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Socio-Economic Determinants of Individual Muslim Zakat Payment Behavior in Indonesia Hapid Durohman; Fajar Adrian Sutisna; Muhammad Yuka Anugrah
Journal of Islamic Economics and Finance Studies Vol 4 No 2 (2023): JIEFeS, December 2023
Publisher : Universitas Pembangunan Nasional Veteran Jakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47700/jiefes.v4i2.6715

Abstract

Zakat is one of the pillars of Islam and holds significant potential in Indonesia. However, the amount of zakat collected remains far below its potential. This disparity arises because many Muslims neglect zakat payment and perceive it as less important. Therefore, it is crucial to understand the socio-economic behaviors and factors influencing individual decisions to pay zakat. This research aims to investigate the determinants of socio-economic factors on individual zakat behavior. The data utilized is sourced from the Indonesian Family Life Survey (IFLS) conducted in 2014, focusing on individuals aged 15 and above. The study employs probit regression methodology to examine individual decisions regarding zakat payments, utilizing STATA 17 for analysis. The research findings statistically indicate that individuals with higher socio-economic status have a greater likelihood of paying zakat. This is evident from socio-economic variables, including gender, household size, age, home ownership, loans, years of schooling, income, religiosity, and occupation, all significantly influencing individual decisions to contribute to zakat. However, variables such as place of residence and marital status do not significantly affect individuals' decisions to pay zakat. Therefore, socio-economic factors play a crucial role in formulating strategies to enhance zakat fund collection. Zakat institutions can refer to socio-economic research to determine their strategies for maximizing the significant zakat potential in Indonesia. For instance, by targeting income levels, zakat institutions can develop awareness programs for individuals with higher incomes, accelerating zakat fund collection in alignment with its substantial potential.   Zakat adalah salah satu pilar Islam dan memiliki potensi besar di Indonesia. Namun, jumlah zakat yang terkumpul masih jauh di bawah potensinya. Ketidaksetaraan ini muncul karena banyak Muslim yang mengabaikan pembayaran zakat dan menganggapnya kurang penting. Oleh karena itu, sangat penting untuk memahami perilaku sosial-ekonomi dan faktor-faktor yang memengaruhi keputusan individu untuk membayar zakat. Penelitian ini bertujuan untuk menyelidiki faktor-faktor sosial-ekonomi yang memengaruhi perilaku zakat individu. Data yang digunakan berasal dari Indonesian Family Life Survey (IFLS) yang dilakukan pada tahun 2014, dengan fokus pada individu yang berusia 15 tahun ke atas. Studi ini menggunakan metodologi regresi probit untuk menguji keputusan individu tentang pembayaran zakat, dengan menggunakan STATA 17 untuk analisis. Temuan penelitian secara statistik menunjukkan bahwa individu dengan status sosial-ekonomi yang lebih tinggi memiliki kemungkinan yang lebih besar untuk membayar zakat. Hal ini terlihat dari variabel sosial-ekonomi, termasuk jenis kelamin, ukuran rumah tangga, usia, kepemilikan rumah, pinjaman, tahun-tahun sekolah, pendapatan, religiusitas, dan pekerjaan, yang semuanya secara signifikan memengaruhi keputusan individu untuk berkontribusi pada zakat. Namun, variabel seperti tempat tinggal dan status pernikahan tidak secara signifikan memengaruhi keputusan individu untuk membayar zakat. Oleh karena itu, faktor-faktor sosial-ekonomi memainkan peran penting dalam merumuskan strategi untuk meningkatkan pengumpulan dana zakat. Institusi zakat dapat merujuk pada penelitian sosial-ekonomi untuk menentukan strategi mereka dalam memaksimalkan potensi zakat yang signifikan di Indonesia. Sebagai contoh, dengan melihat tingkat pendapatan, institusi zakat dapat mengembangkan program-program kesadaran untuk individu dengan pendapatan lebih tinggi, mempercepat pengumpulan dana zakat sesuai dengan potensi yang substansial.
Islamic Financial Development, Country Risk, and Human Development: Do They Shape Income Inequality in OIC Countries? Hapid Durohman; Fajar Andrian Sutisna; Danial Muhammad Wirdyansyah
Muslim Business and Economics Review Vol. 4 No. 2 (2025)
Publisher : Universitas Islam Internasional Indonesia

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

Abstract

Income inequality remains a persistent development issue across member countries of the Organization of Islamic Cooperation (OIC), irrespective of their income level. The Islamic financial system, built upon Shariah principles of fairness, risk-sharing, and ethical finance, offers a viable alternative to conventional systems in addressing inequality. This study investigates the long-run effects of Islamic financial development, human development, and country risk on income inequality in OIC countries and empirically tests the Islamic Financial Kuznets Curve (IFKC) hypothesis. Using balanced panel data from 13 OIC member states over the period 2013–2023, the analysis applies Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimators using STATA17. The results confirm that Islamic financial development significantly reduces income inequality and follows a non-linear (inverted U-shaped) relationship, validating the IFKC hypothesis. Human development exhibits a mixed effect: while DOLS and non-linear models suggest an equalizing impact, FMOLS results indicate that early gains may benefit elite groups disproportionately, reflecting institutional asymmetries. Country risk consistently exacerbates inequality across all models. Moreover, interaction effects reveal that institutional quality moderates the relationship between human development, country risk, and inequality. In some cases, even stronger institutions may fail to ensure equity when they lack inclusivity. These findings highlight the importance of aligning Islamic financial expansion with inclusive governance and social development policies. For OIC policymakers, achieving sustainable and inclusive growth requires synergy between financial deepening, human development, and institutional transformation Keywords: Islamic financial development, Income inequality, Human development, Country risk, Islamic Financial Kuznets Curve
What is the Actual Effect of Islamic Finance Development on the Environment? A Meta-Analysis Hapid Durohman; Nadya Setyawati; Faatih Rahmah
Ekonomi Islam Indonesia Vol. 7 No. 2 (2025): Ekonomi Islam Indonesia
Publisher : SMART Insight

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58968/eii.v7i2.681

Abstract

Over the last three decades, Islamic finance has overgrown in global financial markets. However, several previous studies have found that economic improvement and rapid growth of the financial sector will negatively impact environmental quality. The impact of Islamic finance on the environment based on the existing literature shows varying results. Even though much research discusses the influence of Islamic finance developments on the environment, existing studies still need to be developed to obtain relevant policy recommendations. Therefore, this research was done to analyze the relationship between the development of Islamic finance and environmental aspects from various previous studies. This study uses the meta-analysis method, a statistical approach to combine evidence from different studies (heterogeneity) quantitatively. This study uses data derived from 9 previous studies. To get a depth view of the studies from multiple databases used as observations in this research. Based on the results of a meta-analysis on CO2 emissions, it can be seen that there are indications of an association between the development of Islamic finance and carbon emissions, although not significant. this study concludes that Islamic finance can reduce environmental problems, including in Indonesia. This study recommends several recommendations, including unify standards and reporting, spur innovation, and reduce barriers and costs for issuers while increasing transparency and awareness for investors of Islamic financial instruments, such as green sukuk.
Does Islamic Banking Performance Enhance Social Welfare? Evidence from Indonesia Hapid Durohman; Fajar Andrian Sutisna; Danial Muhammad Wirdyansyah; Chetrine Alya Rinaima
Journal of Islamic Economics and Business Vol. 4 No. 2 (2024): Journal of Islamic Economics and Business
Publisher : Fakultas Ekonomi dan Bisnis Islam

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15575/jieb.v4i2.45727

Abstract

This study examines the influence of Islamic banking performance on social welfare in Indonesia, focusing on Shariah Non-compliance Risk (SNCR) and its relationship with the Capital Adequacy Ratio (CAR), unemployment, and Gross Domestic Product (GDP). SNCR occurs when Islamic banks fail to comply with Shariah principles, potentially leading to operational risks. Using panel data from 13 Islamic banks during 2017–2020, this research applies the Three-Stage Least Squares (3SLS) method to analyze the interaction between financial performance, macroeconomic indicators, and social welfare. Results show that higher CAR and unemployment tend to increase SNCR, while greater profitability, sufficient liquidity, and stable inflation help reduce it. Interestingly, although SNCR poses operational challenges, it has a positive impact on social welfare as reflected in GDP growth. This suggests that Islamic banks, despite Shariah compliance risks, still contribute to economic development. These findings emphasize the need for strong governance, effective risk control, and supportive economic policies. The study recommends that regulators enhance Shariah supervision and develop policies that strengthen financial stability while enabling Islamic banks to support national welfare goals. Overall, the research contributes to understanding how Islamic banking can balance financial soundness and social responsibility in the context of a growing Shariah-compliant financial system.
The The Analysis of Pros and Cons Regarding the Arrival of Rohingya Refugees: Religious, Humanitarian, and Socio-Economic Implication Hapid Durohman; Fajar Andrian Sutisna; Muhamad Ridho
Journal of Islamic Civilization Vol 5 No 2 (2023): Journal of Islamic Civilization
Publisher : Universitas Nahdlatul Ulama Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33086/jic.v5i2.5788

Abstract

The Rohingya refugee crisis has garnered global attention, eliciting both pros and cons to the dispersion of Rohingya refugees across different nations. This research analyzes the pros and cons of the Rohingya refugee situation and its implications for religion, humanity, society, and the economy. The research method uses qualitative descriptive analysis included in the literature review, which takes secondary data from sources such as the Immigration Detention Center, UNHCR, and IOM. The research result show four main backgrounds to the Rohingya crisis: religious, humanitarian, social, and economic. The study identifies numerous hoaxes and hate speech targeting the Rohingya, causing societal polarization and the disruption of social harmony. The same of religion and human values becomes the primary reason to assist Rohingya refugees. However, societal rejection also occurs due to the presence of certain Rohingya individuals who violate local norms and religious principles. From a social and economic perspective, helping the Rohingya ethnic group is an effort to prevent human trafficking transactions. However, it has the potential to cause social jealousy. Rohingya refugees negatively impact the economy, but in Malaysia, they contribute positively to the informal sector. Resolving this crisis demands international cooperation, humanitarian aid, diplomatic efforts, and a commitment to human rights for concrete solutions.