Browsing by Author "Milhatun Nisa'"

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    Financial instruments as the catalyst of sustainable forest management : an estimate on green bonds and Islamic financing
    (Universitas Islam Internasional Indonesia, 2023) Milhatun Nisa'; M. Luthfi Hamidi; Teguh Yudo Wicaksono
    Deforestation and forest degradation continue to persist, resulting in the loss of millions of hectares of forest annually. This is primarily driven by the exploitation of forests for short-term gains, highlighting the urgent need for sustainable forest management. However, implementing sustainable forest management requires substantial financial resources. Thus, this thesis aims to explore two potential financing streams, namely the impact of green bonds and Islamic financing provided by Islamic banking, in achieving sustainable forest management. It is important to note that achieving sustainable forest management is a complex endeavour influenced by various external factors. In addition to green bonds and Islamic financing, this thesis acknowledges the significance of macroeconomic conditions, financial bank performance, and political factors as potential determinants that can shape the success of sustainable forest management efforts. Therefore, the main objectives of this thesis are to examine the correlation between green bonds and Islamic financing with sustainable forest management (SFM) and to explore the factors that support or hinder the progress of sustainable forest management (SFM). Moreover, the G20 countries are recognized as the largest emitters of carbon emissions globally, and they have issued a significant number of green bonds as a means of mitigating their environmental impact. By focusing on the G20 countries and D-8 countries, the study aims to explore how these countries utilize green bonds to address sustainable forest management. Additionally, the D-8 countries as representatives of Muslim nations as well where Islamic financing is prevalent. Islamic financing, provided by Islamic banking institutions, is recognized for its environmental friendliness compared to other banks. Consequently, the study considered both the G20 and D-8 countries as the subjects of analysis and its cover period around 2010 until 2021. The findings of the study revealed that green bonds have a positive impact on sustainable forest management, whereas Islamic financing has a negative effect on its performance. The certain macroeconomic factors were found to significantly influence forest management outcomes in different ways. Furthermore, financial bank performance and political stability were identified as contributing factors in enhancing sustainable forest management practices. This study stands out from previous literature as it adopts a quantitative approach to explore the relationship between green bonds, Islamic financing, and sustainable forest management. Unlike prior studies that primarily employed qualitative methods, this research provides a unique perspective on the topic. Moreover, the integration of these specific themes within a single study makes it an original contribution to the existing of knowledge. The study recommends that the International Capital Market Association (ICMA) should establish standardized and globally recognized definitions and criteria for the official use of proceeds in green bonds. Additionally, the government of D-8 countries is advised to implement or strengthen regulations that incentivize Islamic banks to prioritize environmentally sustainable projects.
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    Internet users and macroeconomic factors’ impact on Indonesia-Malaysia islamic finance index
    (Universitas Airlangga, 2024-06-30) Milhatun Nisa'; Muhammad Ismail Sunni
    Introduction: The rise of the internet has revolutionized the way businesses operate and people interact globally, without exception, including Islamic finance. This paper aims to investigate whether or not the level of internet users, GDP per capita, exchange rate, labor force, and poverty are the determinants of the increase of the Islamic Finance Index (IFI) in Indonesia and Malaysia. Methods: This research is a quantitative study that employs a balance panel regression and causality tests for the period 2013 to 2020 quarterly. Results: It is empirically found that there was a relationship between internet users and other macroeconomic variables on IFI in the long term, which was significant. However, only the labor force and exchange rate have significantly and negatively impacted IFI. While the remaining variables were expected to be positive, poverty uniquely did not contribute to the performance of Islamic finance. Furthermore, the empirical findings portrayed that all determinants influenced the endogenous variable, but not the contrary. Conclusion and suggestion: By analyzing and delving into the link between internet users, macroeocnomic factors and Islamic finance, this study fills the literature gap which will be a guide for both policymakers and academies to grasp what dominant variables to prioritize for the acceleration of Islamic finance rectification in both Indonesia and Malaysia, aligned with the increasing rate and impact of internet users.