Ekonomi Islam Indonesia

Challenges and Obstacles in the Standardization and Harmonization of Fatwa in Islamic Finance Industry and Way Forward

Abrista Devi, Baharom Abdul Hamid — Wed, 24 Apr 2024 00:00:00 +0000

The purpose of this paper is to explore the potential benefit, challenge and obstacles in the standardization and harmonization of fatwa in Islamic finance industry. This paper is also intended to formulate strategies to release the standardization and harmonization of fatwa. This study employs qualitative approach and reviews literatures that are relevant to the research objective. The finding indicates that the potential benefit of harmonization of fatwa are efficient and manageable regulation and control, IFIs will have a set of reporting and guideline standards, contribute to IFIs’s growth, enhance public and IFI’s confidence, and lead to greater transparency. Meanwhile, the challenges to harmonize the fatwa can be divided into four main problems, technical, governance, human resource, and regulation. Technical problems comprise difference of opinion in ijtihad and fatwas, the absence of consensus (ijma’), and national cultural specificities. Governance consist of international fatwa bodies are only followed by selected member countries, difference in sharia compliance governance model among countries, and difference level of Islamic finance industry growth among countries. Human resource involves lack of inclusivity, lack of professionals, personal/group interest. Finally, regulation be made up of lack of support from regulators, enforcement problem, and lack of legal system. This study also purposes some important strategies to release the standardization of fatwa and some recommendations for future studies.

Is There a Relationship Between Islamic Banking Liquidity and Inflation? Empirical Evidence from Indonesia

Nisrina Jazmiyanti, Eko Fajar Cahyono, Salina H. Kassim — Fri, 29 Mar 2024 00:00:00 +0000

This study aims to determine if there is a relationship between the Islamic bank liquidity and inflation in the context of Indonesia. In achieving this objective, the effects of Bank Indonesia Certificates Sharia (SBIS), Bank Indonesia Islamic Deposit Facility (FASBIS), Inflation on Sharia Banking Liquidity for the period of 2011-2019 are analysed. The research method is quantitative approach and analyzed using multiple linear regression analysis. The data used in this study are secondary data obtained from official data from Bank Indonesia and the Financial Services Authority (OJK).The results showed that the Bank Indonesia Certificates Sharia (SBIS) had a significant negative effect on Islamic banking liquidity; the Bank Indonesia Islamic Deposit Facility (FASBIS) had no influence on Islamic banking liquidity; and inflation had a significant positive effect on Islamic banking liquidity. For monetary authority, this research can be used as an evaluation material for programs that are carried out specifically in the FASBIS instrument so that in the future FASBIS has an influence on Islamic banking liquidity and also while maintaining monetary instrument stability.

Islamic Financial Inclusion Index in Indonesia and its Correlation to Women's Quality of Life

Hidayatul Azqia, Mohammad Mahbubi Ali, Saniatun Nurhasanah — Tue, 02 Apr 2024 00:00:00 +0000

This thesis discusses and provides an overview of the Islamic financial inclusion index in Indonesia and its correlation with women's quality of life. This study uses a descriptive quantitative approach with the method of calculating the Index of Sharia Financial Inclusion (ISFI). The data from this study uses secondary data obtained from the publications of the Financial Services Authority, the Central Statistics Agency and the Ministry of Child Protection and Women's Empowerment of the Republic of Indonesia. The study covers 33 provinces for the 2015-2020 period. The results of this study found that the level of Islamic financial inclusion in Indonesia was still relatively low at 0.105. Based on the observations, the provinces of DKI Jakarta and Nanggroe Aceh Darussalam, are the most superior provinces in measuring the Islamic financial inclusion index in this study, with the acquisition value of each province respectively 0.531 and 0.435. This study also found that the Islamic financial inclusion index (ISFI) has a positive relationship to women's quality of life (IPG). These results indicate that changes in the level of Islamic financial inclusion will result in changes in women's quality of life (IPG) in the same direction or if the ISFI index increases by one unit it will increase the GPA index by 7.811.