normative juridical approach. It examines primary Islamic law sources such as the Qur'an, Hadith, scholars' opinions, and literature related to futures trading. Findings: The study results show that online gold futures trading contains several fundamental problems from a Sharia perspective. The first is the ambiguity of the transaction object (gharar). Second, the margin trading and short-selling mechanism allows transactions without full ownership of the commodity. Third, the zero-sum system contradicts the principle of justice in Islamic law. Fourth, there is an element of usury through swap fees when the trading position passes midnight. Fifth, the magnitude of the element of speculation (maysir) in this activity. It can be concluded that the practice of trading gold futures online in its current form does not meet sharia principles. Implication: This study's results are expected to be a reference for policymakers and stakeholders, helping them better socialize and control both instruments.
The Influence of Sharia Financial Literacy, Technology, and Investment Knowledge on Investment Decisions Among the Millennial Generation
Background: Investment refers to the act of allocating funds or capital into assets with the expectation of generating future profits. Sound investment decisions are typically grounded in meticulous financial planning and a comprehensive understanding of associated risks and potential returns. Objectives: This study aims to examine the influence of Islamic financial literacy, technology, and investment knowledge on investment decisions among the millennial generation in Jambi City. Novelty: In this study, investment decisions serve as the dependent variable, while Islamic financial literacy, technology, and investment knowledge are the independent variables. The research focuses on the millennial generation residing in Jambi City. Research Methodology / Design: This quantitative study employs a population of 151,855 millennial residents in Jambi City. A probability sampling technique was utilized to select 100 respondents. Data were collected through questionnaires using a Likert scale measurement. Analytical methods included validity and reliability tests, R-squared analysis, and hypothesis testing via bootstrapping using Smart PLS 4.0 software. Findings: The findings indicate that Sharia financial literacy exerts a positive yet statistically insignificant influence on investment decisions, whereas technology and investment knowledge demonstrate a positive and statistically significant impact on investment decisions. Implication: Future studies are encouraged to incorporate additional variables to identify other factors influencing investment decisions.
A Behavioral Analysis Behind the Intention to Adopt Islamic Financial Products and Services in Malaysia: Underpinning Social Cognitive Theory
The growing global Muslim population and the increasing demand for halal products have also spurred interest in Islamic financial services, where the interplay between sacred and profane influences consumer choices. However, the market share of Islamic banking in Malaysia is still overshadowed by conventional banking, with only 33.4% of total deposits in 2018 attributed to Islamic banks. This indicates a significant challenge in attracting customers, where psychological factors play crucial roles in influencing behavioral intentions to adopt Islamic banking services. The study attempts to discover and provide an understanding on the ‘determinants factors on intention to adopt Islamic financial products and services with the integration of Social Cognitive Theory, Islamic financial literacy and the financial behavior of the consumer in Malaysia’. Partial Least Square PLS-SEM technique is used to analyze the 363 data in order to provide statistical result from respondents in the Klang Valley. The results demonstrate that all variables tested in this study have a strong relationship and identified as the determinants of intention to adopt Islamic financial products and services. The result from this study also provides practical implication for Islamic finance institutions to produce and market their Islamic financial products in the right and targeted market group.
Analysis of the Performance of Islamic Commercial Banks in Indonesia in 2021-2023
Background: The Islamic banking sector in Indonesia has seen rapid growth. To support this expansion, performance measurement methods adhering to Shariah principles are essential. Objectives: This study evaluates the performance of Islamic Commercial Banks (ICBs) in Indonesia using the Maqashid Syariah Index (MSI) and the Islamicity Performance Index (IPI). Novelty: Unlike previous studies, this research addresses gaps in prior findings and reexamines the alignment of Islamic banking practices with Shariah principles. Research Methodology / Design: A purposive sampling technique was employed to select 10 ICBs. The study adopts a quantitative approach using secondary data from financial reports and applies descriptive analysis to assess bank performance. Findings: The results reveal that many ICBs in Indonesia do not fully align with MSI or IPI metrics, indicating inconsistencies in achieving Shariah objectives. Implication: Further research with expanded sample sizes and refined methodologies is essential. Islamic banks must enhance the transparency and comprehensiveness of financial disclosures to better reflect Shariah compliance. Additionally, theoretical advancements are required to bridge gaps in current performance measurement frameworks.
Resolution of Sharia Economic Disputes: A Case Study on Default in Murabahah Contracts
Background: The increasing significance of sharia economics in Indonesia necessitates a thorough understanding of the judicial processes involved in resolving related disputes. This paper focuses on a specific case, sharia economic dispute No. 398/Pdt.G/2021/PA.Btl, to explore the judge's considerations and the legal frameworks at play. Objectives: The primary objective of this research is to analyze the judge’s considerations in the resolution of the mentioned sharia economic dispute. It aims to assess whether these considerations align with existing legal frameworks and principles, particularly in relation to the murabahah contract. Novelty: This study contributes to the existing body of literature by providing an empirical normative analysis of a real case, highlighting discrepancies between judicial considerations and legal sources. It underscores the need for consistency in applying legal principles within sharia economic disputes, thereby filling a gap in current academic discussions. Research Methodology: The research employs a qualitative approach, utilizing empirical normative research techniques. Primary data is gathered from relevant dispute decisions, while secondary data consists of legal texts and scholarly readings. The analysis follows a deductive method, employing Gustav Radbruch’s theory of legal certainty to evaluate the findings. Findings: The study reveals that the dispute was initiated as an ordinary lawsuit but could have been resolved through a simpler process as outlined in PERMA No. 4 of 2019. Furthermore, the judge's considerations did not adequately reflect the specifics of the murabahah contract. The analysis indicates a failure to adhere to the hierarchy of positive legal sources, including a lack of reference to the KHES, resulting in a violation of the principle of legal certainty. Implication: The findings suggest a critical need for judges in sharia economic disputes to align their considerations with established legal frameworks to uphold legal certainty. This study advocates for enhanced judicial training and clearer guidelines to ensure consistent application of laws in sharia finance, ultimately contributing to the stability and integrity of sharia economic practices in Indonesia.
Default, Murabahah bil Wakalah Contract, Judge's Decision.
Copyright (c) 2024 International Journal of Islamic Finance
Generation Z's Interest in Investing in The Islamic Capital Market (Study Case: Generation Z in South Sulawesi, Indonesia)
Background: Indonesian government has made efforts to develop the sharia capital market so that the sharia financial market in Indonesia continues to grow rapidly as in previous years. The intended strategies include developing sharia capital market products, strengthening and developing sharia capital market infrastructure, increasing literacy and financial inclusion of the sharia capital market, and strengthening synergy with stakeholders. From an Islamic perspective, investment is also considered something important and recommended. Investments made by a Muslim are expected to be a form of effort in seeking Allah's pleasure and fulfilling their needs as social beings on this earth. Investment in this case is certainly an investment activity that does not conflict with Islamic law. However, based on the Sharia Capital Market Update for the June 2022 period, the number of SID recorded for ownership of sharia mutual funds, corporate sukuk and sharia shares was only 2,455,239 SID (ojk.go.id). This number is relatively small when compared to the total number of SIDs in the capital market which reached 10,000,628 in the November 2022 period (ksei.co.id). In fact, Indonesia is one of the countries with a majority Muslim population. Based on data from the Directorate General of Population and Civil Registration of the Ministry of Home Affairs, it states that 86.88% are Muslim. Objectives: The research aims must be clearly explained. This research will focus on the generation Z which currently dominates the community as a research object, especially those domiciled in South Sulawesi Province. Sulawesi Province is in eighth position as the province with the largest number of SIDs in the July 2023 period in Indonesia and is the province with the largest number of SIDs in Eastern Indonesia. Where eastern Indonesia includes the islands of Sulawesi, the Maluku Islands, the Nusa Tenggara Islands, Bali and Papua. However, the number of SIDs in South Sulawesi only reached 3% of the total population in South Sulawesi in June 2023 which was 9,312,019. Novelty: Based on several previous studies, it can be seen that there will be inconsistent findings. Therefore, researchers want to conduct research related to investment interest as an endogenous variable and use investment knowledge, Sharia financial literacy, and investment motivation as exogenous variables. In addition, researchers use financial self-efficacy as a moderating variable to see its effect on the relationship between exogenous and endogenous variables. Research Methodology/Design: This research is a type of quantitative research, using a survey method through a questionnaire containing questions/indicators. The population of this research is generation Z in South Sulawesi province. This study will use Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings: The results showed that Islamic financial literacy and investment motivation partially affect investment interest. However, investment knowledge was found to have no effect on investment interest in the Islamic capital market. Meanwhile, financial self-efficacy moderates the relationship between investment knowledge and Islamic financial literacy on investment interest, but financial self-efficacy does not moderate the relationship between investment motivation and investment interest. Implication: For future researchers, it is expected to use a larger number of samples in order to represent the entire population and produce more accurate research results, as well as look for other more specific variables, which may affect investment interest in the Islamic capital market.
Exploring Education Zakat across Various States in Malaysia and its Determinants
Background: Zakat is an important Islamic financial tool that contributes to socioeconomic development, including education, by redistributing wealth to those in need. In Malaysia, state governments manage zakat collection and distribution, with significant variation across states in how education zakat is handled. Objectives: This study aims to compare the distribution and impact of education zakat across different Malaysian states, focusing on zakat office in Higher Education Institutions (HEIs) and other factors that influence education zakat effects. Novelty: This study offers a unique contribution by comparing education zakat across states in Malaysia and examining the determinants that lead to effective education zakat outcomes, with a special focus on zakat office in HEIs. Research Methodology / Design: A qualitative research methodology is employed, combining library research on zakat practices across states with unstructured interviews from officials at zakat offices in HEIs. The fi sabilillah category is used as the best proxy for education zakat to isolate zakat given due to poverty reasons. Findings: The results indicate significant disparities in zakat allocation for education across Malaysian states. For instance, Sarawak allocated the highest percentage of zakat for education, while Selangor allocated the lowest. Factors influencing these differences include availability of wide range of zakat schemes, the extension of asnaf categories, and student perceptions of zakat management systems. Implication: Findings suggest that diverse zakat scheme, broader asnaf categories, and positive perception among students on zakat management in HEIs could enhance the impact of education zakat. States with higher allocation for education zakat has the potential to enjoy improved educational outcomes. Encouraging other states to adopt good practices, including those seen in HEIs, can help enhance the impact of education zakat, leading to more efficient resource allocation and greater educational equity across Malaysia.
A New Connectedness Trends in Islamic Finance: A bibliometric Analysis of Biodiversity, Sustainability, and Social Impacts
Background: Islamic finance after COVID-19 has become the main focus of Islamic economic observers in paying attention to sustainability. The issue of sustainability is the goal of the Islamic finance process in solving problems such as the scarcity of green biodiversity. Indonesia is a mega biodiversity country that is very beneficial for society. In this case, Islamic biodiversity financing needs attention in order to benefit the social community. The level of measurement of social community utilization through welfare indicators by paying attention to public health. Objectives: This research aims to map the current relevance of Islamic finance in addressing issues on three variables: biodiversity, sustainability, and social impact. Novelty: Through this research, SDG observers can inspire further exploration and linkages so as to analyze sustainable Islamic financial instruments after the SDGs program. Research Methodology/Design: This study uses bibliometric methods with 3 research linkage analyses namely Co-Authorship, Co-Occurance, and Coupling Bibliometrics with databases drawn from dimensions. Using artificial intelligence such as VOSviewer, we uncover publication trends, researchers who focus on these studies, and bibliographic integration in the field. Findings: The results show that there are interrelationships between variables with two Islamic financial instruments being the top two transactions that are interrelated and beneficial to the relationships between variables. This study provides valuable recommendations for future research to enhance our understanding of the implications of other Islamic financial instruments for their relationship with biodiversity, sustainability, and social impact. However, researchers must acknowledge that the exclusively reviewed literature indexed by Scopus is limited. Through this study, the researcher hopes to inspire further exploration and be able to analyze sustainable Islamic financial instruments post-SDG program Implication: This research can have implications for future researchers, state regulations, and companies that focus on sustainability. Megabiodiversity countries can update regulations on the provisions of sustainability standards by adjusting the connection between biodiversity as an asset to achieve sustainability, which will have an impact on the country's society. because the sustainability regulation standards to date are still not well implemented in mega biodiversity countries, one of which is the GRI standard, and UN unit countries can make this connection as a basic reference for programs after SDGs. Keywords: Islamic finance, Biodiversity, Sustainability, social impact, JEL Classification code :F64, Q51,Q56
Perceptions of Economics Students on Determining Their Intention to Perform Retail Sukuk: Case study Universities in Jambi5.
Background: Students with economic background should ideally have literacy related to the capital market and the products included in it, including sukuk. Objectives: This study aims to see the effect of accessibility, guarantees, rewards and understanding of sharia on students' interest in buying sukuk, especially in this context retail sukuk. Novelty: Compared to previous research, this research focuses more on how students in Jambi, especially those majoring in economics and related fields, practicing investment, especially in sukuk. Research Methodology: This study uses a quantitative approach using the PLS-SEM (Partial Least Square-Structural Equation Modeling) analysis tool. This research involved 598 respondents from students of economics which came from various campuses in Jambi province. Findings: The results of the study show that all valid variables, convenience, security, ujroh and shariah variables have a 77% influence on student interest as indicated by the value of r square. Sharia latent variable is the variable that has the greatest influence among other variables. Implication: Based on the research results, the socialization of sharia values ​​in sukuk needs to be encouraged by related parties to increase the active role of students in sharia investment59
The Influence of Perceived Decision Difficulty on Online Cart Abandonment in The Apparel Industry
Background: Cart abandonment occurs when online shoppers add items to their virtual carts but leave the website or app before completing the purchase. This issue is particularly prevalent in the apparel industry, which has a cart abandonment rate of 77%, higher than the global average of 69.99%. This high rate poses a significant challenge to maximizing sales and customer retention, despite the industry's rapid growth. Objectives: This study aims to explore the factors contributing to the high rate of cart abandonment in the online apparel industry, with a specific focus on understanding the role of perceived decision difficulty in this phenomenon. Novelty: While previous research has addressed various aspects of online shopping behavior, this study uniquely examines how perceived decision difficulty, influenced by product attributes, consumer knowledge, maximization behavior, and physical intangibility, contributes to cart abandonment in the apparel sector. Research Methodology / Design: This quantitative study surveyed over 200 recent online apparel buyers using a purposive sampling approach. Data were collected via a structured questionnaire and analyzed using Structural Equation Modeling (SEM) to explore relationships among variables. Findings: The study found that while product attributes and consumer knowledge enhance decision-making, they do not significantly reduce perceived decision difficulty due to the complexity and cognitive effort required. Maximization behavior increases choice conflicts but does not directly impact decision difficulty. Physical intangibility, or the inability to examine apparel in person, exacerbates decision difficulty and increases uncertainty. High perceived decision difficulty, driven by choice conflicts and physical intangibility, is a significant factor contributing to cart abandonment. Implication: Enhancing product information and introducing decision support tools like virtual fitting rooms could reduce decision difficulty and lower cart abandonment rates.
How Sukuk Contibutes to SDG's-9 “Industry, Innovation and Infrastruktur” In Indonesia: Opportunities & Challenges
Background: The need for infrastructure spending in Indonesia is estimated to reach IDR 6,421 trillion or 6.08% of GDP to achieve medium economic growth in 2020-2024. However, the realization of spending only reached 3.46% of GDP, indicating a large gap in infrastructure financing. Alternative funding sources are needed to support national development. Objectives: This study explores the contribution of sukuk to the achievement of SDG 9, focusing on the opportunities and challenges of its management, as well as optimization strategies for the government and corporations. Novelty: This study fills the literature gap by linking sukuk to SDG 9, expanding the discourse from the financial aspect to the contribution to sustainable development. These findings are expected to contribute to the ongoing debate on the effectiveness of Islamic finance in supporting sustainable development. Research Methodology / Design: Using a descriptive qualitative approach, this study analyzes secondary data from the literature related to sukuk in Indonesia. The data is analyzed descriptively to present facts and findings objectively. Findings: Sukuk contributes significantly to the development of quality infrastructure and supports inclusive industrialization by providing access to finance. Based on the analysis, the opportunities for sukuk to achieve SDG 9 are the growth of the sharia economy (especially sharia finance), investor interest in Indonesian sukuk, the large population of Indonesian Muslims, supporting infrastructure development programs. In addition, there are also challenges that need to be faced such as credit risk, limited information on the sharia capital market, lack of understanding of issuers, investors and the public about sukuk, limited traded instruments, and liquidity risk. Implication: This study highlights theoretical implications by expanding the understanding of the role of Islamic finance in achieving sustainable development goals. Practically, this study provides insight for policy makers and corporate managers on how to utilize sukuk for sustainable industrial and infrastructure development. Recommendations include improving the regulatory framework, increasing awareness of sukuk, and encouraging an environment that supports the issuance and management of sukuk.
Sukuk, SDG 9, Islamic Finance, Infrastructure
Determining Factors that Influence The Profits of Sharia Life Insurance Companies Registered with The Financial Services Authority for The 2018-2022 Period
Background: The Islamic finance industry in Indonesia, especially the Islamic insurance industry, is experiencing rapid growth. In accordance with the development of Indonesia's sharia finance reported in 2022, the total sharia insurance assets in 2022 were recorded at 45,025 trillion, of which the largest total assets were sourced from sharia life insurance worth 34,891 trillion. Thus, it can be said that sharia general insurance and reinsurance companies. However, the net profit of sharia life insurance has actually decreased in several years. Objectives: This research aims to examine the effect of premium growth ratio, investment returns, underwriting results, risk based capital, and liquidity on the profits of Sharia Life Insurance companies registered with the Financial Services Authority (OJK) for the 2018-2022 period. Novelty: With the existence of research gaps in previous studies, the authors feel the need to conduct this study as a form of re-examining related independent variables, considering the inconsistent results of previous studies. Research Methodology / Design: Sample selection used a purposive sampling method which resulted in a sample of 21 Sharia Life Insurance companies with a total of 105 financial report data. This type of research is quantitative research. Data collection was carried out through secondary data, namely the company's annual report. The analytical method used in this research is panel data regression analysis which is measured using STATA 17 software. The best analysis model chosen in the research is the fixed effect mode. Findings: The research results show that the variables of investment returns and underwriting results have a positive and significant effect on company profits. Meanwhile, the liquidity variable has a negative and significant effect on company profits. Then, the premium growth ratio and risk based capital variables have no effect on company profits. Implication:. It is necessary to add samples and develop them, not only using sharia life insurance companies, but can take examples of sharia general insurance or sharia reinsurance. Further research may also add more variables that could potentially affect profits. The short research deadline, only five years, indicates the need for further research with a wider time span to obtain more precise and accurate results. In addition, further development of this theory is needed to strengthen the research findings
Unveiling Waqf’s Role and Impact on Society Welfare: Deep Study from Indonesia
Background: Waqf plays an important role in the social life of the people and the Muslim community(Suryana, Ikram & Agustina, 2020) especially in the efforts to combat the poverty because of the scarcity of jobs and. Waqf which success in the history of Islam proves that Islam is able to provide solutions to social security and welfare to its adherents. Waqf in Islamic history is not only a pillar of the welfare of society or individuals, more than that waqf have become a pillar of the nation's economy in building the infrastructure, economy and durability. Objectives: This study analyzes the waqf’s role and impact on society welfare throughout world history and makes a deep study from Indonesia Novelty: Waqf’s role and impact are proven in building three major aspects of human life: economy, knowledge and human resources. Research Methodology / Design: Using triangulation method to increase the credibility and validity of the results by cross-verifying data from different sources or approaches. Findings: We find that waqf’s role and impact always develop from era to era. Waqf’s role in Indonesia has existed since Sultanate era. Masjid, pesantren and university are the most prominent institutions in developing waqf as a tool to enhance society welfare in modern era Implication: Based on the research, this research implications for waqf in unveiling waqf’s role and impact more specific and accurate can be consideration to make waqf as an important tool to enhance micro and macro aspects.
Indonesia Sustainable Funding: Comparative of Standar Screening Securities Crowdfunding and Capital Markets
Background: Since the occurrence of covid-19, there has been an acceleration in the transformation of the economic cycle with the digital era transforming conventional economic activities towards the digitization of the economy. This has given rise to financial technology as a concept, giving birth to securities crowdfunding instruments. This cycle has become an alternative for sustainable funding suitable for MSMEs, with funding reaching 1 trillion, supporting 481 business units and involving 160,368 investors. Data as of August 2023 shows funding for business units reaching 268 units, with a breakdown of 10 debt, 59 sukuk, and 199 equity fundings, with a comparative percentage of 78% conventional and 22% Sharia-compliant business units. The organization of this funding faces a legal vacuum in terms of standard screening for the issuance of business units being offered. The impact of this research aims to establish or strengthen regulations on standard screening for funding MSMEs in the securities crowdfunding cycle. Objectives: This research focuses on the standard screening and funding mechanisms of Securities crowdfunding and comparative with capital market. Novelty: In funding MSMEs and startup companies, there are no regulations regarding screening standards for sharia issuers/companies, so it needs to be compared with the screening standards used in the capital market. Research Methodology / Design: The legal problem of "Rechtsvacuum" or void of norms is used as an issue in this research, using normative legal research methods that use a statutory approach and a conceptual approach for data in the form of OJK Regulation No. 57 2020, POJK No. 16 2021 and POJK No. 35 2017 and some data from BEI, KSEI and related sources. Descriptive and comparative analysis is used as an analysis method for these data. Findings: The legal problem of "Rechtsvacuum" or void of norms is used as an issue in this research, using normative legal research methods that use a statutory approach and a conceptual approach for data in the form of OJK Regulation No. 57 2020, POJK No. 16 2021 and POJK No. 35 2017 and some data from BEI, KSEI and related sources. Descriptive and comparative analysis is used as an analysis method for these data. The findings from this research reveal that there are no regulations governing screening standards in core business screening and financial ratio screening, so the guidelines used are Financial Services Authority Regulation Number 35 of 2017 concerning Criteria and List of Sharia Securities Used on the Indonesian Stock Exchange, which applies to public companies and does not apply to private securities crowdfunding cycles. Implication: This could have implications for the preparation of screening standards for MSMEs, Startup Companies and companies that receive funding. OJK can update the standard screening regulations by adjusting the economic cycle of securities crowdfunding for medium-small capital, because the standard screening applied in the capital market cannot be applied to securities crowdfunding on the basis of the regulatory argument used by POJK No. 35 2017 specifically for the capital market, based on theory legality, these regulations cannot be used for securities crowdfunding.
Gold Investment at Hajj Financial Management Agency (BPKH)
This research aims to analyze the influence of macroeconomic factors on price movements in Pegadaian gold accounts, analyze the factors that BPKH must put into consideration when investing in gold, and analyze the better gold instrument that are more recommended for BPKH between gold bullion and gold accounts. The influence of macroeconomic factors’ analysis on the price movement of Pegadaian gold accounts was carried out using a multiple linear regression method with five independent variables, namely international gold prices, inflation rate, rupiah exchange rate against USD, interest rate, economic growth rate, and one dependent variable, namely price Pegadaian gold account. Meanwhile, analysis of the factors that BPKH must pay attention to when investing in gold and gold instruments is carried out using the ANP (Analytic Network Process) qualitative method. Multiple linear regression analysis shows that the international gold price, exchange rate, inflation rate, and economic growth rate have a significant effect on the price of Pegadaian gold accounts. Meanwhile, the interest rate does not have a significant effect on the price of Pegadaian gold accounts. The variables of international gold prices and the Rupiah exchange rate against USD have a positive correlation, while the variables of inflation rate, reference interest rate and economic growth rate have a negative correlation with the price of Pegadaian gold accounts. The results of ANP data processing confirm the results of multiple linear regression analysis, stating that international gold prices, the Rupiah exchange rate against USD, and the inflation rate are the three main macroeconomic factors that influence gold price movements. The results of the ANP questionnaire processing also state that BPKH needs to pay attention to several factors in investing in gold, namely macroeconomic factors, risk factors and sharia compliance factors. As many as 90% of respondents to the ANP questionnaire recommended Pegadaian gold accounts as a better investment instrument for BPKH considering the mitigation of operational risk and is considered more liquid, referring to Pegadaian buyback policy. Meanwhile, 10% of respondents to the ANP questionnaire preferred gold bullion instruments with clearer sharia contract considerations. In order to diversify as well as to maintain asset value when unstable economic conditions occur, BPKH should increase the gold investment portfolio with maximum limit is 5% of the total investment and/or bank placement of hajj fund. When investing in gold, BPKH should pay attention to the movements in macroeconomic factors, namely international gold prices, exchange rates, inflation rate and economic growth rates. BPKH must also pay attention to risk factors and sharia comply of the gold instrument. Apart from the efforts to increase the financial benefits of hajj fund through optimizing gold investment, the percentage of cost paid by pilgrims also plays an important role in supporting the sustainability of hajj fund. In this case, the the percentage of cost paid by pilgrims should be adjusted rationally. Total hajj cost is also a crucial aspect, especially in the main components such as flight costs, hotels and catering. The efficiency of these components can be strived by collaborating with airlines or aviation fuel providers, purchasing hotels/ apartments in Mecca and/or Medina, and establishing catering factories for Indonesian hajj pilgrims. The initiation of these investment can be explored conjointly with the Ministry of Religion as the organizer of Indonesian Hajj pilgrimage.
A Study on the Antecedents of Cardless Withdrawal Adoption at Bank Syariah Indonesia from the Perspective of Generation Z in Yogyakarta Special Region
Abstract Background: The development and growth of technology in the banking sector, especially in sharia banking services, has a significant impact on consumer behavior, especially among the younger generation/generation Z Objectives: This research aims to determine the factors that influence adoption cardless withdrawal Indonesian sharia bank through the perspective of generation Z D.I.Yogyakarta through approach Technology Acceptance Model 3 (TAM 3). Novelty: The novelty in this research lies in the development of a more comprehensive and specific technology acceptance evaluation model, namely by application Technology Acceptance Model (TAM) in context Cardless Withdrawal on the BSI application mobile banking Research Methodology / Design: In designing this study, the approach applied was a quantitative method. This research was distributed using an online questionnaire in the form of Google Form to 168 respondents who are Generation Z users of the cash withdrawal feature without a BSI card Mobile banking. The data collected was then processed using the SmartPLS 3.0 application for statistical analysis. Findings: The research results show that seven of the eight variables have a positive influence on the adoption of the cardless cash withdrawal feature, while one variable, namely computer anxiety, has a negative influence on the perception of ease of use. These findings indicate that although these features are generally well received by users, certain factors such as technology anxiety remain barriers that need to be overcome. Implication: Theoretically, this research enriches the literature on technology adoption in the Islamic banking sector with empirical evidence regarding the effectiveness of the cardless cash withdrawal feature. Practically, these results can be used by Bank Syariah Indonesia and other financial institutions to improve marketing and product development strategies, as well as to overcome obstacles faced by users in adopting this technology. Thus, this research helps encourage wider and more effective adoption of digital banking technology.
The Effect Of Perceived Usefulness and Perceived Convenience on Customer Decision in Using BSI Mobile
Customer decisions are very important for a bank, meaning that a bank must maintain a good reputation in order to create a positive perception for society and customers. Mobile banking is one of the services provided by banking companies to make it easier for customers to make transactions. In using mobile banking, of course it is based on the customer's perception of a service, therefore there are several things that are measured in determining the customer decision, namely perceived usefulness and perceived convenience. This study aims to determine the effect of perceived usefulness and perceived convenience on customer decisions in using BSI Mobile. Collection of customer questionnaires measured using a Likert scale is a data collection method in this study. The population of customers who use BSI Mobile in this study is 6,701 people with the characteristics of active customers who use BSI Mobile in their daily transactions, and the number of samples in this study is 100 people who are determined from the sampling technique, namely purposive sampling. The results obtained using the t test (partial) show that perceived usefulness and perceived convenience have a positive and significant effect on customer decisions in using BSI Mobile.
Performance Analysis of Islamic Commercial Banks for the Period 2017-2021.
Banking has a significant influence on the economic activities of a country. The banking sector in Indonesia is currently experiencing rapid growth. One of the banks that is growing rapidly is Islamic banking. The development of Islamic banking must demonstrate sufficient performance in building trust among shareholders in their investments. To achieve this trust, it is necessary to measure the performance of Islamic banks, hence the need for a tool that can evaluate and measure the performance of these Islamic banks. The assessment of the financial performance of Islamic banks not only focuses on financial aspects but also requires an evaluation of their performance in accordance with Sharia principles to build trust among stakeholders. This research aims to determine the performance level of registered Islamic commercial banks in the financial services authority using the Islamicity Performance Index and RGEC methods for the years 2017-2021. This type of research is descriptive research with a quantitative approach. Data were obtained through documentation techniques. Data analysis techniques utilized the Islamicity Performance Index and RGEC methods. This research introduces novelty in its research methodology. Many studies typically focus on a single method, while this research employs two methods simultaneously. Additionally, this study utilizes the most recent data. The type of research is descriptive research using a non-statistical quantitative approach. The data used in this study are secondary data. The data collection technique in this research is the documentation method. The sampling technique in this study is non-probability sampling. The data analysis technique in this research involves descriptive statistical analysis using the Islamicity Performance Index and RGEC methods. The research results indicate that the assessment of the performance level of Islamic commercial banks using the Islamicity Performance Index method for the years 2017-2021 falls under the category of less satisfactory in terms of spirituality. The values for the respective years were 2.375, 2.375, 2.5, 2.5, and 2.625. The evaluation of the performance of Islamic commercial banks using the RGEC method in 2017 showed that the banks' performance was in Composite Rank 3 (PK-3) with a score of 66.67%, indicating a moderately healthy category. Meanwhile, for the years 2018-2021, the performance of the banks was in Composite Rank 2 (PK-2) which falls under the healthy category, with scores of 80%, 80%, 76.67%, and 76.67% respectively. The suggestions from this research are that Islamic commercial banks should be able to improve the company's profits, zakat, dividend distribution, and qard & donation. The banks are also expected to enhance their effectiveness in obtaining company profits, as some banks are still experiencing negative profit values. Subsequent researchers are encouraged to conduct further research, including accuracy testing on the Islamicity Performance Index and RGEC methods.
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