Islamic Economics Methodology

Driving Public Service Quality through Innovation and CRM: A Study of Perumda Air Minum Tirta Pakuan, Bogor

2025-07-22T05:29:55+00:00

Evaluating public service quality is fundamental in measuring the performance of government institutions, particularly in sectors regulated by law. One of the most vital infrastructure services is the provision and management of clean water by regional water utilities. This study focuses on Perumda Air Minum Tirta Pakuan in Bogor City, a benchmark utility expected to exemplify innovation and high-quality service delivery. The research investigates the influence of innovation and customer relationship management (CRM) on service quality and formulates strategic recommendations. A mixed-methods approach was employed, combining descriptive statistics, Structural Equation Modeling–Partial Least Squares (SEM-PLS), and SWOT analysis. The study involved 140 customer respondents and five experts. Findings confirm that innovation and CRM have a positive and significant effect on service quality, with CRM also positively influencing innovation. Based on these insights, a growth and development strategy is recommended to strengthen Tirta Pakuan’s service excellence.

Book Review: The Tawhidi Methodological Worldview; A Transdisciplinary Study of Islamic Economics

2025-10-24T06:53:10+00:00

This article critically reviews the grand idea of the Tawhidi Methodological Worldview (TMW) developed by Masudul Alam Choudhury as a new epistemological and methodological framework in Islamic economics. Departing from the law of Tawhid (the oneness of Allah) as its ontological foundation, TMW rejects the dichotomy between rational-material science and moral-spiritual values that dominates the Western paradigm. Through the Tawhidi String Relation (TSR) model, Choudhury formulates a theory of the unity of knowledge that transcends disciplinary boundaries, unifying science, morality, and social reality into an organically interconnected system. This article seeks to explain the basic concepts, epistemological structure, and transdisciplinary implications of TMW for the reconstruction of Islamic economics. This study indicates that TMW offers a new direction for the development of an integrative, dynamic, and universal welfare (maslahah)-oriented Islamic science.

Internal and External Factors Affecting Banking Profitability: Evidence from Dual Banking System in Indonesia

2025-04-05T08:10:21+00:00

Implementing the dual banking system in Indonesia offers options for customers to use banking services. Before selecting which service to use, customers should perceive each bank's advantages and disadvantages. It can be carried out by conducting a performance evaluation of each bank that generates high profitability measured by the Return on Assets (ROA) value. This study aims to perform internal and external factors analysis that affect bank profitability and to compare profitability between Islamic and Conventional banking in Indonesia using the Vector Error Correction Model (VECM) method. The result shows that variable Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR) have a significant positive effect on Islamic Model in the long term, whereas policy rate and oil price (COP) hold a significant negative effect. In the Conventional Model, variable CAR, policy rate, and COP hold a significant positive effect, while the exchange rate shows a negative effect. FEVD results indicate that in Islamic Model, the diversity of banking profitability can be explained by various variables, indicating that Islamic banking is more engaged in the real sector than conventional banking.