• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.181-190
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• 2021

This paper empirically examines the asymmetric response of the Indonesian Islamic stock market to macroeconomic variables encompassing money supply, domestic output, exchange rate, and Federal Reserve rate. Our study employs the Jakarta Islamic Index (JII) after the financial crisis in the Southeast Asian country using monthly data from January 2000 to December 2019. Non-linear Autoregressive Distributed lag (NARDL) is applied. Our study considers two models consisting of the model without the Federal Reserve rate and the model with it. Our findings confirm the long-run link between Jakarta Islamic Index and macroeconomic factors being studied. Furthermore, the Jakarta Islamic Index asymmetrically responds to broad money supply and exchange rate, but not to domestic output and Federal Reserve rate. A reduction in the money supply has a worse effect on Islamic stock prices as compared to an increase in the money supply. The Jakarta Islamic Index responds differently to depreciation and appreciation. The transmission of the exchange rate to Islamic stock prices occurs only for appreciation. Our study finds an absence of transmission mechanism from the domestic output and the interest rate to Islamic stock prices. Our results imply that the easy money policy and stabilizing currency are key to supporting Indonesian Islamic stock prices.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.497-504
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• 2021

This extended study aims to analyze empirically the influence of firm diversification on firm performance moderated by the stages of the firm life cycle, which consists of introduction, growth, maturity, and decline. The target population of this study is the firms listed on the Indonesian Stock Exchange. The sampling method uses purposive sampling in the multi-business firm in Indonesia; it includes as many as 127 firms over the period from 2011 to 2017, totaling 889 firm-year observations. The firm performance is measured using a return of equity while the level of firm diversification with the minimum number of two operating segments is proxied by the Herfindahl index. The analysis method used in this study is the estimator model of the Generalized Method of Moment (GMM). The main findings show that the firm life cycle at the stage of growth and maturity significantly strengthens the influence of firm diversification on firm performance. On the other hand, the stage of decline fails to moderate the relationship between firm diversification and firm performance. This study discusses the implications and contributions of the findings theoretically, and provide some policy justifications for potential investors before they invest their money in the capital market.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.331-339
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• 2021

The youths are characterized by their reckless and ambitious behavior. They exhibit a strong tendency to make risky decisions that may jeopardize their future. These qualities are also in line with their experience-seeking behavior. As young entrepreneurs aim high in profit-seeking activities, their ethical stance may be compromised. Moreover, their money profile increases at an accelerated pace, leading them to love money even more. Quantitatively, this study was the first to investigate the behavior of young entrepreneurs in terms of their love of money, religiosity, and ethical perceptions by adopting the hadith perspective in Islamic tradition by developing the scales of all constructs. The respondents were 261 members of the Indonesian Young Entrepreneur Association in Sulawesi Selatan, Indonesia. This study also examined gender as the moderating variable. This study found that the love of money affects ethical perception negatively; on the other hand, religiosity positively affected ethics. Gender is found to moderate religiosity, but not love of money. These results signify the harmful impact of loving money too much on young entrepreneurs' ethics; furthermore, the scales developed from hadith revelation were able to capture the empirical findings significantly.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1193-1204
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• 2021

This paper aims to examine the main factors that influence the adoption of Islamic banking services in Indonesia. This research collects primary data by distributing questionnaires to 550 respondents in 29 provinces in Indonesia. A total of 550 questionnaires were returned comprising 34.2 percent male respondents and 65.8 percent female respondents. Most of the respondents were in the age group of 21-30 years with the highest level of education being high school. Most of the respondents were working in private firms, with a monthly expenditure of IDR 2,500,000. The independent variables in this study are bank reputation, perceived complexity, perceived compatibility, perceived risk, relative advantage, religiosity, and social influence. Meanwhile, the dependent variable is customer interest in adopting Islamic banking services. The result of this study indicates that awareness and perceived compatibility have a positive effect on customer intention to adopt Islamic banking services. Likewise, religiosity and social influence also have a significant and positive effect on customer intention to adopt Islamic banking services. Meanwhile, bank reputation and perceived complexity have no effect on customer intention to adopt Islamic banking services. Lastly, perceived risk has a negative and significant effect on customer intention of adopting Islamic banking services in Indonesia.

• The Southeast Asian review
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• v.23 no.3
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• pp.181-215
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• 2013

The purpose of this paper is to examine the process of Islamic change in Indonesia since the 1970s, which is commonly called 'Islamic resurgence' or 'Islamization.' A brief analysis of the reasons for Islamic resurgence is followed by discussions on its long-term effects on the life of Indonesian Muslims. Shift in the ways Islamic matters have been treated in public, gradual realization of what Islamic groups have demanded in non-religious areas, stipulation of local regulation based on shariah and spread of radicalism are to be investigated one by one. With these examinations, it will be argued that the most significant change throughout the last four decades has been the surge of Islam as a reference point to interpret everyday life of Muslims. The dichotomy of 'Islamic' and 'non-Islamic' is instated as a key in Islamic discourse and the Quran and Hadith, as a criterion to judge whether certain views and behavior are Islamic or not. These have strengthened the position of scripturalism in Indonesian Islam. Islamic resurgence has also resulted in the acceleration of the diversification of Indonesian Muslims. Muslims with radical, fundamental, reformist, traditional and liberal views coexist, competing for stronger social and religious influences. As radical and fundamental groups have been more active in dealing with socio-political affairs recently, whether their active involvement will result in wider influences over the ordinary Muslims is the key to understand the future dynamics of Indonesian Islam.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.927-938
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• 2021

Small and Medium Enterprises (SMEs) is one of several activators that drives the economy of Indonesia because SMEs provide jobs, increase Gross Domestic Product (GDP), and assure the delivery of products and services. However, Indonesian SMEs are not very competitive in the industrial world, and one of the causes is the low quality of products that undermine customer satisfaction. There are several factors presumed as influencing customer satisfaction, which among others include product knowledge, service quality, and competitive advantage. The objective of this research is to reveal the contribution of product knowledge and service quality to customer satisfaction with competitive advantage as the mediation variable. This research used a quantitative approach. The causal relationship across variables was examined with Structural Equation Modeling-Partial Least Squares (SEM-PLS). The sample of this research involved 140 respondents. Data was collected through a questionnaire and the items in the questionnaire were processed with a software called SmartPLS version 3.3.2. Results of this research indicate (1) product knowledge and service quality can increase competitive advantage and customer satisfaction in East Java SMEs; (2) competitive advantage can act as a mediator in the effect of service quality on customer satisfaction (3) product knowledge can increase customer satisfaction but the increase is not significant statistically.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.781-790
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• 2021

The purpose of this study is to test empirically the effect of Islamic business ethics and market conditions on organizational performance in state-owned construction companies in Indonesia. Data collection in this study was conducted online and the total number of data used was 81 respondents, both directors, heads of departments, and managers (general and project). This study uses a partial least squares structural equation model (PLS-SEM) with a quantitative approach that aims to test hypotheses and relationships between variables, such as Islamic business ethics, market conditions, project management, organizational culture, competitive strategy, and organizational performance. This study shows Islamic business ethics has a significant direct effect on organizational performance. Market conditions do not have a direct significant effect on organizational performance. Meanwhile, the mediating variables of project management and competitive strategy have a significant direct effect on organizational performance. Organizational culture does not have a significant influence on organizational performance. Conversely, market conditions have a significant influence through the mediating variables of project management and competitive strategy on organizational performance. Besides, this study is an attempt to determine the impact of the criteria factors affecting the measurement of the performance of construction organizations in Indonesia in terms of the external environment and organizational structure.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.981-992
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• 2021

This study identifies the determinants of potential failure of Islamic Peer-to-Peer (P2P) lending in Indonesia, and the mediating effect of Islamic ethics on reducing the potential for failure of Islamic P2P lending. This study uses primary data retrieved through questionnaires from the perspective of 152 stakeholders in Islamic P2P lending. Using a structural equation model (SEM), the study found that indebtedness, financing size, and governance have positive and significant relationships with the potential failure of Islamic P2P lending. This study provides evidence that the customer's internal conditions and the governance structure applied can increase the potential failure of Islamic P2P lending. Further, Islamic ethics is evidently able to partially reduce the potential failure of Islamic P2P lending by lessening risk management exposure, but it fails to address failure through Ponzi scheme exposure. As an implication, this study suggest that Islamic P2P lending must implement Islamic ethics more comprehensively by optimizing the advisory and supervisory role of the shariah board within their overall boards of directors also in their operational activities. Finally, it also adds to the existing knowledge on financial technology literature, particularly on the determinants of potential failure of financial technology from the perspective of stakeholders.

• Acta Via Serica
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• v.7 no.1
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• pp.105-130
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• 2022

This paper argues that the war in Syria is partly the result of a global Islamist wave that contributed to fuelling conflict across large regions of Asia and Africa. Of course, the war that has consumed Syria since 2011 most certainly has multiple interrelated causes and driving forces, and any attempt to isolate one or even two or three runs the risk of advancing an overly simplistic interpretation of history. This essay, therefore, does not aim to offer an appraisal of the multiple variables that contributed to the war in Syria. Instead, it zeroes in on how political Islam came to impact Syria and its people. In doing so, it demonstrates how competing varieties of political Islam represented leading causes of conflict. Indeed, different Islamist movements contributed to the outbreak of the war in 2011, fuelled the conflict for years on end, and to this day represent major obstacles to the achievement of sustainable peace. Four broad Islamist currents are especially relevant to the case of Syria: the Muslim Brotherhood; the Shia revivalist movement at the nexus of the alliance between Iran, Hezbollah, and Syria; Salafi jihadism and its volatile and fractious underworld of competing armed groups, from Al-Qaeda to the Islamic State; and Recep Tayyip Erdoğan's market-friendly Islamism, which induced Turkey to intervene in Syria's civil war.

• SUVANNABHUMI
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• v.14 no.2
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• pp.233-249
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• 2022

Hizb ut-Tahrir (HT) is an Islamic social movement that struggles to change the existing political system to the Islamic system. HT argues that all problems in the Muslim world are rooted in adopting secular thought and ideology and the separation between Islam and the state. Hence, HT works to persuade Muslims to abandon that way of life and only apply Islam as the country's only ideology and constitution. HT has spread this narrative since it started in 1953 in Jordan. With this ideological and political attitude, many countries consider HT a threat to their political and community life, suppressing this movement by arresting members and banning the group to reduce or end HT activities in these countries. The Indonesian government has also carried out this repressive policy to limit the influence of Indonesian HTI since 2017. This paper aims to discuss the strategy of Hizb ut-Tahrir to continue its political activities Indonesia after being dissolved by the Indonesian government in 2017. This article used content analysis method to interpret the data collected from interview and documents from Hizb ut-Tahrir. Responding to state repression, HTI sought other methods of action by changing the place of resistance or activities, and by changing its identity.