Journal of Islamic Economics Lariba

The analysis of sharia compliance in the implementation of KPR Syariah iB Hebat product at BPRS Dana Amanah Surakarta

Devid Frastiawan Amir Sup, Muhammad Irkham Firdaus, Aqil Mutashim Bilhaq — Mon, 11 Dec 2023 00:00:00 +0000

Introduction
BPRS Dana Amanah Surakarta, as part of a sharia entity, has an obligation to comply with sharia. One of the products implemented is KPR Syariah iB Hebat financing.
Objectives
This research aims to analyze sharia compliance in the implementation of KPR Syariah iB Hebat products at BPRS Dana Amanah Surakarta, as well as the role of DPS in controlling and supervising every operational activity and product so that it remains in accordance with sharia regulations and principles.
Method
This research used a qualitative approach, in the form of field research, to describe the field data obtained and analyzed in this research.
Results
The contract used in the KPR Syariah iB Hebat product at BPRS Dana Amanah Surakarta is a murabahah, istishna’ parallel, and musyarakah mutanaqishah contracts, based on DSN-MUI fatwa. The provisions listed in the DSN-MUI fatwa are then compiled into a letter of agreement. DPS supervises the development of new BPRS products and activities and supervises BPRS activities. Until now, there have been no findings of serious deviations from sharia aspects at BPRS Dana Amanah Surakarta, usually the findings are limited to administrative requirements that can be fulfilled.
Implications
BPRS Dana Amanah Surakarta should maintain the sharia compliance for KPR Syariah iB Hebat and its other financial products. Other Islamic micro financial institutions can follow the steps taken by BPRS Dana Amanah Surakarta to engineer its financial products.
Originality/Novelty
This research made an important contribution in the form of concepts and implementation on sharia compliance, which is a part that should not be separated from the activities of sharia entities, as a reference for analyzing and developing the financial, economic, and Islamic business in the future.

Developing Islamic financial literacy in improving Islamic financial behavior towards the financial well-being of MSMEs: The moderating effect of e-payment usage

Aftuqa Sholikatur Rohmania, Erlinda Sholihah, Risma Nurhapsari — Fri, 15 Dec 2023 00:00:00 +0000

Introduction
As the country with the largest Muslim population in the world, Indonesia has the potential to develop the financial welfare of MSMEs as a driver of economic growth. However, studies on the financial well-being of MSMEs from an Islamic finance perspective are limited.
Objectives
This study discusses the impact of Islamic financial literacy and Islamic financial behavior on the financial well-being of MSMEs, with e-payment usage as a moderating variable.
Method
This study used a quantitative approach with a sample of 200 culinary MSMEs in Semarang, Indonesia. Data collection was carried out using questionnaires, and data analysis was carried out using the partial least squares structural equation modelling technique.
Results
The dimensions of Islamic financial literacy (Islamic financial knowledge, financial skills, and self-efficacy) have a significant positive effect on Islamic financial behavior. Islamic financial knowledge has no significant effect on financial well-being of MSMEs, whereas financial skills and self-efficacy have a significant positive effect. Islamic financial behavior has a significant positive effect on financial well-being of MSMEs. E-payment usage does not moderate the relationship between Islamic financial knowledge and financial skills towards Islamic financial behavior.
Implications
This study shows the importance of Islamic financial literacy and Islamic financial behavior to improving the financial welfare of MSMEs in Indonesia. The government and Islamic finance stakeholders in Indonesia need to continue to improve Islamic financial literacy and the Islamic financial behavior of society.
Originality/Novelty
This study contributes to the development of Islamic financial literacy and Islamic financial behavior as part of efforts to improve the financial welfare of MSMEs.

Implementation of digital marketing at the Grand Kutilang Syariah Hotel Bandar Lampung during the recovery period after the Covid-19 pandemic: A sharia business perspective

Asfiatul Fauziyah, Erike Anggraeni, Syamsul Hilal — Tue, 26 Dec 2023 00:00:00 +0000

Introduction
Previous studies have analyzed the application of digital marketing in the hotel industry during the Covid-19 pandemic. However, research on digital marketing in the context of the hotel industry with an Islamic approach is still limited.
Objectives
This study discusses the implementation of digital marketing in a sharia hotel as response to the Covid-19 pandemic.
Method
This study used a qualitative approach with a case study at Grand Kutilang Syariah Hotel Bandar Lampung. Data collection was carried out using questionnaires, and data analysis was carried out using inductive technique.
Results
The Grand Kutilang Sharia Hotel, as part of tourism and hospitality industry in Lampung Province, employed digital marketing strategies to maintain business continuity during and after the COVID-19 pandemic. The implementation of digital marketing in The Grand Kutilang Sharia Hotel during the Covid-19 pandemic, involves optimizing the use of social media platforms such as WhatsApp, Instagram, Facebook, Twitter, YouTube, and TikTok. This implementation aligns with Sharia business principles.
Implications
This study shows the importance of adopting technological advancement in sharia hotel industry. Sharia hotels should take advantage of technological developments to maintain their business.
Originality/Novelty
This study contributes to the literature regarding sharia hotel marketing strategies in facing the crisis.

The influence of financial performance on profitability of sharia commercial banks in Indonesia using the CAMEL method

Minarni, Munirul Abidin, Vivin Maharani Ekowati — Tue, 26 Dec 2023 00:00:00 +0000

Introduction
Research on Islamic commercial banks in Indonesia have been extensively conducted, with a focus on banks in general and large banks. However, research specifically targeting medium-sized banks, namely PT Bank Muamalat Indonesia, PT Bank Mega Syariah, PT Bank Panin Dubai Syariah, PT Bank BCA Syariah, and PT Bank KB Bukopin Syariah, is still limited.
Objectives
This study aims to examine the influence of the financial performance of Islamic banks on their profitability using the CAMEL indicator.
Method
This research is quantitative with a correlational approach. The population in this study consists of 12 Islamic commercial banks in Indonesia, with 5 of them selected as samples. The sampling technique used is purposive sampling. The study utilizes secondary data from quarterly financial ratio reports of Islamic banks published by the Financial Services Authority (OJK). The analysis involves evaluating the impact of CAR, NPF, NOM, BOPO, and FDR on ROA using multiple linear regression analysis.
Results
The findings indicate that, partially, CAR and NPF do not significantly affect the ROA of Islamic banks. However, NOM, BOPO, and FDR have a significant impact on the ROA of Islamic banks.
Implications
the research motivates Islamic bank management to improve their financial ratios to meet the health criteria set by Bank Indonesia (BI) and OJK. Maintaining healthy financial ratios has implications for the level of trust that customers and potential customers have in Islamic banks and ultimately determines the long-term existence of these banks.
Originality/Novelty
This study contributes to the development of risk management theory by examining the factors influencing the fluctuations in the values of CAR, NPF, NOM, BOPO, and FDR on the ROA of Islamic banks.

Financial risk mitigation of collateral-free kredit usaha rakyat mikro at Bank Syariah Indonesia KCP Ujung Berung 1

Yasni Gustini, Ima Amaliah, Budi Hartono — Tue, 26 Dec 2023 00:00:00 +0000

Introduction
Bank Syariah Indonesia participates in disbursing kredit usaha rakyat (KUR) mikro with a maximum financing ceiling of Rp 100 million without requiring collateral. This is worth further investigation, especially from the perspective of financing risk mitigation.
Objectives
This research aims to identify risk mitigation strategies to reduce the impact on non-performing financings from kredit usaha rakyat mikro.
Method
The study is located at Bank Syariah Indonesia KCP Ujung Berung 1 in the city of Bandung, using a qualitative descriptive method. Research data is processed using interview and documentation techniques.
Results
Field findings indicate dynamic disbursement of KUR from January to April, totaling Rp 3.69 million. In April 2023, delinquent credits decreased by 0.5% from 6.6% in March 2023 to 6.1%. This is evidenced by the risk mitigation strategy used to address delinquent credits, which involves identifying customers who meet established criteria and conducting necessary checks, such as BI checking/SLIK, trade checking, and market checking. Additionally, the bank requires customers to obtain life insurance before applying for financing.
Implications
The research motivates Islamic bank management to reduce financial risk in financing to micro, small, and medium enterprises by improving their financial risk mitigation.
Originality/Novelty
This study can serve as a reference for banks to reduce the risk of non-performing financing by implementing credit risk mitigation strategies.

An analysis of musharakah agreement due to the bank's negligence in implementing prudential banking principle: The case of jurisprudence at the Supreme Court Cassation Verdict Number 624 K/Ag/2017

Sri Armaini, Muhammad Said — Tue, 26 Dec 2023 00:00:00 +0000

This study analyzed the Supreme Court Cassation Verdict Number 624 K/Ag/2017, regarding the musyarakah agreement between the customer and PT. Bank Sumut Padangsidimpuan Branch, in which the latter had disbursed financing to the customer before the issuance of a life insurance policy letter. The focus of the research was to investigate the settlement of the musharakah agreement due to the negligence of the bank which resulted in the customer’s obligation to pay the remaining debt based on the Supreme Court Cassation Verdict Number 624 K/Ag/2017. The study used a qualitative research approach with a case approach, statute approach, and conceptual approach. This study concludes that based on the Compilation of Sharia Economic Law (Kompilasi Hukum Ekonomi Syariah or KHES) Articles 209-210 if one of the parties in the agreement dies, the contract ends, and the loss caused by the death of the mudharib is borne by the owner of the capital. Therefore, even though in a musyarakah contract there is a mix of assets of both customers and Islamic banks. However, because the bank was negligent in their prudential banking principles practice and this action was against the law, then in regards to the legal protection theory, the losses experienced from the musyarakah contract should have been borne by the bank as a form of punishment for the unlawful act due to negligence in implementing the prudential banking principle.

Determinant of Murabaha financing in Indonesian Sharia banking: The ARDL and NARDL approach

Agus Widarjono, Munrokhim Misanam — Tue, 26 Dec 2023 00:00:00 +0000

Introduction
Murabaha financing accounts for the largest portion of Sharia bank financing, and many previous studies have analyzed this topic using symmetric impact. However, studies using the asymmetric link, a common phenomenon in economic theory, are limited.
Objectives
This study explores the determinants of Murabaha financing with symmetric and asymmetric approaches.
Method
The explanatory variables are the bank-specific variables in the form of the Murabaha financing rate, the cost of borrowing money, and the macroeconomic conditions in the form of the Industrial Production Index, which is a proxy of domestic output. The period of study is from 2010 to 2021 using monthly data. The method is Autoregressive distributed lag (ARDL) for symmetric analysis and non-linear ARDL (NARDL) for asymmetric analysis.
Results
The symmetric effect method indicates that the Murabaha financing rate negatively affects Murabaha financing, but the Industrial Production Index has no effect on Murabaha financing. The asymmetric effect method suggests that the Murabaha financing rate and Industrial Production Index asymmetrically affect Murabaha financing.
Implications
Murabaha financing will experience a drastic fall if there is a rise in the Murabaha financing rate, but a fall in the Murabaha financing rate will not have an impact on an increase in Murabaha financing. Economic upturns boost Murabaha financing, but economic downturns have no impact on Murabaha financing.
Originality/Novelty
The main contribution of our research is evidence of the asymmetric response of Murabaha financing to bank-specific variables as well as macroeconomic conditions in which Sharia banks are resilient to the business cycle.