Theses - Economics

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https://hdl.handle.net/20.500.14576/27

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Open Access
Examining the economic and non-economic fators on tax revenue in Indonesia
(Universitas Islam Internasional Indonesia, 2023) Adinda Rachmawati; Fajar B. Hirawan; Dian Masyita
Taxes are sometimes undermined by limitations on tax revenue measurement, despite the widespread consensus that taxes are typically a good policy instrument for evaluating the macroeconomic impact of the country's different tax policies. According to the Ministry of Finance, Indonesia's tax ratio has experienced volatile fluctuations over the past five years, and it is the third lowest of all ASEAN countries. This phenomenon can negatively impact tax revenue if not appropriately addressed by the government. This study considers various economic and non-economic indicators to assess the tax revenue. Inflation and unemployment are analyzed economically, while non-economic factors are trust and tax education. Investigating the relationship between these independent variables and tax revenue employs Panel Data Regression. The data utilized in this study were from the Directorate General of Taxes and the Central Bureau of Statistics (Badan Pusat Statistik/BPS) from 2015 to 2022. The analysis encompasses 34 provinces within Indonesia. The results of the Panel Data Regression indicate that inflation, tax education, and trust exhibit significant positive effects on tax revenue. In contrast, unemployment has an inverse impact on tax revenue. These findings offer valuable insights and recommendations to the government. The government should take a more proactive stance in managing inflation rates and addressing tax education. Tax revenue can be improved by effectively controlling one or more variables, thereby increasing tax revenue.
Open Access
The impact of trade openness, tariff, and globalization on food security in promoting resilience against global crisis in the ASEAN region
(Universitas Islam Internasional Indonesia, 2023) Fahmi Alamil Huda; Aimatul Yumna; Herbert Wilbert Victor Hasudungan
In 2023, many crises hit the world due to heated geopolitical conditions resulting from the war in Russia and Ukraine; the world situation was fragmented because of competition between the USA and PRC blocs, economic recovery due to COVID- 19 has shaken again, and food inflation was soaring high. The leading cause of food insecurity in ASEAN, which consists of most developing countries, is the lack of distribution access due to the affordability of logistics and food supplies. Most investors shift their investment preferences from the primary sector to manufacturing due to the volatility and high risk of assets. In 2020, in Asia, there were 78.7 million toddlers who were stunted, with the second majority in Southeast Asia (27.40%). Although most of the ASEAN member countries are connected geographically, the market share of ASEAN member countries in world trade is only 8.8%, so intra-trade relations are considered not optimal enough. This study aims to analyze the effect of three different trade openness indicators (trade openness, tariffs, and globalization) on the food security of Southeast Asian people in 2000-2021. The method used in this research is panel data, which combines pool least squares (PLS) and fixed effect models (FEM) by developing Beck and Katz's two panels corrected standard errors (PCSE): cross-section weights and SUR. Trade openness significantly affects the two pillars of food security: stability and utilization, with U-shaped results. Ad-valorem tariffs are significant and positive for the two pillars of food security: availability and utilization. Increasing taxes in Southeast Asia can improve the average dietary energy supply's adequacy; however, this can also increase the prevalence of stunting in children under five. It happens because the availability of abundant food in terms of quantity differs from the quality and safety of its consumption. The increase in globalization from an economic, political, and social perspective in Southeast Asia is significant for the four pillars of food security; if globalization is increased, then this can positively impact reducing cases of stunting and malnutrition; on the other hand, increasing globalization has harmed food availability and stability. Increasing one policy has a different impact. In the first stage, policy improvements can positively impact a pillar of food security. However, after reaching a turning point, there is a possibility that the increased policy will harm the other pillars. Therefore, it is necessary to choose an integrative policy trade-off and be able to solve problems better. This study suggests several main policy implications, namely building a more assertive trade policy based on the WTO and food safety technical rules that comply with WHO rules, increasing intra-trade within the ASEAN group, maintaining food price stability, encouraging investment in agriculture, promoting governance reforms. and strengthen the regional food security system in terms of production consumption, and distribution. Support policies are also needed regarding solid prevention efforts against stunting and malnutrition and digitalization (Agritec 4.0), which supports food availability. In addition, this research also suggests that ASEAN can continue to increase domestic food production for resilience to the global crisis.
Open Access
An Islamic economics perspective on the determinants of indebtedness as measured by debt-to-GDP ratio : a panel regression analysis of the data from certain OIC and non-OIC member countries
(Universitas Islam Internasional Indonesia, 2023) Yadgari, Mohammad Rashed; M. Luthfi Hamidi; Fajar B. Hirawan
This thesis aims to define common causes of indebtedness, differentiate within common causes of indebtedness, assess whether fiscal and monetary policies are on a sustainable path to control debt distress and levels, and lastly, evaluate whether the ethical foundation of Islamic economics and finance provide a better way of handling the phenomenon in terms of fiscal, monetary policies and speculative investments. To accomplish these objectives, data of specified countries are taken from the World Bank, IMF. and Central Banks in terms of Debt-to-GDP ratio as the dependent variable, and FDI (net inflows), Government revenue, Government Expenditure, Export, Stocks traded value (GDP), Interest rate, GDP growth, Inflation, and Import as independent variables from 1990 to 2021, 32 years and 12 cross sections, establishing 384 observations for the study, the method consists pre-estimation tests of endogeneity and heteroskedasticity to validate basic assumptions of Ordinary Least Square regression and main separated estimation of Pooled OLS group wise for OIC, non-OIC countries with the adjustments by Heteroskedasticity Linear Regression with maximum Likelihood option. The study found that all the variables except inflation are significantly impacting Debt-to-GDP ratio regardless of separated estimation, however, the difference is that interest rate and stocks traded have a negative and significant relationship with debt for OIC countries while positive nexus for non-OIC countries, FDI has a positive and significant relation with debt for OIC countries while adversely it decreases debt for non-OIC countries with negative nexus. Export and economic growth have a significant and negative relationship for both types of countries, while imports have a positive relationship with debt. Government revenue and expenditure have a significant and negative relationship with debt for OIC countries while positive nexus for non-OIC countries. This study fills the gap of a comparative group-wise study of the macroeconomic determinants of indebtedness while calibrating initial theories proposed by major economists addressing the relationship among mentioned variables and results imply that governments shall formulate efficient policies to lower interest rates, avoid & decrease speculative investments and unnecessary spendings, and maximize revenues to control the debt levels and ensure the ability to service their debt.
Open Access
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.
Open Access
The determinates of carbon emission intensity on socio-economic indicators : a causal analysis in the ASEAN region
(Universitas Islam Internasional Indonesia, 2023) Muhammad Ismail Sunni; Herbert Wilbert Victor Hasudungan; Fajar B. Hirawan
The rapid economic growth experienced by the Association of Southeast Asian Nations (ASEAN) in recent decades has led to a significant increase in carbon emissions, exacerbating the global challenge of climate change. Despite the urgency of addressing this issue, there is a lack of comprehensive research examining the factors driving the rise in carbon emission intensity within the ASEAN region. As the world's third-largest emitter of greenhouse gases, it is imperative to understand the relationship between economic development, social development, technological development, and carbon emission intensity to inform effective policy development. This study aims to fill the research gap by investigating the determinants of carbon emission intensity in ASEAN and exploring the impact of economic development, social development, and technological development on this intensity. By utilizing quarterly panel data comprising 432 observations from 10 ASEAN countries spanning the period from 2010 to 2021, a fixed-effect model (FEM) is employed as the estimation approaches in EViews. Prior to estimation, the validity and reliability of the model are assessed through the Chow test, Hausman test, and Laggrange Multiplier test. Additionally, tests for multicollinearity and heteroscedasticity are conducted. The study reveals that among the examined variables, only foreign direct investment (FDI) from the economic development indicators does not exhibit a significant association with carbon emission intensity. Conversely, higher GDP, lower inflation rates, and limited technological development are found to be significantly linked to lower carbon emission intensity within the ASEAN region. Furthermore, two variables related to social development, namely the Human Development Index (HDI) and the GINI index, also do not demonstrate a significant relationship with carbon emission intensity. After applying the Granger causality test, the study reveals no significant mutual association between socioeconomic factors and carbon emission intensity. By addressing the critical research gap regarding the drivers of carbon emission intensity in ASEAN, this study has significant implications for policymakers and stakeholders. The findings provide valuable insights into the key factors influencing carbon emissions and offer evidence-based recommendations for the formulation of effective environmental policies.
Open Access
Potential customers' intention to use Islamic banking products in Cameroon : the mediating effect of attitude
(Universitas Islam Internasional Indonesia, 2023) Hamadou, Issa; M. Luthfi Hamidi; Aimatul Yumna
Islamic finance is not limited to the world's approximately 1.7 billion Muslims. Several additional countries, including the United Kingdom, France, Belgium, and Germany, are also interested. They show their willingness to adopt Islamic financial products for the purpose of inclusive finance and satisfaction of financial needs of the Muslim minority population of these countries. However, although the primary goal of Islamic finance financial inclusion, it has been observed that in some Muslim countries as well as non-Muslim countries, the majority of the people are excluded from the traditional system for religious reasons. This study examines potential customers awareness of Islamic banking products in Cameroon and factors influencing their decision. To achieve this, a structured questionnaire was used with 318 respondents, while 300 were usable for analysis with 94% of respondents rate. The research used SEM-PLS to estimate the data. In addition, an interview with 10 participants was conducted to support the quantitative results. The findings suggested that potential customers knowledge of Islamic banking operations is limited. Most of them are not completely mindful of Islamic financing instruments. Moreover, the study found that attitude, religious motivation, awareness, subjective norm, and relative advantage significantly affect their intention towards Islamic banking products, while perceived regulatory and perceived innovation are not significant. Furthermore, attitude has a substantial mediating role on the connection amongst religious motivation, subjective norm, awareness, relative advantage, perceived innovation, and intention to adopt Islamic banking products. Therefore, the findings of this study contribute to the past literature by providing new framework that combines the theories of planned behavior and diffusion of innovation theory and offers managerial implications at the level of Islamic finance operators. Meanwhile, this research provides some policy recommendations that can help to boost the growth of Islamic finance in Cameroon in order to promote financial inclusion.
Open Access
The impacts of islamic human development index to poverty in Indonesia (2017-2022)
(Universitas Islam Internasional Indonesia, 2023) Cynthia Farah Sakina; M. Luthfi Hamidi; Aimatul Yumna
Islamic Human Development Index (iHDI) used as the most comprehensive, appropriate and adequate indicator to measure the human development through an Islamic perspective based on maqasid sharia. In this study, the iHDI will be used to determine their impact to poverty in which is elaborated into five variables. The indicators used are the total Muslim population in each province and the national zakat index data as Hifdzu Dien variable; expenditure per capita (food) and expenditure per capita (non-food) data as Hifdzu Nafs variable; literacy rate and the average length of school years data as Hifdzu Aql variable; the life expectancy and marriage rate data as Hifdzu Nasl variable; economic growth rate and gini ratio asHifdzu Maal variable, and the unemployment rate as a control variable to povertyin Indonesia during 2017- 2022. The quantitative research methods were used in this study with secondary data from Kementerian Agama Republik Indonesia, PUSKAS BAZNAS, BPS, and SIMREGBappenas. The collected data is data panel from 34 provinces in Indonesia with 204 total samples of observations. Using Eviews 12 program, the analysis tool used is panel data regression. The results showed only two provinces show iHDI values in the Middle standard category; Jawa Barat and DKI Jakarta. In the conclusion, Indonesia is still in a Low standard iHDI when calculated in general with an average for the last 6 years with the value of 40.32. The results of the study showed that there was a positive relationship between Hifdzu Dien and unemployment variable to poverty in Indonesia. The Hifdzu Dien variable (preservation of religion) used two indicators; the number of Muslim populations in each province and the nationalzakat index. For unemployment as a control variable, the data used is the OpenUnemployment Rate (OUR). The positive relationship indicated that if the HifdzuDien and Unemployment variables increase, the poverty rate will also increase. Meanwhile, the other four variables (Hifdzu Nafs, Hifdzu Maal, Hifdzu Nasl, and Hifdzu Maal) had a negative relationship with poverty in Indonesia. This result showed that if the independent variable increases, the poverty rate as the dependent variable will decrease.
Open Access
The impact of microfinance on climate action and women empowerment : a case study of Koperasi Mitra Dhuafa (Komida)
(Universitas Islam Internasional Indonesia, 2023) Ashraf, Nihad; Aimatul Yumna; Dian Masyita
Climate action has been the global talk lately as the constant rise in temperatures causes a serious threat to the existence of some nations. Low and middle-income countries like Indonesia have not been spared from the effects. Moreover, women are already vulnerable in society and climate changes have added to the disaster. Microfinance has been known to alleviate poverty and promote economic growth and development in addition to empowering women especially those in rural areas. The aim of this study is to assess the impact of microfinance from KOMIDA on climate action and women empowerment. Four indicators were used to measure each variable. Women empowerment was measured through Decision making, political participation, freedom of movement and self-worth. Three types of decision were taken into consideration which are household economic decisions, personal decisions and family decision. On the other hand, climate action was measured through Climate awareness, use of renewable energy appliances, climate action willingness and reuse of products. A mixed approach was deployed and qualitative data was collected from semi structured interviews with six clients while quantitative data was collected through a questionnaire with 283 participants. 211 were clients and 72 non- clients. Twenty-six questions were measured through a five-point Likert scale. Factor analysis using the principal component analysis was used for data reduction. Quantitative results indicated that only 5 factors can be used to explain all the twenty-six items which represented a total variance of 73%. Further results were that microfinance has no significant impact on decision making, self-worth, climate action willingness and use of renewable energy. Meanwhile, microfinance positively impacts climate awareness. On the contrary, qualitative results reveal that microfinance has provided very little awareness of climate change but has positively influenced self-worth, climate action willingness and use of renewable energy appliances. The study recommends that the government must establish a legislative framework and strategy to protect women's rights in key areas including inheritance and property ownership as it influences women empowerment. In addition, policymakers must keep women's demands in mind while developing economic policy, infrastructure, and other projects. Likewise, KOMIDA must focus on training and capacity development of its members as well as include components of climate knowledge in its non-financial initiatives that can be implemented by low literacy individuals at household level. Future studies must look into other indicators of empowerment and climate action as well as get a perspective of other microfinance institutions and government authorities in charge of climate action.
Open Access
The impact of single window system in facilitating trade : evidence from ASEAN countries
(Universitas Islam Internasional Indonesia, 2023) Andiyani Kurnia; Teguh Yudo Wicaksono; Dian Masyita
This study aims to assess the impact of the Single Window System on facilitating trade processes in ASEAN member countries using panel data analysis. The Single Window System is an integrated platform that streamlines and harmonizes trade procedures by allowing traders to submit all required documents and data through a single electronic gateway. This research utilizes panel data from multiple ASEAN member countries over a specific time period to examine the effects of implementing the Single Window System on trade facilitation. The study employs a Fixed Effect model, shows that Single Window has a positive and significant impact toward Trade as well as the other determinant such as Trade in service GDP, and Population. Besides, Frontier Technology Readiness has significant negative impact. The findings of this research contribute to the understanding of the effectiveness of the Single Window System in enhancing trade processes within ASEAN member countries. It provides insights into the extent to which the implementation of this system has reduced trade barriers, improved efficiency and increased transparency in trade procedures. The results also shed light on potential variations in the impact of the Single Window System across different ASEAN member countries. The analysis will help identify best practices and policy recommendations for optimizing the implementation and utilization of the Single Window System to further enhance trade facilitation.
Open Access
Advancing the understanding of behavioral intentions towards I-Fintech : a study on Indonesian millennials and gen z
(Universitas Islam Internasional Indonesia, 2023) Siti Nur Aisyah; Aimatul Yumna; M. Luthfi Hamidi
Islamic fintech is likewise a part of the digital development and Islamic teaching is concerning the historical development. It is such a completely new for Islamic economic world to implement the technology in a daily life. Such an aftershock of Islamic finance which has not been accepted well by society, Islamic fintech is approaching the Islamic lifestyle. Conventional fintech has been well-approved by the society since Indonesian has not been concerning the Islamic value instead of the religion they believe. This leads to the lack of intention of using 1-fintech services. The intention of using a product is sometimes affected by the lack of product awareness and literacy instead. This project of the study is ensured to explore whether the society has an intention to adopt Islamic fintech services. The focus of this study is taking place on millennials and Gen Z's group as this circle of society is currently the higher adoption of technology and financially active. The questionnaire was placed on the surveymonkey.com website and shared through random sampling method. Before disseminating the questionnaire publicly, the questionnaire was tested by the piloting project to examine whether the questionnaire was valid and reliable. There are 333 respondents besides those who had been involved in the piloting project. The study was tested by SEM-PLS. The results describe that the variables, digital financial literacy, planned behavior, acceptance model and use of technology, while the three variables significantly affect the intention to adopt except digital financial literacy. Planned behavior is the most powerful factor among others. The score of digital financial literacy is considerably high where the intention to adopt is lower than the I fintech adoption rate. Moreover, DFL score is depicted to explain the current literacy on the millennials and gen z. This study was overseen only in Indonesia, aiming on millennials and gen z Therefore, the results cannot be globalized to other countries and generations. However, this study presents the critical information regarding the digital financial literacy in Indonesia to achieve the fintech industry development. On this case, where the digital financial literacy does not significantly affect the adoption of I- fintech, it could be explained that I-fintech is supposed to be explored by the Islamic Digital Financial Literacy. To the best of the author knowledge, there has been no theory representing the Digital Islamic Financial Literacy. It is suggested that the next studies could increase the number of respondents. By this study, it is aimed to obtain the best representing results for the future research about digital financial literacy and expected to be one of the concerns of the practitioner/developer of I- fintech and policy maker to improve the related regulation of I-fintech.
Embargo
The demand analysis for electric and fuel-based engine vehicles in Asian countries : a study from the year 2010-2022
(Universitas Islam Internasional Indonesia, 2023) Zamani, Sayed Mustafa; Herbert Wilbert Victor Hasudungan; Teguh Yudo Wicaksono
Electric vehicles are gaining popularity as an environmentally beneficial innovation, offering a potential long-term solution to global energy constraints and pollution concerns. Despite their advantages, the demand for EVs in many Asian countries has not experienced substantial growth. Understanding the influential factors behind EV demand in this region is crucial to promote their adoption and addressing environmental challenges effectively. This study aims to examine the demand for electric vehicles in Asian nations as well as its substitution effect on those of fuel-based engine type. This study empirically investigates the factors that influence the demand for EVs. We apply a panel data regression model to analyze the relationships between GDP, inflation, EVs price, gasoline price, and quantity of charging stations from the year 2010 to 2022 in Asia. It is found that the EV market growth in India and ASEAN member countries is negligible. However, fuel-based vehicles are still dominating the vehicle market, especially in India and ASEAN member countries. In addition, the findings also indicate that GDP, EV prices, and the quantity of charging stations have a positive and significant impact on consumer demand in Asian countries. Overall, the study suggests that each country's policies should balance their domestic purchasing power, increase the development of charging infrastructures; and provide a well-designed scheme of incentives to harmonize the transition from conventional vehicles to EVS in the transportation sector.
Open Access
The factors that influence earning response coefficient : in the context of Indonesian capital market in years 2015-2018
(Universitas Islam Internasional Indonesia, 2023) Vincent Aurelio Benny; Dadang Muljawan; Herbert Wilbert Victor Hasudungan
Every investor aims to invest in a company that continues to generate quarterly profits. Investors certainly want to invest in companies with quality earnings. This earnings quality is the result of well-applied operational management and financial standards. The earning response coefficient measures how the capital market interprets the information in earnings. The existence of quality earnings by the company could either strengthen or weaken the market's perception of the content of this earnings information, depending on the interpretation of the capital market. The role of corporate governance is expected to moderate the relationship between market perception and earnings quality so that it can be a good internal control and provide investors with some protection. The existence of a good corporate governance role will boost the company's reputation. Good corporate governance can strengthen the positive influence of earning quality on information content in accounting earnings. This empirical study tries to find the relationship between conservatism, a method of presenting numbers in financial statements, return on assets, asset turnover and earning quality with corporate governance as the moderation variable on earning response coefficient as the dependent variable. Purposive sampling and panel data regression analysis were used in this study to examine manufacturing firms in the primary and chemical industries listed on the Indonesia Stock Exchange (IDX) between 2015 and 2018. Key findings from this study found that conservatism, return on assets, and asset turnover have a significant effect on the earning response coefficient. It was also found that earnings quality, moderated by corporate governance, also affects the earning response coefficient.
Open Access
The determinants of biodiesel price in Indonesia : a var model analysis
(Universitas Islam Internasional Indonesia, 2023) Junejo, Safiullah; Herbert Wilbert Victor Hasudungan; Teguh Yudo Wicaksono
As the world's largest biodiesel producer, Indonesia has undoubtedly made remarkable progress in biodiesel and gasoil fuel blending. Yet, despite the progress it makes, the country surprisingly still experiences significant volatility in biodiesel prices. This phenomenon raises a critical question about the factors driving these fluctuations, which apparently are still not adequately addressed by the existing literature. Notwithstanding, this study delves into the relationships between biodiesel prices and various potential determinants, namely crude palm oil (CPO). crude glycerin, catalyst, gasoil, methanol, and palm fatty acid distillate (PFAD). To investigate these complex relationships, the Vector Autoregressive (VAR) model was employed, given its robustness in capturing dynamic interdependencies between multiple time series. As for the data collection, the study relies on monthly data provided by Indonesia's Ministry of Energy and Mineral Resources (MEMR) and Independent Commodity Intelligence Service (I.C.I.S) from 2016 to 2022. The VAR analysis reveals the nuanced influences of these variables on biodiesel prices. Specifically, it suggests that an increase in the prices of CPO, crude glycerin, catalyst, and PFAD positively affects biodiesel prices, whilst price shocks in gasoil and methanol inversely impact biodiesel prices. These findings provide valuable insights into the intricate dynamics governing biodiesel pricing in Indonesia, highlighting the necessity for a multi-factor approach when formulating pricing strategies. Consequently, this study's results inform policy decisions and industry practices to foster price stability, drive the growth of the biodiesel sector, and facilitate Indonesia's transition towards sustainable energy.
Open Access
The effect of consumer behavior on millennial Muslims decision in using Paylater : in the case of Shopee platform
(Universitas Islam Internasional Indonesia, 2023) Reginia Ruzianti Jeni; M. Luthfi Hamidi; Herbert Wilbert Victor Hasudungan
Consumer behavior in the marketing concept only focuses on four main factors: economic, socio-cultural, personal, and psychological. Although consumer behavior has received extensive attention, religiosity, and innovation factors need to be explored more deeply as essential roles in determining fintech products, especially Pay Later in Muslim-majority countries. This study aims to analyze and evaluate the effect of consumer behavior on millennial Muslim decisions in selecting the paylater feature. Data sources come from primary and secondary data. This research uses quantitative methods with Structural Equation Modeling (SEM) techniques with Smart-PLS. The questionnaire method involved 250 millennial Muslims in Jakarta who used Shopee PayLater. The findings show that economic, socio-cultural, personal, psychological, and innovation factors significantly affect millennial Muslim's behavior and the decision to use Shopee PayLater. Then, religiosity has an insignificant effect on millennial Muslim's behavior and their decision to use Shopee PayLater. This research has the potential to provide theoretical and scientific knowledge. Academically, to serve as a resource and reference; practically, to give an overview of the impact of consumer behavior on consumer decisions to use Shopee PayLater.
Open Access
Corruption, women participation, and economic development : evidence from G20
(Universitas Islam Internasional Indonesia, 2023) Ananda Olga Ulima; Fajar B. Hirawan; Teguh Yudo Wicaksono
Women's participation in the public sphere has been increasingly prominent and impactful, resonating across various macro and microeconomic domains. Gender- Corruption issues have been recently become the focus in empirical findings of scholars. This study aims to examine the effect of women participation in public space on corruption in G20 member countries between year 1995-2021, based on panel data analysis. Under the most relaxed assumption of the model i.e., fixed effect, the result concludes that countries with high inequality is associated by higher corruption level. However, a good governance indicated from their rule of law has significant impact on reducing the level of corruption, which indicated that the policies' role and commitment set by the government institution are essential especially for those of G20's developing countries. Furthermore, the impact of women participation in parliament does not necessarily reduce corruption. Both female labour force participation and senior-middle management have a positive effect to eradicate corruption level. While under fixed effect model, the impact of these variables dissipates, suggesting that country-specific characteristics may explain the variation in the corruption level. This study suggests that promoting women participation must be followed by institutions, norms, and culture to strengthen the effectiveness of law. Moreover, next agenda of G20's board meeting can be focusing on tracking the progress of Anti-Corruption Working Group because there is still gap between developed and developing countries in terms of corruption eradication policy to gain sustainable economic development.
Embargo
Factors affecting the human development status of muslim countries
(Universitas Islam Internasional Indonesia, 2024) Emil Haraki
This study analyses the relationship between human development and two types of factors: internal and external. Internal factors include economic inequality, political instability, social capital, knowledge creation, and natural resources. The external factor is colonization. The Organization of Islamic Cooperation is the second largest organization after the United Nations, consisting of 57 Muslim countries, but it is underdeveloped compared to other countries. This study comprehensively analyses Muslim countries' economic, political, social, educational, natural resource, and colonization legacies. This is because Europe colonized 44 out of 57 Muslim countries. This study uses a data panel model, consisting of 51 Muslim countries with 14 years from 2007 to 2020. To analyze the effect of independent variables on the dependent using the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). However, due to heteroscedasticity in the data, REM is the best model to use. The results show that economic inequality and political instability have a negative effect, knowledge creation and natural resources have a positive effect, but social capital does not have a significant effect. Colonized Muslim countries have lower human development than those that have never been colonized. It is concluded that what affects the underdevelopment of Muslim countries is high economic inequality and political instability, and colonization has a long-term impact on Muslim countries.
Embargo
The effect of the zakat empowerment program on youth farmers’ participation : a case study of desa tani program by Dompet Dhuafa
(Universitas Islam Internasional Indonesia, 2024) Fazlullah Ihza Qaseem
The declining interest of young people in agriculture not only threatens the sustainability of the agricultural sector but also endangers the livelihoods of farming communities in Indonesia. This research examines the effect of the Zakat Empowerment Program, specifically the Desa Tani Program by Dompet Dhuafa, on the participation of youth farmers in the agricultural sector. This research uses a mixed methods approach, combining quantitative surveys with qualitative interviews and document analysis. The quantitative analysis uses the Mann-Whitney U test to compare the perceptions and outcomes of youth farmers who participated in the program with those who did not. The qualitative analysis involves thematic analysis of interviews with youth farmers from both groups, program administrators, and community leaders to gain deeper insights into the effect of the program. In addition, the Analytic Network Process (ANP) is used to assess the relative importance of various program interventions in attracting youth farmers. The findings indicate that the Desa Tani Program has benefited youth farmers’ participation in agriculture. Program participants showed higher intentions to enter agriculture, increased access to resources such as land, finance and technology, also higher incomes compared to non-participants. The qualitative analysis highlights how Dompet Dhuafa helps youth farmers by providing motivation, resource training, and creating a supportive community environment. Also, the ANP analysis identified strengthening market linkages and local institution as important interventions for Dompet Dhuafa to attract youth farmers. Based on these findings, this research offers recommendations to Dompet Dhuafa and other zakat management institutions to improve the effectiveness of their empowerment programs. These recommendations include strengthening market linkages, increasing access to resources, addressing social and cultural barriers, leveraging technology and innovation, and establishing a robust monitoring and evaluation system. The research concludes that the Desa Tani Program serves as a model for encouraging youth participation in agriculture and sustainable rural development through zakat-based initiatives.
Embargo
Factors influencing decision to donate zakat infaq sodaqoh (ZIS) via digital payment in Indonesia : integrated TPB and TAM model
(Universitas Islam Internasional Indonesia, 2024) Suhail; Ugi Suharto; Aimatul Yumna
Donation nowadays are evolving with numerous innovations, including the use of digital transaction payment methods. In Islamic traditions, one of the common types of donations is zakat, infaq, and sodaqoh (ZIS). The increasing trend of digital transactions in Indonesia has influenced the increasing in ZIS payments through digital payment methods. This study aims to analyze predictor for factors influencing decision to donate ZIS via Digital Payment under integration of Theory of Planned Behavior (TPB) and Technology Acceptance Model (TAM) model. The population in this study comprised Muslim people in Indonesia who had made ZIS donations via digital payment. The sampling technique used was purposive sampling-quota sampling with a total sample size of 400 people. The method used in this research was an explanatory survey with a quantitative approach. The data analysis technique employed was Partial Least Squares-Structural Equation Modeling (PLS-SEM). The results of the study showed alignment between the TAM and TPB models and practice in the field regarding their influence on the decision to donate ZIS via digital payment. Results indicate that TPB and TAM model influence decision to donate ZIS moderately, and perceived value is the most significant variable in this study. Spiritual aspect has significant positive influence toward decision to donate ZIS. The research suggest ZIS institutions to enhance their digital payment systems by strengthening security, and improving features and marketing to increase customer satisfaction value and optimize ZIS collection in Indonesia through digital payment.
Controlled Access
Revamping the role of SMEs’digital financial management through Islamic fin-tech in Borama Somalia
(Universitas Islam Internasional Indonesia, 2024) Hassan, Samsam Ismail; Hamidi, M. Luthfi; Aimatul Yumna
Small and Medium-sized Enterprises (SMEs) play a vital role in economic growth, particularly in developing countries like Somalia. However, SMEs often encounter financial obstacles due to limited access to conventional banking services adhering to Islamic principles. This study aims to examinate the potential of Islamic Fin-Tech in bolstering Digital Financial Management among SMEs in Borama. Methodologically, the study utilizes quantitative data analysis methods, specifically multiple regression, to examine survey data gathered through purposive sampling. The data is obtained from a total of 255 small and medium enterprises (SMEs) situated in Borama. Demographic data, including gender, education, occupation, and firm types, are examined alongside the duration of utilizing Islamic fintech solutions. Assumption tests such as normality and multicollinearity tests are conducted to ensure the reliability of the regression model employed. The results indicate a significant adoption of Islamic fintech solutions among SMEs, particularly in recent years. While variables such as Service Accessibility and Digital Banking do not show significant impacts on Digital Financial Management (DFM) due to the internet shortage, SMS Banking and E-Wallet emerge as influential factors that positively affect SMEs' digital financial management performances. Hypotheses testing confirms the significance of SMS Banking and E-Wallet in predicting DFM. The implications of these findings highlight the importance of E-Wallet services and SMS banking in enhancing SMEs' digital financial management. These insights offer valuable implications for financial institutions and policymakers to develop strategies aimed at improving SMEs' digital financial management practices. The study requires for further research to explore additional variables and deepen the understanding of factors that influence SMEs' digital financial management. By understanding the transformative potential of Islamic Fin-Tech, stakeholders can collaborate on designing and implementing measures supporting SMEs, driving economic growth, and aligning with Islamic finance principles. Embracing technological advancements like digital banking and SMS banking can help SMEs overcome financial hurdles and amplify their contributions to economic development.
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An analysis of renewable energy demand : a case study of selected Gulf Cooperation Council countries between 1990-2021
(Universitas Islam Internasional Indonesia, 2024) Herawi, Saeed; Rima Prama Artha; Herbert Wibert Victor Hasudungan
This thesis analyzesthe demand for renewable energy in the United Arab Emirates, Qatar, Kuwait, and Saudi Arabia from 1990 to 2021. This study investigates the impact of economic, environmental, and market factors, using panel cointegration test and panel data analysis within the renewable energy demand theory framework. These factors include Gross Domestic Product (GDP), Fossil Fuel Consumption (FFC), Carbon Dioxide Emissions (CO2), Oil Prices (OIL), and the Levelized Cost of Renewable Energy (LC) on Renewable Energy Consumption (REC) in these fossil fuel-dependent nations. The study's objective isto analyze both short-term and long-term relationships between these variables. The study reveals a strong positive correlation between Income (GDP) and Renewable Energy Consumption (REC) in the selected (GCC) countries. This suggests that economic growth is a significant driver of renewable energy demand in these nations. Additionally, the findings indicate that fluctuations in Oil Prices (OIL) substantially impact (REC), with higher prices stimulating increased adoption of renewable energy alternatives. Moreover, the Levelized Cost of Renewable Energy (LC) is a critical determinant of (REC), as lower (LC) values correspond to higher adoption rates. These results emphasize the importance of economic factors in the GCC's transition to a renewable energy-based economy. However, the study found no significant relationship between Fossil Fuel Consumption (FFC) and renewable energy demand, indicating that a decrease in fossil fuel usage does not necessarily drive the transition towards renewables. The dominance of fossil fuels in (GCC) countries, supported by availability, infrastructure, and economic advantages, hinders the shift to renewables. Additionally, (CO2) emissions did not affect Renewable Energy Consumption (REC) within the studied period. This is because consumer preferences and national investments need to be stronger to shift the market towards renewables in response to (CO2) emissions changes. In addition, current environmental policies may need to be stronger to significantly impact Renewable Energy Consumption (REC), as the focus has historically been on oil production and revenue. The study recommends policies to help the (GCC) transition to sustainable energy while promoting economic growth. Key strategies include increasing renewable energy investment, reducing reliance on fossil fuels through subsidy reforms and carbon taxes, encouraging renewable technology innovation, and implementing carbon pricing. Furthermore, dynamic pricing mechanisms should adjust renewable energy incentives in response to changes in Oil Prices (OIL), ensuring competitiveness and environmental sustainability.