El-kahfi | Journal of Islamic Economics

Patterns of Choosing the Right Sharia Investment for Beginners Amid Global Economic Uncertainty

Amir Husin — 2025-09-30

This research discusses various types of Islamic investment instruments, such as Islamic stocks, sukuk, Islamic mutual funds, and gold, as well as the criteria for choosing investments that are in accordance with sharia values. Islamic investments are increasingly in demand as an investment alternative that is not only financially beneficial, but also in accordance with Islamic principles. The purpose of this research is to find the right type of Islamic investment for beginners amidst global economic uncertainty. The research also emphasizes how important it is to ensure that every investment instrument has integrity and transparency. The method used for the literature study is a descriptive qualitative approach that analyzes various relevant academic sources through content analysis. The results show that investments with low risk, affordable capital, and in accordance with sharia principles, sharia mutual funds, gold and sharia deposits are the most suitable instruments for beginners amid global economic uncertainty. Factors such as risk profile, financial goals and investment time horizon are also explained as important considerations when making decisions for Islamic mutual funds, sukuk and gold. Investors can choose Islamic investment instruments that are profitable and foster confidence with a good understanding. The results of this study are expected to be an initial guide for novice investors in choosing Islamic investments amidst economic uncertainty.

Challenges, Adaptation, and Impacts: A Comprehensive Study of BSI Laku Pandai Agents in Providing Islamic Financial Services in Remote Areas

faizal Daus — 2025-09-30

This study examines the implementation of the BSI Laku Pandai program as an instrument of Islamic financial inclusion in remote areas, focusing on Bang Haji, Pagar Jati, and Merigi Sakti sub-districts in Central Bengkulu Regency. The main objectives are to identify the challenges faced by agents, analyze their adaptive strategies, and assess the program’s impacts on the economic and social well-being of local communities. The research employs a qualitative approach through in-depth interviews, observations, and document analysis, guided by Amartya Sen’s Capability Approach. The findings reveal that agents face structural barriers, including poor infrastructure, low financial literacy, and limited operational capacity. Nevertheless, agents developed adaptive strategies such as collaborating with religious leaders, using religious narratives, employing alternative technological solutions, and providing door-to-door services. The program has delivered tangible benefits by reducing reliance on informal moneylenders, fostering trust in formal institutions, expanding access to sharia-compliant financing for microenterprises, and reinforcing the community’s religious identity. The study concludes that financial inclusion should not be measured solely by access to services but by the extent to which such services enhance people’s substantive capabilities. Accordingly, the program requires complementary measures, including financial literacy initiatives, digital infrastructure development, and continuous capacity-building for agents, to ensure broader and more sustainable impacts.

Outcome-Based English Learning for Islamic Economics Students in Indonesian Universities

Muthia Rahman — 2025-09-30

This study addresses the need for Islamic Economics graduates to acquire not only theoretical knowledge but also practical English communication skills, in order to meet the challenges of global economic integration and the Islamic finance industry. The research aims to redesign English for Economics courses by applying principles of Outcome-Based Education (OBE). Using a qualitative descriptive design, this study analyzes curriculum documents, previous research, and case examples from Islamic universities to examine the integration of communicative competence, critical thinking, and contextual understanding into course design. The findings indicate that OBE-based instruction enhances students’ linguistic proficiency, professional readiness, and international engagement by aligning learning outcomes with industry requirements. The study contributes to curriculum development by offering a framework for implementing OBE in English for Islamic Economics. Its novelty lies in positioning OBE as a strategic approach to bridge the gap between traditional reading-focused instruction and the real-world communicative demands of Islamic economics education.

The Influence of Financial Literacy, Financial Technology, and Risk Perception on Investment Decisions

Maudy Roshinta — 2025-09-30

This study investigates the influence of financial literacy, financial technology, and risk perception on investment decision-making among users of the Pegadaian Digital application in Makassar, Indonesia. Employing an explanatory quantitative research design, data were collected through online questionnaires distributed to a sample of 60 respondents. The analysis involved instrument validity and reliability testing, classical assumption tests, and hypothesis testing, all conducted using IBM SPSS 25. The findings reveal that, partially, financial literacy and risk perception exert a positive and statistically significant effect on investment decisions, whereas financial technology demonstrates a negative and statistically insignificant effect. However, when considered simultaneously, financial literacy, financial technology, and risk perception collectively exert a significant influence on investment decisions. These results highlight the importance of financial literacy and risk awareness in shaping investors’ behavior and decision-making processes. The study further suggests that prospective and current investors should deepen their knowledge and understanding of available investment instruments to make informed decisions, reduce uncertainty, and minimize potential losses.

Analysis of Factors Influencing Public Trust in the Adoption of Digital Zakat Payment

Dedi Suselo — 2025-09-30

Abstract: Public trust in amil zakat institutions is a key factor in optimizing national zakat collection. Although Indonesia has a vast zakat potential, actual collection remains low. One of the main causes is the lack of public trust in zakat management institutions, particularly concerning transparency, accountability, and fund management security. In the context of technological advancement, the digitalization of zakat payment systems emerges as a promising solution to enhance efficiency, accessibility, and public trust. This study aims to analyze the factors influencing public trust in digital zakat platforms, using the National Amil Zakat Institution Baitul Maal Hidayatullah (BMH) as a case study. The research adopts a quantitative approach with an associative research design. Data were collected through questionnaires distributed to 150 respondents who are active users of BMH’s digital platform. The analytical method used is exploratory factor analysis to identify the latent structure of variables forming the trust construct. The results indicate three main factors that significantly influence public trust in digital zakat platforms: digital security, transparency and reporting, and ease of use. These three factors show a strong relationship in shaping public perceptions of the credibility of technology-based zakat systems. The findings affirm that trust in digital zakat services is influenced not only by technological factors but also by institutional integrity and the overall quality of user experience.

Optimizing Infak Funds in Efforts to Empower Nutrition of Marginalized Communities

Luthfiah Azizah — 2025-09-30

Malnutrition and stunting remain persistent challenges in Indonesia and other Muslim-majority countries, demanding innovative financing approaches that address both immediate and structural needs. This study examines the role of infaq as an Islamic social finance instrument in supporting nutritional empowerment for marginalized communities. Employing a systematic literature review of 32 studies published between 2015 and 2025 across Scopus, Web of Science, and national SINTA databases, the analysis followed PRISMA 2020 guidelines to ensure transparency in study selection and synthesis. The review identified five major themes: governance and accountability, digitalization of philanthropy, community-based empowerment, hybrid consumptive–productive models, and alignment with the Sustainable Development Goals. Evidence from randomized and quasi-experimental studies demonstrated that targeted interventions, such as supplemental feeding and maternal education, improve short-term nutritional outcomes, while integrated and well-governed models strengthen long-term resilience. Despite these promising insights, rigorous evaluations directly linking infaq allocation to nutritional indicators remain limited, underscoring the need for pre-registered trials, digital fund-tracking, and stronger institutional collaborations. By synthesizing empirical findings with Islamic economic principles and the maqasid al-shariah, this study proposes a conceptual framework positioning infaq not only as a charitable mechanism but also as a developmental instrument that bridges global health agendas with the ethical imperatives of Islamic economics

Determinants of Profitability in BCA Syariah: The Role of NPF, FDR, and DER from 2015-2023

Diah Permatasari — 2025-09-30

Islamic banking in Indonesia has shown consistent growth, making profitability a crucial indicator of financial health and competitiveness. This study examines the effect of non-performing financing (NPF), financing-to-deposit ratio (FDR), and debt-to-equity ratio (DER) on return on equity (ROE) at BCA Syariah during 2015–2023. Using a quantitative associative design, we obtained 36 annual observations from financial statements and applied panel regression to evaluate both simultaneous and partial effects. The results indicate that NPF, FDR, and DER jointly influence ROE. Partially, NPF exerts no significant effect, FDR has a significant negative impact, while DER shows a positive but insignificant relationship with ROE. The dominance of FDR highlights the central role of liquidity management compared to credit risk and capital structure.The novelty of this study lies in its contrast with prior findings, where NPF is typically found to significantly reduce profitability. In BCA Syariah’s case, strong risk management and stable financing quality appear to mitigate the adverse effects of NPF, making liquidity pressure (FDR) the primary determinant of profitability. Theoretically, this extends the literature on Islamic banking profitability by showing that the impact of financing risk may be context-specific and shaped by internal bank governance. Practically, the findings suggest that BCA Syariah should continue improving financing quality while prioritizing stricter management of third-party funds, thereby strengthening profitability and enhancing its competitive position in the Islamic banking sector.

Integrating Product Quality Dimensions into Competitive Advantage Strategies: A Thematic Synthesis Toward Sustainable Value Creation

Abdul Haris Prawiranegar — 2025-09-30

This study explores how product quality dimensions can be strategically integrated into competitive advantage frameworks to create sustainable value. Despite extensive discussions on product quality and business strategy, few studies have systematically examined how quality functions within cost leadership, differentiation, and focus strategies in the digital economy era—particularly among SMEs. Using a thematic synthesis approach, this study reviews and critically analyzes academic publications from 2020–2025 obtained from Scopus, DOAJ, and Google Scholar. The findings reveal that product quality acts as a multidimensional strategic lever that connects cost efficiency, innovation-driven differentiation, and adaptive focus strategies. The study further highlights that digitalization and data-driven management systems enhance the synergy between quality, price, and promotion, enabling firms to sustain competitive advantage in volatile markets. Theoretically, this review contributes an integrative conceptual framework linking product quality to strategy typologies, while practically offering guidance for SMEs and business managers to design efficient yet value-creating quality strategies.

The Influence of the Seven Principles of Zakat Management on Service Effectiveness and Efficiency: An Empirical Study Using the PLS-SEM Approach

Sukriyendi Kolopita — 2025-09-30

This study aims to analyze the influence of seven fundamental principles of zakat management—Islamic law, trustworthiness, benefit, justice, legal certainty, integration, and accountability—on the effectiveness and efficiency of zakat institutions in Indonesia. A quantitative method was employed using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) approach with data obtained from 100 respondents representing various zakat management institutions. The findings reveal that all seven principles have a significant effect on the effectiveness and efficiency of zakat services, with a coefficient of determination (R²) of 0.822, indicating a strong explanatory power of the model. The predictive relevance value (Q²) of 0.645 also demonstrates high predictive validity. Among these, accountability, integration, and trustworthiness emerge as the most dominant factors. These results confirm that zakat governance grounded in Islamic principles and supported by accountable and integrated institutional systems can significantly enhance the performance and optimization of zakat distribution and utilization

Blockchain-Based Waqf and Maslahah Mursalah: A Sharia Analysis in Light of MUI Fatwas

Muhammad Widyarta Wijaya — 2025-10-19

Despite Indonesia’s vast waqf potential, asset management remains inefficient due to persistent issues of transparency, accountability, and public trust. This study examines the integration of blockchain technology within waqf management and its legitimacy under Islamic law, analyzed through the lens of maslahah mursalah and Majelis Ulama Indonesia (MUI) fatwas. Previous studies on blockchain waqf have largely focused on technical feasibility and governance frameworks, yet have not sufficiently addressed its shariah legitimacy through usul fiqh reasoning. Employing a qualitative-descriptive method, the research integrates four analytical stages: (1) textual analysis of Qur’anic and Prophetic principles on transparency and trust (amanah), (2) review of MUI fatwas to identify legal boundaries for digital financial instruments, (3) comparative analysis of blockchain-based waqf models from Malaysia, Turkey, and the UAE, and (4) conceptual synthesis aligning technological transparency with the objectives of maslahah mursalah. Findings suggest that blockchain, when implemented within a shariah-governed framework, fulfills the criteria of public benefit and does not contravene existing fiqh principles, thus qualifying as a legitimate ijtihadi innovation (tathbiq al-maslahah). The study concludes that blockchain-based waqf has the potential to strengthen institutional credibility, enhance transparency, and optimize social welfare distribution. This research contributes to the development of sharia-compliant digital philanthropy frameworks in Indonesia and offers policy insights for the digital transformation of Islamic social finance institutions

Marketing Strategy of Non-Bank Islamic Financial Institutions to Enhance Financial Inclusion in Indonesia

Irwandi Irwandi — 2025-09-30

Financial inclusion remains a major challenge in the Indonesian economic system, particularly for low-income communities and micro-entrepreneurs who are not yet served by formal financial institutions. This gap creates unequal access to financial services that can promote economic welfare and social empowerment. This study aims to analyze the role of Non-Bank Islamic Financial Institutions (LKSNB) in expanding financial inclusion in Indonesia and identify effective strategies implemented to reach marginalized groups. The research method used is library research with a qualitative descriptive-analytical approach, through a systematic review of scientific literature, financial institution reports, and related empirical research results. The analysis is conducted using a theoretical framework of financial inclusion based on Islamic economic values, which emphasize distributive justice, the principle of mutual assistance (ta'awun), and Islamic financial ethics. The results show that LKSNB has a strategic role in expanding access to Islamic finance through microfinance products, productive zakat and waqf institutions, and Islamic cooperatives. The practical implications of these findings underscore the importance of government policy support in strengthening the non-bank Islamic financial ecosystem through digitalization, Islamic financial literacy, and collaboration between regulators, Islamic scholars, and industry players. This research is expected to serve as a reference for policymakers and practitioners in designing equitable and sustainable financial inclusion strategies.

Islamic Economic Ethics and Social Capital in Waste Bank Empowerment: A Study of BUMDes in Blitar

Ulya Nur Isnaini — 2025-09-30

This study explores how Village-Owned Enterprises (BUMDes) operate in two locations: BUMDes Karya Bakti in Pojok Village and BUMDes Suraya in Banggle Village. The central issue lies in the fact that while many BUMDes experience declining performance, some remain resilient. One BUMDes, in particular, continues to perform stably, which is presumed to be due to the strength of its social capital. Therefore, this research is significant in examining how social capital is applied within these two BUMDes and understanding the reasons behind their differing performance levels. This study employs a qualitative research approach using case studies and the maqāṣid al-sharī‘ah framework. The findings reveal that trust, norms, and social networks play a central role in fostering participation, collaboration, and sustainability. In Banggle, collective leadership and participatory governance have enabled the integration of social capital into well-structured institutional system, reflecting ecological citizenship and ukhuwwah (social solidarity) as the foundation of empowerment. Meanwhile, in Pojok, social capital remains concentrated within a limited managerial core, resulting in lower inclusivity and greater dependence on hierarchical authority.