Al Fiddhoh: Journal of Banking, Insurance, and Finance

ISLAMIC CORPORATE GOVERNANCE AND ISLAMICITY PERFORMANCE INDEX ON FRAUD IN SHARIA COMMERCIAL BANKS

Seppi Mustion — 2024-03-26

This study aims to impact Islamic corporate governance and fraud in Islamic banks. The Effect of Islamic Corporate Governance on Fraud in Islamic Commercial Banks. And Effect of Islamicity Performance Index on Fraud in Islamic Commercial Banks. This study uses quantitative methods and panel data on Islamic corporate governance variables. Islamicity Performance Index, and ICG and IPI Interaction. The results of this study The effect of positive ICG on fraud Regression Test Results The ICG variable has a coefficient of 4,377,977 and a probability of 0.015, more excellent than 0.05 based on the test. The ICG variable statistically means that the higher the ICG score, the more fraud cases increase, which results in a positive IPI influence on fraud. The results of the Regression Test Variable X1 has a coefficient of 3.536459 and a probability of 0.043, which is less than 0.05, while the variable X2 has a coefficient of -6.62755 and a probability of 0.003 is less than 0.05, which means that isn't it according to theory? If ICG and IPI increase, fraud will decrease, and Interaction Results in This Research Produce a new Variable. Regression Test Results Variable X1 has a coefficient of 17.47975 and a Probability of 0.007, which is less than 0.05, and Variable X2 has a coefficient of 4.735987 and a Probability of 0.406, which is more significant than 0.05 can be interpreted in the same direction and the Interaction Between X1, X2 ICG and IPI can be said to be Perfect that ICG Initially positive, from the ICG results, IPI becomes negative. Significantly, the higher the IPI score. An increase in ICG will reduce fraud cases.

AN APPROACH AND STRATEGY FOR INCREASING THE POTENTIAL OF PRODUCTIVE ZAKAT THROUGH SHARIA CROWDFUNDING SYSTEM AND ZAKAT ALLOCATION TO EMPOWER ROHINGYA REFUGEES IN INDONESIA

Hapid Durohman — 2024-03-26

The exodus of Rohingya refugees in Indonesia has occurred since 2009 until today. The Government of Indonesia has made various efforts to help the Rohingya refugees. Zakat funds have been allocated to fulfill the refugees' basic life requirements. This study employs a qualitative approach, utilizing a literature review to explore the role of zakat-system crowdfunding in collecting funds, explicitly concentrating on programs initiated by the National Zakat Agency (BAZNAS) for Rohingya refugees in Indonesia. Secondary data from prior research, diverse sources, journals, books, and the internet form the basis of this investigation, employing the triangulation technique to ensure data reliability. The findings underscore the vital role of zakat as humanitarian aid for Rohingya refugees, contributing to social justice, equilibrium, guarantees, and safety. However, the existing zakat distribution primarily addresses immediate needs, necessitating long-term empowerment programs for the refugees' independence. A proposed model introduces a crowdfunding zakat system, offering a more efficient and transparent approach to collecting and distributing zakat to those in need. Additionally, the study presents an Integrated Zakat and Waqf Model for Refugees (IZWMR), amalgamating institutional and individual donations into a charity pooling fund. This model prioritizes basic needs fulfillment, entrepreneurship training, and microenterprise development, with cash waqf playing a crucial role in subsidizing profit margins and invigorating refugee businesses. Ultimately, these proposed models aim to elevate the welfare of Rohingya refugees in Indonesia, not only providing immediate relief but also empowering them with the tools for self-sufficiency and independence.

REGULATORY AND LEGAL CHALLENGES OF SHARIA PEER-TO-PEER LENDING IN INDONESIA

Lis Yulitasari — 2024-03-26

Peer-to-peer (P2P) lending is a financial platform that connects lenders directly with borrowers without going through traditional financial intermediaries. Sharia P2P lending applies sharia principles in its transactions. Even though sharia P2P lending in Indonesia has increased in recent years, regulatory and legal challenges still hamper its growth. This research aims to analyze the regulatory and legal challenges faced by Sharia P2P lending in Indonesia and provide policy recommendations to overcome them. This research uses qualitative methods by conducting a literature review of sharia P2P lending regulations in Indonesia and in-depth interviews with regulators, sharia P2P lending practitioners, and academics. The research results show that the main challenges faced are regulatory uncertainty, the need for a Sharia legal framework for P2P lending, and the regulator's lack of understanding of the Sharia-based P2P lending business model. The proposed policy recommendations include establishing a comprehensive and integrated Sharia P2P lending regulatory framework, preparing legally binding Sharia fatwas, and increasing regulators' literacy and understanding of the digital Sharia financial sector. The policy implications of this research can provide input for regulators and practitioners in developing a healthy and sustainable Sharia P2P lending ecosystem in Indonesia.

THE ROLE OF FINANCIAL TECHNOLOGY IN PROMOTING GROWTH IN ISLAMIC FINANCE IN THE DIGITAL ERA

Mutiara Eka Putri — 2024-03-26

Financial technology (fintech) has increased and can potentially drive Sharia finance's growth. This study aims to analyze fintech's role in promoting Islamic finance's growth in the digital era. The research method uses a literature study. A descriptive analysis approach involves breaking secondary data in journals, articles, and statistical reports related to the research topic. The results of this study indicate that the adoption of fintech in Sharia finance is predicted to continue to increase, driven by the millennial Muslim population. Fintech provides opportunities for Sharia financial product innovation. However, the challenges of developing Sharia fintech are significant and related to regulations, compliance risk, and human resources. Some examples of Sharia fintech platforms, such as P2P lending and equity crowdfunding, have been quite successful. The prospects for sharia fintech in Indonesia are positive with the support of digital infrastructure and the millennial Muslim population. Regulatory support is needed so that Sharia fintech is truly compliant and can drive the growth of Islamic finance. Sharia fintech has the potential to be a game changer for the development of Islamic finance in Indonesia. Comprehensive support from regulators and stakeholders can realize the optimal implementation of Sharia fintech for inclusive and sustainable Sharia finance expansion.

THE INFLUENCE OF PRODUCTS AND PROMOTIONS ON CUSTOMERS' DECISIONS TO SELECT PRODUCTS AT PT. PRUDENTIAL LIFE ASSURANCE SYARIAH IN THE SUNGAI PENUH CITY

Mhd Aldino Putra — 2024-03-26

This research aims to determine whether products and promotions influence customers' decisions to use Sharia insurance products. The location of this research is at PT. Prudential Assurance Sungai Penuh City. Data collection techniques in this research are observation, questionnaires and documentation. Meanwhile, the data analysis techniques in this research are questionnaire instrument analysis (validity and reliability), normality test, multicollinearity test, multiple linear regression, coefficient of determination test, and hypothesis testing. The subjects in this research were agents and customers of Prudential Life Assurance insurance products. The population in this study was 217 customers, while the sample was 90 customers using education insurance products in 2023. The research results prove that product variables partially significantly affect the public interest in the Prudential Life Assurance insurance product in Sungai Penuh City. Partially, the product promotion variable only significantly affects the public interest in PT. Prudential Life Assurance insurance in Sungai Penuh City. In simultaneous testing, product and promotional variables significantly affect public interest in Prudential Life Assurance insurance in Sungai Penuh City.

ANALYSIS OF PAYMENT SYSTEMS USING SHOPEE PAY-LATER REVIEWED FROM ISLAMIC ECONOMICS

Indrika Aryuandri — 2024-03-26

Based on Islamic Economics studies, research was conducted to analyse the Shopee Pay-Later payment system. This research is a content analysis. The research results show that the ShopeePayLater payment details include the due date. Regarding the absence of interest at the start of implementing this shopeepaylater feature, delaying financing to the following month or buying now, pay later financing, it even mentions 0% interest. Shopee Paylater credit practices are permissible (mubah) and haram permissible (mubah) because the contract is implemented, proven by the contract agreement between the seller and the buyer at the time of carrying out the hijab and Kabul as well as the additional price on Shopee Paylater. Credit practice is considered a deferred price and prohibited because the extra price in the Shopee Pay Later credit practice is riba, and usury is prohibited in Islamic business ethics. In contrast, the Shopee Paylater credit practice applies an additional price of 2.95% for paying off bills within two, three, and six months.