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Tazkia Islamic Finance and Business Review
Tazkia Islamic Finance and Business Review (TIFBR) is a peer-reviewed journal published by the Institute for Research and Community Empowerment (IRCE), Tazkia University College of Islamic Economics in collaboration with Association of Islamic Economics Lecturers (ADESY). The Journal is semi-annual journal issued in July and December. The aim of the journal is to disseminate Islamic Economics, finance and business researches done by researchers both from Indonesia and overseas.
Articles by issue : Vol 8, No 1 (2013)
6
Articles
Detecting Internal Control Problems Based on COSO and Islamic Perspective: Case on SMEs

Putra, Yuniarti Hidayah Suyoso ( Department of Accounting – Faculty of Economics Islamic State University Maulana Malik Ibrahim Malang )

Tazkia Islamic Finance and Business Review Vol 8, No 1 (2013)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Original Source | Check in Google Scholar | Full PDF (213.669 KB)

Abstract

Objective – The presence of Small Medium Enterprises (SMEs) has been able to be livelihoods sources and absorb more labor, even though it has a relative smaller contribution of additional value compared to the Large-scale Enterprises. The number of economic actors of SMEs spread across area from urban to rural. However, SMEs have faced several serious problems. These problems are caused by the unique characteristics of SMEs itself. First, lack of managerial skills due to limited human resources and lack of monitoring which it is rarely conducted by the manager or the owner. Second, lack of information and technology to carry out operations. Both problems have great impacts in lack of internal controls. Third, SMEs also face problems in developing business scale, limited access to capital to the banks and financial institutions due to the lack of transparency. Therefore, this research aimed to detect to what extent of the problems arising in the application and assessment of internal controls performed by SMEs.Method – The research employs descriptive qualitative research method through direct observation, interview and business documentation owned by the company. Research materials are 29 SMEs consisting of 19 trading SMEs and 10 service SMEs. All SMEs are located in Malang city. Detection of application and assessment of internal controls in this study is based on the COSO framework and the Islamic perspective.Result – Internal control activities indicators apply the five principles of COSO framework which focused on three layers. First layer is self-assessment control area. Second layer is environment control area and the third layer is independent control area. While the Islamic perspective is focused on the internal control of business activities based on the Quran and Hadith. The results derive from application and assessment based on COSO framework and Islamic perspectives are complementary in improving the practice of internal control.Conclusion – Internal control problems detected in this study are generally caused by lack of managerial skills due to limited human resources, and lack of monitoring which it rarely done by manager or the owner, lack of technology and information to carry out  the operations and moreover the accounting information system has not been well established. The results are expected to assist management in designing and implementing effective internal control system and provide assurance of easy access to capital. Keywords : Internal Control Problems, COSO framework, Islamic Perspective, SMEs

Islamic Financial Engineering : Comparative Study Agreements in Islamic Capital Market in Malaysia and Indonesia

Ginanjar, Adhitya ( Faculty of Economy and Business, Islamic State University Syarif Hidayatullah )

Tazkia Islamic Finance and Business Review Vol 8, No 1 (2013)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

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Abstract

Objective –The objective of this paper is to provide a discussion Islamic Financial Engineering which practice between Indonesian Capital Market and Malaysian capital market. This paper also investigate whether regulator could effectively take a role in materializing demands for Islamic securities and whether regulator declaration is more convincing than sharia compliance declaration between IDX and KLSE.Methods - We use descriptive analytic and literature study to see the background, market response caused by regulatory for Islamic Financial Engineering. We also analyze Islamic capital market regulatory from middle east countries.Results - We find that Islamic Capital Market in KLSE (Malaysian Capital Market) more higher growth than IDX (Indonesia Capital Market) because of Islamic Capital Regulatory in KLSE much easier to improve Islamic Financial Engineering from conventional schemes.Conclusion - This finding could explain why Islamic Capital Market in KLSE is still growing rapidly and IDX will adjust their Islamic Capital Market Regulatory to compete with regional Islamic Capital Market.Keywords : Islamic Financial Engineering, Risk, Return, Derivative, Hedging, Option, Forward, Hybrid  contract

Islamic Inheritance Law (Faraid) and Its Economic Implication

Zuleika, Adelina ( International Centre for Education in Islamic Finance (INCEIF), Kuala Lumpur, Malaysia ) , Desinthya, Ni Putu ( International Centre for Education in Islamic Finance (INCEIF), Kuala Lumpur, Malaysia )

Tazkia Islamic Finance and Business Review Vol 8, No 1 (2013)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

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Abstract

Objective - This paper attempts to discuss the Islamic law of inheritance (Faraid), its existence and its systematic impact to humankind. Faraid plays a fundamental role as an impetus behind the development of science, which has a great economic impact to the development of social welfare. This paper aims to increase the awareness towards the importance of Islamic law of Inheritance for knowledge development, and social prosperity of humankind. Secondly, to reveal the hikmah behind the rules set in Faraid and their economic implications. Thirdly is to emerge the consciousness for being Sharia’ compliance by revealing the secret behind His rules and its benefit for humankind.Method - Employing a qualitative method and literature reviewResult - This paper shows that from the macroeconomic perspective, Faraid systematically ensures the redistribution of wealth, and spreads the concentration of wealth in every generation. Literature reviews and information collected are employed in order to analyze and make further inferences. The literature review clarifies the magnificence of Faraid and its real contribution to human development; in economics and in other disciplines. Faraid keeps the justice in wealth distribution, protects property rights, empowers women to be involved in economic activities and as a whole, Faraid also encourages economic growth.Conclusion - Conclusively, by commissioning Faraid, the wealth is generated and returned to the factors production through many hands of who deserve it after the absence of deceased.Keywords : Islamic Inheritance Law; Faraid; Property  Rights; Distribution of Wealth

Effectiveness of Conventional and Syariah Monetary Policy Transmission

Pratama, Yoghi Citra ( Economic Sciences and Development Study UIN Syarif Hidayatullah Jakarta )

Tazkia Islamic Finance and Business Review Vol 8, No 1 (2013)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Original Source | Check in Google Scholar | Full PDF (326.872 KB)

Abstract

Objective - The purpose of this study is to compare the effectiveness of monetary policy transmission through conventional and Islamic instruments through the interest rate channel and profit loss sharing / margins channel, to control the price level (inflation) and economic growth (output)Method – Methodology used in this study is the Vector Auto Regressive (VAR) / Vector Error correction model (VECM) to see the effect of shock and long-term effects on inflation and output. Variables used are sbi interest rates, PUAB interest rate, deposit rates and lending rates, as well as from the Islamic side is SBIS yield, yield PUAS, profit lost sharing for the deposits and margin financing. This study use Unit Root Test, Cointegration degree of integration test, test causality, VECM and IRF estimates. Using monthly time series data from 2009 s / d 2012.Result – Results of the study showed that the test based on Granger causality, overall, the transmission channel of monetary policy according to the conventional theory, while the monetary policy transmission channel Sharia can not be clearly identified and disconnected in yield / profit and loss sharing deposits. And based on the estimated VECM is known that in the long term Islamic instruments is the right instrument to control inflation.Conclusion – This finding concluded that syariah instruments is the effective instrument in reducing inflation rate and also encourage the growth of Islamic banking, and should also consider the right margin level to increase the output on real sector. Keywords : Monetary Transmission, Central Bank, Industrial Production Index, Consumer Price Index

The Role of Training and Promotion to Increase The 3rd Party Funds Indonesian Islamic Banking

Hidayat, Rahmat ( Study Program, Telkom Management Institute, Bandung, Indonesia ) , Hidayat, Agus Maolana ( Study Program, Telkom Management Institute, Bandung, Indonesia )

Tazkia Islamic Finance and Business Review Vol 8, No 1 (2013)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

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Abstract

Objective – This study aims to determine whether the role of training is much larger than the promotion in raising third-party funds in Islamic banks in Indonesia given the cost of the training is spent is greater than the cost of promotion. This study empirically examines the relationship and impact of training and promotion to raise funds for a 3rd party in Indonesia Islamic banks.Methods – This study uses secondary data Islamic commercial banks in the form of panel (time-series and cross-section) of Bank Indonesia data from 2010 until 2012. There are two independent variables training cost (X1) and promotion cost (X2) and one dependent variable is 3rd-party funds (Y). The analysis technique used path analysis to examine the role of training and the promotion of financial performance (The 3rd Party Funds).Result – Simultaneously, training and promotion gives an effect by 52%, and partially or individual training gives an insignificant negative effect, while the promotion has a significant positive impact on financial performance (financial-party funds) on Islamic banking.Conclusion – The role of promotion is higher in raising The 3rd Party Funds than training. Keywords : Cost, Training, Promotion, The 3rd Party Funds 

The Revitalization of Women’s Entrepreneurship Spirit In Micro Enterprises With Islamic Microfinance Institution (IMI) (Study on The Contribution of BMTs Agam Madani in Agam sub-province, West Sumatra)

Puteri, Hesi Eka ( Islamic Economics Department, Islamic State University Bukittinggi )

Tazkia Islamic Finance and Business Review Vol 8, No 1 (2013)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Original Source | Check in Google Scholar | Full PDF (217.613 KB)

Abstract

Objective - The objective of this paper is to give an overview of the contribution of Islamic Microfinance Institutions (IMI) in the process of empowerment of women microenterprises, and recommended a related policy.Method – This study is a field research in 2012, which focused in BMTs Agam Madani at Agam district. The data is sourced from the observation, documentation and questionnaires from 60 women micro-entrepreneurs samples who receive working capital financing. This paper uses simple regression model in order to observe relationship between working capital and the increasing of revenue. This model is to measure the amount of the multiplier effect in working capital-to increasing of revenue.Result – This paper found that IMI is a good model to develop society more prosperous by developing BMTs in each district. These BMT has thousands of micro enterprises member and could revitalized the spirit of entrepreneurship of minangkabau’s women. A research to 60 women’s micro entrepreneur samples showed the positive significant influence between lending to revenue. A multiplier effect equal to 0.068.The small number of multiplier effect implied that many factors determining their revenue, not lending only.Conclusion – This finding could explain that IMI could empower micro entrepreneur woman. This finding also recommend few strategies: 1) Revitalization of BMTs as micro catalyst by revitalization of structure of organization, products variation, human resource compentence, sharia monitoring, public cooperation and implementating local cultural value 2) Revitalization of government role as fasilitator, coordinator, initiator and mediator in developing micro sector. Keywords : Women’s Entrepreneurship, Micro Enterprises, Islamic Microfinance Institution, BMTs Agam Madani