Search

Purpose This study aims to develop the maqasid index (MI) for Islamic corporate social responsibility (CSR), namely, Dana Abadi Umat (DAU) (Ummah’s Endowment Fund) or MI-DAU in Indonesia. Design/methodology/approach Modeling and weighting are based on Delphi and analytic network process (ANP) methods, called Delphi–ANP additive weighting. The Delphi method was applied to design and validate the factors of the MI-DAU model, and the ANP method was applied to generate and validate weights for these factors. Finally, the MI-DAU is calculated, based on the planned budget and actual allocation of DAU returns, called the maslahah fund, using additive weighting. Findings Delphi and ANP show significant and robust results. The priority order and weights of maqasid Shariah are safeguard the faith (0.32), safeguard the intellect (0.219), safeguard the life (0.204), safeguard the wealth (0.171) and safeguard the lineage (0.104). Meanwhile, the priority order and weights of the main activities are education (0.190), Ummah’s economy (0.167), Hajj service (0.155), Da’wah (0.124), health care (0.118), social-religious (0.097), worship facilities (0.085) and disaster emergency response (0.065). Finally, the results of MI-DAU show a high index in 2019 and 2020 of 71.89 and 69.51, respectively, generated from allocation ratio of 90.63% and 85.98%, respectively. Research limitations/implications Maqasid Shariah used in this study follows Al-Ghazali, where it could also follow maqasid Shariah of Abu Zahrah or Al-Najjar. Moreover, the MI-DAU score uses additive calculations, where it can also use Pentagon calculation. Practical implications The improved framework and method used to design MI-DAU in this study could be applied to design more scientific MI for other Islamic financial institutions. Originality/value The novelty of this study is in the improved method used to design the MI model, including its factors, using Delphi, and to assign weights of all factors using ANP, where both provide validation for more robust MI model.

Purpose This study aims to devise policies in implementing cash waqf system of Baitul Maal wat Tamwil (BMT) in Indonesia, enabling the BMT to optimize its commercial and social activities to better achieve outreach, sustainability and welfare impact. Design/methodology/approach This study uses the strategic assumption surfacing and testing (SAST) method, with three groups of knowledgeable respondents, including expert, BMT practitioner and regulator to formulate important and certain policies. Findings The results show that four types of policies are required to improve cash waqf system of BMT, including 12 internal strategic policies, 15 internal operational policies, 15 external strategic policies and 9 external operational policies, which were found to be within a “certain planning region.” All of these policies have been agreed significantly by each group of respondents, as well as by all respondents combined. The most important-certain policies include Shiddiq, Amanah and professional Nazir, inculcate Islamic values to BMT employees and members, standard operating procedure and standard operating management of cash waqf management, technical assistance for Nazir to manage cash waqf and IT systems for BMT-cash waqf administration. Research limitations/implications The qualitative method used has its limitations, which could be improved by incorporating other methods. Moreover, the case and respondents are all Indonesian, so that the results are possibly only applicable to BMTs in Indonesia. Practical implications BMTs could adopt these policies in implementing their cash waqf management optimally. Social implications The management of cash waqf by BMT could help improve the social activities of the Baitul Maal directly from social cash waqf and indirectly from productive cash waqf. Originality/value To the best of the authors’ knowledge, this is the first study using SAST method to determine policies needed by the BMT to upgrade its cash waqf management producing more social programs for the society.

In the Islamic economic structure, zakat has been introduced as the main instrument. In the development of the Islamic monetary policy in particular with regard to the amount of money, zakat becomes necessary to investigate its impact. The study focuses in Java, using 200 Muzakki. Structural Equation Modelling (SEM) is adopted to examine the relationship among the seven constructs i.e., Social Values, The Rate of PLS, State, Regulation, Goods and Services, Consumption and Money Demand. While the reliability and validity were established, the structural relationship between the constructs reveals that the integrated money demand model has a strong relationship with the social value in many ways. In relation with goods and services, social value has its significant role to assist the amount of consumption to realize developed money demand model. Islamic social values significantly influence each of good and services as well as money demand model. People will increase the motive for holding money if he wishes to donate some for social purposes. In general, if the people are prosperous, the money demand will increase. Specifically, the result shows several constructs have significant impact in promoting money demand model in Islamic perspective. This suggests that the model as well as the instrument should be further implemented in Islamic money demand.

Most research in the Islamic economy on the money demand have employed the Keynesian approach, while in this research money demand functions are derived from a microeconomic approach. Thus, the aim of this study is to test and analyze some of the key factors in Islamic money demand model with the microeconomics-based approach, and then, in accordance with Islamic principles, chooses muzakki as the best sample. The data source for this study is 200 muzakki in Java, with a period of 2020. Structural Equation Modelling (SEM) is adopted to examine the relationship between the seven constructs, i.e., zakat, PLS rate, state, regulation, goods and services, conspicuous consumption, and money demand. The systemic relationship between the structures indicates that the integrated model of demand for money has a strong zakat relationship, while reliability and validity have been established. Zakat plays a key role in applying the established paradigm of demand for money in relation to goods and services. Zakat significantly affects both goods and services as well as models of money demand. This proposed new model equation is intended to help each household economic actor increase the demand for philanthropic money. As many muzakki are spread throughout Indonesia, it is expected that the welfare of the poor and the low-income society will gradually improve and, finally, the distribution of income in Indonesia will be on an equal footing.

Cooperatives in Indonesia is the cornerstone of the economy for all people, especially those with low economies . Agriculture in Indonesia experienced a decline in 2017. One of the problem factors is the problem of capital. To overcome the problem of capital in agriculture, the right step is the establishment of a cooperative. The cooperative will regulate the financial circulation of the farmer groups. The farmer group that is the object of this research is the Karang Asri Kamnpung Durian Ngebel farmer group. This Karang Asri farmer group is the focus of this research because it has the potential for agricultural products that are much sought after by the community, namely durian fruit. In this study, the researcher will analyze the problems that exist in the Karang Asri farmer groups in Durian Ngebel Village which are the causes for the not yet established cooperatives in the farmer groups and formulate a cooperative model that can be established in the Karang Asri farmer groups. The method used in this research is descriptive qualitative with data collection techniques through, observation, interviews, and documentation. By interviewing the head of the Karang Asri farmer group representing the entire group. The results of this study indicate that six problem sectors are ranging from human resources, natural resources, production, distribution, systems, and problems from outside the farmer group. The problems that exist are divided into two groups, namely roots and branches. The root problem is the main problem because there is no cooperative in the farmer group. T he branch problem is a factor that indirectly causes the absence of a cooperative. Then the cooperative model that was successfully designed was the sharia producer cooperative. It is hoped that this cooperative model will be a capital solution and also all problems that exist in farmer groups.

The case of waste from durian rind in Ngrogung, Ngebel, Ponorogo, Indonesia increased significantly per year. Agglomerations and decomposition of durian rind surrounding agro park caused air pollution and bad view in park areas. The decomposition of durian rind is very important to reduce those impacts. The micro composter model in Kampung Durian consisted of three main components. The first component was drying area with cemented ground. The drying area was set to accommodate 1 t fresh durian rind per day. The materials come from surrounding areas of agro park. The second was a machine house with one ton material capacity per day. The third was a composter house consisted of composter tube and packing area. The result of the micro composter house showed a cleaning agglomeration of durian rind from Ngebel lake and surrounding areas. In addition, the model produced liquid organic fertilizer and compost. A cycle of composting was 30 d in the dry season. Amount 1 t of durian rind decomposition resulted of 100 L liquid organic fertilizers and 50 kg compost. The result of composter had a direct impact to control waste problems in Ngebel and surrounding areas.

Micro and Small Enterprises (MSE’s) has an important role in economic development in Indonesia. However, MSE’s still has a lot of problem. They are still having difficulties to access business financing provided by Islamic financial institutions and banking. This paper attempts to analyze the benefit, opportunity, cost and risk of Islamic financial institutions espesially Baitul Mal wat Tamwil (BMT) in promoting MSE’s utilizing Analytical Network Process (ANP) method with Benefit Opportunity Cost Risk (BOCR) approach, including the proposed alternative strategies. Results of this study show that the highest priority of cost and risk is the lack of support and the understanding of community. Moreover the highest priority of benefit and opportunity is that Islamic Financial Institutions has a just profit-loss sharing system i.e., taking into account the possibility of profit and loss, and BMT has a wide and deep outreach for the poor and poorest. The priorities of strategic alternative in the agricultural sector to promote SME are providing alternative financing schemes based on sub-activities, establishing Linkage Program between BUS-BPRS-LKA-Government, organizing incentive schemes, and forming a National Agrarian Bank, which will be totally focused on projects in agriculture.