International Journal of Islamic Economics and Finance (IJIEF)
https://journal.umy.ac.id/index.php/ijief
<p>The International Journal of Islamic Economics and Finance (IJIEF) is published biannually in January and July. The International Journal of Islamic Economics and Finance was founded by the International Program for Islamic Economics and Finance (IPIEF). Universitas Muhammadiyah Yogyakarta is the publisher of this journal. The journal is peer-reviewed and published using the Open Journal System (OJS). IJIEF publishes exclusively in electronic (PDF) format. Open access to the electronic publication is available at <a href="http://journal.umy.ac.id/index.php/ijief/index">http://journal.umy.ac.id/index.php/ijief/index</a>. ISSN: <a href="https://portal.issn.org/resource/ISSN/2622-4372" target="_blank">2622-4372</a> (online) ISSN: <a href="https://portal.issn.org/resource/ISSN-L/2622-3562" target="_blank">2622-3562</a> Printed </p>Universitas Muhammadiyah Yogyakartaen-USInternational Journal of Islamic Economics and Finance (IJIEF)2622-3562<p dir="ltr">This journal is based on the work at <a href="/index.php/ag/index">http://journal.umy.ac.id/index.php/ijief</a>/under license from Creative Commons Attribution-ShareAlike 4.0 International License. You are free to:</p><ol><li><strong>Share</strong> – copy and redistribute the material in any medium or format.</li><li><strong>Adapt</strong> – remix, transform, and build upon the material for any purpose, even comercially.</li></ol><p dir="ltr">The licensor cannot revoke these freedoms as long as you follow the license terms, which include the following:</p><ol><li><strong>Attribution</strong>. <span>You must give appropriate credit</span><span>, provide a link to the license, and indicate if changes were made.</span><span> You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.</span></li><li><strong>ShareAlike. </strong>If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.</li><li><strong>No additional restrictions</strong>. <span>You may not apply legal terms or technological measures</span><span> that legally restrict others from doing anything the license permits.</span></li></ol><p dir="ltr"><strong>Information for authors</strong></p><p dir="ltr">The author should be aware that by submitting an article to this journal, the article's copyright will be fully transferred to International Journal of Islamic Economics and Finance (IJIEF). Authors are allowed to resend their manuscript to other journals or intentionally withdraw the manuscript only if both parties (IJIEF and Authors) have agreed on the issue. Once the manuscript has been published, authors are allowed to use their published article under IJIEF copyrights.</p><p dir="ltr">All authors are required to deliver the agreement of license transfer once they submit the manuscript to IJIEF. By signing the agreement, the copyright is attributed to this journal to protect the intellectual material for the authors. Authors are allowed to share, copy and redistribute the material in any medium and in any circumstances.</p><p>• Creative Commons Attribution-ShareAlike (CC BY-SA)</p><p><a href="http://creativecommons.org/licenses/by-sa/4.0/" rel="license"><img src="https://i.creativecommons.org/l/by-sa/4.0/88x31.png" alt="Creative Commons License" /></a></p>This work is licensed under a <a href="http://creativecommons.org/licenses/by-sa/4.0/" rel="license">Creative Commons Attribution-ShareAlike 4.0 International License</a>.Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic
https://journal.umy.ac.id/index.php/ijief/article/view/16323
<p><span>This study was conducted to measure and compare the productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic. The number of samples used in this study was 105 banks consisting of 95 conventional banks and 10 Islamic banks. The level of productivity was measured using the Malmquist Productivity Index (MPI) method and Data Envelopment Analysis (DEA) with an intermediation approach, while the productivity of conventional and Islamic commercial banks was compared using normality and different tests. The results showed that the productivity level of the Islamic banks with a Total Factor Productivity Changes (TFPCH) value of 1.001 was driven by technological advances. Meanwhile, the conventional banks were not productive. On the other hand, the results of the different tests showed that there was no significant difference between the productivity level of the conventional and Islamic banks. Conventional banks must enhance innovations in the use of technology in their operational activities to improve their productivity and maintain their high efficiency achievement. Meanwhile, Islamic banks could improve their efficiency in the operational activities so that they would achieve higher productivity and to innovate continually with the use of technology. During the study observation, there was no study comparing between the productivity level of conventional and Islamic commercial banks during the COVID-19 pandemic in Indonesia. Therefore, this research was the first study to discuss the comparison of productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic.</span></p>Fajra OctrinaAlmi Jamilah
Copyright (c) 2024 International Journal of Islamic Economics and Finance (IJIEF)
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2024-02-012024-02-017136138610.18196/ijief.v7i1.16323The Theory of Reasoned Action and The Prospects of Waqf-Muzar’ah-Supply Chain Model in Zanzibar
https://journal.umy.ac.id/index.php/ijief/article/view/15206
<p>The contribution of the agricultural sector to the development of Zanzibar Islands is considerable. This very important sector through the clove industry was the economic backbone upon which the government of Zanzibar relied for its foreign exchange and national revenue. However, since 1964, agricultural productivity particularly clove production has continually and significantly decreased due to many problems and challenges, especially financial ones. For example, financial intermediaries including banks, cooperatives and micro-enterprises provide micro-financing to the farmers but with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find solutions to the dwindling clove production have failed. This study has therefore proposed a Waqf-Muzara’ah- Supply Chain model (WMSCM) to address the challenges. The study has used Theory of Reasoned Action adopt the model. To the model, SPSS, AMOS and SEM have used accordingly. The results show that, both the attitude and subjective norm of the clove farmers in Zanzibar towards using the proposed model are statistically significant and have influence on their behavioral intention in using the model.</p>Issa Salim Moh'd
Copyright (c) 2024 International Journal of Islamic Economics and Finance (IJIEF)
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2024-02-012024-02-017138741010.18196/ijief.v7i1.15206The Role of Knowledge and Trust in Explaining Intention of Performing Waqf in Agricultural Sector
https://journal.umy.ac.id/index.php/ijief/article/view/17003
<p><span>This research aimed to analyze the influence of trust and waqf knowledge (WK) on intention to make endowment for programs in agricultural sector using Partial Least Square-Structural Equation Modeling (PLS-SEM) with 4th edition of SmartPLS analytical tool. In addition, the questionnaire was adopted from previous analyses and filled in by 100 respondents familiar with waqf. The results showed that three variables, which were components of Theory of Planned Behavior (TPB), namely subjective norm (SN), attitude toward behavior (ATB), and perceived behavioral control (PBC) had a significant influence on intention to perform waqf in agricultural sector. Regarding the main result, ATB mediated the role of trust and waqf knowledge for waqf. The results had implications for the importance of increasing waqf literacy for all levels of society by presenting religious leaders and increasing nazhir's professionalism in managing funds.</span></p>Sunarmo SunarmoRifaldi Majid
Copyright (c) 2024 International Journal of Islamic Economics and Finance (IJIEF)
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2024-02-012024-02-017141143210.18196/ijief.v7i1.17003SMEs, Employment Generation, and Islamic Finance
https://journal.umy.ac.id/index.php/ijief/article/view/18632
<span>Almost wherever the economy is growing, small and medium-sized businesses (SMEs) are the ones doing the heavy lifting. Who are these SMEs? How does the definition of SME differ across different countries? What are the contributions of SMEs in terms of employment and GDP? How can Islamic finance play a significant role in scaling up the business performance of SMEs and, subsequently, their contribution to employment and the economy? What are the issues and challenges faced by SMEs and Islamic finance that would resolve into greater employment generation? Addressing all these questions, this paper provides an overview of SMEs globally and their definitions in different countries as well as in Malaysia. Simultaneously, some issues and challenges are discussed. Furthermore, the paper presents Islamic finance as a better solution to the financial accessibility of SMEs in future economic activities. The paper thus attempts to illustrate a model or framework that would work well for SMEs to generate productive employment opportunities in their respective economies. To achieve the objectives of this paper, secondary data was used to present all the statistical figures and tables. For any generalizations, recommendations, or conclusions, an extensive review of literature from various sources was conducted.</span>Md Siddique E AzamMoha Asri Abdullah
Copyright (c) 2024 International Journal of Islamic Economics and Finance (IJIEF)
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2024-02-012024-02-017143345410.18196/ijief.v7i1.18632Safeguarding Stability and Enhancing Profitability: The Case of Islamic Banking in Indonesia
https://journal.umy.ac.id/index.php/ijief/article/view/20537
<p>This study examines the impact of crises, non-performing financing variables, exchange rates, inflation, and interest rates on Islamic banks' short-term and long-term profitability in Indonesia. Profitability (ROA) fluctuations are also assessed in consideration of exogenous shocks. This analysis uses the Vector Error Correction Model (VECM) to examine monthly data from 2007 to 2023. The results suggest that non-performing financing (NPF), exchange rates (BIRT), and inflation (IFLS) have a substantial impact on the long term. While the crisis variable exhibits a relatively less substantial influence, interest rates reveal distinct short-term and long-term impacts. The Impulse Response Function data indicate that NPF, KURS, and IFLS have a negligible effect on ROA. NPF primarily influences ROA variation, as determined by the Forecast Error Variance Decomposition; KURS follows suit. Islamic Banks' management must diligently oversee non-performing loans, exchange rates, and inflation and astutely devise interest rate strategies. The factors impacting the profitability of Islamic banks in Indonesia are thoroughly examined in this study.</p>Faizul MubarokMartino WibowoSahraman D Hadji Latif
Copyright (c) 2024 International Journal of Islamic Economics and Finance (IJIEF)
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2024-02-012024-02-017145547210.18196/ijief.v7i1.20537Examining Cash Waqf from the Perspectives of Malaysian Actual Donors
https://journal.umy.ac.id/index.php/ijief/article/view/21334
This study examined the cash <em>waqf</em> giving behaviour in Malaysia covering Selangor, Perak, Negeri Sembilan and Pahang. The theory of planned behaviour (TPB) was employed as a point of departure to observe the factors influencing the cash <em>waqf</em> behaviours involving 777. SPSS 27 was then utilised to assess and consider the data to test hypotheses and draw statistical conclusions. The TPB’s factors were instrumental in shaping the expansion of cash <em>waqf</em> giving in Malaysia. The added variable, Islamic altruism was also statistically influential and played an important role in determining the behaviour formation. Besides, in the <em>post hoc</em> analyses, we discovered a mediating role of attitude for the tested and examined independent variables involved. The usefulness of the results obtained was confined to the theory used as well as the geographical areas chosen. The results obtained can be learned by Malaysian <em>waqf</em> institutions to further strengthen the <em>waqf</em> collections by optimising the significant variables found in this study. This study is the first to check the effects of the TPB's factors in the context of actual behaviour, which adds more knowledge to the existing <em>waqf</em> literature available in the world.Hanudin AminNor Syakina JamPatrick J RingDwi SuhartantoMuhamad Umar MaiDzuljastri Abdul RazakImran Mehboob Shaikh
Copyright (c) 2024 International Journal of Islamic Economics and Finance (IJIEF)
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2024-02-012024-02-017147348910.18196/ijief.v7i1.21334Investigating the Determinants of Islamic Banks’ Financing Quality: A Regional Approach
https://journal.umy.ac.id/index.php/ijief/article/view/18532
<p>The quality of Islamic banks’ financing is pivotal to determine the banking performance. When an Islamic bank has good quality of financing activities, the bank can generate more financial return due to less exposure to bad financing. This study aims to investigate the determinants of Islamic banks’ financing quality by considering the regional approach. The study utilized non-performing financing as the proxy of bank’s quality financing. The dependent variables consisted of inflation, financing growth, financing to deposit ratio, and asset. In addition, dummy variables were used to identify the period of the COVID-19 pandemic and the regional effect in Java and other regions outside Java. By adopting panel data analysis, this study observed 33 provinces in Indonesia from January 2004 to October 2021. The findings of the study revealed that the determinant of Islamic banks’ financing quality in consumption scheme was different from equity and investment schemes. Moreover, only Islamic banks’ financing quality in consumption scheme had exposure to inflation risk. Regional influence was present in all sorts of financing schemes at the time the COVID-19 pandemic significantly impacted financing quality in investment and consumption schemes. This study suggests that Islamic banking practitioners and financial authorities should understand the different behavior of each financing scheme in order to maintain Islamic banks’ financing quality.<em></em><em></em></p>Faaza FakhrunnasM. B. Hendrie Anto
Copyright (c) 2024 International Journal of Islamic Economics and Finance (IJIEF)
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2024-02-012024-02-017149050210.18196/ijief.v7i1.18532