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Comparative financial performance of Islamic banks under diverse legal and regulatory systems in Southeast Asia Rahmadi, Rahmadi; Wemona Rahma, Dea; Fata, Muhammad Indra; Naufal, Faris
Journal of Islamic Economics Lariba Vol. 11 No. 2 (2025)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol11.iss2.art19

IntroductionIslamic banking has become an integral component of financial systems in many Muslim-majority and non-Muslim countries, yet its performance varies considerably across jurisdictions. These variations are closely linked to differences in legal frameworks, regulatory regimes, and institutional arrangements governing Islamic finance. In Southeast Asia, Indonesia, Malaysia, and Singapore represent three distinct regulatory models—hybrid Shariah-based, fully institutionalized Shariah-based, and conventional legal systems accommodating Islamic banking. Understanding how these differing environments shape the financial performance of Islamic banks remains an important and underexplored issue in comparative Islamic finance research.ObjectivesThis study aims to analyze and compare the financial performance of Islamic banks operating in Indonesia, Malaysia, and Singapore within the context of their respective legal and regulatory environments. Specifically, it seeks to examine differences in profitability, operational efficiency, intermediation activity, and capital adequacy, while interpreting these differences through an institutional and legitimacy-based perspective.MethodThe study employs a quantitative, descriptive–comparative research design using secondary data drawn from audited annual reports of selected Islamic banks during the 2021–2023 period. Financial performance is measured using Return on Assets, Return on Equity, Financing-to-Deposit Ratio, Operating Expenses to Operating Income Ratio, and Capital Adequacy Ratio. The analysis is conducted through ratio-based comparison at both intra-country and inter-country levels to capture institutional and regulatory influences on performance outcomes.ResultsThe findings indicate that Indonesian Islamic banks demonstrate relatively high profitability, largely driven by niche strategies such as microfinance, but exhibit heterogeneous efficiency and conservative intermediation in some cases. Malaysian Islamic banks show stable profitability, strong intermediation, and balanced capital adequacy, reflecting regulatory coherence and mature Shariah governance. Islamic banking units in Singapore achieve superior operational efficiency and improving profitability despite operating within a conventional legal framework, supported by advanced technology and scale economies.ImplicationsThe results highlight that Islamic banking performance is strongly shaped by institutional context rather than by a single optimal regulatory model. Regulators and practitioners should therefore design adaptive frameworks that balance prudential oversight, efficiency, and growth, while remaining responsive to local market conditions.Originality/NoveltyThis study contributes to the literature by providing a tri-country comparative analysis that integrates institutional and legitimacy perspectives, offering new empirical insights into how Islamic banks perform under hybrid, fully Shariah-based, and conventional legal systems in Southeast Asia.

Female migrant workers, family welfare, and Islamic economic philosophy: A gender-based empirical study in Indonesia Ceasar, Ibnul Jauzi Abdul; Yusdani, Yusdani; Mu’allim , Amir
Journal of Islamic Economics Lariba Vol. 11 No. 2 (2025)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol11.iss2.art20

IntroductionFemale labor migration has become an increasingly important livelihood strategy for households in migrant-sending regions, particularly in developing and Muslim-majority contexts. In Indonesia, women’s migration is closely linked to family survival, remittance dependence, and changing gender relations. While existing studies widely acknowledge the economic contribution of female migrant workers, fewer have examined family welfare through an integrated framework that combines gender analysis with Islamic economic philosophy. As a result, ethical, social, and religious dimensions of welfare remain underexplored in migration scholarship.ObjectivesThis study aims to analyze the role of female migrant workers in improving family welfare by integrating Islamic economic philosophy and gender perspectives. Specifically, it seeks to examine changes in household welfare, gender relations, consumption behavior, and religious-ethical practices among migrant families, as well as to assess how these dimensions interact in shaping overall family well-being.MethodThe study employed a qualitative field research design conducted in the Special Region of Yogyakarta, Indonesia. Data were collected from 34 informants, including female migrant workers, former migrant workers, and family members, through in-depth interviews, observation, and documentation. An inductive analytical approach was applied using the trilogy of Islamic economic philosophy—anthropological, cosmological, and theological dimensions—to interpret empirical findings. Data analysis followed systematic stages of reduction, display, and verification to ensure credibility and rigor.ResultsThe findings show that female labor migration contributes significantly to household welfare by improving basic and intermediate living conditions, particularly food security, housing, education, and healthcare. However, welfare gains tend to remain limited and do not consistently lead to long-term economic sustainability. Women’s roles as primary income earners enhance their bargaining power within households, although relational tensions persist due to entrenched gender norms. Increased income often alters consumption patterns, sometimes generating ethical tensions with Islamic principles of moderation, while religious commitment plays a key role in fostering moral resilience and family cohesion.ImplicationsThe study highlights the need for migration policies and support programs that integrate economic empowerment with ethical guidance, financial literacy, and family-centered interventions. It also underscores the importance of incorporating spiritual and gender-sensitive dimensions into welfare assessment and migrant protection frameworks.Originality/NoveltyThis research contributes to migration and welfare studies by empirically operationalizing Islamic economic philosophy alongside gender analysis. It offers a multidimensional understanding of family welfare that moves beyond material indicators and enriches scholarly debates on female labor migration in Muslim-majority contexts.

Reconstructing Homo Islamicus through Hifz al-Bi’ah: An ecological paradigm for contemporary Islamic economics Mursal, Mursal; Hulwati, Hulwati; Rozalinda, Rozalinda; Fauzi, Muhammad; Nenengsih, Nenengsih
Journal of Islamic Economics Lariba Vol. 11 No. 2 (2025)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol11.iss2.art21

IntroductionContemporary ecological crises have exposed the ethical and epistemological limitations of dominant economic paradigms that prioritize growth, utility maximization, and anthropocentric rationality. Within Islamic economics, the concept of Homo Islamicus has been advanced as an alternative model of economic agency grounded in moral, spiritual, and social values. However, despite Islam’s explicit prohibition of environmental destruction and its emphasis on stewardship, ecological responsibility has not been articulated explicitly or systematically within many conceptualizations of Homo Islamicus. This gap becomes increasingly significant as sustainability and environmental justice emerge as central global concerns.ObjectivesThis study aims to critically re-examine the conceptual construction of Homo Islamicus in Islamic economics literature and to assess the extent to which ecological ethics, particularly Hifz al-Bi’ah (environmental preservation), are integrated into this model. It seeks to identify conceptual gaps, evaluate the relevance of ecological ethics within Islamic economic agency, and propose a paradigmatic reconstruction that aligns Homo Islamicus with contemporary sustainability challenges.MethodThe study employs a qualitative literature analysis design based on a purposive selection of fifteen Scopus-indexed journal articles discussing Homo Islamicus and related concepts of Islamic economic agency. Using a modified analytical framework adapted from established qualitative synthesis methods, the analysis proceeds through three stages: identifying definitions of Homo Islamicus, tracing embedded ecological values and principles related to Hifz al-Bi’ah, and evaluating the role of ecological ethics within these conceptual frameworks.ResultsThe findings reveal that while Homo Islamicus is consistently portrayed as a morally guided and socially responsible agent, ecological responsibility remains largely implicit, symbolic, or secondary. Recent developments in maqāṣid al-sharīʿah, especially the discourse on Hifz al-Bi’ah, provide a strong normative basis for environmental ethics, yet this has not been fully integrated into models of economic agency.ImplicationsIntegrating Hifz al-Bi’ah into the core of Homo Islamicus strengthens Islamic economics as an ethical framework capable of addressing sustainability and ecological justice.Originality/NoveltyThis study offers a paradigmatic reconstruction of Homo Islamicus as an ethical–ecological economic agent, contributing to the advancement of Islamic economics as a transformative normative social science responsive to contemporary environmental challenges.

Reconceptualizing green sukuk through Maqashid al-Shariah for advancing sustainable development goals Izzati, Amrina Nur; Tumuyu, Sri Setiawati; Wardhana, Yuki Mahardhito Adhitya
Journal of Islamic Economics Lariba Vol. 11 No. 2 (2025)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol11.iss2.art22

IntroductionThe global pursuit of sustainable development has intensified the need for innovative financing instruments capable of addressing environmental and social challenges while remaining ethically grounded. In Muslim-majority countries, green sukuk has emerged as a promising Islamic finance instrument designed to fund environmentally friendly projects in line with Shariah principles. Despite its growing relevance, scholarly discussion on how green sukuk operationalizes maqashid al-shariah within the framework of the Sustainable Development Goals remains limited, particularly from an integrated conceptual and stakeholder-based perspective.ObjectivesThis study aims to develop and analyze a green sukuk concept based on maqashid al-shariah in achieving sustainable development. Specifically, it seeks to examine the alignment between green sukuk, maqashid al-shariah, and the Sustainable Development Goals; identify priority dimensions in green sukuk development; and assess key implications for investors, governance, and public policy in the Indonesian context.MethodThe study adopts a qualitative-descriptive approach combined with an Analytic Hierarchy Process. Data were collected from secondary sources, including official green sukuk allocation and impact reports, and primary data obtained through interviews and structured questionnaires involving key stakeholders. Content analysis was used to map green sukuk–financed projects to maqashid al-shariah and Sustainable Development Goals, while the Analytic Hierarchy Process was employed to determine priority dimensions in green sukuk development.ResultsThe findings reveal a strong alignment between green sukuk, maqashid al-shariah, and the Sustainable Development Goals, particularly in environmental protection, social welfare, and economic resilience. Environmental and social dimensions emerge as the highest priorities, surpassing economic and governance considerations. However, the study identifies an imbalance in maqashid realization, with intellectual development receiving limited attention. Investor participation is largely driven by functional value considerations, while governance quality and transparency play a critical enabling role.ImplicationsThe results highlight the need for more holistic maqashid-based frameworks that integrate intellectual development, strengthen governance, and enhance sustainability reporting to improve the effectiveness and credibility of green sukuk.Originality/NoveltyThis study offers an integrated maqashid al-shariah–based conceptualization of green sukuk linked explicitly to the Sustainable Development Goals, combining content analysis with stakeholder prioritization to advance the discourse on Islamic sustainable finance.

Evaluating the effectiveness of city-level Islamic economic coordination in advancing Sharia financial inclusion in Bandar Lampung Albab, Ulil; Mawardi, Mawardi
Journal of Islamic Economics Lariba Vol. 11 No. 2 (2025)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol11.iss2.art23

IntroductionIslamic financial inclusion has increasingly been promoted as a strategic instrument for inclusive economic development, particularly in emerging economies where micro, small, and medium enterprises play a central role in employment creation and poverty reduction. In Indonesia, the establishment of regional Islamic economic coordination bodies represents a policy effort to strengthen local Islamic financial ecosystems. Nevertheless, empirical evaluations of how such institutions operate and contribute to Islamic financial inclusion at the city level remain limited, especially outside major metropolitan areas.ObjectivesThis study aims to evaluate the effectiveness of a city-level Islamic economic coordination program in enhancing Islamic financial inclusion. It specifically examines the roles of Islamic financial literacy initiatives, access to Sharia-compliant financing, post-financing assistance, MSME clustering, and institutional governance in shaping inclusion outcomes.MethodThe study adopts a qualitative descriptive approach using an effectiveness evaluation framework. Data were collected through semi-structured interviews with key stakeholders, including program administrators, Islamic financial institutions, local government officials, and MSME beneficiaries, complemented by document analysis of policy reports and program records. Thematic analysis was employed to identify patterns related to program implementation, institutional capacity, and observed outcomes.ResultsThe findings indicate that the program generated positive short-term outcomes, including increased awareness of Islamic finance, improved access to Sharia-compliant financing, and the initiation of Sharia-based MSME clusters. However, overall effectiveness was constrained by limited post-financing assistance, uneven capacity-building, weak institutional coordination, and the absence of a systematic monitoring and evaluation framework. Access to financing alone did not consistently translate into sustainable MSME growth without continuous mentoring and institutional support.ImplicationsThe results highlight that effective Islamic financial inclusion requires an integrated approach combining financial literacy, financing, capacity-building, and strong local governance. For policymakers, the study underscores the importance of strengthening institutional mandates, allocating dedicated resources, and developing evidence-based monitoring systems to enhance program sustainability and impact.Originality/NoveltyThis study contributes original empirical evidence from a subnational context by linking institutional governance analysis with MSME-level outcomes. It advances the literature on Islamic financial inclusion by demonstrating how city-level coordination bodies shape inclusion effectiveness and by emphasizing the value of effectiveness evaluation frameworks in Islamic economic governance.

Strengthening SEHATI self-declare halal certification in South Kalimantan: Roles, constraints, and field practices of Halal Product Process Companions Makiah, Zulpa; Sauri, Supian; Sahal, Lutpi
Journal of Islamic Economics Lariba Vol. 12 No. 1 (2026)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol12.iss1.art8

IntroductionIndonesia’s halal certification regime has expanded rapidly following the Halal Product Assurance Law, positioning halal assurance as both a consumer protection instrument and a strategic requirement for micro and small enterprises. To accelerate inclusion, the Free Halal Certification Program (SEHATI) applies a self-declare pathway that depends heavily on Halal Product Process Companions to facilitate verification and validation at the grassroots level. However, implementation performance varies across regions, raising questions about how frontline facilitation shapes program outcomes in geographically dispersed provinces such as South Kalimantan.ObjectivesThis study examines how Halal Product Process Companions operationalize SEHATI in South Kalimantan by analyzing their roles, constraints, and adaptive practices in assisting micro and small enterprises through the self-declare halal certification process. It also explores the structural and technical factors that contribute to implementation gaps between program targets and realized certification outcomes.MethodThis research used a qualitative field research design. Data were collected through semi-structured, in-depth interviews with 37 Halal Product Process Companions selected purposively across districts and cities in South Kalimantan. Secondary data were obtained from relevant regulations, institutional reports, and prior studies. The analysis followed an iterative qualitative procedure involving data reduction, data display, and conclusion drawing.ResultsThe findings show that Halal Product Process Companions function as hybrid implementers who perform two interdependent roles: educating micro and small enterprises about halal requirements and providing technical support for verification, validation, and digital submission. Implementation is constrained by administrative complexity, unstable internet connectivity, platform limitations, and uneven institutional support. At the enterprise level, limited digital literacy, uneven halal knowledge, and weak responsiveness delay certification completion and increase facilitation workload. These conditions explain why SEHATI outcomes may fall short of targets despite simplified procedures.ImplicationsThe study highlights that SEHATI effectiveness depends on integrated capacity building and institutional support, including improved digital infrastructure, simplified workflows, stronger training, and structured supervision to sustain both accessibility and certification credibility.Originality/NoveltyThis research contributes field-based evidence on self-declare halal certification implementation by centering Halal Product Process Companions as frontline intermediaries whose dual roles and constraints shape the practical success of SEHATI at the provincial level.

Trends in Islamic entrepreneurship research: A perspective on developing the independence of Islamic boarding school students in Indonesia Juliyani, Erly
Journal of Islamic Economics Lariba Vol. 11 No. 2 (2025)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol11.iss2.art27

IntroductionIslamic entrepreneurship has gained increasing attention as an approach that integrates sharia-based ethical values with economic activity, particularly in Muslim-majority contexts such as Indonesia. Islamic boarding schools (pesantren) are socio-religious institutions that have expanded their roles beyond religious education into economic empowerment and entrepreneurial development. However, research on pesantren-based Islamic entrepreneurship remains fragmented across disciplines and often limited to localized case discussions, making it difficult to form a comprehensive understanding of research trends, program models, and determinants of institutional economic independence.ObjectivesThis study systematically reviews the development of Islamic entrepreneurship research related to strengthening the economic independence of pesantren in Indonesia. It aims to identify dominant research themes, assess methodological patterns, examine internal and external factors influencing entrepreneurship implementation, and highlight underexplored areas that can inform future research and policy development.MethodA systematic literature review was conducted using scholarly publications drawn from accredited national and international databases. Using inclusion criteria focused on thematic relevance, academic quality, and the Indonesian pesantren context, 42 eligible studies published between 2014 and 2024 were selected. The review applied qualitative thematic content analysis to classify research topics, program types, institutional roles, implementation challenges, theoretical frameworks, and reported economic outcomes.ResultsThe findings indicate a notable rise in pesantren-centered Islamic entrepreneurship research since 2019, with implementation-focused studies dominating the literature. Common program models include technical skills training, student business units, and collaboration with local micro, small, and medium enterprises. Reported outcomes suggest that entrepreneurship initiatives contribute to pesantren economic independence by increasing internal income and reducing dependence on external funding. The review also identifies persistent constraints, including limited capital access, insufficient managerial capacity, and weak external stakeholder collaboration. Evidence further suggests that human resource quality and effective entrepreneurial management strengthen the relationship between Islamic entrepreneurship practices and institutional independence.ImplicationsThis review underscores pesantren as strategic institutions for sharia-based economic empowerment and highlights the importance of capacity building, multi-stakeholder partnerships, and sustainable entrepreneurial ecosystem development aligned with Islamic ethical commitments.Originality/NoveltyBy providing a structured synthesis of dispersed scholarship, this study offers an integrated map of research trends and critical enabling factors, strengthening the conceptual foundation for pesantren-based Islamic entrepreneurship and supporting more contextually relevant strategies for sustainable economic independence.

Transforming Islamic religious counselors into agents of mosque-based community economic empowerment in Pesawaran Regency Asmaria, Asmaria; Noviarita, Heni; Wakhid, Ali Abdul; Setiawati, Rini
Journal of Islamic Economics Lariba Vol. 12 No. 1 (2026)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol12.iss1.art6

IntroductionIslamic religious counselors have traditionally focused on spiritual guidance, yet evolving socio-economic demands have expanded their role into community economic empowerment. Mosques and religious institutions now serve as hubs for entrepreneurship development, sharia-based financial literacy, halal certification assistance, and digital outreach. However, empirical studies examining how this role transformation unfolds at the local level, particularly in Indonesia, remain limited.ObjectivesThis study analyzes the transformation of Islamic religious counselors in Pesawaran Regency into agents of community economic empowerment. It identifies the strategies they employ, the enabling and constraining factors that shape their work, and the wider implications for community welfare, institutional development, and faith-based economic initiatives.MethodUsing a qualitative descriptive design, the study collected data through in-depth interviews, participant observations, and document analysis. Informants included counselors, local religious leaders, microenterprise actors, and community members selected purposively to ensure relevance and depth. Data were analyzed using thematic techniques to capture patterns of practice, challenges, and perceived outcomes.ResultsFindings indicate that counselors have integrated da‘wah with economic facilitation through mosque-based mentoring, financial literacy education, halal certification support, and digital tools. These efforts strengthened business skills, increased market access, and enhanced economic confidence among microenterprises. Structural constraints—such as limited counselor capacity, weak interagency coordination, and insufficient evaluation mechanisms—restricted program scalability, yet community trust and cross-sector partnerships enhanced effectiveness.ImplicationsThe study highlights the potential of counselor-led, mosque-centered empowerment as a culturally grounded model for community development. Strengthening governance, digital capacity, and evaluation systems is essential for sustaining impact and expanding inclusion.Originality/NoveltyThis research provides one of the most detailed qualitative accounts of counselor-led economic empowerment in an Indonesian locality, offering conceptual, practical, and policy insights into the alignment of da‘wah, Islamic economic principles, and community development.

The challenges of literacy, inclusion, and public trust in the digital Islamic banking ecosystem: An urban context study in Indonesia Hasan, Hurriah Ali; Razaq, Abd Rahim; Sa'aid, Hafizah Besar
Journal of Islamic Economics Lariba Vol. 12 No. 1 (2026)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jielariba.vol12.iss1.art7

IntroductionThe development of Islamic banking in Indonesia shows great potential, but still faces literacy constraints, public trust, and low inclusion. The public understands the basic principles of Islamic banking but has not mastered the technical aspects of operations. Digital transformation, which is supposed to expand access to Islamic financial institutions, has not been optimally utilized due to informational barriers, risk perception, and quality of digital services.ObjectivesThis study aims to analyze the relationship between Islamic banking literacy, trust, and inclusion, identify the main obstacles in the use of digital services of Islamic financial institutions, and formulate strategies that can break the cycle of problems related to low public understanding and participation. The study also evaluates how education, transparency, and digital innovation can increase engagement in Islamic banking.MethodThis study uses a descriptive quantitative approach with a cross-sectional design. Data was obtained through a structured questionnaire to 198 respondents in Makassar City. Descriptive statistical analysis is used to describe literacy, trust, and inclusion levels, as well as identify patterns of structural, informational, and perceptual barriers in the use of Islamic banking services, especially digital-based ones..ResultsThe results show that public literacy is still at the level of basic and general understanding, public trust is low due to lack of transparency, while inclusion is hampered by lack of information, limited digital infrastructure, and negative perceptions. The adoption of sharia digital technology is very low despite the high ownership of smartphones. Key barriers include awareness, risk perception, and the quality of the app's user experience.ImplicationsThese findings confirm the need for strategies to improve operational literacy, institutional transparency, and digital innovation based on user needs. Strengthening regulations, optimizing the role of the Sharia Supervisory Board (Dewan Pengawas Syariah - DPS), and collaboration with fintech can increase trust and inclusion. The results of the research provide more effective policy direction and service design to accelerate the transformation of Islamic banking.Originality/NoveltyThis research offers a new perspective by integrating three variables—literacy, trust, and inclusion—in the digitalization of Islamic banking. The study highlights digital barriers from a user experience perspective, not just technology access. This approach results in innovative recommendations based on transparency, user experience, and more applicable educational strategies.

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Yuli Andriansyah

Contact Email
yuliandriansyah@uii.ac.id

Phone
+6285369607374

Journal Mail Official
jurnal.lariba@uii.ac.id

Editorial Address
Gedung K.H. A. Wahid Hasyim, Kampus Terpadu UII, Jl. Kaliurang KM 14,5, Besi, Sleman, DI Yogyakarta, 55584

Location
Kab. sleman,

Daerah istimewa yogyakarta

INDONESIA

Abstract

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Abstract

Home Page

OAI Link

Editorial Team

Contact

Reviewer

Google Scholar

Contact Name Yuli Andriansyah

Contact Email yuliandriansyah@uii.ac.id

Phone +6285369607374

Journal Mail Official jurnal.lariba@uii.ac.id

Editorial Address Gedung K.H. A. Wahid Hasyim, Kampus Terpadu UII, Jl. Kaliurang KM 14,5, Besi, Sleman, DI Yogyakarta, 55584

Location Kab. sleman, Daerah istimewa yogyakarta INDONESIA

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Contact Name
Yuli Andriansyah

Contact Email
yuliandriansyah@uii.ac.id

Phone
+6285369607374

Journal Mail Official
jurnal.lariba@uii.ac.id

Editorial Address
Gedung K.H. A. Wahid Hasyim, Kampus Terpadu UII, Jl. Kaliurang KM 14,5, Besi, Sleman, DI Yogyakarta, 55584

Location
Kab. sleman,

Daerah istimewa yogyakarta

INDONESIA