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Islamic Banking Performance: Important Insights and Strategies Mubarok, Faizul; Sabrina, Kayla Nur; Muna, Putri Naelul; Maulida, Zahra
Jurnal BAABU AL-ILMI: Ekonomi dan Perbankan Syariah Vol 9, No 2 (2024): Islamic economics and banking research
Publisher : Universitas Islam Negeri Fatmawati Sukarno Bengkulu

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29300/ba.v9i2.3891

Abstract

Banks are financial institutions are created for the purpose of aggregating and disbursing funds among the members of the community. Such operation aims at financial equality, and serves the purpose of creating a platform for stimulating economic growth and overall national stability, which is directed toward the community well being. The main objective of this research is to analyze the impacts of Return on Equity and Debt to Equity Ratio, Gross Domestic Product, and Exchange Rate on Return on Equity in the Islamic banking institutions. The research adopts Islamic banking institutions in Indonesia and consists of five Islamic banks as a purposeful sampling method. To conduct the statistical analysis the Random Effect Model is employed. The research analyzes the impact of these selected financial variables: Return on Equity, Debt to Equity Ratio, Gross Domestic Product, and Exchange Rate Impact on Return on Equity. The researcher has concluded that Return on Equity, Debt to Equity Ratio, and Gross Domestic Product have significant impact on the Islamic banks Return on Equity. Exchange Rate on the other hand has no significant impact on the Islamic banks Return on Equity. To sum up this research, this study provides a basis for an understanding of the staticial relationship between ROE, DER, and GDP and ER on Return on Equity in Islamic banks. The understanding of such mechanism is a key premise for creating impact policies, which strategically improve then Islamic banks capabilities to grow and contribute to the country’s wellbeing.
Economic Vulnerability and Operational Efficiency in Indonesia’s Islamic Banking: A Vector Error-Correction Approach Mubarok, Faizul; Wibowo, Martino; Pradana, Hasta Dwi; Ahmad, Rosimah
Economica: Jurnal Ekonomi Islam Vol. 16 No. 1 (2025)
Publisher : Fakultas Ekonomi dan Bisnis Islam UIN Walisongo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21580/economica.2025.16.1.23916

Abstract

Amid Indonesia’s fast-growing Sharia-compliant finance sector and heightened global volatility, a clear assessment of how systemic shocks affect bank performance is increasingly urgent. This research analyzes economic vulnerability and its implications for the efficiency of Islamic banking in Indonesia. Using monthly time-series data from 2007 to 2024, it employs a Vector Error Correction Model (VECM). The findings reveal that both disbursed financing (FIN) and non-performing financing (NPF) significantly influence operational efficiency—measured by the BOPO ratio—in both the short and long run. Specifically, higher levels of FIN and NPF diminish efficiency by raising operational costs or reducing income. By contrast, the crisis indicator (CRS) gains significance only in the long run, implying that Islamic banks require time to adjust to macroeconomic shocks. Impulse-Response Function analysis shows mixed efficiency reactions to macroeconomic shocks, while Forecast Error Variance Decomposition highlights BOPO’s own shocks as the largest source of its variance and underscores NPF as the most powerful exogenous driver. These insights equip Islamic-bank managers and policymakers to craft strategies that mitigate economic vulnerability and enhance operational performance.
A Study of Interest Rate Thresholds on Foreign Investment in the Construction Sub-Sector in Indonesia Lumintang, Zulfikar Halim; Damayanty , Prisila; Mubarok, Faizul
Majapahit Journal of Islamic Finance and Management Vol. 5 No. 3 (2025): Islamic Finance and Management
Publisher : Department of Sharia Economics Institut Pesantren KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/mjifm.v5i3.544

Abstract

The construction subsector plays a strategic role in driving infrastructure development, regional connectivity, and national economic competitiveness. However, the realization of foreign direct investment (FDI) in this subsector remains relatively low compared to other sectors, despite the improving investment climate in Indonesia. One of the main factors influencing foreign investors’ decisions is macroeconomic variables such as interest rates, exchange rates, and foreign reserves, which in the context of the construction subsector are suspected to have a complex and not entirely linear relationship. This study aims to analyze the realization of FDI in the construction subsector along with the macroeconomic factors affecting it, to identify the nonlinear relationship pattern between interest rates and FDI, and to estimate the optimal interest rate threshold to attract foreign investment. The research uses quarterly secondary data from 2010–2023, analyzed with the Vector Error Correction Model (VECM), supported by RESET test, Johannsen cointegration, IRF, and FEVD. The results reveal a nonlinear inverted U-shaped relationship between interest rates and FDI in the construction subsector, with an optimal threshold at 4.195%. At moderate levels, interest rates have a significant positive effect, but become negative when exceeding this optimal point. Conversely, exchange rates and foreign reserves do not significantly affect FDI, although their directional relationships are consistent with theoretical expectations. These findings suggest that prudent interest rate management, exchange rate stability, and structural improvements in the construction subsector are crucial to enhancing Indonesia’s attractiveness to foreign investors.
A Dynamic Model of Banking Efficiency, Stability, and Competition in Indonesia Nur'aini, Dyah Tari; Damayanty, Prisila; Mubarok, Faizul
Majapahit Journal of Islamic Finance and Management Vol. 5 No. 3 (2025): Islamic Finance and Management
Publisher : Department of Sharia Economics Institut Pesantren KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/mjifm.v5i3.561

Abstract

The banking industry plays a vital role in Indonesia's economy, yet the dynamics among efficiency, stability, and competition levels often exhibit complex and not fully understood relationships. This study aims to analyze a dynamic model that describes the short- and long-term interactions between efficiency, stability, and competition in Indonesia's banking industry during the period 2015–2023. The research employs a quantitative approach using the Vector Error Correction Model (VECM) to examine the causal effects and the contribution of shocks among the variables. Secondary data were obtained from annual bank financial statements, OJK statistics, and Bank Indonesia publications. The findings indicate that competition positively affects efficiency, in line with the competition-efficiency hypothesis and quiet life hypothesis, but exhibits a nonlinear relationship with stability: increasing short-term risk but enhancing long-term stability, as described by the competition-stability hypothesis. Stability consistently improves efficiency and competition in both the short and long term, while the impact of efficiency on competition is more limited. The Impulse Response Function and Forecast Error Variance Decomposition analyzes also show that each variable initially dominates its own variability, with the contribution of other variables gradually increasing over the long term. These findings offer important implications for regulators and banking practitioners in formulating strategies to enhance competitiveness, improve efficiency, and maintain stability sustainably.
A Study of Interest Rate Thresholds on Foreign Investment in the Construction Sub-Sector in Indonesia Lumintang, Zulfikar Halim; Damayanty , Prisila; Mubarok, Faizul
Majapahit Journal of Islamic Finance and Management Vol. 5 No. 3 (2025): Islamic Finance and Management
Publisher : Department of Sharia Economics Institut Pesantren KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/mjifm.v5i3.544

Abstract

The construction subsector plays a strategic role in driving infrastructure development, regional connectivity, and national economic competitiveness. However, the realization of foreign direct investment (FDI) in this subsector remains relatively low compared to other sectors, despite the improving investment climate in Indonesia. One of the main factors influencing foreign investors’ decisions is macroeconomic variables such as interest rates, exchange rates, and foreign reserves, which in the context of the construction subsector are suspected to have a complex and not entirely linear relationship. This study aims to analyze the realization of FDI in the construction subsector along with the macroeconomic factors affecting it, to identify the nonlinear relationship pattern between interest rates and FDI, and to estimate the optimal interest rate threshold to attract foreign investment. The research uses quarterly secondary data from 2010–2023, analyzed with the Vector Error Correction Model (VECM), supported by RESET test, Johannsen cointegration, IRF, and FEVD. The results reveal a nonlinear inverted U-shaped relationship between interest rates and FDI in the construction subsector, with an optimal threshold at 4.195%. At moderate levels, interest rates have a significant positive effect, but become negative when exceeding this optimal point. Conversely, exchange rates and foreign reserves do not significantly affect FDI, although their directional relationships are consistent with theoretical expectations. These findings suggest that prudent interest rate management, exchange rate stability, and structural improvements in the construction subsector are crucial to enhancing Indonesia’s attractiveness to foreign investors.
A Dynamic Model of Banking Efficiency, Stability, and Competition in Indonesia Nur'aini, Dyah Tari; Damayanty, Prisila; Mubarok, Faizul
Majapahit Journal of Islamic Finance and Management Vol. 5 No. 3 (2025): Islamic Finance and Management
Publisher : Department of Sharia Economics Institut Pesantren KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/mjifm.v5i3.561

Abstract

The banking industry plays a vital role in Indonesia's economy, yet the dynamics among efficiency, stability, and competition levels often exhibit complex and not fully understood relationships. This study aims to analyze a dynamic model that describes the short- and long-term interactions between efficiency, stability, and competition in Indonesia's banking industry during the period 2015–2023. The research employs a quantitative approach using the Vector Error Correction Model (VECM) to examine the causal effects and the contribution of shocks among the variables. Secondary data were obtained from annual bank financial statements, OJK statistics, and Bank Indonesia publications. The findings indicate that competition positively affects efficiency, in line with the competition-efficiency hypothesis and quiet life hypothesis, but exhibits a nonlinear relationship with stability: increasing short-term risk but enhancing long-term stability, as described by the competition-stability hypothesis. Stability consistently improves efficiency and competition in both the short and long term, while the impact of efficiency on competition is more limited. The Impulse Response Function and Forecast Error Variance Decomposition analyzes also show that each variable initially dominates its own variability, with the contribution of other variables gradually increasing over the long term. These findings offer important implications for regulators and banking practitioners in formulating strategies to enhance competitiveness, improve efficiency, and maintain stability sustainably.
PROFITABILITY DRIVERS: AN IN-DEPTH ANALYSIS OF HEALTH INDUSTRY COMPANIES Mubarok, Faizul; Kurnia, Muhammad Irfan; Mutiara, Laila; Prakoso, Yoga Dwi
COMPETITIVE Vol 9, No 1 (2025): Competitive Jurnal Akuntansi dan Keuangan
Publisher : Universitas Muhammadiyah Tangerang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31000/competitive.v9i1.10495

Abstract

This research examines the influence of liquidity, activity, interest rate, and firm value variables on the profitability of healthcare companies listed on the Indonesia Stock Exchange. Employing purposive sampling, the study chose eight healthcare companies as its sample from 2018 to 2022. Data analysis was carried out by applying a fixed effect model. The results showed that two variables, namely asset turnover (activity ratio) and interest rates, have a significant influence on the profitability of companies in the healthcare sector. However, the variables of current ratio (liquidity) and firm value have yet to be proven to influence the level of profitability of these companies significantly. This finding implies that managers of companies in the healthcare sector need to pay attention to these factors in managing finances and increasing profitability. Improving efficiency in asset utilization and a better understanding of interest rate conditions can be effective strategies. Meanwhile, liquidity and firm value do not significantly impact profitability, which may provide additional insights for managerial decision-making in this sector.
Pengaruh Inventarisasi dan Legal Audit Terhadap Optimalisasi Pemanfaatan Aset dengan Kualitas Manajemen Aset Sebagai Variabel Moderasi (Studi Pada Sekretariat DPRD Kalimantan Utara) Wahyuni, Sri; Rika Candraningrat, Ica; Mubarok, Faizul
Journal of Accounting and Finance Management Vol. 6 No. 4 (2025): Journal of Accounting and Finance Management (September - October 2025)
Publisher : DINASTI RESEARCH

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/jafm.v6i4.2497

Abstract

Dalam penelitian ini, rancangan penelitian yang akan dilakukan yaitu penelitian kuantitatif. Pada umumnya, penelitian kuantitatif merupakan penelitian sample besar. Dari jenis masalah yang ingin dikaji, penelitian ini merupakan penelitian korelasi yang dimaksudkan untuk mengetahui ada atau tidaknya hubungan atau pengaruh antara dua variabel atau lebih. Penelitian dilakukan dengan metode survei dengan menyebarkan kuesioner kepada 52 orang yang terlibat dalam pengelolaan dan pengadaan aset milik daerah di lingkungan sekretariat DPRD Provinsi Kalimantan Utara. Pengambilan sampel penelitian menggunakan non-probability sampling dimana data yang diperoleh dalam penelitian ini dianalisis dengan menggunakan Structural Equation Modeling (SEM) -Partial Least Square (PLS). Hasil penelitian ini menunjukkan bahwa inventarisasi berpengaruh signifikan terhadap optimalisasi pemanfaatan aset. Legal audit berpengaruh signifikan terhadap optimalisasi pemanfaatan aset. Pengaruh inventaris terhadap optimalisasi pemanfaatan aset lebih kuat pada tingkat kualitas manajemen aset yang tinggi dan pengaruh legal audit terhadap optimalisasi pemanfaatan aset lebih kuat pada tingkat kualitas manajemen aset yang tinggi.
Penguatan Ekonomi Berkelanjutan Berbasis Manajemen Administrasi Usaha Budidaya Ikan Nila: Strengthening a Sustainable Economy Based on Administrative Management of Tilapia Cultivation Businesses Rekarti, Endi; Mubarok, Faizul; Wibowo, Martino; Sultan, Zulkifli; Widokarti, Joko Rizkie
PengabdianMu: Jurnal Ilmiah Pengabdian kepada Masyarakat Vol. 9 No. 10 (2024): PengabdianMu: Jurnal Ilmiah Pengabdian kepada Masyarakat
Publisher : Institute for Research and Community Services Universitas Muhammadiyah Palangkaraya

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

Tilapia is a popular type of fish in the global aquaculture industry, with the advantage of genetically enhanced strains for fast growth and feed efficiency. However, cultivators often need help with administrative management, suboptimal productivity, and limited knowledge about the latest cultivation technology. The community service program, which involves the Berkah Jaya tilapia cultivator group in Pandeglang, aims to increase understanding and overcome these challenges through assistance focusing on locally based solutions. Strategies include disease control, water quality management, and infrastructure improvements. Adopting appropriate technology and improving group administrative management are the main strategies for achieving sustainability and increasing productivity in tilapia farming.
Efficient Market Hypothesis and Forecasting of the Industrial Sector on the Indonesia Stock Exchange Mubarok, Faizul; Fadhli, Mohammad Masykur
Journal of Economics, Business, and Accountancy Ventura Vol. 23 No. 2 (2020): August - November 2020
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v23i2.2240

Abstract

The presence of the stock market has helped boost economic growth in Indonesia. However, high levels of volatility plus economic uncertainty make investors need to carry out strategies in investing in the capital market. This study aims to analyze the index movement of each industry sector on the stock exchange in Indonesia by testing the Efficient Market Hypothesis and estimating the growth of returns for each industrial sector. This research uses monthly data from 1996 to 2020 with research methods including variance ratios, data stationarity test, Autoregressive Integrated Moving Average (ARIMA), and Autoregressive Conditional Heteroskedasticity (ARCH). The results showed that the industrial sector on the Indonesia Stock Exchange was inefficient in its weak form. In forecasting, almost all indices experience a contraction of growth at the beginning of the forecasting period. Stakeholders are expected to be more active in the market by buying and selling, especially the contraction of shares. The market has proven to be inefficient in its weak form.
Co-Authors Abdul Halim Abdul Hamid Abdul Hamid Affandhi, Hanif Ahmad Rodoni Ahmad, Rosimah Aini Masruroh, Aini Andi Harmoko Arifin Andi Harmoko Arifin Ari Warokka Arie Wibowo Khurniawan Arief Mufraini, Arief Astuti, Desy Widhi Aumeboonsuke, Vesarach Benbadri, Asir Filard Bisma, Muhammad Faturrahman Aria Damayanti, Prisila Damayanti, Prisilla Damayanty , Prisila Darma Saputra Deni Nugraha Diky Paramitha Dyah Ekaari Sekar Jatiningsih, Dyah Ekaari Sekar El Ghifari, Muhammad Sheva Endi Rekarti, Endi Eni Sutrieni Erlin, Erlin Etik Ipda Riyani Etik Ipda Riyani, Etik Ipda Riyani Etty Puji Lestari Fadhli, Mohammad Masykur Fajarwati, Nabila Desinta Farhan Putra Pramudya Fatimah Azzahrah Fatimah, Etty Febrina, Anisha Ferliana, Vira Firdaus, Paja Zaky Fitrianto, Yudie Fizriyah, Nurul Florentina, Ika Halim, Abdul Henanda, Fauzan Falah Hendrian Hendrian, Hendrian Hermanto Siregar Himawan, Farras Azhar Ananda Husen, Ulfiya Indasaputry, Erliana Indo Yama Nasaruddin Irmawaty Irwan Trinugroho, Irwan Ishanifah, Annisa Izzuddin, Muhammad Ziyad Joko Rizkie Widokarti Kabul Wahyu Utomo Kasful Anwar Khurniawan, Arie Wibowo Klimko, Roman Kurnia, Muhammad Irfan Kurniawan*, Iqbal Latif, Sahraman D Hadji Lukas Purwoto Lumbangaol, Lasando Lumintang, Zulfikar Halim Lyadi, Citra Febria Mahjus Ekananda Martino Wibowo Maulida, Zahra Mawarni, Annisa Putri Melan Rena MN, Nuryasman Mohammad Masykur Fadhli Mohammad Nur Rianto Al Arif Muhammad Arief Mufraini Muhammad Faturrahman Aria Bisma Muhammad Ridho Syakhran Siregar Muhammad Ziyad Izzuddin Muhammad Zulham Tarmuzi Maradjabesi Mulyawan, Anggi Muna, Putri Naelul Murtiadi Awaluddin Mutiara, Laila Nabila, Bela Nunung Nuryartono Nur'aini, Dyah Tari Nurhasanah, Anggun Nurmailia, Avhita Pamungkas, Farhan Pangestu, Ilham Patuwondatu, Marrini Poluan, Meylan Sendy Poppy Damayanti Pradana, Hasta Dwi Prakoso, Yoga Dwi Pramudya, Farhan Putra Prasetiyo, Yudhi Pratiwi, Rida Adela Prisila Damayanty Purnomo, Kelik Heri Putra, Muhammad Zaki Adzkiya Rahman, Saif Ur Rahman, Saif-Ur Rentika, Della Rika Candraningrat, Ica Rusdianto Rusdianto Rusdianto Rusman Ruslan Sabrina, Kayla Nur Said Kelana Asnawi Salsabila, Shazkia Sauqi, Irfan Senewe, Fika Olivia Sepviani, Aulia Setijaning, Herlin Tundjung Setyowati, Erlina Nur’aini Shine Pintor Siolemba Patiro Shofia, Shofia Sippavitch Wongsuwatt Siregar, Muhammad Ridho Syakhran Sri Wahyuni SULTAN, ZULKIFLI Suntrayuth, Sid Supriyanto, Benny Eko Suryana, Anisa Maulita Susanti, Neneng Syaiful, Dzikra Nisa Syarif, Afdal Tiena Suhartini Tubagus Ismail Ulfarini, Deby Utami, Risma Nadya Utami, Tutik Sri Wardiwiyono, Sartini Wati, Lela Nurlaela Widyawan, Damar Wongsuwatt, Sippavitch Yaacob, Zulnaidi Yudhi Prasetiyo Zahra, Ikrimatuz Zilwan, M.