Financial Technology Regulation in Malaysia and Indonesia: A Comparative Study

Introduction to The Problem: The era of innovation in information technology has emerged to ease daily commercial transactions. The innovation in financial technology has created numerous new business model to cater the customers’ need. This development needs a regulation and supervision to avoid chaos in the financial system. Particularly in Indonesia and Malaysia, which both countries were recorded by CCAF to be among the top countries in the ASEAN region by the number of fintech firms.Purpose/Objective Study: This study is aimed to analyze the financial technology regulation and supervision in Indonesia and Malaysia.Design/Methodology/Approach: The comparative study is conducted to compare the regulatory environment related to Digital payment, Equity Crowdfunding, P2P lending, Crypto Asset, Consumer protection, cybersecurity law and Islamic fintech in both countriesFindings: The study found that compared to Malaysia, Indonesia has lack of jurisdiction that protecting the customer from the cyber-attack which highly threatening the fintech industry. Both countries also treat ICO differently. Malaysia treats it under RMO guidelines, while Indonesia banned it as the method of payment but still allows the trading of ICO as a commodity under Commodity Futures Regulatory Agency.

SDGs Value and Islamic Philantrophy Through Zakah Institution During the Covid-19

Introduction to The Problem: The mission of the zakat institution as a philanthropic booster is very necessary. As an economic empowerment for the poor and to support micro businesses. Especially when the covid 19 pandemic condition requires a wealth distribution of income and consumption from the sufficient in the weak economy condition.Objective Study: The aims of this study is to identify the optimization of the zakat institution program which involves poverty reduction and the utilization of the poor and disadvantaged. This is in line with SDG’s 1 and 8 values on poverty reduction and the provision of decent work.Methodology: This study uses an explanatory qualitative approach. A solution review of the process of managing and utilizing money waqf at LAZ Yatim Mandiri, using primary data by in-depth interviews with waqf doers and continued with source triangulation, focus group discussion that talks about covid 19 in many perspective, accompanied by the opinion of 15 academicians and 4 experts (fiqh) waqf.Findings: The result of this study showed that the potential for endowments must be balanced with increasing Nazir awareness and understanding to manage endowments of money in order to continue to be useful. Ascertaining the direction of philanthropic movements during pandemic to collect funds and distribute them to the poor and pandemic affected victims is a crucial point. The important advice that LAZ should make is to maintain the intensity of friendship with muzakki or donors and the needy, to create a socially oriented business and also can be appropriate and feasible with the propaganda method used. this needs to be done considering that in addition to humanity issues, other issues that have a severe impact on the covid pandemic 19 are the microeconomic sector and MSME.

Determinants of Islamic Social Responsibility Disclosure the Case of Islamic Bank: Cross Country Analysis

Introduction to The Problem: The rapid growth of Islamic financial institutions around the world attracts a lot of attention, but its growing is not supported by adequate accountability. Several evidence show that accountability of Islamic banks is still very low. The lack of accountability may causes low public trust, so it is important to study the determinant of Islamic Social Responsibility Disclosure by Islamic Bank.Objective Study: This study intends to examine the determinants of Islamic Social Responsibility disclosure (ISR). So practitioners and academics can get a clear view of Islamic Bank's accountability through ISR disclosure.Methodology: This paper applies some theories such as stakeholder theories, agency theory, and legitimacy theory to developed hypotheses linking ISR disclosure and its determinants (internationality, Islamic Corporate Governance, and Socio-Political Context). This paper uses the content analysis method to assess the ISR disclosure of Islamic banks from 13 countries spanning from 2014 to 2016. The ISR index consists of 72 items developed based on AAOIFI. Finally, OLS Regression Analysis is used to test the hypotheses.Findings: The paper find that the level of ISR disclosure is still very low (44%). From the internationality aspect, we found that the proportion of foreign ownership and the status of the multinational corporation influenced the level of ISR disclosure, but we did not find evidence that the CEO's overseas experience affected the level of disclosure. This paper also confirm that Islamic Corporate Governance and Socio-Political context are the main determinant of ISR disclosure by Islamic Bank.

Islamic Capital Market Reaction on Presidential Election 2019 (Case Study of the Jakarta Islamic Index)

General Election (GE) is one of the most important political issues which has an impact on the economic condition. This research aims to reveal the effect of General Election 2019 on the capital market reaction. Specifically, the study compares the impact of three events in the GE 2019, namely, The General Election 2019, the announcement of Elected President 2019, and Mahkamah Konstitusi (MK) decision. By employing Abnormal Return with t-test analysis, the study reveals that the publication of the elected-president has the most significant impact on the Islamic Capital Market compares to the two other events. While using Trading Volume Activity (TVA), all the three events of GE 2019 affects the TVA. This finding suggests that for the Islamic capital market investor, the announcement of the elected president is seen as the most significant event that determines the whole of economic condition for the next five years. Hence, for the policy-makers, they must focus on the date of the announcement by preparing such a policy to maintain the market condition.

Debt-Based Versus Equity-Based Financing: A Comparative Analysis on Efficiency of Islamic Financial System

Introduction to The Problem: The financial system, as a subset of economics, plays a prominent role in solidifying the socio-economic development and wellbeing of people of a society. However, debt-based and equity-based financing are the main models employed by Islamic financial institutions to help small and medium enterprises (SMEs) that need funding to facilitate their businesses' projects. Operationally, debt-based financing seems to be the prominent financing model than equity-based financing, which only accounts for either zero or small scale in Islamic financial institutions.Objective Study: This study explores the rightful financing model that can contribute much better to the efficiency of the Islamic financial system in achieving socio-economic development.Methodology: To achieve the study's purpose, a literature-based method and secondary data collection technique are adopted as related previous studies from articles, books, conferences, and working papers are reviewed and analyzed.Findings: Equity-based model as a partnership model is somewhat more productive in contributing to socio-economic development than debt-based financing, but not being widely applied due to specific issues such as high risk, agency problem, costumer’s awareness, and sensitivity, and others more. It is recommended that researchers empirically investigate the suitable financing model between debt-based and equity-based financing models to ensure the achievement of sustainable socio-economic development.

The Determinant Factors of Muzakki Toward Paying Zakat, Infaq, Sedekah (ZIS) in Zakat Institutions

Introductions to The Problem: Zakat is one of worship which is often mentioned in the Al Quran. It's just that the potential for Zakat, Infaq, Alms (ZIS) is not comparable to the actual actual figures. Many factors influence muzakki in paying ZIS.Purpose/Objective Study: This study aims to analyze the factors that influence muzakki to pay ZIS in zakat institutions, namely Yatim MandiriDesign/ Methodology/ Approach: The sample in this study amounted to 200 respondents. LAZ Yatim Mandiri was chosen because it is an Amil Zakat Institution that is consistent in collecting ZIS funds from the smallest amount to the large amount. This study uses logistic regression analysis and the data used are primary data. Based on the analysis that has been done, it is found that 61% results can be predicted correctly in the logistic regression model in this study.Findings: The consistency of muzakki in paying ZIS at the Yatim Mandiri Amil Zakat Institution is influenced by the variables of religiosity, income, trust, shariah compliance, knowledge, justice, data publication, financial accountability, motivation, the role of ulama, the role of government. And the consistency of muzakki in paying ZIS at the Yatim Mandiri Amil Zakat Institution is not influenced by the variables of shariah compliance and financial accountability.

Mosque-Based Zakat Collection in Maximizing Zakat Potential in Yogyakarta

Introduction to The Problem: Indonesia as the most populous Muslim country has huge potential of zakat collection. However, the zakat collection never meets its potential. Hence, the need for localization is critical in order to maximize the zakat collection.Objective Study: this paper attempt to develop the mosque-based zakat collection in order to maximize the potential of zakat.Methodology: based on literature review and empirical investigation, self-administered questionnaire is developed to collect the data. Hence, we use Partial Least Square Structural Equation Modelling (PLS-SEM) to analyze the data. The sample of this research is the mosque management (takmir masjid).Findings: This study found that service quality of zakat institution significantly influences the intention to distribute the zakat. While zakat distribution influences insignificantly to the intention to distribute the zakat. Meanwhile, trust moderates between zakat distribution from zakat institution to intention to distribute the zakat

Impact of Macroeconomic Variabel and Global Indices on Islamic Stock Index: The Case Indonesia

Introduction to The Problem: The movement of the Islamic stock index can be influenced by changes in domestic macroeconomic conditions, not only domestic macroeconomics but also influenced by the stock markets of other countries.Purpose/Objective Study: The main objective of this study is to analyze the influence of the domestic macroeconomic and global stock indices on the Indonesian sharia stock index.Design/Methodology/Approach: This study uses a quantitative methodology with secondary data. The data sample method is saturated sample that all members of the population are used to be the research sample. The type of research data is monthly time series with a time period from May 2011 - July 2019, the selection of the Vactor Error Correction Model (VECM) research method based on the stationarity of the data on the first difference and the existence of cointegration models.Findings: The results showed in the short term all variables did not show a significant effect. In the long run, interest rates have a negative effect, while the exchange rate shows a positive effect on the movement of Islamic stock price indexes. Global stock indices such as the Shanghai Stock Exchange Index show a negative effect, and the Standard & Poor's 500 index shows a positive effect. While the Nikkei 225 index did not show a significant effect on the Indonesian Islamic stock index.

The Intention of Investing Sharia Stocks on Millennials: The Role of Sharia Financial Literacy

Introduction to The Problem: Millennials are a generation that has a very rapid growth. More than 30 percent of Indonesia's population is millennials, but many of the Millennials have not been intentioned in investing in sharia stocks.Purpose/Objective Study: The purpose of this research is to examine the impact of sharia financial literacy on Millennials on the intention of investing in sharia stocks, or it has other factors.Design/Methodology/Approach: This research used Sharia financial literacy and the Theory of Planned Behavior. This research used five variables namely Sharia financial literacy, attitudes, subjective norms, behavioral controls, and intentions. This study used purposive sampling method, from muslim millennials in Yogyakarta. Total respondents to this study are 112 with 20-40 years old or a millennials generation and already have income. Multiple linear regression analysis techniques used as primary analytical techniques.Findings: The results proved that Sharia financial literacy and subjective norms did not affect the intention of investing in sharia stocks. Other variables, such as behavioral attitudes and controls, proved to have a significant influence on the intention of investing in sharia stocks.

An Investigation of the Antecedents to Marketing Mix Strategy Implementation

Introduction to The Problem: Been established for 282 years (2019), Pondok Pesantren Sidogiri was one of the oldest Islamic educational institutions in Indonesia. With its approximately 11,000 students, the institution was potentially economic to develop. The development effort was started in 1961 by establishing Koperasi Pondok Pesantren which focused on how to fulfill its students’ needs. Kopontren Sidogiri was currently the main actor in a minimarket business competition in East Java. With its trading activities earning IDR 1 trillion per year, Kopontren Sidogiri could give a welfare impact to the community and Pondok Pesantren Sidogiri.Purpose/Objective Study: The research aims to examine Kopontren Sidogiri’s operational description and marketing-mix implementation in retail business in the 4.0 era.Design/Methodology/Approach: The research was conducted using a qualitative method. According to the theme of the discussion, this research was field research. The research was a descriptive case study performed at Koperasi Pondok Pesantren Sidogiri. Sampling was conducted using a purposive sampling technique. The research sample consisted of a steering committee, managers, staff, and experts. The secondary data were collected from several findings relevant to this study. Data validity was tested using a triangulation technique.Findings: Strategies implemented included marketing mix (4Ps) i.e. product, place, price, and promotion. The achievement gave an inclusive and modern image to Koperasi Pesantren. Meanwhile, place strengthening was by building Toko Basmalah in the areas where alumni of Pondok Pesantren Sidogiri lived, creating loyal market targets. Moreover, price strengthening was by using a retail price in a product sale, encouraging the sale, and making effective profits. The promotion was by branding Pondok Pesantren Sidogiri, creating customers’ trust, and spreading positive information about Minimarket Basmallah to people (word of mouth).