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I-ARIEF 2019 Programme Book
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INCEIF-ISRA INAUGURAL ANNUAL CONFERENCE ON ISLAMIC ECONOMICS AND FINANCE Islamic Finance and Islamic Economy Ecosystem in the Era of Digitalisation
25–26 November 2019 InterContinental Kuala Lumpur
Table of Contents Message from the Chairman of Organising Committee
1
About I-ARIEF
2
Programme Agenda
4-5
Presentation Schedule
6-9
Keynote Speakers Abstracts
Prof. Dr. Mansor H Ibrahim Deputy President Academic & Dean, INCEIF and Chairman of I-ARIEF Chairman, I-ARIEF 2019
11 12-21
Scientific Committee
22
Organising Committee
23
Presentation Guideline
24
Floor Plan
24
Kuala Lumpur Area Guides
Message From The Chairman Of Organising Committee
25-27
On behalf of the Organising Committee, I would like to extend our warmest welcome to all speakers and participants to the INCEIF-ISRA Annual Conference on Islamic Economics and Finance (I-ARIEF). This conference provides a forum for the deliberation of contemporary and emerging issues in Islamic economics and finance. With the theme of this conference; “Islamic Finance and Islamic Economy Ecosystem in the Era of Digitalization”, we intend to gather academicians, researchers and leaders to deliberate and debate on the issues relating to Islamic economic and finance development in the current digital era.
I would like to thank all parties and individuals for ensuring the success of I-ARIEF Conference, especially the sponsors, ISRA International Journal of Islamic Finance, and Studies in Economic and Finance Journal for preparing special issues of selected papers for this conference. Lastly, I would like to express my utmost gratitude to the committee members, who have been working hard in ensuring the success of this conference. To all participants, I hope that you will benefit from the papers and discussions that will take place in these two-days, and I pray for the best in your future undertaking.
We are honoured to have YB Dato’ IR Haji Amiruddin Haji Hamzah, Deputy Minister, Ministry of Finance, Malaysia and Dr. Sami AlSuwailem, Director General of Islamic Research and Training Institute (IRTI), Jeddah as Keynote Speakers at this conference. Their experience and involvement in the development of Islamic economy at regional and international level would be highly beneficial to the participants, especially on how Islamic principles and digitalisation would able to solve the social and economic issues. We are pleased to have local and international participants presenting their research in this conference. Papers that will be presented covers various aspects of Islamic economy and finance, such as social finance, Islamic banking, Shariah governance, Islamic capital market, Islamic economy and auditing.
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
1
About I-ARIEF The accelerated growth of Islamic finance especially in the wake of the global financial crisis, and its ever-increasing role in the mobilisation of financial resources have been a promising feature in the global financial scene. Being a manifestation of Islamic economics’ practical applications, Islamic finance cannot be developed and assessed in isolation of its impact on real activities and the fulfilment of Maqasid al-Shariah. Further, Islamic finance must be developed and evaluated in its totality, not confined to only Islamic banking and Islamic capital markets. Moving forward, Islamic finance must also embrace Industry 4.0 for it to remain robust in the digital age. The INCEIF-ISRA inaugural Annual Conference on Islamic Economics and Finance (I-ARIEF) provides a forum for the deliberation of contemporary and emerging issues in Islamic economics and finance with the theme: Islamic Finance and Islamic Economy Ecosystem in the Era of Digitalisation. The conference with the theme “Islamic Finance and Islamic Economy Ecosystem in the Era of Digitalisation” aims to: • Address contemporary and emerging issues faced by Islamic economy and Islamic finance • Evaluate the roles of Islamic finance in a wider context, in its contributions to financial stability as well as to the overall Islamic economy ecosystem in cognisant of the fulfilment of Maqasid Al-Shariah • Disseminating research output through reputable scholarly journals The paper presented will be covering various area in the Islamic economy and finance which includes: • Islamic finance and financial inclusion • Islamic finance and attainments of Social Development Goals • Inclusive finance and inclusive growth • Halal economy • Islamic economy, Islamic finance and digitalization • Islamic banking • Islamic capital markets • Islamic social finance (Zakat, Awqaf etc.) • Islamic financial innovations • Governance and regulatory framework for Islamic finance • Takaful and wealth management • Fintech
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INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
AGENDA
AGENDA
Day 1
Day 2
Monday, 25 November 2019 InterContinental, Kuala Lumpur
Tuesday, 26 November 2019 InterContinental, Kuala Lumpur
Time
Details
Venue
9.00am – 9.30am
Arrival of Guests
9.30am – 9.35am
Doa Recitation
9.35am – 9.45am
Opening Remarks by Professor Dato’ Dr Azmi Omar, President & Chief Executive Officer, INCEIF
9.45am – 10.15am
Time 9.00am – 9.30am
Junior Ballroom, Level 2
Keynote Address by YB Dato’ Ir Haji Amiruddin Haji Hamzah, Deputy Minister, Ministry of Finance, Malaysia
10.15am – 10.20am
MOU Exchange between INCEIF & CESAG
10.20am – 10.30am
Tea Break/ Networking
10.30am – 11.30am
Paper Presentation 1
11.30am – 12.30pm
Industry Panel Discussion
Foyer, Level 2
Panellists: 1. Mr. Namanzee Harris, Chief Executive Officer, TV AlHijrah 2. Mr. Mohd Ridzal Mohd Sheriff, Chief Executive Officer, Infinity BlockChain Ventures
Junior Ballroom, Level 2
Details Arrival of Guests
9.30am – 10.00am
Keynote Address 2 by Dr. Sami Al-Suwailem, IRTI Director General, Jeddah
10.00am – 10.30am
Special Paper 1 : Clientele Effects in Sovereign Bonds: Evidence from the Malaysian Cash and Repo Markets by Professor Dr Joseph Cherian, National University of Singapore
10.30am – 11.00am
Special Paper 2 : Making Homes More Affordable in Malaysia Role of Islamic Finance by Professor Dr Saiful Azhar Rosly, INCEIF
11.00am – 11.30am
Tea Break
11.30am – 12.45pm
Paper Presentation 3 (Parallel Session)
Dahlia, Orchid & Bunga Raya Room
12.45pm – 02.00pm
Lunch Break
Serena Brasserie, Level GF
02.00pm – 07.00pm
Free & Easy
Lunch Break
Dahlia & Orchid Room, Level 2
Foyer, Level 2
End of Day 1
Moderator: 1. Assoc. Prof. Dr. Mohamed Eskandar Shah Mohd Rasid, Associate Dean, INCEIF 12.30pm – 2.00pm
Venue
Serena Brasserie, Level GF
2.00pm – 4.30pm
Paper Presentation 2 (Parallel Session)
4.30pm – 4.45pm
Tea Break/ Networking
Dahlia, Orchid & Sakura Room Foyer, Level 2
End of Day 1
Dinner Tuesday, 26 November 2019 Junior Ballroom, Level 2,InterContinental, Kuala Lumpur Time
Details
7.30pm – 8.00pm
Arrival of Guests
8.00pm – 8.05pm
Doa Recitation
8.05pm – 8.20pm
Closing Remarks by Professor Dr Mansor Ibrahim, Deputy President Academic & Dean, INCEIF and Chairman of I-ARIEF
8.20pm – 8.30pm
Presentation of Best Paper Awards
8.30pm – 10.00pm
Dinner End of Programme
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INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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Presentation Schedule Paper Presentation 1
Junior Ballroom | 25 November 2019, Monday | 10.30am – 11.30am Islamic Social Finance in West Africa: Opportunities and Challenges Abdou Diaw, Maimouna Vahvou, Abdoulaye Mbow, Abdoulaye Lam
10.30am – 10.50am
Financial Intermediation Costs in a Dual Banking System: The Role of Islamic Banking Mansor H. Ibrahim, Law Siong Hook
10.50am – 11.10am
Digital Era and Islamic Monetary Policy with Special Reference to Systemic Liquidity Tariqullah Khan, Abdul-Jalil Ibrahim, Zubair Hafiz
11.10am – 11.30am
Paper Presentation 2 (Parallel Session) Room 1: Dahlia | 25 November 2019, Monday | 2.00pm – 4.30pm
Presentation Schedule
The Salam Contract in the Advent of the Fourth Industrial Revolution in the Utility Industry Kulsanofer Syed Thajudeen
2.00pm – 2.30pm
Determining Factors of Foreign Direct Investments in Selected Islamic Countries Muhammad Ubaidillah Al Mustofa, Raditya Sukmana, Sri Herianingrum, Ilmiawan Auwalin, Ririn Tri Ratnasari, Siti Zulaikha, Imron Mawardi
2.30pm – 3.00pm
Risk Based Internal Shariah Auditing Practices Within Malaysian Takaful Operators: Multiple Case Study Noor Aimi Mohamad Puad, Zurina Shafii, Nurdianawati Irwani Abdullah
3.00pm – 3.30pm
Qardul Hasan Principles: Theory and Implementation in Islamic Banking Soritua Ahmad Ramdani Harahap, Iza Hanifuddin, Muhammad Ulul Azmi
3.30pm – 4.00pm
Shariah Governance in Islamic Banks: Practices, Practitioners and Praxis Dewi Fatmawati
4.00pm – 4.30pm
Paper Presentation 2 (Parallel Session) Room 2 : Orchid | 25 November 2019, Monday | 2.00pm – 4.30pm
Analyzing the Impact of Working Environment in the Shariah Banking to the Job Satisfaction and Employee Productivity Rini Safitri, Indah Yuliana
2.00pm – 2.30pm
Determinants of Enterprise Risk Management (ERM) Adoption Amongst the Shariah Compliant Construction Companies in Malaysia Amirul Afif Muhamat, Norzitah Abdul Karim, Mohamad Nizam Jaafar, Sharifah Faigah Syed Alwi, Nur Faziera Mohamed Nassir, Siti Aisyah Abdul Mutalib
2.30pm – 3.00pm
International Sovereign Sukuk and Global Financial Risks Purwaka Hari Setyawan, Kusdhianto Setiawan
3.00pm – 3.30pm
Review of Sukuk on Blockchain Sherin Kunhibava, Aishath Muneeza, Auwal Adam Sa’ad, Ershadul Karim, Zakariya Mustafa Inclusive and Sustainable Growth with Islamic Financial Instruments and Institutions Salman Ahmed Shaikh
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INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
3.30pm – 4.00pm
4.00pm – 4.30pm
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Presentation Schedule
Presentation Schedule Paper Presentation 2 (Parallel Session) Room 3 : Sakura | 25 November 2019, Monday | 2.00pm – 4.30pm
Paper Presentation 3 (Parallel Session)
Room 1 : Dahlia | 26 November 2019, Tuesday | 11.30am – 12.45pm
Well-Being Supporting Factors of Umar bin Abdul Aziz Period and Its Context to Indonesian Current Practices Dodik Siswantoro, Evony Silvino Violita
2.00pm – 2.30pm
Well-Being Supporting Factors of Umar bin Abdul Aziz Period and Its Context to Indonesian Current Practices Dodik Siswantoro, Evony Silvino Violita
2.00pm – 2.30pm
Islamic Banking Ethics: How it Counter Unfair Terms and Conditions in Consumer Contracts of Malaysian Islamic Banks Noor Mahinar Abu Bakar, Norhashimah Mohd Yasin, Ng See Teong
2.30pm – 3.00pm
Islamic Banking Ethics: How it Counter Unfair Terms and Conditions in Consumer Contracts of Malaysian Islamic Banks Noor Mahinar Abu Bakar, Norhashimah Mohd Yasin, Ng See Teong
2.30pm – 3.00pm
An Analysis of Cashless Society for Monetary Policy in Perspective of Islam Siswanto, Sasmita Nurvinda Laili, Ahmad Djalaluddin, Muhtadi Ridwan, Muhammad Djakfar
3.00pm – 3.30pm
An Analysis of Cashless Society for Monetary Policy in Perspective of Islam Siswanto, Sasmita Nurvinda Laili, Ahmad Djalaluddin, Muhtadi Ridwan, Muhammad Djakfar
3.00pm – 3.30pm
Shariah Governance and Jurisdiction Through Spectacles of Islamic Fintech in Malaysia Azwina Wati Abdull Manaf, Ho Wen Hui
3.30pm – 4.00pm
Shariah Governance and Jurisdiction Through Spectacles of Islamic Fintech in Malaysia Azwina Wati Abdull Manaf, Ho Wen Hui
3.30pm – 4.00pm
Islamic Financial Technology in Indonesia: A Review of Its Current Ecosystem and Future Challenges Fahmi Ali Hudaefi, Abdul Aziz Yahya Saoqi, Hidayaneu Farchatunnisa, Ulfah Lathifah Junari
4.00pm – 4.30pm
Islamic Financial Technology in Indonesia: A Review of Its Current Ecosystem and Future Challenges Fahmi Ali Hudaefi, Abdul Aziz Yahya Saoqi, Hidayaneu Farchatunnisa, Ulfah Lathifah Junari
4.00pm – 4.30pm
Paper Presentation 3 (Parallel Session)
Room 1 : Dahlia | 26 November 2019, Tuesday | 11.30am – 12.45pm The Practice of Hibah as an Important Instrument of Wealth Management Noor Shahalina Binti Jamaludin, Shaikh Hamzah Abdul Razak
11.30am – 11.55am
Using CSR Funds of Islamic Organization to Attain SDGs for Inclusive Growth Samsad Jahan, Mashiyat Tasnia
11.55am – 12.20pm
Accounting for Waqf Institutions: Business, Not-for-Profit or Hybrid Entities? Umar Habibu Umar, Md Harashid Haron
12.20pm – 12.45pm
Paper Presentation 3 (Parallel Session)
Room 2 : Orchid | 26 November 2019, Tuesday | 11.30am – 12.45pm
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Profit, Cost, and Revenue Efficiencies of Islamic and Conventional Banks in Middle East, South Asia and Southeast Asia Andrew Tek Wei Saw, Siong Hook Law, Fakarudin Kamarudin, Ahmad Shaharudin Abdul Latiff
11.30am – 11.50am
The Impact of Sustainable Banking Practices on Banks Stability Kinan Salim, Adam Ng, Ginanjar Dewandaru, Malik Abdulrahman Nkoba
11.50am – 12.10pm
BBMA – A Universal Tools for Market Analysis Omar Ali
12.10pm – 12.30pm
Business Model and Non-Performing Loan in Peer-to-Peer Lending Yolli Eka Putri, Sudarso Kaderi Wiryono, Yunieta Anny Nainggolan
12.30pm – 12.50pm
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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Keynote Speakers
YB Dato’ Ir Haji Amiruddin Haji Hamzah Deputy Minister, Ministry of Finance, Malaysia
Dr Sami Al-Suwailem IRTI Director General, Jeddah
Special Papers Presenters
Professor Dr Joseph Cherian National University of Singapore
Professor Dr Saiful Azhar Rosly INCEIF
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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ABSTRACTS
Paper Presentation Session 1 1) Financial Intermediation Costs in A Dual Banking System: The Role of Islamic Banking Mansor H. Ibrahim, bLaw Siong Hook, a International Centre for Education in Islamic Finance, bUniversiti a Putra Malaysia This paper empirically analyses the role of Islamic banking in financial intermediation costs as measured by net interest margins for the case of a leading dual-banking country, Malaysia. Controlling for theoretically-motivated determinants of the margins, the paper compares the interest/financing margins of conventional and Islamic banks and examines the impacts of Islamic banking presence on bank margins. The analysis provides some evidence for higher margins of Islamic banks as compared to the margins of conventional banks. Further, the difference in bank margins of the two types of banks can be attributed to differences in market power, operating costs and diversification. Finally, Islamic banking presence or penetration as represented by the ratio of Islamic financing to aggregate bank credit/financing and alternatively the share of Islamic banking assets is robustly associated with lower bank margins on average. These results bear important implications for the development of the Islamic banking industry and for fostering efficient allocation of financial resources by the banking system.
Abstracts
Keywords: Interest Margins, Dual-Banking System, Malaysia
2) Islamic Social Finance in West Africa: Opportunities and Challenges Abdou Diaw, bMaïmouna Vahvou, cAbdoulaye Mbow, dAbdoulaye a Lam, Manager of CESAG Islamic finance programs and CEO of a ACOFFIS, bPhD candidate, cDeputy CEO of ACOFFIS, dCEO of GIFT The main objective of this study is to explore the potential contribution of Islamic Social Finance to the fight against poverty and inequality in Francophone countries of West Africa. More specifically to discuss the current state of poverty and inequalities in the countries covered by this study, all of which are French-speaking countries in West Africa; • to review the state of Islamic Social Finance in the countries covered by the study; • to explore the opportunities offered by Islamic Social Finance and the challenges for its development; • make recommendations to decision-makers to benefit from the opportunities of Islamic Social Finance.
3) Digital Era and Islamic Monetary Policy with Special Reference to Systemic Liquidity Tariqullah Khan, Abdul-Jalil Ibrahim, Zubair Hafiz Hamad Bin Khalifa University, Qatar Foundation Doha In this research, we take stock of the rapidly growing cyber economy in the civilization era known as Industrial Revolution 4 that has given rise to digital assets and distributive ledger technology (DLT). We discuss the ramifications of the digital assets and DLT for core concern monetary policy, namely establishing robust systemic liquidity mechanism. The theory of Islamic financial intermediation and monetary policy relies on the profit-sharing mechanism, but due to information asymmetry, these theoretical prescriptions have not evolved as part of the practices. The influence of conventional instruments and traditions are overwhelming as the sparsely available Islamic instruments also replicate the traditional mechanisms. The same trends also reflect in the available Islamic monetary policy instruments. Our main addition to the existing literature is an extension of the discussion into the digital and DLT era. We discussed some prospects on managing the money supply and liquidity in the system, which is, in fact, are at the heart of monetary policy. Existence of a robust systemic liquidity mechanism is also the most serious need of the Islamic banking system. We suggest a potential solution in this regard for considerations of monetary authorities One of the prospects is the room for utilization of Smart-contracts for enhancing systemic liquidity for Islamic financial institutions. With a certain level of financial engineering, a Smart-equity certificate representing tier1 of participating banks can be created with Call and Put options. The call and put options can be invoked through smart-contract-triggers contingent upon certain preset threshold conditions of key liquidity coverage, stable funding, and capital ratios. The collar and cap conditions for equity price movements can be set administratively. We argue that the systemic liquidity stabilization will be automatic because of the Smart-contract-triggers. This is a major suggestion that needs further study in the potential digitization of economies, assets, and monetary policy. Keywords: Islamic digital economy, Islamic digital finance, Islamic systemic liquidity in digital era, Islamic monetary policy in digital era
To this end, we used three methods of investigation: a documentary analysis, individual interviews and focus-groups. Given the constraints, we have chosen to carry out the study on four countries in French-speaking Africa: Mauritania, Niger, Senegal and Togo. This study aims to make a doubly significant contribution. Indeed, i) despite the importance of the Muslim population in this region of the world, few studies have been devoted to Islamic finance; ii) a very limited amount of scientific work has been done on Islamic Social Finance in French.
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INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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ABSTRACTS
ABSTRACTS
Paper Presentation Session 2 1) The Salam Contract in the Advent of the Fourth Industrial Revolution in the Utility Industry Kulsanofer Syed Thajudeen The world has progressed rapidly and has witnessed several advances that resulted in tremendous changes in how the world works. Steam engines allowed the transportation of goods across nations without relying on animal power. Machines brought about mass production and computers led to the digital era. However, the Fourth Industrial Revolution (IR4.0) is fundamentally different as it is able to infiltrate every industry and discipline, challenging the way things are done. The utility industry is not untouched by this behemoth. Industries that are traditionally centralized, owned and managed by governments, like the utilities, are facing disruption in their modus operandi. The trend of the utility industry is towards decentralization with the advancement of digitalisation and the introduction of the IR4.0. Peerto peer (P2P) energy trading among solar prosumers are already happening which empowers them to choose their preferred source of electricity. Likewise, other utilities like water can also start trading among the consumers. The Salam contract is an ideal Islamic finance product that can be used for these trading purposes. This paper explores how the Salam contract can be used in the context of P2P energy/water trading in the era of digitalisation. Keywords: Fourth Industrial Revolution, Decentralization, Energy Trading, Salam Contract
2) Determining Factors of Foreign Direct Investments in Selected Islamic Countries Muhammad Ubaidillah Al Mustofa, Raditya Sukmana, Sri Herianingrum, Ilmiawan Auwalin, Ririn Tri Ratnasari, Siti Zulaikha, Imron Mawardi Faculty of Business and Economics, Universitas Airlangga, Indonesia This study analyzes the impact of country risk, country’s regulatory quality, and selected macroeconomic factors on the inflow of foreign direct investment in a sample of selected OIC countries. Findings show, foreign investors prefer to invest in countries with low exposure to risks. Institutional quality also plays an important role in deriving foreign investment. The political system plays no significant role in deriving more foreign investments, however, countries with bigger market size have more opportunities to receive higher investments flows. Keywords: Country Governance, Country Risk, Foreign Direct Investment
3) Risk Based Internal Shariah Auditing Practices within Malaysian Takaful Operators: Multiple Case Study Noor Aimi Mohamad Puad, b Zurina Shafii, c Nurdianawati Irwani a Abdullah Kolej Universiti Islam Antarabangsa Selangor, bUniversiti Islam a Sains Malaysia, cInternational Islamic University Malaysia
5) Shari’ah Governance in Islamic Banks: Practices, Practitioners and Praxis Dewi Fatmawati, a Nooraini Mohd Ariffin, a Norhafizah Zainal ab Abidin, a Ahmad Zamri Osman International Islamic University Malaysia, b Universitas Gadjah a Mada
Shariah audit functions within Islamic Financial Institutions has been imposed by Bank Negara Malaysia (BNM) with the issuance of Shariah Governance Framework in 2010. During the early stage of the implementation, the approach for this shariah audit function is only focusing on shariah compliance. After almost ten years, the shariah audit function becomes mandatory, and this function is expected to be well developed and be able to achieve its primary objective. The function of shariah audit should be beyond Shariah compliance as it should serve as an independent assessment of internal control for any shariah compliance risk. Shariah audit also is one of the crucial elements in the Shariah governance framework. However, the insufficiency of specific guideline for shariah audit become the challenges for the auditors to carry out a comprehensive shariah audit procedure. Therefore, this study aims to provide an in-depth explanation on the process of shariah audit, particularly on planning, executing, reporting and follow up which emphasis on the application of risk-based internal audit (RBIA) approach. The study adopted a qualitative methodology by using multiple case study of Takaful Operators in Malaysia. The detail explanation on the current shariah audit process is expected to contribute to the provision of valuable in-depth information for Takaful Industry as well as other Islamic financial institutions. The information could benefit Islamic Financial Institutions to develop a strategy on providing a strong internal control for reducing the occurrence of shariah non-compliance risk.
This paper studies the Shari’ah governance practice in Islamic bank by analyzing and comparing the contents of the international and national codes of Shari’ah governance across eleven countries and annual report of the largest stand-alone Islamic bank in those countries. Drawing upon the practice-theory framework, this study finds similarities and differences across the countries concerning practices, practitioners, and praxis. In terms of practices, the study finds that the eleven countries reviewed have adopted different approaches in complying towards regulation regarding the Shari’ah governance structures and processes: either strict, moderate, or flexible. The approach taken by each country, in turn, to some extent has an influence on the practitioners and praxis of Shari’ah governance at institutional levels. Specifically, Islamic banks in “moderate” and “flexible” country groups are likely to be varied in terms of their internal practitioners of Shari’ah governance as well as activities or processes (praxis) to ensure Shari’ah compliance as compared to its counterparts in “strict regulation” group countries.
Keywords: shariah audit, Takaful, risk-based, shariah non-compliance risk
4) Qardul Hasan Principles: Theory and Implementation in Islamic Banking Soritua Ahmad Ramdani Harahap, Iza Hanifuddin, Muhammad Ulul Azmi University of Darussalam Gontor, Ponorogo The qardul hasan contract is one of the contracts to seek the afterlife, because it is not a business contract. So this contract cannot be used for purposes commercial. Islamic banks as financial institutions must be selective and objective in order to gain profit, cannot depend on the tabarru’ contract for profit. If our goal is to make a profit, use contracts Which is commercial, namely in the contracts. The paper aims to extract Qardul Hasan Principles: Theory and Implementation in Islamic Banking. Understanding qardul hasan will help us determine the action that should in performing qardul hasan. It has hoped that this research can contribute to the development of Islamic economics, both in theory and real practice. Keywords: Contract, Qardul Hasan, Islamic Banking
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Paper Presentation Session 2
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
7) Determinants of Enterprise Risk Management (ERM) Adoption Amongst The Shariah Compliant Construction Companies In Malaysia Amirul Afif Muhamat, Norzitah Abdul Karim, Mohamad Nizam Jaafar, Sharifah Faigah Syed Alwi, Nur Faziera Mohamed Nassir, Siti Aisyah Abdul Mutalib Universiti Teknologi MARA This study aims to investigate the determinants of enterprise risk management (ERM) adoption amongst the public listed Shariah compliant construction companies in Malaysia. This study used a sample data of Shariah compliant construction companies in Malaysia from 2007 until 2016. Logistics regression is used in this study. There are four factors that are found to be significant for ERM adoption among Shariah compliant construction companies in Malaysia which are: firm size; financial leverage; prominence international auditors; and profitability. The other two factors such as stock price volatility and independence of board of directors are not significant in this study. The findings are useful for regulators to encourage the adoption of ERM amongst the Shariah compliant construction companies. In addition, it will enrich literature in this area. Keywords: Shariah compliant, construction companies, enterprise risk management
Keyword(s): Islamic bank; Shari’ah governance; Practice-theory
6) Analyzing the Impact of Working Environment in the Shariah Banking to the Job Satisfaction and Employee Productivity Rini Safitri, Indah Yuliana Maulana Malik Ibrahim State Islamic University of Malang Implement and popularize Islamic sharia in economic activities, instill understanding that the sharia system in the economic field is fair, easy and maslahah, to improve the welfare of people and members, carry out economic activities with STAF culture Shiddiq (honest), Amanah (transparent), Tabligh (trustful/trustworthy) and Fathanah (professional). This research was examined with a quantitative or positivism approach using quantitative methods. Based on the design, this research belongs to the type of explanatory research because this study explains the relationship between variables through hypothesis testing and in general the data presented is in the form of figures calculated through statistical tests. Data analysis was performed using the Partial Least Square (PLS) approach using SmartPLS software. PLS was chosen because of the three important advantages. First, PLS is a very precise method for predicting (Henseller & Chin, 2010). A conducive and comfortable work environment for employees will affect job satisfaction. And later job satisfaction will increase on employee productivity. Facts on the ground show that there is a direct influence between the work environment and productivity. Improving a conducive work environment will increase employee productivity. Keywords: Working Environment, Job Satisfaction, Employee Productivity, and Sharia Banking
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
8) International Sovereign Sukuk and Global Financial Risks Purwaka Hari Setyawan, b Kusdhianto Setiawan ab Ministry of Finance of the Republic of Indonesia, b Universitas a Gadjah Mada This study examines the effect of global financial risks consisting of stock market risk, bond market risk, crude oil market risk, and gold market risk on international sovereign sukuk return, international corporate sukuk return, and global sukuk return, as well as examining reaction differences between sukuk returns. The study used daily data from October 1, 2013 to October 29, 2015, which represented normal conditions after the recovery of the financial crisis. This study used a vector autoregressive (VAR) model in first differences with the exogenous variables. The results of the study showed that global financial risks do not affect the international sovereign sukuk return, but negatively influence international corporate sukuk return and global sukuk return. In addition, there are similarities in the effect of global financial risks, namely bond market risk on international corporate sukuk return and global sukuk return. The study also found that global sukuk return has a positive effect on international sovereign sukuk return and international corporate sukuk return. The international sovereign sukuk market has proven to be efficient in the weak form, while the international corporate sukuk and global sukuk markets have not been efficient. Keywords: sovereign sukuk, corporate sukuk, global sukuk, sukuk return, global financial risk, sukuk market efficiency
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ABSTRACTS
ABSTRACTS
Paper Presentation Session 2 9) Review of Sukuk on Blockchain Sherin Kunhibava, bAishath Muneeza, cAuwal Adam Sa’ad, a Ershadul Karim, a Zakariya Mustafa a a University Malaya, b International Centre for Education in Islamic Finance, c International Islamic University Malaysia In the era of the fourth industrial revolution, financial instruments are being enforced through technology. Sukuk, such a financial instrument, has recently been developed to be issued through means of blockchain. Blockchain based sukuk is a structure where blockchain technology and smart contracts are used. A blockchain is a decentralized, distributed and digital ledger that is used to record transactions across many computers so that any involved record cannot be altered retroactively, without change to all subsequent blocks. A smart contract encodes business rules agreed by the parties directly into the underlying transaction itself and the blockchain itself enforces the contract rules. The objective of this paper is to understand the sukuk on blockchain and the challenges facing the development of it. This is a review paper where secondary data on the subject are reviewed to derive conclusions. This paper reveals that though there are benefits of structuring sukuk on blockchain, such as increased transparency of underlying assets and cash flows, reduced number of intermediaries, reduced costs and removal of certain inefficiencies that obstruct the financial system, there are on the other hand certain challenges. The challenges includes Shariah, legal, regulatory, acceptance of digital currency and cyber risks that need to be resolved. It is anticipated that the outcome of this paper will assist in understanding the blockchain based sukuk and its ensuing issues and will pave the way to find innovative solutions to enhance blockchain sukuk using other forms of technology based solutions. Keywords: blockchain, sukuk, legal issues, regulatory issues, regtech
10) Inclusive and Sustainable Growth with Islamic Financial Instruments and Institutions Salman Ahmed Shaikh
financing and social finance promote inclusivity and socio-economic mobility of the poor. Finally, the paper also identifies how various Islamic instruments and institutions are suitable for achieving each of the 17 sustainable development goals. Keywords: Islamic Finance, Islamic Banking, Islamic Social Finance, Inclusive Growth, Sustainable Growth
11) Well-Being Supporting Factors of Umar bin Abdul Aziz Period and its Context to Indonesian Current Practices Dodik Siswantoro Department of Accounting Universitas Indonesia This research aims to analyze supporting factors of well-being in Umar bin Abdul Aziz (UAA) period and compare them to Indonesian current practice. This would compare the inexistence of poverty in Umar bin Abdul Aziz period supporting factors to Indonesian condition. Umar only ruled for 29 months but at that time poor people were hard to find. The research applies qualitative method with post-positivist paradigm. Data is taken from literatures, related information, and internet resources. Umar bin Abdul Aziz’s well-being requirements would be analyzed and compared to Indonesian current practices. The well-being of Umar bin Abdul Aziz indicator was inexistence of poverty. Some government programs had been indiscriminately proposed to the benefit of all people including non-Muslims. Comparatively, in fact such proposed requirements as in the age of Umar bin Abdul Aziz have not been adequately satisfied in Indonesia. Therefore, focusing on poverty eradication in the government is a mandatory requirement of UAA indicator. This may be the first paper analyzing the well-being of Umar bin Abdul Aziz period. In that period, poor people were nearly inexistent as Umar proposed governmental program focusing on poor people. Keywords: Well-being, Islam, Umar, Indonesia, happiness
This paper discusses how Islamic finance promotes inclusive and sustainable economic growth through its principles, values, institutions and instruments. The permissibility of earning interest on amount of money lent creates distributive inequity in the financial flows as well as delinks the financial flows with the real economy. Tremendous financial investments in exotic financial derivatives and money market ensure return to the financial capitalist on fiat money without having any commitment to give back to society any tangible real benefit. The current financial system largely funds rich segments of the population who can provide collateral as security for the grant of money based loan. The provision of money based lending in the current banking practice locks huge amount of liquidity in the money market instruments alone. This has presented a challenge in the form of rising income inequality, wealth inequality and jobless growth. On the other hand, in Islamic finance, the principle of risk based productive enterprise can promote capital formation and entrepreneurship by disallowing fixed return on money capital in the form of interest. The paper shows how Islamic finance links provision of finance with the real economy and to boost aggregate demand components. It also discusses how Islamic equity based modes of
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Paper Presentation Session 2 12) Islamic Banking Ethics: How it Counter Unfair Terms and Conditions in Consumer Contracts of Malaysian Islamic Banks Noor Mahinar Abu Bakar, bNorhashimah Mohd Yasin, cNg See a Teong PhD Candidate, Ahmad Ibrahim Kulliyyah of Law, International a Islamic University Malaysia, Kuala Lumpur, Malaysia Professor, Civil Law Department, Ahmad Ibrahim Kulliyyah of Law, b International Islamic University Malaysia, Kuala Lumpur, Malaysia PhD Candidate, IIiBF, International Islamic University Malaysia, c Kuala Lumpur, Malaysia. Standard form contracts are in common use for various forms of consumer credit agreements in Islamic banks (IBs) for matters like takaful, leases, automobile or house purchases, and financing. However, the adoption of these standard form agreements raise controversy regarding the fairness and clarity of their contents since they are imposed rather than agreed upon by the bank consumers and from SharÊÑah perspective of standard contract tends to lead to injustice. In ensuring fairness and improve clarity of terms and conditions, Bank Negara Malaysia (BNM) as the Central Bank of Malaysia recently requires banking institutions by end-2019 to revise their unfair terms and use plain language in their new and existing housing loan and financing contracts. This move is consistent with Federal Court ruling in CIMB Bank v Anthony Lawrence Bourke & Alison Deborah Essex Bourke (2018), which ruled that “it is patently unfair and injustice for banks to rely on their absolute exclusion of liability clauses in denying the rights of consumers in this case.” This study undertakes to demonstrate the application of Islamic banking ethics in ensuring compliance of maqÉÎid al-SharÊÑah (goals of Islamic law) by IBs to avoid unfair terms in their legal documentation. This study uses library research method that specifically refers to documents, journals and texts regarding Islamic banking activities, to test the positive effect of Islamic banking ethics on banking conduct. This study reveals that although legal documentation of IBs may have complied with SharÊÑah rules, but there is lack of ethical content in using unreasonable, one-sided and unfair contract terms. Also, adherence to Islamic banking ethics to counter unfair terms in consumer contracts, helps to make sensible judgements for good conduct by bankers. This study have important implications for good conduct if Islamic banks are to enhance their image and reputation in society towards their sustainable development. Keywords: Islamic banking ethics, Islamic banks, Malaysia, MaqÉÎid al-SharÊÑah.
money supply can enhance economic growth. The objectives of this study are to analyze the relationship between cashless society and inflation through interest rate transmission mechanism of monetary policy and to analyze economic growth in from the perspective of Islam. The instruments of cashless society used in this study are Bank Indonesia’s Real Time Gross Settlement value, Bank Indonesia’s National Clearing System value, and card payment growth. Interest rate transmission mechanism of monetary policy uses the yields of Bank Indonesia Certificates Sharia, Islamic Interbank Money Market, Third Party Funds, financing, consumption, and GDP to measure economic growth. Using VECM, this study finds that cashless society does not directly affect inflation. However, it can affect interest rate transmission mechanism of monetary policy and GDP. In Islam, the use of non-cash money is regulated similarly to the use of cash money, and sharia principles have been used in the monetary policy. Keywords: Cashless society, interest rate transmission mechanism of monetary policy, inflation, Islamic monetary
14) Shariah Governance and Court Jurisdiction through Spectacles of Islamic Fintech in Malaysia Azwina Wati Abdull Manaf, Ho Wen Hui Multimedia University The landscape of Islamic Banking and Finance Industry in Malaysia is dramatically being altered and transformed through the advent and development of Islamic Financial Technology (Fintech). This leads to the unavoidable question as to whether the laws in Malaysia are sufficiently developed to assist the courts in hearing disputes concerning Islamic Financial Technology. Therefore, this paper seeks to study the specific areas pertinent to the power and capacity of the judiciary in hearing and settling Islamic Fintech disputes. Focus is made on the aspects of Shariah Governance and Procedural Laws including jurisdiction of the courts and evidence law. It is found that existing laws are mainly enacted for the purpose of conventional Islamic banking and finance and such laws still have lacunae. In relation to this, the shortcomings and the inadequacy of the laws are highlighted in this paper with the view to make proposals to mitigate the weaknesses in these laws. Keywords: Fintech, Islamic fintech, fintech ecosystem, Indonesia
13) An Analysis of Cashless Society for Monetary Policy in Perspective of Islam Siswanto, Sasmita Nurvinda Laili, Ahmad Djalaluddin, Muhtadi Ridwan, Muhammad Djakfar State Islamic University Maulana Malik Ibrahim Malang, Indonesia The increasing use of non-cash financial instrument (cashless society) is observable from the increase of money supply. Previous researches found a positive relationship between the total of money supply and inflation. In its effort of stabilizing price and inflation, Bank Indonesia uses interest rate transmission mechanism of monetary policy. Interest rate was selected because it concerns more about price in financial market for real market economic activities. In addition, any increase in
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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ABSTRACTS
ABSTRACTS
Paper Presentation Session 2 15) Islamic Financial Technologies in Indonesia: A Review of Its Current Ecosystem and Future Challenges Fahmi Ali Hudaefi, Abdul Aziz Yahya Saoqi, Hidayaneu Farchatunnisa, Ulfah Lathifah Junari BAZNAS Center of Strategic Studies Purpose - This paper aims to review the current ecosystem of Islamic financial technology or fintech in Indonesia and elaborates its future challenges from the local perspective. Methodology - This study engages a qualitative method to firstly review related literature about fintech. From doing so, the authors propose the definition of Islamic fintech along with its components of ecosystem. This established understanding is further employed as the guideline in reviewing that of Indonesia’s recent case. Findings - This study establishes a substantive understanding of the Islamic definition of fintech along with its ecosystem which covers six components. The present study further reviews the current development of Islamic fintech in Indonesia grounded by these substantive understandings as proposed by the authors. In the final discussion, the authors present the future challenges of Islamic fintech in Indonesia which highlights the technical and fundamental challenges. From discussing so, this work credits a solid theoretical ground about Islamic fintech and the practical perspective from the Indonesian case. Research limitations - The discussion of the fundamental challenges of Islamic fintech in Indonesia is not representative of the authors’ positivism point of view. Practical implications - The substantive definition of Islamic fintech and its ecosystem as elaborated in this study are beneficial for both academics and industrialists in understanding the subject matters. Social implications - The elaboration of fundamental challenges of Islamic fintech in Indonesia implies social phenomenon which occurs in the local context. Originality/value - This paper is the first study in this journal and in the discourse of Islamic finance, to define the term Islamic fintech and its ecosystem and comprehensively reviews that of the recent development in Indonesia.
Paper Presentation Session 3 2) Using CSR Funds of Islamic Organization to Attain SDGs for Inclusive Growth Samsad Jahan, Mashiyat Tasnia International Centre for Education in Islamic Finance Linking Islamic instrument especially qard with corporate social responsibility (CSR) is an area which is often unspoken. As such, this research intends to find out the potential of linking Islamic socially responsible financing to corporate social responsibility by innovating a flow of fund based on qard. Though the Islamic banks has financing instrument as qard, limited literature has been written on qard based CSR and the role of it as an instrument for Islamic socially responsible finance. This research uses qualitative paradigm to analyze the literature. The research is based on a desk-based research. The findings of this research prove that there is scope to finance the needy through CSR fund which can be a new way for social development through qard. It is anticipated that the innovate type of CSR activity proposed could be used as an innovative instrument to reflect that qard has the potential to be used as an Islamic socially responsible financing instrument. Keywords: Corporate Social Responsibility, Islamic finance, Qard
Keywords: Fintech, Islamic fintech, fintech ecosystem, Indonesia
Paper Presentation Session 3 1) The Practice of Hibah as an Important Instrument of Wealth Management Noor Shahalina Binti Jamaludin, b Shaikh Hamzah Abdul Razak a Professional Mawarith Consultant, b International Centre for Education in Islamic Finance a This Hibah awareness will only exist if there is a proper action or at least some information and knowledge for them to have some early preparation on Hibah for their wealth distribution. The public need to have a standard guideline to start doing Hibah as their wealth distribution to minimize Malaysian Muslim’s unclaimed asset and to expedite the beneficiaries claim on their inheritance. The purpose of the study was to find out the Malaysian Muslim views on Hibah as an important instrument for wealth management. This study presents two objectives, namely, to examine the Hibah application by different operators, and the reason for the Muslim’s community’s low Hibah adoption rate. We conducted face-to-face interviews with different operators was conducted as well as through telephone. For the general public, survey through google form was distributed via social media. Based on the research, there are various organizations offering various types of Hibah that have been outlined for Muslims to facilitate their wealth management. From the study, the majority of the respondents agreed that Hibah would be the preferred channel for wealth distribution. The is a need for uniform Hibah law and charges for Hibah to be as an instrument for wealth management. However, they feel it is too early to consider Hibah as part of the wealth planning. Limitation of the study is the unavailability of Hibah statistics as some operators were reluctant to divulge the information due confidentiality and privacy of information. Key words: Hibah awareness, wealth management, Hibah instrument, fara’id
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INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
3) Accounting for Waqf Institutions: Business, Not-For-Profit or Hybrid Entities? Umar Habibu Umar, b Md Harashid Haron a Yusuf Maitama Sule University, b Universiti Sains Malaysia a Purpose - Because waqf institutions have no accounting standards in existence, this study intends to contribute to the provision of basic contents of their annual reports and accounts as well as essential information and explanations to disclose for proper accountability and transparency. Design/methodology/approach -The study is based on the deductions and adaption of the provisions of AAOIFI’s standards, Bank Negara Malaysia Mushārakah Standards as well as conventional accounting standards and other accounting practices that do not violate the Sharī’ah. Findings - The study establishes that waqf institutions are hybrid entities because as charitable organizations commercial undertakings are attached to them to generate perpetual incomes for continuous implementation of the waqf objectives. Hence, the trustees should account for both waqf activities and the business transactions in the annual reports and accounts. Basic accounts to show in the waqf activities section are income and expenditure accounts, statement of financial position; and statement of cash flows. Similarly, these accounts should also be used to account for business transactions and events, except that the statement of profit or loss is prepared instead of income and expenditure account. The study also suggests some essential information to disclose along with adequate explanations to enhance the accountability and the transparency in the waqf institutions. Research limitations/implications - This paper does not provide all the accounting information that should be disclosed in the annual reports and accounts of the waqf institutions.
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
Practical implications – Application of these basic accounts and disclosures would assist the trustees in the provision of comprehensive, reliable and relevant annual reports and accounts to the various stakeholders to waqf institutions. Social implications - This study shows a way of ensuring the sustainability of waqf institutions for the benefit of the beneficiaries through the provision of qualitative accounting information in their annual reports and accounts. Originality/value - This study contributes towards enhancing the provisions of adequate and reliable accounting information for decision making by various stakeholders to waqf institutions. Keywords: Waqf, Waqf institutions, waqf accounting, annual reports and accounts
4) Profit, Cost, and Revenue Efficiencies of Islamic and Conventional Banks in Middle East, South Asia, and Southeast Asia Andrew Tek Wei Saw, Siong Hook Law, Fakarudin Kamarudin, Ahmad Shaharudin Abdul Latiff Universiti Putra Malaysia This study examines the differences between Islamic and Conventional banks’ cost, revenue and profit efficiency after the global financial crisis (GFC). Earlier studies on bank efficiency focused on cost efficiency but ignored profit and revenue efficiency. Hence, this study attempts to close the gap in the literature by investigating the three spectrums of price (revenue, cost and profit) efficiencies of Islamic and Conventional banks after GFC. This study provides a comprehensive examination of Islamic and Conventional banks by focusing not solely on one region but three regions namely – the Middle East, South Asia, and Southeast Asia from year 2009 to 2017. Utilizing data from a sample of 70 Islamic banks and 375 Conventional banks, profit efficiency of Islamic banks is higher than Conventional banks at weak significant level. The finding also demonstrates that Islamic and Conventional banks are rather inefficient in maximizing profit, and this inefficiency come from the handling of cost and revenue. Therefore, bank should improve not just on minimizing cost, but also maximizing revenue as well. In terms of regional levels, Islamic banks from Southeast Asia have higher profit efficiency than those in the Middle East and South Asia. However, Conventional banks from the Middle East outperform Conventional banks from South Asia and Southeast Asia. Keywords: Profit efficiency, Revenue Efficiency, Cost efficiency, Data Envelopment Analysis, Islamic bank
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ABSTRACTS
ABSTRACTS
Paper Presentation Session 3 5) The Impact of Sustainable Banking Practices on Banks Stability Kinan Salim, Adam Ng, Ginanjar Dewandaru, Malik Abdulrahman Nkoba International Centre for Education in Islamic Finance This study seeks to examine whether corporate environmental performance (CEP) and corporate social performance (CSP) affect stability of the banking industry. The topic is of much interest to researchers and policy makers following the global financial crisis of 2007- 2009. Using a panel dataset of 473 banks in 74 countries from 2007 to 2016 and applying Generalized method of moments (GMM), we find that corporate environment performance (CEP) is negatively related to bank stability which is proxied by non-performing loans (NPL). On the other hand, our results suggest no significant relationship between corporate social performance (CSP) and bank stability. However, estimation using financial product safety as an aspect of corporate social performance shows a positive link to banks stability. The study contributes to the literature by using material dataset and providing new evidence on the relationship between CEP, CSP and bank stability. Our results are robust to a variety of econometric specifications and have significant policy implications for investors, bankers and regulators.
6) BBMA – A Universal Tools for Markets Analysis Omar Ali BBMA OmaAlly Trading Centre Purpose – This paper focus on trading tool for analysis of market movements. Design/methodology/approach – Its methodology using a combination of most widely use indicators by traders, a Bollinger Bands and moving averages. Findings – The paper finds weaknesses and strengths in Bollinger Bands and moving averages. Both complement each other, giving a breakthrough in the trading tool interpret markets structure. Originality/value – The results are remarkable as the trading tool giving information about market structure. This is an opportunity to participating trades in related markets. Keywords: Market structure, trading tool, market analysis.
7) Business Model and Non-Performing Loan in Peer-to-Peer Lending Yolli Eka Putri, Sudarso Kaderi Wiryono, Yunieta Anny Nainggolan Institut Teknologi Bandung Peer-to-peer (P2P) lending has been promoted become solution for unbanked people to get loan. Number of P2P lending companies has been significantly growth and regulator has given licensed to some of them. This research explores the relationship of business model that is applied in P2P lending platform and non-performing loan. Collecting data from interview and P2P lending platform website, we classified 32 Indonesian registered P2P lending platforms based on who makes the decision the project that will be financed through P2P lending, either the lender (client-segregated account model/
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C2C) or the platform (notary model/ B2C). Result from this research is platform that give lender access to choose the loan application have lower non-performing loan than platform that make their own decision. We propose a framework that client-segregated account model has second layer of credit assessment that notary model does not have. This research will contribute to regulator and P2P lending companies to consider their credit assessment process. Keywords: Peer-to-Peer lending; Business Model; Non-performing loan; Notary Model; Client-segregated Account Model
8) Halal Economy Estate: An Initiative to Robust Islamic Economy Ecosystem Adi Priatno, a Achmad Firdaus, b Saiful Anwar a Tazkia Institute Bogor, b Ahmad Dahlan University of Technology a and Business Purpose – This research aims to study the development of Halal Economy Estate, an initiative to robust the Islamic Economy ecosystem as well as the growth of Halal Industry and Islamic Finance. Design/Methodology/Approach – Utilize halal cluster development as references to analyze the Industrial Estate by Value Chain Analysis and Maslahah Performa Approach, and transforming the analysis results into an idea to develop the Halal Economy Estate. Findings – Halal Parks as one of the initiatives by Halal Industry Development Corporation (HDC) to accommodate the growth of the Malaysian halal industry, built on common property where they provided with infrastructure and service support for halal oriented business. Similarly, Industrial Estate in Indonesia also built on common property with orientation for the manufacturing industry. The value chain analysis comes up with four standard criteria as of management and services, infrastructures and facilities, environmental management, and corporate social responsibilities. Through the Maslahah Performa approach, the four standard criteria’s were formed to meet the sharia compliance. The Industrial Estate can be categorized as the Halal Economy Estate so long as it fulfills the standard value with orientation on halal business. Research limitations/implications – This study explore the standard criteria to establish the Halal Economy Estate transformed from the Industrial Estate. However, further research needs in comprehensive qualitative or quantitative, to create developing in all aspects and including the business overview. Practical implications – The study will be a valuable source for researchers and practitioners who interested in Halal Economy as a new challenge in the Global Economy. Originality/value – Breakthrough the role of Industrial Estate to growth halal industry that integrated with Islamic finance drives a robust Islamic Economy ecosystem.
Paper Presentation Session 3 9) The Impact of Political Institutional Quality on Financial Inclusion in OIC Countries Zakaria Lacheheb, aNormaz Wana Ismail, aAhmad Zubaidi a,b Baharumshah, aNam Naseem, a,cLy Slesman Sulaiman Department of Economics, Universiti Putra Malaysia, Serdang, a Malaysia bDepartment of Management, Universite Kasdi Merbah, Ouargla, Algeria Centre for Advanced Research (CARe), Universiti Brunei c Darussalam, Gadong, Brunei Darussalam This study investigates the link between political institution and financial inclusion in panel of 17 member countries of the Organization of Islamic Cooperation (OIC) from 2007 – 2016. The estimated model using system GMM (S-GMM) revealed that political institution has a significant and positive impact on access to financial services but not for availability. Results confirms that better political environment, such as, democratic political system leads to conclusive of access of financial services, i.e. number of bank branches. Therefore, countries with better level of political institution is predicted to be associated with low financial inclusion in access and availability of financial inclusion. Whereas, less democratic political system, such as autocracy, is associated with positive impact on financial inclusion. Keywords: Political institution, financial inclusion, hierarchy of institutional hypothesis, S-GMM.
10) The Effect of CSR and Zakat Fund on Profitability of Indonesian Islamic Banks Mawar Suryani, Saiful Anwar Institute of Technology and Business Ahmad Dahlan Jakarta This study aims to determine the effect of corporate social responsibility and zakat on the profitability of Islamic Commercial Banks for the period 2013-2017. The test was conducted using SEMPLS by processing WarpPLS 6.0 data. Exogenous variables used consist of corporate social responsibility and zakat. The endogenous variable used is the profitability of Sharia Commercial Banks proxied by ROA. The moderating variable used is the size of the company. This study uses a purposive sampling technique by using as many as 25 samples which are Islamic Commercial Banks for the period 2013-2017. Secondary data used in this study with data collection techniques from library studies and documentation. The test results show that (1) Variables of corporate social responsibility have no significant negative effect on profitability. (2) Variables of zakat have a significant positive effect on profitability variables. (3) The variable size of the company has no significant negative effect on profitability. (4) Variables of corporate social responsibility have a positive and significant influence on the variable size of the company. (5) Variables of zakat have a positive and significant influence on company size. (6) The variable size of the company as a moderating variable on the influence between corporate social responsibility and profitability has a non-significant negative influence. (7) The variable size of the company as a variable that moderates the influence between zakat and profitability has a significant positive effect. (8) Simultaneously the variable size of the company can be explained by the variables of corporate social responsibility and zakat by 58%. (9) Variable profitability can be influenced by corporate social responsibility and zakat through company size of 53%. Keywords: Corporate Social Responsibility, Zakat, Company Size and Profitability, SEM-Partial Least Square (PLS)
Keywords: value chain, maslahah performa, halal economy, halal industry, halal parks
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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Academic Committee NAME
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Organising Committee INSTITUTION
Professor Dr. Paresh Kumar Narayan
Deakin University, Australia
Professor Dr. Engku Rabiah Adawiah
International Islamic University Malaysia (IIUM)
Professor Dr. Abdul Rahim Abdul Rahman
Islamic Science University Of Malaysia (USIM)
Professor Dr. Ashraf Md Hashim
International Shari’ah Research Academy For Islamic Finance (ISRA)
Professor Dr. Mohamed Aslam Haneef
International Islamic University Malaysia (IIUM)
Dr. Rifki Ismal
Bank Indonesia/ University of Indonesia
Professor Dr. Younes Soualhi
International Shari’ah Research Academy For Islamic Finance (ISRA)
Professor Dr. Tariqullah Khan
Hamad Bin Khalifa University
Dr. Rahmatina Awaliah Kasri
University of Indonesia
Professor Dr. Meryem Duygun
Nottingham University Business School
Dr. Laurent Weill
Université de Strasbourg
Dr. Saad Azmat
Lahore University of Management Sciences (LUMS)
Professor Dr. Ahmet Faruk Aysan
Istanbul Sehir University
Emeritus Professor Dr. Zubair Hasan
International Centre for Education in Islamic Finance (INCEIF)
Professor Dr. Obiyathulla Ismath Bacha
International Centre for Education in Islamic Finance (INCEIF)
Prof. Dr. Saiful Azhar Rosly
International Centre for Education in Islamic Finance (INCEIF)
Prof. Dr. Zulkarnain Muhammad Sori
International Centre for Education in Islamic Finance (INCEIF)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
Professor Dr Mansor H. Ibrahim Chairman
Associate Professor Dr Mohamed Eskandar Shah Mohd Rasid Committee Member
Associate Professor Dr Said Bouheraoua Committee Member
Dr Noor Suhaida Kasri Committee Member
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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Presentation Guideline
Kuala Lumpur Area Guides
• The duration of formal oral presentations is 15 minutes, followed by 5 minutes for Q&A. • Please ensure that your presentation duration does not exceed 15 minutes. To ensure that everyone gets the most from the conference, the presentation schedule will be strictly enforced by each Session Chair. • Be at the session room 10 minutes before session starts and introduce yourself to the session chairs. • A PC will be available in each room, at the conference venue, for presenters use during their presentations. • Presenters should provide their presentations (MS-PowerPoint or Adobe PDF) to the organizing committee before 23rd November 2019.
What to See: Petronas Twin Tower
Anchoring the sprawling Kuala Lumpur City Centre, are the iconic Petronas Twin Towers. Hailed as the Twin Jewels of Kuala Lumpur, a visit to KL isn’t complete unless you’ve visited these doppelgangers. The 88-storey chrome and steel towers are the headquarters of Malaysia’s oil and gas company Petronas. The Dewan Filharmonik Petronas concert hall - Southeast Asia’s leading venue for classical music performances - is situated between the two towers. Open: 10.00-22:00 Location: between Jalan Ampang and Jalan Raja Chulan How to get there: Taxi, KLCC LRT Station
Floor Plan
Menara KL Tower
Standing atop the Bukit Nanas Forest Reserve, the 421 metre-high KL Tower is the world’s sixth tallest structure. Officially known as Menara KL, it has been outshone by the Petronas Twin Towers but remains an important architectural marker and offers spectacular views of the city. The viewing deck is at least 100 metres higher than the Petronas Tower’s Skybridge. Open: 09:00-22:00 Location: No. 2, Jalan Punchak Off Jalan P. Ramlee How to get there: taxi
Chinatown
The colourful Chinatown is a well-known bargain hunter’s paradise that seemingly never sleeps. Deeply immersed in Oriental culture, heritage and history, it is undoubtedly one of the most popular tourist spots in Malaysia, and holds its own against its more glamorous neighbours, KLCC & Bukit Bintang. Representing Malaysia’s multihued multicultural background perfectly, you can find all sorts of items, from Chinese herbs to imitation goods in this area. How to get there: LRT (Pasar Seni or Masjid Jamek station), KTM Komuter (Kuala Lumpur station)
Batu Caves
11 km north of KL, Batu Caves is a 400-year old limestone hill (with a 100year old temple incorporated within it), best known as the focal point of the annual Hindu festival of Thaipusam. The celebration, held between Jan & Feb attracts thousands of visitors who come to see the colourful spectacle of devotees who pay homage by carrying ornately-decorated ‘kavadis’ (frameworks) combined with various metal hooks and skewers which are used to pierce the skin, cheeks and tongue. Open: 06:00 - 21:00 Location: Selayang How to get there: Take Cityliner bus No 69 at Jalan Pudu to get to Batu Caves
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INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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Kuala Lumpur Area Guides
Kuala Lumpur Area Guides
What to See:
Where to Shop: Sultan Abdul Samad Building
Among Kuala Lumpur’s earliest Moorish-style buildings, the Sultan Abdul Samad Building is a distinguished city landmark that originally served as the secretariat for the colonial British administration. Today it is home to the offices of the Ministry of Information, Communications and Culture of Malaysia. Built in 1897 and designed by AC Norman, it is set to the east of Merdeka Square (Dataran Merdeka) and is frequently the backdrop for Malaysia’s annual Independence Day parades. Location: Jalan Tun Perak How to get there: 10 minutes walk from the LRT Masjid Jamek station
Sunway Lagoon Theme Park
Water slides that whirl and twirl, a manmade ‘river’ ride, surf beach, wave pool and 360° revolving pirate ship. The list of fun attractions at the 323,749sqm Sunway Lagoon Theme Park is undeniably extensive. Located in Petaling Jaya, the park encompasses a total of five different zones - the water park, Scream Park, Amusement Park, Extreme Park and Wildlife Park. Open: 11:00 - 18:00 Monday & Wednesday - Friday; 10:00 18:00 Saturday & Sunday Location: Petaling Jaya How to get there: Taxi
Aquaria KLCC
On the concourse level of the KL Convention Centre, the 464,515sqm Aquaria KLCC is home to over 150 species of marine life. Some people write it off as a tourist trap, but they’re sorely missing out - beyond the gallons of water filled with necklaces of kelp, coral and sea creatures, is one of KL’s foremost sightseeing attractions with real depth and complexity. Open: 11:00 - 20:00 Location: Kuala Lumpur Convention Centre Complex How to get there: Taxi, KLCC LRT Station
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INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
INCEIF-ISRA Annual Conference On Islamic Economics And Finance (I-ARIEF 2019)
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