Jurnal Ekonomi dan Bisnis Islam (Journal of Islamic Economics and Business)

Front Matter 2025

Sylva Alif Rusmita — Thu, 03 Jul 2025 00:00:00 +0700

Front Matter 2025

Back Matter 2025

Sylva Alif Rusmita — Thu, 03 Jul 2025 00:00:00 +0700

Back Matter 2025

HALAL TOURISM AMONG GEN Z: ANALYZING THE EFFECT OF HALAL AWARENESS AND DESTINATION TRUST ON VISIT INTENTION WITH RELIGIOSITY AS A MEDIATOR

Mon, 30 Jun 2025 00:00:00 +0700

This study investigates the factors shaping Generation Z’s interest in halal tourism, with a focus on evaluating the alignment of Java Island’s destinations—Indonesia’s most populous region—with halal standards. Emphasizing the necessity for heightened awareness of halal compliance in tourism, data were gathered from 416 Indonesian respondents planning trips to Java. Structural equation modeling via SmartPLS analyzed the relationships among halal awareness, destination trust, religiosity, and visit intention. Results demonstrated that destination trust exerted the strongest direct influence on visit intention, surpassing halal awareness. Furthermore, religiosity significantly mediated the relationship between destination trust and visit intention, validating the role of religious values shape travel decisions. These insights highlight that halal tourism appeal hinges not only on transparent halal practices but also on fostering trust and integrating religiosity into destination planning. The study advocates for targeted strategies to enhance halal literacy and reinforce ethical tourism frameworks tailored to Gen Z’s evolving needs.

HALAL VALUE CHAIN: A BIBLIOMETRIC ANALYSIS

Mon, 30 Jun 2025 00:00:00 +0700

Introduction: Despite growing interest in halal research, there is a lack of complete understanding regarding the strategic contribution of the halal value chain to business performance and operations. Issues such as fragmented regulations and limited standardization beyond the food sector exacerbate this. This study aims to systematically analyze the evolution of halal value chain topics within academic discourse, identifying trends, evaluating the impact of research, recognizing key contributors, and suggesting directions for future research.

Methods: This study adopts a bibliometric analysis methodology. The study analyzed 233 Scopus and 116 Web of Science-indexed research publications. The export data is then processed and analyzed using R-studio software to determine the bibliometric map of the halal value chain.

Results: The findings demonstrate a significant increase in halal value chain research since 2011, with a primary concentration in Southeast Asia and a focus on micro, small, and medium-sized enterprises (MSMEs) and the halal food industry. Researchers have identified the gaps in non-food halal sectors, including cosmetics, pharmaceuticals, finance, and tourism. The analysis also highlights three strategic clusters—governance and certification, technological and operational integration, and market-oriented strategies—each contributing to economic, operational, and ethical outcomes.

Conclusion and Suggestion: This study reveals that adopting a value chain perspective in halal supply chain management necessitates a comprehensive and integrated strategy. Future research should focus on empirical studies, sectoral diversification, and innovation in digital halal assurance to enhance the sustainability of the global halal ecosystem.

BRIDGING THE GAP BETWEEN MAQĀṢID AL-SHARĪ‘AH AND THE SDGs: CHALLENGES AND OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT

Hafidz Zainul Mustofa, Amin Wahyudi, Siti Marpuah — Mon, 30 Jun 2025 00:00:00 +0700

The SDGs are designed as a universal and inclusive global development framework, but their implementation still lacks flexibility in accommodating the spiritual dimension and ethical principles. Based on quantitative indicators and material achievements, the SDGs approach ignores the moral, social, and spiritual aspects as the core of maqāṣid al-sharī‘ah. Therefore, this study seeks to analyze the alignment between the SDGs and maqāṣid al-sharī‘ah and proposes integrating Islamic values to strengthen the moral, social, and ecological dimensions within the sustainable development framework. This research uses a systematic literature review analysis method, focusing on literature to explore integrating the maqāṣid al-sharī‘ah concept in sustainable development. The data sources in this study are journal articles, books, and other relevant documents. Sustainable development involves a multidimensional approach encompassing social, lifestyle, human resources, economic, environmental, and institutional dimensions. In the concept of maqāṣid al-sharī‘ah, this approach must balance the public interest, social welfare, and environmental protection by emphasizing the principles of justice and ethical and moral responsibility. Challenges in this implementation include integrating maqāṣid al-sharī‘ah values with the SDGs, various interpretations of maqāṣid, economic and social challenges, climate change, and technological advancement. The integration of maqāṣid al-sharī‘ah with the SDGs shows alignment. It supports the achievement of welfare, but challenges, such as integration, interpretation, economic and social, environment, and technology, must be overcome for effective implementation. This study recommends strengthening sustainable development policies that consider maqāṣid al-sharī‘ah through education, technological innovation, and stakeholder collaboration.

THE STUDY ON ISLAMIC VALUES AND WOMEN ENTREPRENEURSHIP MSMES

Asep Maksum, Lufthia Sevriana, Anggun Pratiwi, Asri Noer Rahmi — Mon, 30 Jun 2025 00:00:00 +0700

This study investigates of Islamic values on the sustainability strategies of women-led, knowledge-based micro, small, and medium enterprises (MSMEs). Women entrepreneurs significantly contribute to community welfare, and to contextualize the analysis, this study employs a literature review approach by examining prior research on Islamic business ethics, gender dynamics in entrepreneurship, and sustainability practices in MSMEs. The review highlights how Islamic principles may serve as foundational values influencing sustainable business practices among women entrepreneurs. By using bibliometric analysis using data from the Scopus database spanning from 2005 to 2024. A total of 29 documents were initially identified using keywords related to Islamic values, women entrepreneurship, and MSMEs. The bibliometric data were analyzed using VOSviewer software to visualize publication trends, keyword networks, and research clusters in the field. Bibliometric analysis of 22 Scopus-indexed articles identified three dominant research clusters: Islamic ethics and gender identity, social capital and business knowledge, and community-based micro entrepreneurship. The Journal of Business Ethics was the most prominent outlet, and the most cited scholars were Essers & Benschop (2009). The results highlight a lack of empirical research connecting Islamic values with financial literacy and sustainability outcomes in women-led MSMEs. Islamic values, such as honesty, justice, and social responsibility, serve as ethical foundations for women entrepreneurs in Muslim contexts. Future studies should examine the link between Islamic womenpreneurs and financial literacy, particularly their engagement with Islamic microfinance. Additionally, exploring how cultural variations within Muslim societies influence women's entrepreneurial approaches would provide valuable insights.

THE ROLE OF ISLAMIC CORPORATE GOVERNANCE IN REDUCING SHARIA BANK FINANCING RISK IN INDONESIA

Mon, 30 Jun 2025 00:00:00 +0700

This study examines Islamic Corporate Governance (ICG), proxies by Sharia Supervisory Board, in mitigating the negative impact of Murabahah, Mudharabah, and Musyarakah financing on Non-Performing Financing (NPF) in Indonesian Islamic banks (2012–2023). This study employs purposive sampling to analyze 132 Islamic bank data from the Financial Services Authority (OJK) (2012–2023). Using Moderated Regression Analysis (MRA) the model testing panel static regression model by adding ICG as moderating variable. Murabahah, musharakah, and mudharabah significantly increased NPF, indicating the high financing risk of these contracts. ICG has a significant direct effect on lowering NPF, but does not moderate the relationship between financing and NPF significantly. This shows that increasing the number of ICG without adequate quality and coordination is not effective in strengthening the supervisory function, because it can cause overlapping tasks, coordination problems, and free riding behavior which actually weakens financing risk control. In summary, bank’s need to maintain their financing, especially for Murabaha and Musyarakah products. Further, considering to choosing expert ICG might help banks to break the NPF. The implication of this study is that while different sharia financing schemes significantly affect credit risk in Islamic banking, the Sharia Supervisory Board plays a crucial yet non-moderating role, highlighting the need to enhance its authority and operational involvement to strengthen risk mitigation efforts.

SDGs IN ISLAMIC COMMERCIAL AND SOCIAL FINANCE LITERATURE: A BIBLIOMETRIC AND CONTENT ANALYSIS

Mon, 30 Jun 2025 00:00:00 +0700

A number of Muslim-majority countries scored low in SDGs achievements, mainly due to the limitation of funding sources. Many Islamic scholars propose Islamic Finance to address this issue. This research was performed to determine the impactful authors, institutions, countries, journals and keywords in the literature on SDGs in Islamic Commercial Finance (ICF) and Islamic Social Finance (ISF). Furthermore, this paper also presents the discussion on relevant trends and proposes directions for future research in this field. A bibliometric approach and content analysis were administered in analyzing 139 articles retrieved from the Scopus database. The results show that Hassan R. is the most productive author, while Universitas Airlangga and Malaysia are leading institution and country focus in this research theme. “International Journal of Ethics and System” is the leading journal, and the most influential keywords are “SDGs”, “Islamic finance”, and “waqf”. Six research streams were identified: 1) Governance and Performance for SDGs; 2) Innovation for Financing SDGs; 3) Digitalization for SDGs Realization; 4) Green Investment for SDGs Realization; 5) Solution for Socioeconomic Issues; and 6) Contribution to Economic Sustainability. Governments and regulators are recommended to strengthen Islamic finance by ensuring Shariah compliance, promoting blended finance, regulating fintech, incentivizing green sukuk, standardizing SDG reporting, and fostering cross-border harmonization to enhance sustainability, financial inclusion, and economic growth while balancing innovation and risk management.

ANALYSIS OF FACTORS AFFECTING THE S&P/OIC COMCEC 50 SHARIAH STOCK INDEX

Nani Suhartini, Ririn Tri Ratnasari , Shafinar Ismail — Mon, 30 Jun 2025 00:00:00 +0700

Investors and policymakers in Islamic financial markets are expected to comprehend variables impacting the performance of Standard and Poor (S and P)/Organization of Islamic Cooperation (OIC) COMCEC 50 Islamic Stock Index. Therefore, this research aims to analyze the effects of S&P/OIC COMCEC 50 Islamic Stock Index on inflation, West Texas Intermediate (WTI) oil prices, United States Economic Policy Uncertainty (US EPU), and geopolitical risk (GPR). Autoregressive Distributed Lag (ARDL) model is used in the quantitative monthly data analysis spanning 2019-2023. The analysis estimates the adjustment rate toward long-term equilibrium using Error Correction Term (ECT). Furthermore, the short and long term links between global variables and S&P/OIC COMCEC 50 Index are analyzed. The results show that Islamic stock index benefits greatly from WTI oil prices over the long and short terms. Even though inflation and US EPU have no direct effects on the index, GPR shows a strong positive influence over the periods. However, the considerable ECT coefficient points to a quick adjustment process toward long-term equilibrium after external shocks. The significance of oil prices and geopolitical dynamics as major drivers of changes in Islamic financial markets is supported even though US EPU and worldwide inflation have a less significant effect. Based on the description, this research aimed to offer strategic recommendations for Islamic financial markets’ external risk management. Future research should incorporate other macroeconomic factors such as exchange rates, Islamic interest rates, and fiscal stability to understand the durability of Islamic financial index.

LITERATURE SURVEY AND RECOMMENDATIONS FOR SUKUK RESEARCH DIRECTIONS

Mon, 30 Jun 2025 00:00:00 +0700

Sukuk have emerged as a significant alternative source of funding, gaining recognition as a safe-haven investment instrument that attracts considerable attention from both practitioners and academics. This research aims to evaluate the current state of Sukuk literature through a combination of quantitative and qualitative analyses. This study adopts a hybrid methodology. A bibliometric analysis is employed to identify the most influential institutions, authors, journals, and highly cited articles in the field. In addition, a Systematic Literature Review (SLR) approach was chosen to highlight the most frequently discussed topics in Sukuk-related literature, extract the main findings from previous studies, and propose possible directions for future research. Findings from previous studies suggest that educational institutions such as Malaysian and Indonesian universities are major contributors to Sukuk research. This study concludes that there are four thematic groups in the existing literature: (1). Sukuk as a Safe Investment Instrument Option in Islamic Financial Market; (2). Development of Sukuk in the Global Financial Market Industry; (3). Dynamics and Potential of Sukuk as an Investment Instrument; and (4). Comparison between Sukuk and Conventional Bonds. This study adds to the body of knowledge in academic research by encouraging collaboration between international institutions and researchers, thereby improving the quality of cross-country research on the topic of Sukuk. Furthermore, this study provides valuable insights for future researchers to fill some of the key research gaps that have not been explored.

ASSESSING THE IMPACT OF MAQASHID SHARIA ON THE SUBJECTIVE WELL-BEING OF INDONESIAN MUSLIMS: EVIDENCE FROM IFLS V

Mon, 30 Jun 2025 00:00:00 +0700

Subjective well-being is shaped not only by economic conditions but also by a sense of happiness in this life and hope for the hereafter. This perspective suggests that a nation's progress should be viewed beyond economic growth alone. Maqashid Sharia, the five essential objectives in Islamic teachings, provides a framework that guides individuals toward a more holistic and meaningful well-being. This study aims to explore how Maqashid Sharia contributes to the subjective well-being of Muslim individuals in Indonesia. Using a quantitative approach, the analysis draws on data from the 2014 Indonesia Family Life Survey (IFLS) V, focusing on Muslim respondents aged over 18. Logistic regression is employed to assess the influence of five dimensions of Maqashid Sharia, protection of religion, life, intellect, lineage, and wealth on happiness. A few examples of control variables are sex, age, and place of residence. The findings demonstrate that each of the five facets of Maqashid Sharia has a significant and positive influence on the Muslims' subjective well-being in Indonesia. Those who are religious, healthy, well-educated, married, and employed tend to experience greater well-being. The well-being of women and younger generations is also higher, although residency does not appear to be a significant role. These results highlight the significance of measures that increase access to religious homes, healthcare, education, work, and marital readiness. putting the principles of maqashid sharia into practice in order to ensure the prosperity and well-being of Indonesian Muslims and to accomplish fair and significant agreements between economic reality and religious identity.

DESIGNING MAQASHID INDEX MEASUREMENT MODELS INTEGRATED WITH ESG IN ISLAMIC FINANCIAL INSTITUTIONS

Mon, 30 Jun 2025 00:00:00 +0700

This study aims to evaluate the performance of Islamic Financial Institutions (IFIs) through the integration of Maqashid Sharia principles and Environmental, Social, and Governance (ESG) criteria. The method used is Analytic Network Process (ANP), which allows the identification of priority aspects in performance measurement in a holistic manner. The results show that the aspect of hifdzu ad-diin (protection of religion) is the highest priority in the maqashid objectives cluster. Meanwhile, in the ESG main criteria cluster, environmental aspects occupy the most dominant position. At the sub-criteria level, natural resource conservation (E), stakeholder awareness (S), and environmentally friendly policies (G) receive the highest weight. This study makes a new contribution by building an Islamic values-based performance measurement model integrated with ESG, which is relevant for realizing sustainable finance practices. This integration strengthens the evaluation approach to institutional sustainability, not only from an economic perspective, but also from social, ethical and environmental aspects.

QUO VADIS OF INDONESIAN ISLAMIC BANKING: A DELPHI STUDY

Abdillah Ubaidi, Imron Mawardi, Luthfi Rosyidi, Nor Balkish Zakaria — Mon, 30 Jun 2025 00:00:00 +0700

This paper aims to determine what factors make Islamic banks in Indonesia have a low market share and what factors will drive Islamic banking to achieve a sustainable competitive advantage. The Delphi approach is used to gather experts' opinions in the Islamic banking field. There are 15 experts involved in three rounds, all representing the stakeholders of the Islamic banking industry in Indonesia, namely academics, government, regulators, community and practitioners. The Delphi panel consensus of the five categories of Islamic banking stakeholders revealed that what causes the Islamic banking market to be low is the implementation of the market share trap and the low assets of Islamic banks as problems to be solved. As for the Islamic finance hub, Islamic values and stakeholder relations as a component system of Islamic banking can gain a sustainable competitive advantage. This study contributes empirically to increasing the market share of Islamic banks and achieving a sustainable competitive advantage of Islamic banking in a dual-banking system. The study will broaden knowledge and provide insight into the sharia economic ecosystem for policymakers, operators, regulators and practitioners of the Islamic banking sector in Indonesia regarding stakeholder perspectives, which can be part of the solution for development in the banking industry. This contribution is an integral part of the roadmap for developing Indonesian banking.

IJARAH ASSET CONTRACT: A PRODUCT INNOVATION FOR ISLAMIC MICROFINANCE

Umrotul Khasanah, Ahmad Tibrizi Soni Wicaksono, Alvi Rahmawati — Mon, 30 Jun 2025 00:00:00 +0700

This research aims to develop a tool for assessing the potential of ijarah asset contract model as a product offered by Islamic Microfinance Institutions (IMFIs) to Micro, Small and Medium Enterprises (MSMEs) in Malang Regency, Batu City, and Malang City areas of Indonesia. In this context, a grounded theory is applied, including open, axial, and selective coding, as well as qualitative model analysis to report crucial factors for ijarah asset contract product at IMFIs. The results show that Sharia compliance is the most fundamental instrument, followed by trust, benefit, agreement, and tolerance based on the priority criteria. In addition, the relationship between instruments create the best implementation model in the forerunner of ijarah asset contract product. This research is carried out by determining the instrument of ijarah asset contract and explaining the relationship between instruments forming an implementation model. The development of fresh ijarah product innovations at IMFIs is conducted to facilitate asset leasing for MSMEs. A model is also proposed using the results as a benchmark for execution to minimize the potential for unsuccessful outcomes.

DOES ESG VALUE HAVE AN IMPACT ON A FIRM’S VALUE? LESSON LEARNED FROM INDONESIA

Lusiana Handayani, Clarashinta Canggih, Basyirah Ainun, Sahraman D. Hadjilatif — Mon, 30 Jun 2025 00:00:00 +0700

Introduction: With growing interests from investors and researchers in ethical investing—partly driven by the United Nations’ Sustainable Development Goals (SDGs)—this study examines the connection between Socially Responsible Investments (SRI) and Islamic finance. Given that these two approaches share common objectives, this study investigates the integration of Environmental, Social, and Governance (ESG) disclosure with Islamic screening principles that affect a firm’s value.

Methods: The study focuses on companies listed on the Indonesia Sharia Stock Index (ISSI). It employes pooled Ordinary Least Squares (OLS) with a Random Effect Model (REM) to analyze the impact of ESG on firm value.

Results: The findings indicate that ESG scores significantly affect a company’s operations, financial performance, and market standing. However, the impact varies depending on the specific ESG factors. Governance factors demonstrate a stronger association with firm value compared to environmental, economic, and social factors.

Conclusion and suggestion: This results suggest that while ESG reporting is crucial, the specific focus areas highlighted in a company’s sustainability disclosures can influence performance in different ways. Strong evidence shows that sustainability reports significantly impact organizational performance. Furthermore, sharia-compliant companies are encouraged to emphasize Islamic values within their sustainability reporting to enhance transparency and appeal to investors. For Sharia-compliant companies in Indonesia, strategically integrating and transparently reporting ESG principles, especially those aligning with Islamic values, is becoming essential for enhancing financial performance, complying with new regulations, and attracting Muslim investors.