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This study examines the risks associated with investing in Indonesia, as well as the impact of foreign direct investment (FDI) on the country's macroeconomy. It uses the autoregressive distributed lag (ARDL) method to analyze the short-term and long-term relationship between macroeconomic variables and FDI inflows. The study utilizes annual time series data spanning from 1984 to 2015. The exchange rate is critical in the short term because it has an inverse effect on foreign direct investment (FDI). On the other hand, factors like inflation, GDP growth risk, and economic and political concerns have a major impact on foreign direct investment (FDI) over a long period of time. Financial factors, however, do not exhibit long-term cointegration with FDI. Prudent international investors prioritize the instability of macroeconomic variables to optimize profits on invested funds, highlighting the necessity of government regulation over these variables to enhance foreign direct investment inflows. This study contributes to the current body of work regarding the influence of country risk on foreign direct investment (FDI) inflows into Indonesia.

Even though Indonesia faces significant gender disparities across various sectors, including education, health, employment, and political representation, there remains a dearth of research addressing the barriers and strategic solutions for women's empowerment, which is the aim of this study. A quantitative method driven by the Modified Penta Helix Model (MPM) and the Delphi Analytical Network Process (DANP) was used. On the one hand, MPM was used to establish renewal between the five strategic dimensions and other additional elements such as economic, socio-cultural, and education and training. On the other hand, D-ANP developed indicators based on Focus Group Discussions (FGD) outcomes, in-depth interviews, and structured questionnaires. According to this study, education and training are essential in empowering women. The results of this study indicate the main problems in empowering women, which are divided into eight main dimensions: economic, socio-cultural, education and training, government support, association support, academic support, media support, and private sector support. Education and training were the most critical problems in empowering women. Collaboration between academics, business, community, government, and media is essential to develop effective education and training programs to empower women in Indonesia. Through employing D-ANP and MPM methodologies, this study suggests a model of women's economic empowerment to improve the quality of Indonesian women and Indonesia's position in the Women's Empowerment Index.

This study investigates the relationship between Institutional quality, Economic freedom, technological advancement, and Islamic financial development in selected OIC countries. This study employs the panel estimation method to examine annual data pertaining to Islamic bank industries across 22 countries, sourced from the SESRIC database, from 2013 to 2021. The findings show that the overall quality of institutions and economic freedom influence Islamic finance development. Further, the contribution of technological development appears when institutional quality indicates higher performance. Despite the predominant correlation observed among institutional indicators, this study, focusing on a comprehensive index, reveals a consistent and significant contribution of institutional quality to the growth of Islamic finance. Furthermore, this study's findings show that institutional quality and economic freedom are related; yet, the methods by which the foundations of each indicator influence financial development differ. The findings of this research underscore the importance of urging policymakers, particularly governmental authorities, to prioritize the development of policies and initiatives aimed at fostering a healthy and conducive environment. Emphasizing practical and transparent institutional frameworks is essential for cultivating a well-regulated economic environment.

The banking industry necessitates implementing an early warning system to effectively identify the factors that impact bank managers and enable them to make informed decisions, thereby mitigating systemic risk. Identifying factors that influence banks in times of stability and crisis is crucial, as it ultimately contributes to developing an improved early warning system. This study undertakes a comparative analysis of the stability of Indonesian Islamic and conventional banking across distinct economic regimes-crisis and stability. We analyze monthly banking data from December 2007 to November 2022 using the Markov Switching Dynamic Regression technique. The study focuses on conducting a comparative analysis between Islamic banks, represented by Islamic Commercial Bank (ICB) and Islamic Rural Bank (IRB), and conventional banks, represented by the Conventional Commercial Bank (CCB) and Conventional Rural Bank (CRB). The findings reveal that both Islamic and conventional banks exhibit a higher probability of being in a stable regime than a crisis regime. Notably, Islamic banks demonstrate a greater propensity to remain in a stable regime than their conventional counterparts. However, in a crisis regime, the likelihood of recovery for Sharia-compliant institutions is lower than for conventional banks. Furthermore, our analysis indicates that larger banks exhibit higher stability than their smaller counterparts regarding assets and size. This study pioneers a comprehensive comparison of the Z-score, employed as a proxy for stability, between two distinct classifications of Indonesian banks: Sharia (ICB and IRB) and conventional (CCB and CRB). The result is expected to improve our awareness of the elements that affect the stability of Islamic and conventional banking in Indonesia, leading to a deeper comprehension of their dynamics.

AbstractThe study examines the stability of Indonesian Islamic Commercial Bank (ICB) and Islamic Rural Bank (IRB) by employing a Markov Switching Dynamic model of two regimes, stable (tranquil) and unstable (crisis). This study utilizes monthly data between December 2007 and April 2022. Findings show that both ICB and IRB have greater probabilities of remaining in the tranquil regime compared to the period of crisis. Even though ICB Z-scores have a wider range of volatility than IRB Z-scores, the ICB has been shown to recover from crises faster than the IRB. The differences in characteristics between ICB and IRB, as well as swings in the Z-score, do not provide resilience benefits. Thus, both ICB and IRB are equally vulnerable to the crisis. This study’s findings could be used to generate policy for the relevant stakeholders of Islamic banking industries.

Indonesia has an agricultural sector that contributes significantly to the Indonesian economy. However, when the COVID-19 pandemic affected the agricultural industry, it impacted much on the Maju Mulyo Farmer Group in Tambakrigadung, Lamongan. The majority of members of the Maju Mulyo Farmer Group were classified as dhuafa, which means that they had limitations in developing their businesses, planning family finances, and in using technology optimally to support business continuity. The solution provided was through community economic empowerment activities related to Maqashid Sharia-based financial management and digital marketing. The method began by identifying the existing conditions of the Maju Mulyo Farmer Group. Subsequently, it was proceeded with the training stages which included product development training, business management, recording simple accounting reports, e-commerce, digital marketing, and family financial management. The last stage consisted of mentoring, empowering, monitoring, and evaluation. The results of community service activities and providing training with regular assistance could open new insights for rural communities regarding financial and business management amid the COVID-19 Pandemic. Financial management and digital business could facilitate the daily activities of residents and improve the ability of villagers to survive during the COVID-19 pandemic.

This research aims to examine the effects of the Islamic social finance (zakat), the Islamic Human Development Index (IHDI), and the quality of governance on poverty alleviation in 39 Organization of Islamic Cooperation (OIC) member countries from 2007 to 2020. This study uses a fixed effect model to analyze the relationship between variables. The findings show that the Islamic human development index, as a proxy for the quality of human resources, supports the reduction of poverty in OIC countries. Furthermore, the zakat, voice and accountability, and trade openness have a negative and significant relationship with poverty. The quality of governance, population, inflation, and exchange rate, on the other hand, has no significant effect on the poverty rate. These findings can be used as the foundation for state government as the policymaker to solve poverty. The uniqueness of this study is the application of the modified human development index based on the five Islamic objectives and empirically investigates its impact on poverty.

This study proposed an integrated model of Islamic Social Finance (ISF) to accelerate the transformation of the poor toward prosperity. This is a qualitative and quantitative approach using grounded theory and the Average Weighted Index (AWI). The integration model of Islamic social finance is implemented through 4 ER (Economic Rescue, Economic Recovery, Economic Reinforcement, and Economic Resilience) by integrating Islamic social finance instruments in a joint project scheme. The additional finding of the empirical investigation shows that integrated Islamic social finance is 12% more effective in enriching the poor than the non-integrated program. This study emphasizes the significance of integrating Islamic social finance in accelerating the well-being of the poor community.

This study explores the effect of zakat and non-zakat empowerment programs on the beneficiaries' welfare (mustahiq). This study focuses on the influence of the intervening variable, namely the mustahiq businesses' growth on mustahiq welfare. This study also examines the role of demographic characteristics, such as age, gender, and years of education on mustahiq business growth. This study employs the Partial Least Square-Structural Equation Model (PLS-SEM) using data from 100 respondents who received empowerment assistance from three different zakat institutions. The sample of mustahiq was selected from three zakat institutions to provide a diversity of respondents. The results indicate that zakat and non-zakat programs' empowerment through business growth has significantly affected mustahiq welfare. With these results, both zakat and non-zakat productive programs should be more developed to assist the community businesses' growth optimally. Previous studies measure the welfare of mustahiq with material aspects. In this study, the indicator of welfare is based on maqashid sharia, which includes the protection of Ad-Din (religion), An-Nafs (Soul), Al-Aql (intellect), Al-Nasl (descendant), and Al-Maal (wealth). Examining the impact of two variables, namely productive empowerment programs through zakat and non-zakat, on mustahiq business growth and welfare is the novelty of this study.

Liquidity risk is one of significant risk managed by financial intermediaries including Islamic Microfinance Institutions (IMFIs). The financial intermediaries accept short-term deposits and disburse these deposits in the form of long-term loans. This situation makes IMFI desperately need a lender of last resort (LOLR). Nevertheless, there has been no formal LOLR for Indonesian IMFIs. This study intends to construct the LOLR model for IMFI in Indonesia. This qualitative study applies a case study analysis. This study's subjects are IMFIs in East Java Province that was selected purposively with thirty managers as the key informants. Research findings show that the best model of LOLR is developing a secondary cooperative since the majority form of IMFIs in Indonesia are cooperative entities. With all members of a secondary cooperative deposit for reserve requirements, they can place excess liquidity in the secondary cooperative and ask for financial support.

As one of the members of the Organisation of Islamic Corporation (OIC), Indonesia has excellent trade prospects. Therefore, this study has a purpose to examine the impact of macroeconomics factors on trade between Indonesia and intra-OIC countries. The variables of macroeconomics in this study consist of country risks, inflation, exchange rate, oil price, and economic growth. Quantitative is the right method for this study, applying Ordinary Least Square (OLS) regression with the help of EViews. The data used for the analysis is a time horizon with annual frequency from 1986 to 2016. Furthermore, finding shows that almost all variables of macroeconomics play an insignificant role in determining the trade between Indonesia and Islamic countries. However, the oil price is the only variable to show its contribution towards trade between Indonesia and intra-OIC countries. The results indicate that macroeconomic variables do not contribute to the key decisions for conducting trade internationally. Political factors and bilateral treaties become better variables to explain Indonesia's trade with other Islamic countries.

Several previous studies state that the Islamic Social Finance program has not fully succeeded in creating prosperity, and there are no definite measurements to show the sustainability impact of the program. Thus, a measurement is needed to analyze various aspects in achieving the success and sustainability of Islamic social finance programs. This study developed an index for performance evaluation with an emphasis on the success and sustainability of the Islamic Social Finance program. The study used the Analytical Network Process to determine and analyze priority components. Furthermore, the Multistage Weighted Index method was used to calculate the final index score. The index was built by taking into consideration various factors, stakeholders, aspects, and indicators. This study indicates that aspects of funding contribution from donors (0.22), involvement of donors in giving advice (0.99), and controlling of supervisor (0.08) are priority aspects in the success and sustainability of the program. An empirical investigation was performed on three different programs in Indonesia: A, B, and C. Program A (0.81) and C (0.80) have succeeded in improving the beneficiaries’ quality of life to the level of economic resilience, although at a low level of sustainability (76–84.33). On the other hand, program B (0.73) is at the economic reinforcement and has not yet achieved sustainability. This index can be seen as a comprehensive tool for measuring the success and sustainability of the program at several levels.

This paper analyses the product diversifications of insurance companies as supporting facilities for infrastructure development in Indonesia. Infrastructure development requires protection or guarantee and insurance as a medium for risk transfer hinders the implementation of infrastructure development both during the construction process and when the infrastructure is used. Product diversification carried out by insurance companies to support infrastructure development harms the company's financial performance. The more diversified business lines owned by insurance companies, the lower the company's financial performance. This will negatively impact the ability of insurance as a medium for risk transfer. On the other hand, huge ownership of market share and reinsurance will positively affect the financial performance of general insurance companies in Indonesia.

Zakat is an instrument of Islamic economic and social funds that contributes to the achievement of people wellbeing. This study examines the business growth as a mediating variable on the relationship between the impact of the zakat empowerment programs and mustahiq’s (zakat recipient) welfare. This quantitative study employs Partial Least Square Structural Equation Modelling (PLS-SEM) analysis on 100 mustahiqs from different zakat empowerment programs in East Java and DI Yogyakarta. Zakat empowerment positively affects mustahiq’s welfare. This indicates that the empowerment program successfully increases mustahiqs’ wellbeing and their business. Business growth as a mediating variable on the relationship between business assistantship and mustahiq welfare also shows a positive and significant effect. Further, macroeconomic indicators consisting of GRDP and inflation and internal factors consisting of age and educational level, have different impacts on the business growth of mustahiq. This study confirms the zakat empowerment program’s role in improving the mustahiq’s welfare based on maqashid al-shariah (the Islamic objectives). Zakat community empowerment is a solution to suppress the poverty rate and possible for reducing inequality and ending poverty in Indonesia. This study extends the literature by providing a unique measurement of mustahiq welfare. This study incorporates maqashid al-shariah considerations to measure the wellbeing.

This study aimed to gather information about the approaches and strategies used by Indonesian language teachers in teaching writing lessons in Indonesian language classes in response to the previous studies identifying junior high school students’ challenges in Indonesian language writing. A survey was done using an online questionnaire distributed to 166 teachers from various schools in the country. However, only 126 were taken, as the rest admitted that they did not teach Indonesian language writing in their classes. The questionnaire was adopted from Self-Assessment of Writing Strategies by Marquette University and was validated to serve valid and reliable data. The data were analyzed using descriptive statistics, and teachers’ proficiency in coping with various approaches to teaching the language and their keen strategies to help students in the writing classes were found. The findings suggested that despite teachers' proficiency in many approaches to teaching, students still encountered challenges in multiple aspects of writing. Therefore, there was a need for continuous improvement in curriculum design and to assist students through corrective feedback to help them cope with their writing problems. In summary, the study emphasized the importance of ongoing research, professional development, and improved writing instruction.

The utilization of Islamic social finance instruments is far behind what is expected. To realize its full potential, Islamic social finance instruments must be integrated. This study examined solutions and priority strategies for integrating sustainable Islamic social finance that could be implemented in the short and long term using the Benefit, Opportunity, Cost, and Risk (BOCR) framework, which includes six aspects: Governance, sustainable financing, institutional aspect, human resources, regulations, and supporting technology. This qualitative research employed the Analytic Network Process (ANP) method using the benefit, opportunity, cost, and risk analysis. The data were obtained mainly through focus group discussions and in-depth interviews with respondents among academics, practitioners, associations, regulators, and community leaders. The respondents were selected for their expertise and experience in the selected topic. The data were processed using the Microsoft Excel and Super Decision software. There are several findings worth considering from the analysis. First, the highest priority in integrating Islamic social finance aspects are human resources (0.97), regulation (0.86), and technology (0.76). Second, based on the short- and long-term analysis, financial integration through sustainable financing (0.01 and 1.44, respectively) and improving human resource quality through certification and training (0.01 and 1.56, respectively) is a priority solution and strategy to integrate sustainable Islamic social finance. Meanwhile, according to expert judgments, integrating national data (0.24) and optimizing technology use (0.18) are priority solutions and strategies. The findings emphasize the critical role of improving human resource quality to utilize technology, with experts identifying a national data integration as the most critical solution. As a result, relevant stakeholders are concerned about technology management training for Islamic philanthropic managers, with the goal of maximizing the potential of technology's growing role and adoption.