The Relationship Between Human Capital, Halalpreneurs’ Desire, and Halal Awareness: Empirical Evidence from Indonesia’s Micro-Entrepreneurs

Authors:

Dwi Nur’aini Ihsan, Reni Kristiana Ashuri, M Nur Rianto Al Arif, Zulpawati

Abstract:

Awareness of halal products among consumers in Indonesia is increasing rapidly. Producers, especially micro-entrepreneurs, must address this to be ready to become halalpreneurs. This study examines the relationship between human capital and the desire to become halalpreneurs, with halal awareness as a moderating variable, using the partial least squares (PLS) method. A sample of 141 micro-entrepreneurs in the food sector from five provinces in Indonesia (Jakarta, Banten, West Java, Central Java, and East Java) was used. The results indicate a direct relationship between human capital and the decision of micro-enterprises to become halalpreneurs. In addition, halal awareness is proven to moderate the relationship between human capital and the decision to become halalpreneurs. This result implies the importance of government support and policies in improving the competence, expertise, and knowledge of micro-enterprises about halal products.

Source:

Asian Economic and Financial Reviews, Vol. 12(7), 2022.

DOI: https://doi.org/10.55493/5002.v12i7.4524

 

Information technology and local conflict: evidence from Indonesia

Authors:

Abstract:
The positive effects of communication technology on the developmental process of a nation have been demonstrated in the literature. In this paper, we argue that communication technology may also have an adverse effect, by examining its impact on the presence of conflict. Using Indonesian subdistrict surveys from 2011 and 2014, we find that regions with stronger communication signals are more likely to experience conflict. The econometric estimates show that the presence of a strong base transceiver station (BTS) signal is associated with a 0.8 per cent higher likelihood of local conflict, while a weak signal is associated with a 0.7 per cent higher likelihood of local conflict. A better communication signal is also associated with the number of conflict events. Our findings suggest that the signal reduces conflict casualties. Our estimates also justify the need for government interventions in the form of tax or control policies, to minimise negative, technology-led externalities.
Source:
Conflict, Security, and Development. Published online: 15 Nov 2021.
DOI: https://doi.org/10.1080/14678802.2021.1997452

Market Structure and Profitability: Evidence in the Indonesian Islamic Insurance Industry

Authors:
Mohammad Nur Rianto Al Arif & Bella Firmansyah

Abstract:
There is limited research about the relationship between market structure and profitability in the insurance industry, especially in the Islamic insurance industry. This study examines the relationship among market structure and profitability in Islamic life insurance industry in Indonesia. This research used regression with panel data for the technique of analysis. The model used in this research was the fixed effect model. The result shows that the market structure affected the profitability of Islamic life insurance industry. This result implies that the traditional hypothesis supports the performance of Islamic life insurance industry in Indonesia. However, this research shows that there is no collusive behavior in Islamic life insurance industry in Indonesia. Meanwhile, for control variables, operational efficiency has an adverse effect on the performance of Islamic life insurance industry in Indonesia.

Source:
International Journal of Business and Society, Vol. 22(2), 2021, 1004-1014
https://doi.org/10.33736/ijbs.3778.2021

User Innovativeness and Fintech Adoption in Indonesia

Authors:
Budi Setiawan, Deni Pandu Nugraha, Atika Irawan, Robert Jeyakumar Nathan, & Zeman Zoltan

Abstract:
The integration of the financial industry and financial technology (Fintech) plays a pivotal role in increasing financial services reach and inclusion for the large unbanked population in Indonesia. Fintech adoption optimization expands the financial access to formal financial institutions, especially to vulnerable groups such as the unbanked population who predominantly reside in rural areas far from formal financial institutions. Fintech is viewed as a game changer to bring finance to the unreached communities via information technology and digital financial landscape. In this causal research, data collection was done via online questionnaires to 485 Fintech users between December 2020 and April 2021. Data analysis and path modelling was performed using smartPLS 3.0 software. Result shows user innovativeness as a significant predictor, directly and indirectly affecting the adoption of Fintech in Indonesia, while user attitude found the most important factor towards Fintech adoption. Financial literacy is the least important variable to predict Fintech adoption, contrary to popular belief. This indicates that Fintech usage requires less financial literacy and is potential to reach unbanked population and those with low financial literacy. To make Fintech more inclusive, the government needs to accelerate improving Information and Communications Technology (ICT) infrastructure such as widening mobile broadband penetration and soft infrastructure by encouraging Fintech startup, allowing regulatory sandbox for startups, and driving financial institutions to innovate through Fintech to bring financial services to unbanked population.

Source:
Journal of Open Innovation: Technology, Market, and Complexity, 7, 188, https://doi.org/10.3390/joitmc7030188.

Comparison of Islamic Banking Performance in Indonesia, Pakistan, and Bangladesh: Sharia Maqashid Index Approach

Authors:
Mohammad Nur Rianto Al Arif, Dede Yati

Abstract:
There is a different characteristic between Islamic banks and conventional banks, so Islamic banks must have performance measures based on Islamic values in them. This study aims to measure the performance of Islamic banks in three countries – Bangladesh, Indonesia, and Pakistan – using the Sharia Maqashid Index. Also, this study examined whether there were differences in Sharia Maqashid Islamic bank indexes in the three countries using the one-way ANOVA test. The results of the study, in general, showed that the Al-Arafah Islamic Bank of Bangladesh received the highest score, followed by Bank of BNIS and Bank of BRIS. Besides, the results of the study also showed that there were differences in performance. This result implies that Islamic banks should use the maqashid sharia framework as a benchmark for their objective and performance indicators.

Source:
Share: Jurnal Ekonomi dan Keuangan Islam, Vol. 10(1), 2021

Pandemic Attack and Islamic Stocks Index: A Cross Country Analysis

Authors:
Faizul Mubarok & Mohammad Nur Rianto Al Arif

Abstract:
The impact of Covid-19 has triggered the current global economic downturn affecting all aspects of the economy including the Islamic stock index. This study aims to determine the model for forecasting the index. The Islamic stock index is used in six countries through adopting the Autoregressive Conditional Heteroscedasticity – Generalized Autoregressive Conditional Heteroscedasticity (ARCH-GARCH) method on daily data over the period January 2020 to October 2020. The risk level of each index was found to be influenced by the residual value from the previous day. The forecasting revealed the tendency of all stock prices to decline. These are associated with impacts of the Covid-19 pandemic on current and future economic performance. Investors need to assess the sector’s fundamentals and the individual stocks in question, that are potential winners with propensity to recover and grow well once the market rebounds. They also need to continuously track the development of the pandemic in tandem with the economic sector and thus make the necessary adjustments at every step of the investment process

Source:
Jurnal Ekonomi Malaysia, Vol. 55(1), 2021