JEKSYAH: Islamic Economics Journal

The Role of Zakat, Infaq, and Shadaqah In Shaping Indonesia's Macroeconomic Landscape: A Five-Year Study

Nurfitriani — Wed, 28 Aug 2024 00:00:00 +0800

The aim of this research is to analyze the impact of Zakat, Infak, and Shadaqah (ZIS) on the macroeconomy (poverty, unemployment, HDI, Gini ratio, and GDP) in Indonesia and to evaluate the effectiveness of BAZNAS's management of ZIS in reducing poverty and enhancing community welfare. Data from 29 provinces in Indonesia were analyzed using a combination of econometric models, including Fixed Effect Models (FEM) and Random Effect Models (REM), to account for both time-invariant and time-varying factors. The research also employed regression analysis to determine the impact of ZIS on various economic and social variables. The results show that ZIS has a significant impact on various economic and social aspects. ZIS can explain 99.8% of GDP variability, indicating a substantial contribution to economic growth. Additionally, ZIS significantly impacts unemployment (11.6%), poverty (4.3%), and income inequality (96.6%). Finally, ZIS shows a very strong positive impact on the Human Development Index (HDI) with an adjusted R-squared of 98.7%. However, the results also indicate that other factors influence unemployment and poverty, requiring additional approaches to address these issues. Overall, ZIS can be an effective strategy for improving community welfare and reducing social inequality.

The Role of Affinity Group in Improving Welfare in Maqashid Shari’ah Perspective

Iqbal Imari, Sheema Haseena Armina, M. Agus Waskito — Wed, 28 Aug 2024 00:00:00 +0800

The purpose of this study is to clarify the role of Independent Women's Affinity Groups and to examine the maqashid shari'ah (Hifdzul Maal) in their operations to assist the Ngunut Village. This research is primarily qualitative. Collection of data methods include observation, interviews, and documentation in order to acquire accurate, objective, and concrete results. Simply describe the questionnaire used during data collecting to strengthen qualitative data. The observation and interview results suggest that the welfare situation of the communities in the hamlet of Ngunut is typically positive and improving. Proven through the use of natural resources by productive organizations, human resources through recitation, and the provision of training all contribute to the growth of knowledge and skills. Social capital, which includes capital fertilization for savings and loans, as well as collaboration among groups, governments, and private individuals, all contribute to the development of social skills. The questionnaire findings show how many members benefit from the Independent Women's Affinity Groups, including greater income. While, according to the Maqashid Shari'ah (Hifdzul Maal) evaluation, the Independent Women's Affinity Groups are performing successfully and in accordance with Islamic Shari'ah. According to DSN-MUI Fatwa Nomor 11/DSN-MUI/IV/2000, Independent Women's Affinity Groups' contracts do not violate the applicable requirements. Members will have even greater convenience in enhancing their welfare.

Poverty, Unemployment, and HDI Impact on ASEAN Economic Growth: An Islamic Approach

Dimas Pratomo, Celsi Oktanira, Muhammad Kurniawan, Ar-Royyan Ramly — Thu, 29 Aug 2024 00:00:00 +0800

This study aims to investigate the relationship between the Human Development Index (HDI), the Poverty Rate, and the Unemployment Rate in five ASEAN countries between 2018 and 2022 from an Islamic economic perspective. This research is quantitative in nature and uses panel data, which is a combination of cross-sectional and time series data. The cross-sectional data in this study covers five ASEAN countries, while the time series data spans the last five years, from 2018 to 2022. Panel regression analysis was conducted using the Random Effect Model, which is the best model, with the assistance of the E-views 12 program. The study's population includes all ASEAN countries. Purposive sampling technique was used in this study, with the selection criteria being the five countries with the highest per capita income in 2022. The study's results indicate that the variables of unemployment, poverty, and HDI simultaneously affect economic growth. Poverty has a negative and significant impact on economic growth. Unemployment has a negative but not significant impact on economic growth. Additionally, HDI has a positive and significant impact on economic growth. From an Islamic perspective, economic growth is seen as a tool for enhancing both material and spiritual welfare, aligning with Sharia principles and emphasizing justice and holistic development.

Transforming Community Welfare with Cash Waqf Education: A Case Study of Riak Siabun Village in Seluma District

Yunida Een Friyanti, Syaifuddin, Katra Pramadeka, Kustin Hartini, Noni Afrianty — Thu, 29 Aug 2024 00:00:00 +0800

This study aims to determine the literacy of the community before and after the implementation of education on the optimization of cash waqf management so that it can encourage the welfare of the people of Riak Siabun I Village, Seluma Regency about the optimization of cash waqf. The method used is the Community Based Research (CBR) approach. The sample of this research amounted to 100 people. The results of this study indicate that the understanding of cash waqf in increasing interest in waqf based on the pretest results is still diverse. In addition, only some of them understood about cash waqf but not so far understood and only some of them were interested in waqf money. However, the posttest results showed a significant increase in the participants' understanding based on the results of the post-test, 100% already knew clearly about cash waqf. Efforts to increase the understanding of Riak Siabun I Village, Seluma Regency regarding cash waqf were successful.

Determinants of Profitability of the Islamic Life Insurance Industry in Indonesia

Juliana Raissa Hafsari, Moh Mukhsin, Elif Pardiansyah — Thu, 29 Aug 2024 00:00:00 +0800

The purpose of this study is to ascertain how economic growth and company-specific variables affect the profitability of Islamic life insurance in Indonesia. This study employed a quantitative approach using a descriptive methodology. The sampling technique used purposive sampling with a sample of 10 Islamic Life Insurance companies in Indonesia. The results of this study indicate that partially the leverage variable has a negative and significant effect on profitability. Premium growth variable has a positive and significant effect on profitability. The variables of company size, tangibility, liquidity, and economic growth have no effect on profitability. While simultaneously the variables of company-specific factors (company size, leverage, tangibility, premium growth, and liquidity) and economic growth have a significant effect on profitability.

Contribution of Islamic Banking Towards Economic Growth in Indonesia With Data Panel Regression Approach

Hendra H. Dukalang, Setia Ningsih — Mon, 02 Sep 2024 00:00:00 +0800

This study uses a panel data regression approach to analyze the contribution of Islamic banking to economic growth. The variables in this study consist of one dependent variable and three independent variables. The dependent variable is Economic Growth Income. while the independent variable consists of 3 variables, namely: Total assets, third party funds and Islamic financing. The population and samples used in this study were all provinces in Indonesia in 2014-2020. In this study, the panel data regression models used are the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). Selection of panel data regression estimation models using tests, namely the Chow Test and the Hausman Test. Based on the statistical methods used, the best model is obtained with the random effect model. The Fixed effect model above has an R-squared of 0.4742 or in other words the predictor variable is able to explain 47.42% of the response variable.

The Role of Women in Family Economy in Kalipurwo Village: A Social and Islamic Economic Analysis

'Ainul Imronah, Eti Nginayati — Mon, 16 Sep 2024 00:00:00 +0800

This research was inspired by the shift of rice fields in Kalipurwo Village, Kuwarasan District, Kebumen Regency into kale farms, with many women working as kale farm laborers to support their families. The study aims to explore why women choose this work, their role in improving household income, and to assess Islamic economic justice for these workers. Using a descriptive qualitative approach, interviews were conducted with randomly selected informants. The findings reveal that women work as kale farm laborers due to necessity, fluctuating perceptions, lack of skills, and education. Their contribution is evident in household needs, such as supplementing their husband's income and covering daily expenses and school fees. The Islamic justice review highlights issues in licensing, wages, and spending. The study calls for government support to empower female workers and develop the farming sector.