ICIEFS Proceeding

The Effect of Sustainability Report Disclosure on Corporate Financial Profitability

Fri, 24 Oct 2025 00:00:00 +0700

The issue of sustainability report disclosure has been expanding rapidly, and previous studies on this topic have produced mixed findings. A sustainability report is a non-financial disclosure that consists of six performance elements: economic, environmental, human rights, labor practices and decent work, social, and product responsibility. This study aims to examine the relationship between the disclosure of sustainability report elements and corporate financial performance. The sample consists of 13 companies that received the Indonesia Sustainability Reporting Award (ISRA) over five periods, from 2009 to 2013. The independent variables are the disclosures of economic, environmental, human rights, labor practices and decent work, social, and product responsibility performance, measured using a disclosure index. The Sustainability Reporting Guidelines version 3.0 issued by the Global Reporting Initiative (GRI) are used as the basis for calculating the disclosure index. The dependent variable is Return on Assets (ROA), which represents financial performance. This study uses secondary data collected from company reports and the ISRA website. The results show that only the disclosure of product responsibility performance significantly affects corporate financial performance.

Digital Endowments: An Analysis of Their Legitimacy, Applications, and Impact on Sustainable Development

Anwar M. Radiamoda, M. Imamuddin — Thu, 16 Oct 2025 00:00:00 +0700

Waqf (Endowment) is a key practice in Islam that is highly encouraged as part of ibadah. The growth of waqf property has been instrumental in advancing both the socioeconomic development of communities and the progression of Islamic civilization. This study explores the concept of digital endowments, focusing on their legitimacy within Islamic law, practical applications, and their role in fostering sustainable development. Using a qualitative approach, the research involved in-depth interviews and group discussions with government officials, financial regulators, Muslim community members, and the conference participants. The findings show that digital endowments, including cryptocurrencies and online platforms, are deemed legitimate if aligned with Shari'ah principles. The study also highlights their significant contribution to achieving global Sustainable Development Goals by providing transparent and sustainable funding. Recommendations include establishing Shari'ah oversight for digital endowments, creating clear regulatory frameworks, raising public awareness, and fostering collaboration between Islamic finance and technology companies to promote the growth of digital endowments.

The Role of Cognitive Bias and Digital Trust in Bidding Systems on Fair Vendor Selection in Logistics Equitable Procurement in PT. Pos Indonesia

Jo Pical, Melia Eka Lestiani, Erna Mulyati — Mon, 27 Oct 2025 00:00:00 +0700

This study analyze how cognitive biases and digital trust affect fair vendor selection and equitable procurement in electronic bidding systems at PT Pos Indonesia. Using survey data from 255 employees and decision makers, we found that cognitive biases (anchoring, confirmation, overconfidence, availability, and status quo) negatively impact procurement outcomes, while digital trust dimensions (security, integrity, reliability, transparency, and confidence) have positive effects. Fair vendor selection serves as a critical mediator between these factors and ethical procurement practices. The model explains 50.6% of variance in fair vendor selection and 35.4% in equitable procurement. These findings emphasize the need for both bias mitigation strategies and trust-enhancing digital platforms to achieve transparent and sustainable procurement decisions in logistics organizations.

Cash Waqf: Exploring Its Role and Potential Impact on Poverty Alleviation in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)

Anwar M. Radiamoda, Imamuddin, Aidil Alfin — Mon, 27 Oct 2025 00:00:00 +0700

Cash waqf, an Islamic form of charitable endowment, has emerged as a vital instrument for reducing poverty in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). As a versatile and scalable financial mechanism, it allows for the pooling and distribution of monetary resources to support a wide range of social and economic initiatives. In a region facing some of the highest poverty rates in the Philippines, cash waqf presents a sustainable approach to empowering communities by financing education, healthcare, infrastructure, and entrepreneurial activities. With the establishment of dedicated waqf institutions and partnerships with both government and non-governmental organizations, cash waqf has the capacity to meet urgent needs while advancing long-term development objectives. This study examines its mechanisms, implementation challenges, and role in poverty alleviation, underscoring its potential to strengthen economic resilience and transform the socio-economic landscape of marginalized communities in BARMM.

The Influence of e-Procurement Effectiveness, Regulatory Compliance and Supervision on Transportation Subcontract Performance at PT Pos Indonesia

Mujiyono, Maniah, Agus Purnomo — Tue, 28 Oct 2025 00:00:00 +0700

Transportation subcontracting plays a crucial role in supporting PT Pos Indonesia's logistics distribution. In its implementation, the effectiveness of e-Procurement, regulatory compliance, and oversight of subcontractor partners are crucial factors determining the success of procurement performance. However, various challenges remain, such as inconsistencies in subcontracting procedures, lack of information transparency, and a weak monitoring system. This study aims to analyze the influence of e-Procurement effectiveness, regulatory compliance, and oversight on transportation subcontracting performance. Using a causal associative quantitative approach, data were collected through questionnaires from 221 respondents involved in the transportation procurement process. The analysis was conducted using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method with the SmartPLS 4.0 application. The results show that e-Procurement effectiveness and oversight have a positive and significant effect on subcontracting performance, while regulatory compliance does not show a significant effect. These findings underscore the importance of strengthening the oversight system and optimizing e-Procurement implementation to improve PT Pos Indonesia's logistics performance. This study provides practical and academic contributions to the development of digital-based procurement management in the state-owned enterprise logistics sector

Institutional Resilience in Hajj and Umrah in Southeast Asia: Integration of Good Corporate Governance (GCG) as a Pillar of Stability in Economic Crisis

Adri, Eli Febriani, Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

This study aims to analyze the institutional resilience of the implementation of Hajj and Umrah in Southeast Asia through the application of the principles of Good Corporate Governance (GCG) as a pillar of stability during economic crises. Hajj management institutions in Indonesia, Malaysia, and Brunei Darussalam face challenges due to global economic fluctuations, regulatory changes, and socio-political dynamics of Muslims. In this situation, the implementation of GCG is an important element to ensure transparency, accountability, responsibility, independence, and fairness in institutional governance. Using a qualitative approach and comparative studies, this study shows that GCG integration can improve the efficiency of hajj fund management, strengthen public trust, and maintain operational sustainability amid economic pressure. Harmonization between national regulations, sharia principles, and ethical investment policies is the key to institutional stability and long-term resilience of the implementation of Hajj and Umrah in the region.

Examining the Role of Islamic Consumption Patterns in Mediating the Effect of PKH Social Assistance on Community Welfare: Evidence from Kamang Magek District

Melya Husna, Ice Suci Sri Rahayu, Rahmat ilahi, Wilda Trihandayani, Gusril Basir — Tue, 28 Oct 2025 00:00:00 +0700

This study examines the mediating role of Islamic consumption patterns in the relationship between the Program Keluarga Harapan (PKH) social assistance and community welfare in Kamang Magek District. As a government social protection initiative, PKH aims to reduce poverty and improve the quality of life of beneficiary households however its success depends not only on the amount of aid provided but also on how it is utilized, particularly in accordance with Islamic consumption principles. Using a quantitative approach, data were collected through questionnaires distributed to PKH beneficiaries and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4. The study involved 144 households selected from a population of 576 beneficiaries through the Slovin formula with a 4% margin of error. The findings reveal that the indirect effect of PKH assistance on community welfare through Islamic consumption patterns is significant, with a path coefficient of 0.178, a T-statistic of 2.092 (>1.96), and a P-value of 0.036 (<0.05). This indicates that PKH positively influences welfare and the effect becomes stronger when mediated by Islamic consumption behavior. Practices consistent with Islamic values such as prioritizing essential needs, avoiding excessive consumption and allocating part of income to zakat, infaq, and ṣadaqah enhance both material and spiritual well being. The study concludes that incorporating Islamic consumption principles can make social assistance programs more effective and sustainable, highlighting the need for government and related institutions to strengthen education on Islamic consumption to optimize the impact of social welfare policies.

Financial Sustainability and Social Justice: A Regulatory Framework for Loan Control and Mitigation Of Default Risks in Jordanian Islamic BANKSn

Sadam Mahmoud Ali Al Zuoby, Muhammad Aunurrochim Mas’ad Saleh — Tue, 28 Oct 2025 00:00:00 +0700

This study aims to achieve two primary objectives: first, to analyze loan default ratios at the Jordan Islamic Bank during 2023 and 2024 in order to identify recent trends in credit risk; and second, to examine the impact of applying a borrowing cap, whereby total debt obligations do not exceed 45% of a client’s income, on reducing defaults and promoting social justice. The significance of the study lies in its attempt to bridge the gap between the financial sustainability of banks and the protection of society from excessive indebtedness, which reflects the essence of Islamic finance in balancing economic and social dimensions. The findings revealed that the ratio of non-performing loans at the Jordan Islamic Bank remained relatively low at approximately 2.2%, despite a slight increase in the absolute value of defaulted debts. The study recommends the implementation of a unified national system for financial obligations that encompasses banks and other institutions, the enforcement of borrowing cap policies (45% of income), enhanced financial literacy among clients, and the development of advanced data analytics tools to proactively monitor risks. These measures would not only strengthen the financial sustainability of the Jordan Islamic Bank but also contribute to the promotion of social justice.

The Role of Islamic Management in Shaping Human Capital Development in Muslim Countries

Mohamed Khamees Sarhan, Abdul Razak Munire, Sabbar Dahham Sabbar — Tue, 28 Oct 2025 00:00:00 +0700

This study investigates the impact of implementation ethics and environmental strategies on sustainable business performance, with ethical responsibility acting as a mediating variable. Using a quantitative approach, data were collected from 312 managers of small and medium-sized enterprises (SMEs) in Indonesia and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results reveal that implementation ethics positively and significantly influences both environmental strategies and ethical responsibility, ultimately leading to enhanced sustainable business performance. Similarly, environmental strategies were found to exert a strong positive effect on ethical responsibility and directly contribute to sustainable business outcomes. The mediation analysis indicates that ethical responsibility partially mediates the relationship between implementation ethics, environmental strategies, and sustainable business performance, underscoring its critical role as a behavioral and cultural enabler. These findings contribute to the growing literature on ethical business practices and sustainability by empirically demonstrating that ethics-driven management approaches and proactive environmental strategies are crucial drivers of organizational success. Practical recommendations are provided for managers and policymakers to integrate ethical frameworks and green strategies into their business models to achieve long-term sustainability and competitive advantage.

Ethical Human Resource Management and Employee Performance: The Mediating Role of Perceived Organizational Support

Israa Natiq Jabbar, Muhammad Yunus Amar — Tue, 28 Oct 2025 00:00:00 +0700

Ethical Human Resource Management (EHRM) has emerged as a critical driver of organizational sustainability, influencing employee commitment, ethical behavior, and organizational outcomes. This study investigates the impact of EHRM on employee performance, focusing specifically on the mediating role of perceived organizational support (POS). Drawing on social exchange theory, this study posits that employees' perceptions of ethical treatment within HRM practices enhance their sense of organizational support, which in turn fosters stronger work commitment and performance. A quantitative approach was employed using survey data collected from employees in various sectors. Structural Equation Modeling (SEM) was applied to examine the hypothesized relationships. The findings indicate a significant positive effect of EHRM on both POS and employee performance. Furthermore, POS was found to mediate the relationship between EHRM and employee outcomes, suggesting that organizational support mechanisms amplify the influence of ethical HRM practices on employee outcomes. These results contribute to the growing body of literature on sustainable HRM by highlighting the ethical dimension as a strategic lever for improving employee and organizational resilience.

The Strategic Impact of Islamic Branding and Marketing on Muslim Consumer Behavior: A Comparative and Longitudinal Study in Malaysia and Selected OIC Countries

Amro Halfaoui, Muhammad Yunus Amar — Tue, 28 Oct 2025 00:00:00 +0700

This study investigates the strategic influence of Islamic branding and marketing on Muslim consumer behavior within Malaysia and selected OIC countries. Employing a comparative and longitudinal design, the research integrates Islamic principles with contemporary marketing strategies to assess their impact on consumer trust, loyalty, and purchasing intentions. Findings reveal that ethical branding grounded in Sharia principles significantly enhances consumer perceptions of authenticity, strengthens brand loyalty, and sustains long-term competitive advantage. This paper contributes to the growing discourse on Islamic marketing by offering empirical insights that support both academic scholarship and managerial practice.

Assessing the Influence of Zakat, Islamic Human Capital Development, and Government Interventions on Indonesia’s Economic Growth

Anas Ahmed Khamees, Retno Fitrianti — Tue, 28 Oct 2025 00:00:00 +0700

This study explores the relationship between Zakat, Islamic Human Development (IHD), and government support on Indonesia's economic growth (EG). As the largest Muslim-majority country, Indonesia presents a compelling case for assessing the effectiveness of Islamic financial instruments in enhancing inclusive development. Using annual data from 1981 to 2020 and the Dynamic Autoregressive Distributed Lag (DARDL) model, we find that all three factors Zakat, IHD, and government support positively and significantly influence EG. Industrialization and population growth are incorporated as control variables and also demonstrate significant roles. The findings provide vital policy insights for integrating Islamic finance mechanisms into Indonesia’s broader economic strategy.

Mathematics in Economics: Consumption and Saving Functions from the Perspective of the Islamic Green Economy

Rahmat Ilahi, Melya Husna, Maria Para Siska, M. Imamuddin, Rika Widianita — Tue, 28 Oct 2025 00:00:00 +0700

This study aims to identify the consumption and saving functions of students at Syech M. Djamil Djambek State Islamic University of Bukittinggi within the framework of the Islamic Green Economy principles wasathiyyah (moderation), qana’ah (contentment), israf (extravagance), and tabdzir (wastefulness). The research adopts a descriptive quantitative approach with a population of 11,462 students and a sample of 100 respondents selected through purposive sampling based on the criteria of being active students with a steady source of income. Data were collected using questionnaires and analyzed through descriptive and quantitative methods employing a simple linear consumption and saving function model. The results indicate the consumption function C = 67 + 0.9861Y and the saving function S = –67 + 0.0139Y. The average student income was IDR 871,200, with consumption averaging IDR 859,100 and savings IDR 12,100. The findings reveal a positive relationship between income, consumption, and savings, with consumption showing a higher growth tendency compared to savings. From the Islamic Green Economy perspective, the study highlights the importance of managing income wisely, avoiding excessive consumption, and saving as an expression of both economic and spiritual responsibility. Implementing the principles of wasathiyyah and qana’ah helps balance needs and savings, fostering more sustainable and Islamically aligned economic behavior. The study concludes that the consumption and saving functions reflect the mathematical relationship among economic variables and serve as instruments for shaping balanced, independent, and beneficial economic behavior among students, consistent with the principles of the Islamic Green Economy.

Analysis of The Interest of Islamic Economics Students at The Sjech M. Djamil Djambek Bukittinggi State Islamic University in Investing in Sharia Stocks

Rizalul Fahmi Fahmi, M. Imamuddin, Rika Widianita, Yefri Joni — Tue, 28 Oct 2025 00:00:00 +0700

This study was motivated by the positive development of sharia stocks in Indonesia, but student interest in this instrument remains low compared to conventional stocks. Low literacy, limited technical understanding, and risk perception are the main factors hindering student involvement. This study uses a qualitative descriptive method with a case study approach through interviews, observations, and documentation of Islamic Economics students at the Faculty of Economics and Islamic Business, Sjech M. Djamil Djambek Bukittinggi State Islamic University. The results show that students with in-depth understanding and direct practical experience have a higher interest in investing, while limited capital, lack of guidance, and minimal technical literacy are the main obstacles. Overall, student interest in sharia stock investment is relatively high, but its realization is still influenced by financial readiness and educational support. Improving literacy, providing practical guidance, and offering access to investments with small capital are important steps to encourage active student participation in the Islamic capital market.

The Interplay Between Organizational Theory, Metaphor, and Behaviour in Understanding Complex Organizational Phenomena: Navigating Digital Disruption, ESG, Hybrid Work, and Organizational Politics

Muhammad Ihsan, Herri, Syukri Lukman, Syafrizal — Tue, 28 Oct 2025 00:00:00 +0700

In an era defined by rapid technological shifts, sustainability imperatives, hybrid work models, and politicized internal environments, organizations must navigate complexity at multiple levels. This paper develops and applies an integrated conceptual framework that combines Institutional Theory, Contingency Theory, and the organizational behaviour lens of Psychological Safety, enriched by the metaphors of the organization as a political system and as an adaptive organism. Drawing from real-world cases across corporate, non-profit, and higher education sectors, the study examines how organizations respond to digital disruption, ESG pressures, hybrid work transitions, and organizational politics. Through this multidimensional lens, the paper reveals how legitimacy, adaptability, power dynamics, and psychological conditions shape the outcomes of change initiatives. The findings suggest that complex organizational phenomena cannot be understood through a singular perspective. Instead, theory, behaviour, and metaphor must be synthesized to account for both the formal and informal dimensions of organizational life. The study concludes by offering implications for leadership, design, and research, emphasizing the need for systems thinking, political literacy, and cultural sensitivity in navigating contemporary challenges.

Economic Growth and The Stability of The Halal Industry in The Context of Halal Tourism in Southeast Asia

Rusyaida, Farhani Rafifa, Azkiatul Arifa Marhamah, Ferdi Prayoga, Fadhila Husna — Tue, 28 Oct 2025 00:00:00 +0700

This article examines the intricate relationship between economic growth and the stability of the halal industry, with particular emphasis on Islamic tourism in Southeast Asia. Focusing on key nations such as Malaysia, Indonesia, and Thailand, the study explores how halal tourism has emerged as a powerful catalyst for economic expansion. Employing a qualitative approach grounded in a comprehensive literature review, the paper investigates the driving forces, prevailing challenges, and pertinent policy implications. Findings reveal that halal certification, strategic investment in Muslim-friendly infrastructure, and integrated marketing strategies are pivotal in fostering a resilient and sustainable Islamic tourism ecosystem contributing significantly to regional Gross Domestic Product (GDP).

The Existence of Waqf in the Perspective of Classical Fiqh and National Law

Hilda Mulyani, Olivia Angelica Tiawarman, Aidil Alfin — Tue, 28 Oct 2025 00:00:00 +0700

Waqf is one of the instruments of Islamic philanthropy that plays a strategic role in improving the welfare of the people. In classical fiqh perspective, waqf is defined as the holding of property whose benefits are used for the public interest while maintaining its principal (tahbis al‘ashl wa tasbil al-manfa‘ah). Each school of thought has different views on the ownership and management of waqf, but it is generally agreed that waqf is a charitable act that has spiritual and social value. In the context of Indonesian national law, the existence of waqf is formally regulated through Law Number 41 of 2004 concerning Waqf, which aims to provide legal certainty, asset protection, and encourage productive waqf management. However, the implementation of waqf in Indonesia still faces various problems, such as a lack of socialization, weak nadzir management, limited development funds, and minimal legal supervision. Therefore, it is necessary to professionalize waqf management, certify waqf assets, and optimize productive waqf, including cash waqf, so that waqf can become a pillar of sustainable economic development for the community. This study shows that there has been an important transformation process from the concept of waqf in classical fiqh to modern regulations that emphasize legality and sharia-based economic empowerment.

Analysis of Zakat Fund Distribution for the Empowerment of the Poor in Indonesia (LPZN 2023 Data Study)

Adiman, Khalid Wiqiyan, Aidil Alfin — Tue, 28 Oct 2025 00:00:00 +0700

This study aims to analyze the effectiveness of zakat fund distribution in empowering the poor in Indonesia based on data from the 2023 National Zakat Management Report (LPZN) from BAZNAS. The method used is quantitative descriptive with secondary data covering zakat collection and distribution, distribution based on program areas and asnaf, and the number of mustahik who have escaped poverty. The results show that the effectiveness of zakat distribution is 96.53%, but the impact on poverty alleviation is still low, with only 0.02% of mustahik successfully escaping poverty. Most of the funds were used for consumptive activities, while the productive economic sector only received 0.70%. A shift in the zakat distribution strategy towards productive programs is needed so that zakat can play a greater role in improving the welfare of the community.

Integration of Fiqh and National Law in the Management of Infaq and Shadaqah

Kesy Yumaida Kasih, Rini Putri, Aidil Alfin — Tue, 28 Oct 2025 00:00:00 +0700

Infaq and shadaqah are fundamental components of the Islamic economic distribution system that play a vital role in achieving social justice and community welfare. In classical fiqh, both are classified as voluntary charitable acts (tathawwu’) that carry profound spiritual value and contribute significantly to economic circulation within society. This study aims to analyze the integration between fiqh principles and Indonesia’s national legal system in the regulation and management of infaq and shadaqah. The specific objectives are to examine their legal foundations, assess their relevance within Indonesia’s positive legal framework, and explore how these instruments can enhance social welfare and economic empowerment among communities. The research employs a descriptive-normative method using a library research approach, focusing on textual and legal analysis of classical fiqh literature, the Qur’an, Hadith, and national regulations, particularly Law No. 23 of 2011 on Zakat Management. Supporting data were obtained from academic books and scholarly journals to strengthen both theoretical and contextual perspectives. The findings indicate that fiqh principles related to infaq and shadaqah are consistent with Indonesia’s national legal system, particularly in promoting justice, welfare, and economic equity. Nevertheless, challenges remain in institutional governance, transparency, and productive fund management. Therefore, strengthening the integration between Islamic and national legal systems is essential to optimize the role of infaq and shadaqah as instruments for economic empowerment and sustainable social development in Indonesia.

The Impact of Halal Certification on the Competitiveness of MSME Products in Indonesia

Yandrizal, Anisa Kamila Sari, Farras Arkan, M. Imamuddin, Aidil Alfin — Tue, 28 Oct 2025 00:00:00 +0700

This study examines the significant impact of halal certification on increasing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) products in Indonesia. As the country with the largest Muslim population in the world, the demand for halal certification of products is an important and decisive factor in purchasing decisions. Halal certification is regulated by the Halal Product Guarantee Law (JPH), which is not merely a matter of regulatory compliance, but a fundamental business strategy for building consumer trust. This research is qualitative in nature, using literature studies and secondary data from various reports and previous studies to analyze the dimensions of increased competitiveness, including market expansion (domestic and export), product image enhancement (branding), and quality/operational standards improvement. The results show that halal certification positively and significantly increases the credibility of MSMEs, opens access to global supply chains, and strengthens customer loyalty. However, challenges such as the cost and complexity of the certification process remain obstacles for most MSMEs. Therefore, policy intervention and facilitation from the government are needed to optimize the potential of halal MSMEs in achieving Indonesia's vision as a global center for halal products.

Conceptual and Philosophical Exploration of Zakat, Infak, Sedekah, and Wakaf (ZISWAF): A Multidisciplinary Analysis

Ikhwan Hadi Insani, Fiska Ummyza, Rani Safitri, Aidil Alfin — Tue, 28 Oct 2025 00:00:00 +0700

Zakat, Infaq, Sedekah, and Wakaf (ZISWAF) are important instruments in the Islamic economic system that play a strategic role in creating social welfare and justice. ZISWAF not only functions as individual worship, but also as a means of wealth distribution and economic empowerment of the people. This article aims to explain the definition, legal basis, philosophy, and management of ZISWAF, and analyze the problems in its implementation in Indonesia. The study was conducted through a descriptive-analytical approach with a literature review of Islamic legal sources, laws and regulations, and related research results. The results of the study show that although the potential of ZISWAF in Indonesia is enormous, its management still faces various obsitacles, such as weak regulations, low public literacy, and limited professionalism of management institutions. Therefore, optimizing the management of ZISWAF through digitalization, transparency, and sharia-based management is the key to increasing its effectiveness as an instrument of economic empowerment for the community.

Optimizing the Role and Function of ZISWAF in Empowering the Economy of the Ummah

Hesmawati, Mayherlina, Aidil Alfin, M. Imamuddin — Tue, 28 Oct 2025 00:00:00 +0700

This study aims to analyze the concept of Economic Empowerment of the People and identify the strategic role of Zakat, Infak, Sedekah, and Wakaf (ZISWAF) as key instruments in this effort. Economic Empowerment is understood as a comprehensive step to build community capacity through three ways: creating an enabling environment for community potential to flourish, strengthening existing potential, and protecting vulnerable groups. Although Indonesia has great potential for ZISWAF, its optimization as a driver of community economy still faces challenges such as low public literacy and a management system that is not yet integrated with development programs. The results of the study show that professional ZISWAF management can act as a catalyst to transform consumptive funds into productive capital. With proper allocation, ZISWAF has great potential to overcome structural poverty, increase social assets, and create sustainable and equitable economic independence for the community.

The Effect of Dividend Policy and Investment Cash Flow on Stock Returns with Company Size as a Moderating Variable: A Study of Food & Beverage Manufacturing Companies on the IDX (2021–2023)

Tue, 28 Oct 2025 00:00:00 +0700

This study aims to analyze the effect of dividend policy and investment cash flow on stock returns and to examine whether company size can moderate this relationship. The research subjects were food and beverage manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period. This study used a quantitative approach with a comparative causal method and Partial Least Squares (PLS)-based Structural Equation Modeling (SEM) analysis technique. The results showed that dividend policy had a positive and significant effect on stock returns, while investment cash flow had no significant effect. Company size was shown to strengthen the effect of dividend policy on stock returns, but did not moderate the relationship between investment cash flow and stock returns. These findings imply that companies need to consider dividend strategies and strengthen transparency in investment activities to attract a positive response from investors.

Economic Growth and Stability of the Halal Industry in the Context of Islamic Tourism in Southeast Asia

Angga Rizki Prawira — Tue, 28 Oct 2025 00:00:00 +0700

This study examines the contribution of the halal industry to supporting economic growth and the stability of Islamic tourism in Southeast Asia. The background to this study stems from the increasing demand for sharia-compliant products and services by Muslim tourists, making halal tourism a strategic sector with significant potential in the global economy. The research used a library research approach with a qualitative approach through literature reviews, scientific articles, and relevant sources. Data analysis was conducted through the stages of data reduction, grouping, and verification using triangulation techniques. The results show that the halal industry in Islamic tourism contributes significantly to economic growth through increasing the number of Muslim tourists, diversifying halal products and services, and creating new business opportunities for MSMEs. Factors influencing the stability of the halal industry include regulation and certification, Muslim-friendly tourism infrastructure, digital technology support, public awareness, regional cooperation, investment, and socio-cultural harmonization. Halal tourism innovations, such as service digitalization, branding strategies, and strengthening the halal value chain, have proven effective in supporting sustainable economic development in the region. Halal tourism serves as a driving force for inclusive economic growth and a means of preserving local culture. With strengthened regulations, improved service quality, and international cooperation, Southeast Asia has the potential to become a global hub for halal tourism.

Implementation of Good Corporate Governance and Digital Payment Systems in Islamic Banks to Support the Growth of MSMEs

Fadhilla Husna, Eli Febriani, Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

Micro, Small, and Medium Enterprises (MSMEs) are a crucial sector in the Indonesian economy, contributing to job creation, increased income, and national economic growth. However, MSMEs still face challenges such as limited capital, financial literacy, and the use of digital technology. This study aims to examine the role of implementingGood Corporate Governance(GCG) in Islamic banking and the use of digital payment systems to support the improvement of MSME performance and growth. The research method used is a descriptive qualitative approach with a literature study, through analysis of various relevant literature related to the topic. The results of the study indicate that the application of GCG principles—transparency, accountability, responsibility, independence, and fairness—can increase MSME trust in Islamic banking while ensuring professional and sharia-oriented governance. On the other hand, the implementation of digital payment systems such as QRIS Sharia, mobile banking, and Islamic e-wallets has been proven to simplify transactions, increase efficiency, expand market access, strengthen financial transparency, and encourage Islamic financial inclusion. The synergy between GCG implementation and payment digitalization plays a crucial role in strengthening an inclusive and sustainable Islamic financial ecosystem, thereby increasing the competitiveness and growth of MSMEs in the digital era.

Keywords: Good Corporate Governance, Digital Payment System, MSME Growth

A Comparative Study of Green Economy Models and Sharia Economic Concepts: A Sustainable Policy Framework in Indonesia

Ferdi Prayoga , Eli Febriani, Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

The decline in environmental quality due to the exploitation of natural resources, population growth, and the unwise use of technology demands an alternative, sustainable economic system. The green economy presents itself as a new paradigm that emphasizes efficient resource use, low carbon, and social inclusiveness. On the other hand, Islamic economics is based on the principles of maqashid sharia, which emphasize justice, balance, and the welfare of humanity and the environment. This study uses a library research method with a qualitative approach through analysis of relevant literature, articles, and journals. The results show that the concepts of a green economy and Islamic economics have common ground in supporting sustainable development in Indonesia. Integrating the two has the potential to strengthen the achievement of the Sustainable Development Goals (SDGs) through the use of zakat, waqf, green banking, and the implementation of environmentally friendly practices in various sectors, including renewable energy, waste management, and sustainable agriculture. Furthermore, the eco-mosque movement is a concrete example of the implementation of this integration. Thus, the green economy and Islamic economics can be complementary strategic approaches to realizing equitable, inclusive, and environmentally friendly economic growth.

Value-Based Governance (VBG) for ZISWAF Institutions: Designing a Shariah–ESG Audit Framework to Achieve Outcome Accountability and Sustainable Maqashid Syariah

Yori Kurniawati; Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

Zakat, infaq, sadaqah, and waqf (ZISWAF) institutions have a strategic contribution in reducing poverty and social inequality. However, governance practices that are still limited to input-output accountability result in weak transparency and low measurement of socio-economic outcomes, which should be the core of Maqashid Syariah. This article aims to develop a Value-Based Governance (VBG) framework for ZISWAF institutions through the design of Shariah-ESG Audits, which integrate Shariah principles with global sustainability standards. The research uses a library research approach based on a systematic literature review. The results of the study reveal three main findings. First, Shariah audits still predominantly emphasize fiqh compliance, without assessing the effectiveness of ZISWAF program outcomes. Second, the financial reports of Islamic philanthropic institutions are mostly input-output, not outcome-based, so they are unable to show the extent to which mustahik are truly empowered. Third, the integration of ESG with maqāṣid is still limited, even though there is substantive alignment between the two: Environmental with hifz al-bi'ah, Social with hifz al-nafs and hifz al-nasl, and Governance with hifz al-māl. This article contributes by offering a VBG-based Shariah–ESG Audit framework consisting of five components: maqāṣid-based value principles, integrated Shariah–ESG–maqashid indicators, digital reporting mechanisms, independent audits, and a continuous improvement cycle (governance loop). Theoretically, this framework expands the discourse on Islamic philanthropy governance to align with global standards without losing its Shariah identity. Practically, this model can help regulators set national standards, encourage ZISWAF institutions to improve transparency, and strengthen public trust. Thus, the application of VBG-based audits that integrate sharia and ESG not only increases outcome accountability but also ensures the sustainable achievement of sharia maqashid objectives in the context of modern socio-economic development.

The Role of Good Corporate in Enhancing the Resilience and Performance of the Islamic Economy Amid Global Economic Uncertanty : A Focus on Malaysia and Indonesia

Fanisa Suseno, Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

This study aims to analyze the role of Good Corporate Governance (GCG) in enhancing the resilience and performance of the Islamic economy amid global economic uncertainty, with a focus on Malaysia and Indonesia. In the context of an increasingly unstable global economy, particularly with the impacts of trade wars and market volatility, the application of strong GCG principles becomes crucial for the sustainability and development of the Islamic economic sector. This research employs the literature review method by analyzing various relevant studies on GCG, Islamic economics, and the challenges and opportunities faced by Malaysia and Indonesia. The findings indicate that effective implementation of GCG can strengthen the stability of the Islamic economy through better risk management, increased transparency and accountability, and enhanced investor confidence. In the context of Indonesia and Malaysia, the two countries with the largest Muslim populations in the world, GCG plays a significant role in driving the growth of the halal industry and reinforcing the Islamic financial sector, which serves as a mitigation tool in facing global economic uncertainty. This study is expected to provide new insights into the importance of GCG in building the resilience of the Islamic economy in Southeast Asia, particularly in Malaysia and Indonesia

Study on the Long-Term Economic Impact of Disaster Mitigation Outreach Programs on Nagari Development

Tue, 28 Oct 2025 00:00:00 +0700

This research-based community service project examines the long-term economic impact of the Disaster Mitigation Da'wah Program implemented through mosque institutions on the stability and development of Nagari in disaster-prone areas, particularly in Agam Regency, West Sumatra. Recurring natural disasters fundamentally hamper regional development through asset losses and disruption of livelihoods. Therefore, non-physical mitigation, which utilizes the role of mosques as centers of education and strengthening of Disaster Preparedness Groups (KSB), is seen as a strategic economic investment. Using a qualitative approach with data from Canduang Nagari and Sungai Pua Nagari, the findings show that this program has succeeded in building crucial social capital (trust and networks). This social capital minimizes transaction costs in the distribution of post-disaster assistance and functions as an informal safety net mechanism for MSMEs, enabling faster economic recovery. Internalized preparedness also correlates with lower asset losses and, in the long term, increases the region's competitiveness to attract investment. It is concluded that investment in mosque-based mitigation is a structural foundation for Nagari's economic resilience.

Hajj Advance Financing : Challenges of Pilgrim Compliance and Sharia Conformity

Muhammad Irham Ghifari, Suryani, Fajri Ali — Tue, 28 Oct 2025 00:00:00 +0700

Hajj financing is one of the products offered by Islamic financial institutions in Indonesia, aimed at helping Muslims secure a pilgrimage quota more quickly. However, this practice is not without challenges, as it raises issues of dual compliance: pilgrims’ adherence to their financial obligations and conformity with Sharia principles in contract implementation. While most existing studies have primarily focused on contractual aspects and financial risks, research that integrates both pilgrim compliance and Sharia compliance remains limited. This study seeks to address that gap. Using a descriptive qualitative method, the research employs a literature review as well as an analysis of fatwas and regulations. The findings reveal that although Hajj financing offers short-term benefits for pilgrims, particularly in obtaining a Hajj quota, it also presents challenges in terms of Sharia compliance, especially with regard to contract structures, social justice, and the potential for moral hazard. This study contributes to the discourse on strengthening the resilience of Hajj management in Indonesia amidst global economic uncertainty.

Keywords: Hajj Financing; Pilgrims Compliance; Sharia Compliance, Islamic Economics, Hajj Management.

Corporate Governance and Islamic Business Ethics as Anti-Crisis Mechanisms: Analyzing Their Role in Financial Stability and Islamic Capital Market Performance Amidst Global Economic Uncertainty and Tariff Wars

Mutia Febrina Sari, Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

Dynamic global economic developments and uncertainties such as market fluctuations, tariff wars, and financial crises require companies to implement effective and sustainable management practices. Corporate Governance (CG) and Islamic business ethics have emerged as important mechanisms for maintaining financial stability and the performance of Islamic capital markets. This study uses a library method with a qualitative approach, reviewing literature, journals, and articles related to the application of CG and Islamic business ethics in the global economic context. The results of the study indicate that the application of CG principles of transparency, accountability, responsibility, independence, and fairness strengthens corporate financial stability, especially in the face of global economic uncertainty. Furthermore, Islamic business ethics, which emphasize the prohibition of riba (usury), gharar (gharar), and maisir (gambling), as well as the principles of justice and openness, play a role in improving the performance of Islamic capital markets. These ethics provide risk protection through sharia screening, build investor confidence, and create market stability through real asset-based investments. Thus, CG and Islamic business ethics not only enhance corporate integrity and sustainability but also strengthen the resilience of Islamic capital markets amid economic crises and tariff wars.

Good Corporate Governance in Digital Payment Systems: Strengthening Smes Competitiveness in Indonesia

Haanii Haritsa Yuzen , Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

This study explores the role of Good Corporate Governance (GCG) in enhancing the competitiveness of Small and Medium Enterprises (SMEs) through the adoption of digital payment systems in Indonesia. Digital payments such as e-wallets, QRIS, and payment gateways have rapidly expanded in recent years, offering efficiency and market access for SMEs. However, issues related to transparency, accountability, security, and regulatory compliance remain significant challenges. The analysis focuses on how GCG principles transparency, accountability, responsibility, independence, and fairness are applied within digital payment systems and their implications for SMEs’ performance. The results indicate that strong governance practices, such as transparent fee structures, reliable application security, independent audits, and clear regulatory frameworks, foster higher trust among users and enable SMEs to expand their market reach and financial sustainability. Conversely, weak governance and poor disclosure reduce adoption rates and expose SMEs to higher risks. This study concludes that strengthening GCG implementation in digital payment ecosystems is crucial for building trust, improving competitiveness, and ensuring long-term resilience of SMEs in Indonesia’s digital economy.

The Principles of Sharia Good Corporate Governance (GCG) as the Main Pillar of Islamic Economics: Creating a Fair, Inclusive, and Sustainable Alternative System

Syerly Lia Azharah, Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

This study examines the fundamental role of Sharia Good Corporate Governance (GCG) as the main foundation in building an Islamic economic system that can offer fair, inclusive, and sustainable alternatives. Using qualitative research methods with a literature study approach, this study analyzes the principles of Sharia GCG, which include transparency, accountability, responsibility, independence, and fairness, which are integrated with Islamic values such as shiddiq, amanah, fathanah, and tabligh. The results show that the implementation of Sharia GCG not only meets modern corporate governance standards but also ensures compliance with Sharia principles and maqasid Sharia in creating maslahah for all stakeholders. Sharia GCG has been proven to create better economic stability, encourage broader financial inclusion, and support sustainable development through fair wealth distribution mechanisms such as zakat, waqf, and profit-sharing-based financial instruments. This study confirms that Sharia GCG has the potential to be an effective alternative model for overcoming global economic inequality and creating a more humanistic and moral economic system.

Integrating Maqashid Sharia Principles into Good Corporate Governance to Build a Sustainable Economy

Pujy Yonesha, Baginda Persaulian — Tue, 28 Oct 2025 00:00:00 +0700

This study explores the integration of Maqāṣid al-Sharīʿah principles into the framework of Good Corporate Governance (GCG) as a means to build a sustainable and ethically grounded economy. It employs a qualitative literature review approach, examining contemporary Islamic economic thought, policy frameworks, and governance practices from both theoretical and applied perspectives. The objective is to understand how the philosophical foundations of Maqāṣid al-Sharīʿah the preservation of faith (al-dīn), life (al-nafs), intellect (al-ʿaql), lineage (al-nasl), and wealth (al-māl) can complement and strengthen the five pillars of modern corporate governance: transparency, accountability, responsibility, independence, and fairness. The analysis reveals that integrating maqashid principles transforms governance from a compliance-based mechanism into a holistic ethical system that prioritizes justice, trust, and social welfare. Demonstrate that organizations applying Maqāṣid Sharia-based GCG frameworks show stronger stakeholder confidence, improved corporate reputation, and better alignment with long-term sustainability objectives. However, regulatory implementation remains uneven, with limited standardization in measuring maqashid-based governance performance within Islamic financial institutions. This study concludes that embedding Maqashid Sharia principles in corporate governance systems enhances ethical accountability and drives the creation of a sustainable and inclusive economic model consistent with Islamic values and the United Nations Sustainable Development Goals (SDGs). Future directions include the development of standardized maqashid-based governance indicators, integration into Sharia supervisory board frameworks, and empirical validation across different Islamic financial contexts.

The Role of Good Corporate Governance and Islamic Business Ethics in Improving The Halal Industry in The Islamic Tourism Sector in Indonesia

Eli Febriani, Adri, Fadhila Husna, Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

This study discusses the role of Good Corporate Governance (GCG) and Islamic business ethics in strengthening the halal industry in the Islamic tourism sector in Indonesia. Through a qualitative approach based on literature review, the results of the study show that the application of GCG principles such as transparency, accountability, and responsibility, which is synergized with Islamic ethical values such as trust, honesty, and justice, is able to increase the trust of Muslim tourists, strengthen sharia compliance, and encourage the sustainability of halal destinations. The integration of good governance and Islamic business ethics not only increases the competitiveness of the halal industry, but also supports the achievement of sharia maqashid and equitable economic growth in Indonesia.

The Role of Good Corporate Governance in Cross-Border Halal Supply Chain Management: Ensuring Transparency, Compliance, and Sustainable Growth

Hana Luthfia Widi, Baginda Parsaulian — Tue, 28 Oct 2025 00:00:00 +0700

This article examines the pivotal role of good corporate governance (GCG) in managing cross-border halal supply chains to ensure product integrity, compliance with Islamic law, transparency, and sustainable business practices. Halal supply chains that operate across international borders encounter numerous complexities, including diverse halal certification standards, logistic risks, potential contamination, and infrastructure disparities. These challenges necessitate stringent governance frameworks to maintain halal authenticity and foster consumer trust. The study highlights how GCG principles such as accountability, risk management, ethical conduct, and stakeholder engagement enhance traceability and compliance throughout the global halal supply chain. Furthermore, the integration of modern technologies like blockchain and adherence to environmental, social, and governance (ESG) criteria contribute to the sustainability and resilience of halal supply chains. Case studies from countries with strong halal governance frameworks, notably Indonesia, demonstrate how effective regulation and corporate governance can optimize halal supply chain operations while supporting ethical business growth. This comprehensive analysis underscores that the fusion of good corporate governance with halal principles is essential for overcoming international trade challenges, ensuring halal compliance, and achieving long-term economic and ethical objectives in the halal industry.

ZISWAF in Neighboring Countries: History, Characteristics, and Management Problems in Malaysia and Singapore

Wahyu Ramadhani , Widia Sari , Aidil Alfin — Tue, 28 Oct 2025 00:00:00 +0700

This study examines the history, characteristics, and challenges of Zakat, Infaq, Sedekah, and Waqf (ZISWAF) management in Malaysia and Singapore, two distinct models of Islamic social fund management in Southeast Asia. The primary objective of this study is to understand how the social, political, and legal systems in both countries influence the effectiveness and efficiency of ZISWAF management. This study employed a library research method with a qualitative descriptive approach through analysis of scientific literature and applicable institutional regulations. The results show that Malaysia implements a decentralized system involving the State Islamic Religious Council (MAIN) in each state, which autonomously manages zakat and waqf. This model allows for local flexibility but faces challenges such as regulatory differences, interregional coordination, and variations in the effectiveness of fund distribution. In contrast, Singapore adopts a centralized system under the Majlis Ugama Islam Singapura (MUIS), which operates under the Administration of Muslim Law Act (AMLA). This system stands out for its professionalism, transparency, and digitalization, despite facing the constraint of a limited number of beneficiaries due to high socio-economic conditions. Both countries have demonstrated progress in modernizing ZISWAF management through the implementation of corporate governance and the use of digital technology. In conclusion, Malaysia excels in institutional innovation and the diversity of regional approaches, while Singapore serves as a model for efficient, transparent, and adaptive ZISWAF governance to modern economic developments. This study contributes to strengthening sustainable ZISWAF management models at the regional and global levels.