Research of Islamic Economics

Cash Waqf Nazhir: Efforts to Increase the Role of Islamic Banks in Supporting Cash Waqf

Noviendri Djalil — 2025-08-28

This study examines the potential of cash waqf as a strategic instrument to support government programs on community empowerment and national economic development. Cash waqf, when aggregated within a formal repository, can serve as a substantial source of business capital; however, its utilization remains suboptimal. Strengthening the role of Islamic banks as Nazhir is expected to optimize this potential by ensuring transparency, accountability, and effective distribution of waqf funds. Using a literature review and descriptive qualitative analysis, this study provides insights for policymakers to accelerate the establishment of a regulatory framework that enables Islamic banks to manage cash waqf. The findings imply that integrating Islamic banks into waqf management not only improves governance but also expands financing access for micro, small, and medium enterprises (MSMEs), thereby enhancing financial inclusion and reducing socio-economic disparities. The originality of this research lies in its emphasis on the institutional role of Islamic banks within the national waqf system, offering a novel paradigm that bridges Islamic social finance with the formal banking sector. This perspective contributes to the optimization of cash waqf as a structured and sustainable instrument for advancing the sharia economy

Aligning Shariah And Environmental, Social, And Governance Criteria In Islamic Finance Perspective

Rodrigo Bochner — 2026-01-15

This study addresses a conceptual and practical gap in the literature regarding the systematic alignment between Shariah principles and Environmental, Social, and Governance (ESG) criteria within Islamic finance. Although both frameworks emphasize ethical conduct, social responsibility, and sustainable value creation, existing studies typically examine Shariah compliance and ESG performance in isolation, resulting in fragmented insights and a lack of an integrated analytical framework. This research aims to explain how Shariah principles can be aligned with ESG dimensions particularly governance and social responsibility and to identify challenges that hinder their effective integration into Islamic financial products. Using a qualitative research design, the study employs document and thematic analysis of prior empirical studies, regulatory standards, and institutional reports related to Islamic finance and ESG practices. The findings show that Shariah governance plays a key role in enhancing ESG performance; however, inconsistencies in interpretation, measurement, and regulatory harmonization remain significant obstacles. This study contributes an integrative perspective that positions Shariah as a normative framework capable of strengthening ESG objectives and advancing sustainable Islamic finance.

Evaluation of the Financial Performance of Indonesian Sharia Banks Pre and Post Merger

Jihad Sabililah Sidik — 2026-01-15

This research is motivated by the merger of three Islamic banks, namely Bank BNI Syariah, Bank BRI Syariah, and Bank Syariah Mandiri, into Bank Syariah Indonesia based on several ratios in SEOJK Number 10/SEOJK.03/2020 and the merger approval stated in the Decree of the Board of Commissioners of the Financial Services Authority Number 4/KDK.03/2021. The purpose of this study is to analyze the financial performance before and after the merger using financial ratios prescribed by the Financial Services Authority, with the expectation that the results will serve as a reference for evaluating the success of Bank Syariah Indonesia in implementing the merger. This study applies a comparative method using secondary data obtained from the annual financial statements of the three predecessor banks for 2019–2020 and the quarterly financial statements of Bank Syariah Indonesia for 2021–2022. The findings show that ROA, ROE, BOPO, and NOM improved after the merger, while CKPN, NI, and Profit-Sharing Financing to Total Financing recorded less favorable outcomes. The managerial implications highlight the importance of maintaining operational efficiency, optimizing assets, and improving post-merger integration. Management is also encouraged to reinforce credit risk controls and improve revenue structures to ensure long-term financial stability.

The Relationship between Sharia Compliance and Profitability: A Study of Sharia Commercial Banks in Indonesia

Siti Fajriah Azizah — 2026-01-15

This study aims to analyze and compare the financial performance of Islamic Commercial Banks in Indonesia using the Sharia Conformity and Profitability (SCnP) method. Sharia Conformity measures a bank's level of compliance with sharia principles, while profitability assesses a bank's ability to generate profits. The data used are the financial performance reports of Islamic Commercial Banks registered with the Financial Services Authority (OJK) in 2023. SCnP indicators include sharia-compliant product structures and compliance with the National Sharia Council (DSN) fatwas, while profitability is assessed through Return on Assets (ROA) and Return on Equity (ROE). The results show that Bank Muamalat Indonesia and Bank Aceh Syariah are in the URQ quadrant, with Sharia Conformity levels of 75% and 79%, respectively. In terms of profitability, Bank Aceh Syariah performed 67.15% higher than Bank Muamalat Indonesia at 1.37%. This finding indicates a positive correlation between sharia compliance and profitability, where increased sharia conformity can strengthen financial performance. The implications of this research emphasize the importance of strategies that focus on sharia compliance to support the growth and competitiveness of sharia banks in Indonesia.

Islamic Consumer Ethics and Buying Behavior of Muslim Gen Z: The Influence of Service, Promotion, Price, and Product Quality

Munawaroh Munawaroh — 2026-01-15

This study aims to analyze the influence of service quality, promotion, price perception, and product quality on McDonald's consumers' purchasing decisions in Jakarta, and to assess these marketing factors from an Islamic economic perspective. This research employs an exploratory quantitative approach and a purposive sampling technique. A total of 135 respondents participated through questionnaire-based surveys. The data were analyzed using multiple linear regression. The results indicate that service quality, promotion, and product quality each have a positive and significant effect on purchasing decisions. In contrast, price perception has a significant, adverse effect, suggesting consumer sensitivity to pricing at fast-food outlets. Simultaneously, all independent variables significantly influence purchasing decisions. From an Islamic perspective, the findings reflect the principles emphasized by Imam Al-Qurthubi on fairness, transparency, and the provision of ethical values in market transactions, suggesting that marketing practices should align with Sharia-compliant consumer ethics. This study contributes to strengthening the understanding of Muslim consumer behavior and highlights the importance of integrating Islamic moral values in fast-food industry marketing strategies.