Vol. 8 No. 1 (2026): September

Published: 2026-08-31

Articles

Challenges in the Implementation of Halal Regulations by Local Governments in Supporting the Growth of the Halal Industry: A Case Study of Kudus, Pati, and Jepara Regencies, Central Java.

Muhaimin • Sirajul Munir • M. Rizky Tri Hartono

Hal: 1-15

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ABSTRACT

This study examines the challenges in the implementation of halal regulations by local governments in supporting the growth of the halal industry in the northern coastal region of Central Java, specifically in Kudus, Pati, and Jepara Regencies. Despite having strong potential in agriculture, fisheries, and processed food industries, these regions still exhibit a relatively low number of halal-certified products. If these challenges are not properly identified and systematically addressed, several consequences may arise, including limited access to domestic and international markets, declining consumer trust and product reputation, and constrained opportunities for sustainable halal industry development, potentially widening regional disparities. This research employs a qualitative field research approach to analyze the role of local governments and stakeholders in implementing halal product policies, as well as to identify practical challenges in the field. Data were collected through in-depth interviews, participatory observation, and documentation studies. The findings indicate significant variations in policy implementation across the three regencies, influenced by local regulations, government capacity, inter-agency coordination, and stakeholder participation. Moreover, a substantial gap between the large number of micro, small, and medium enterprises and those that have obtained halal certification reflects limited access to certification services, suboptimal institutional capacity, and weak stakeholder coordination. Additional constraints include the limited number of halal facilitators, complex administrative procedures, and low levels of halal literacy among business actors. These findings highlight the importance of strengthening institutional support, improving coordination, and developing more inclusive and adaptive halal policies to foster a sustainable halal ecosystem.

Abstract View: 177 PDF Download: 149 DOI https://doi.org/10.53515/lt.v8i1.179
Explaining Governance Failure in Islamic Microfinance Institutions: Integrating Risk Governance and Maqasid al-Shariah

M Sholeh Wafie • Slamet Slamet • Khusnudin Khusnudin • Moch Mahsun

Hal: 16-40

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Introduction: The sustainability of Islamic Microfinance Institutions (IMFIs) is threatened by a lack of governance. Previous research has addressed issues of financial performance and regulatory compliance largely at the expense of governance dynamics, organizational resilience, and Islamic ethical values. This research attempts to analyze governance failure by applying Risk Governance Theory, Shariah Governance, and Maqasid al-Shariah and aims to construct a Maqasid-Based Risk Governance Model.

Methods: A qualitative multiple-case study design was conducted on BMT Global Insani and BMT Mitra Umat. Data collection consisted of semi-structured interviews, collection of internal documents, regulatory reports, and other supporting documents. Reflexive thematic analysis with methodological triangulation was used to analyze the data.

Results: Two pathways of governance failure were identified: structural governance failure and governance erosion. Both pathways lead to the deterioration of organizational resilience. Evaluating the state of governance revealed poor governance integrity, ineffective participatory risk identification, insufficient adaptive risk mitigation, and deteriorating ethical leadership. To address these issues, a Maqasid-Based Risk Governance Model is proposed which combines the above elements and governance effectiveness.

Conclusion and Suggestion: Governance failure in Islamic Microfinance Institutions transcends the domains of leadership, organizational culture, and accountability, and adaptive governance capability. The model addresses the gap in governance scholarship by incorporating Maqasid al-Shariah as the primary strategic governance concern and providing tailored recommendations for Islamic Microfinance Institutions, governance regulators, and Shariah Supervisory Boards. It is suggested that the model be quantitatively tested in multiple governance contexts.

Abstract View: 148 PDF Download: 122 DOI https://doi.org/10.53515/lt.v8i1.207
Enforcement-Prevention Asymmetry in State Financial Accountability: Empirical Evidence of Risk Management Decoupling with an Islamic Ethical Perspective

Anggi Miharsa Putri • Rien Agustin Fadjarenie

Hal: 41-54

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Introduction: Indonesia’s post-pandemic economy demands increasingly higher state financial accountability to safeguard public wealth (hifz al-mal); however, a paradox emerges as governance infrastructure becomes more comprehensive while the Corruption Perception Index declines and corruption cases have increased during 2020–2023. This study aims to analyze the effects of corruption control effectiveness, Government Internal Control System maturity, risk management, and internal auditor capability on state financial accountability through an Islamic ethical governance lens.

Methods: A mixed-method convergent design was employed, combining quantitative panel data regression using the Fixed Effect Model on 81 ministries/agencies for the 2021–2024 period (N = 324) with qualitative analysis based on in-depth interviews with six key informants from key oversight institutions.

Results: The findings indicate that internal auditor capability, internal control system maturity, and corruption control effectiveness have positive and significant effects on accountability, whereas risk management shows no significant effect. Qualitative results confirm the dominance of enforcement mechanisms and reveal that risk management practices remain siloed and compliance-driven, highlighting a phenomenon of ethical decoupling.

Conclusion: These findings demonstrate an enforcement-prevention asymmetry, where mechanisms based on active monitoring and sanctions are more effective than preventive system-based approaches. From an ethical governance perspective, this condition reflects the limited internalization of accountability values such as amanah (trust), indicating that accountability remains externally driven resembling formal hisbah (external enforcement)—rather than intrinsically embedded. Strengthening public financial governance therefore requires not only formal institutional improvements but also the integration of ethical responsibility and anti-israf (anti-wastefulness) behavior to achieve more substantive and sustainable accountability.

Abstract View: 109 PDF Download: 59 DOI https://doi.org/10.53515/lt.v8i1.180
Financial Anxiety and the Adoption of Islamic Financial Services: A Behavioral Law and Psychology Perspective

Didik Kusno Aji Nurgoho

Hal: 55-67

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The regulation and development of Islamic financial services have largely been based on normative rational assumptions that position consumers as fully rational and autonomous decision-makers. This approach tends to overlook the psychological conditions under which economic decisions are made, particularly financial anxiety arising from economic uncertainty, financial pressure, and social risk. This study aims to examine how financial anxiety influences the adoption of Islamic financial services and to assess how this condition challenges the rationality assumption embedded in Islamic economic law. In addition, the study seeks to develop a conceptual framework of Islamic economic law informed by behavioral law and mental well-being, grounded in maqāṣid al-sharī‘ah. This research employs a qualitative normative–conceptual and analytical approach. The analysis draws on Islamic legal sources, including the Qur’an, Hadith, fiqh al-mu‘āmalāt, fatwas, and maqāṣid al-sharī‘ah literature, complemented by a systematic review of studies in economic psychology, behavioral finance, and Islamic economic psychology. Data are analyzed using qualitative content and thematic analysis. The findings indicate that financial anxiety significantly shapes individuals’ intentions and behaviors in adopting Islamic financial services, thereby challenging purely rational and normative regulatory assumptions. Integrating behavioral and mental well-being perspectives is essential for developing a more contextual, empathetic, and human-centered framework of Islamic economic law.

Abstract View: 86 PDF Download: 58 DOI https://doi.org/10.53515/lt.v8i1.145
Formulating a Management Maturity Model for Zakat Institutions Using an Organizational Governance Approach

Achmad Zaki • Qurroh Ayuniyyah • Ahmad Juwaini • Hambari • Didin Hafidhuddin

Hal: 68-101

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This study aims to develop a comprehensive reference framework for assessing the management maturity level of zakat institutions using an organizational governance approach grounded in ISO 37000:2021 (Governance of Organizations) and ISO 37004:2023 (Guidance for Sustainable Governance). Despite zakat’s enormous potential in Indonesia, estimated at IDR 216.54 trillion or 1.75% of GDP, actual collection remains below 10% of this potential. A significant contributing factor is the limited maturity of governance and management practices within zakat institutions. This study employs a sequential mixed-methods design consisting of three integrated stages: a comprehensive desk study and literature review, Focus Group Discussions (FGDs) with 25 practitioners and stakeholders from various LAZ institutions supplemented by semi-structured expert interviews, and the application of the Multi-Stage Weighted Index (MSWI) method. The resulting framework comprises eight governance principles, fifteen dimensions, thirty-four variables, and eighty-three indicators, each evaluated across a six-level maturity scale from Undefined (Level 0) to Optimizing (Level 5). The eight principles, Purpose (21%), Leadership (19%), Risk Governance (13%), Stakeholder Engagement (11%), Accountability (11%), Data and Decision (10%), Viability and Performance Over Time (8%), and Social Responsibility (8%), were weighted through expert consensus. The model produces a composite maturity index scored from 0 to 5, offering broader governance coverage than existing frameworks and providing a standardized, replicable assessment tool applicable across both BAZNAS and LAZ institutions.

Abstract View: 115 PDF Download: 107 DOI https://doi.org/10.53515/lt.v8i1.216
Beyond Islamic Finance: Reconstructing Islamic Socioeconomic Thought for Indonesian MSMEs through Decolonial Perspectives

Ahmad Syaichoni • Rifki Sahara

Hal: 102-113

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Indonesia holds the largest Muslim population in the world, yet its Islamic economy remains defined almost entirely through banking and financial industry metrics. Islamic banking assets surpassed IDR 1,050 trillion by early 2026, but market share stayed near 7.5 to 8 percent, a gap that widens further once financial literacy and regulatory barriers facing MSMEs enter the picture. This paper argues that Indonesian Islamic economics suffers from a financialization tendency inherited from its own unexamined epistemological history, one that measures success through asset growth rather than through maqasid al-shariah's original concern with removing harm and drawing benefit at the community level. Using qualitative library research combined with critical discourse analysis, and drawing selectively on prior fieldwork among thirty Muslim MSME producers in Tulungagung Regency, this study builds its argument around four interlocking pillars: decolonial Islamic thought, a reworked reading of maqasid as a socioeconomic ethic rather than a compliance checklist, indigenous Islamic economic practice, and the lived rationality of Indonesian Muslim society. Findings show a persistent disconnect between formal Islamic finance discourse and gotong royong-based economic practice, which survives strongly at the community level but rarely enters policy vocabulary on its own terms except when mined for product design. Fieldwork illustrations, including informal credit extended during Ramadan without a formal contract, demonstrate maqasid functioning directly at the grassroots without institutional mediation. The paper contributes a reorientation toward community-grounded Islamic economic scholarship, treating indigenous practice as primary analytical data rather than an ethnographic supplement, and calls for future empirical work testing this reorientation beyond a single regency.

Abstract View: 63 PDF Download: 31 DOI https://doi.org/10.53515/lt.v8i1.208
Integrative Spiritual-Economic Model in Community Empowerment Based on Micro Waqf Bank at Fajar Pelita Harapan Islamic Boarding School

Mohd Winario • Zubaidah Assyifa • Rahmawati Rahmawati • Merry Meilany • Nilam Erman • Henry Martin Adriansyah

Hal: 114-130

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Introduction: Islamic boarding schools are traditional Islamic educational institutions that have an important role in the educational, social and economic development of society in Indonesia. This study aims to analyze the sharia-based community economic empowerment model through the Fataha Micro Waqf Bank (BWM) at the Fajar Pelita Harapan Islamic Boarding School in Maredan Village, Tualang District.

Methods: The study used a qualitative descriptive approach involving 30 informants consisting of Islamic boarding school administrators, BWM Fataha managers, and the surrounding community as financing program customers. Data were obtained through in-depth interviews, observation, and documentation through the stages of data reduction, data presentation, and conclusion drawing.

Results: The results show that the implemented empowerment model is integrative by combining Islamic microfinance, spiritual guidance, business mentoring, and group strengthening through the kumpi system. This program is able to increase access to business capital, strengthen community economic independence, improve Islamic financial literacy, and empower women as micro-entrepreneurs. In addition, the Islamic boarding school plays a role as a center for social capital and community moral development. However, the program still faces obstacles such as low entrepreneurial literacy, limited business innovation, and limited mentoring resources. This research shows that Islamic boarding schools have strategic potential as centers for sustainable sharia-based community economic empowerment

Conclusion and suggestion: This study shows that the sharia-based community economic empowerment model implemented by the Fataha Micro Waqf Bank (BWM) in the Fajar Pelita Harapan Islamic Boarding School environment uses an integrative approach that combines sharia microfinance, spiritual guidance, business mentoring, and strengthening group solidarity through the kumpi system.

Abstract View: 83 PDF Download: 42 DOI https://doi.org/10.53515/lt.v8i1.203
Z-Mart Program Strategy in Increasing Mustahik Economic Independence at BAZNAS Riau Province

Silawati • Aslati • Khairunnas Jamal • Mochammad Novendri S

Hal: 131-146

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The productive zakat-based economic empowerment program continues to be developed as an instrument for transforming mustahik from aid recipients to independent business actors. However, the effectiveness of this kind of program is not enough to measure the increase in income alone, but also from the program's ability to build sustainable economic independence. This study aims to analyze the strategy of the Z-Mart Program of BAZNAS Riau Province in increasing the economic independence of mustahik, as well as identifying achievements, obstacles, and patterns of strengthening programs at the micro business level. The research uses a qualitative approach with the type of field research. Data was collected through in-depth interviews, observations, and documentation of mustahik beneficiaries, program managers, and companions in Pekanbaru City and Kampar Regency, then analyzed thematically through the stages of reduction, categorization, and data interpretation. The results of the study show that the Z-Mart strategy is carried out through mustahik selection, productive business capital assistance, stall rebranding, and business management assistance. This program has been proven to increase stock availability, business turnover, and mustahik ability to meet basic household needs. However, the economic independence of mustahik has not been fully formed because it is still hampered by the culture of kasbon, weak financial literacy, limited assistance, and lack of business expansion. These findings confirm that the success of productive zakat is determined not only by the distribution of capital, but also by the intensity of assistance and strengthening micro business governance

Abstract View: 99 PDF Download: 49 DOI https://doi.org/10.53515/lt.v8i1.210
The Epistemological Transformation of Bahtsul Masail in Addressing Women's Economic Rights: From Classical Fiqh Authority to the Maqashid Syariah Approach

Imam Syarbini • Asmawi • Kojin

Hal: 147-168

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Introduction:This study examines the epistemological transformation of Bahtsul Masail in responding to contemporary gender and equality issues within Muslim societies. It aims to explore how the traditional pesantren-based legal deliberation mechanism shifts from a predominantly textual and fiqh-oriented approach toward a maqashid al-shariah-based framework that is more responsive to contemporary social realities.

Design/methods/approach – This research employs a qualitative library research method. Data were collected from classical and contemporary fiqh literature, documented Bahtsul Masail decisions, and scholarly works on gender studies, Islamic law, and maqashid al-shariah. The data were analyzed using a descriptive-analytical approach to identify patterns of epistemological change in Islamic legal reasoning.

Findings – The study reveals three major transformations in the epistemology of Bahtsul Masail: (1) the expansion of legal reasoning sources beyond classical fiqh texts, (2) the incorporation of multidisciplinary perspectives, including social and gender studies, and (3) the strengthening of maqashid-based principles such as justice (al-‘adl), public welfare (maslahah), and human dignity (karamah al-insan). These developments enable more contextual and adaptive legal responses to contemporary gender-related issues while maintaining Islamic normative foundations.

Research implications/limitations – The study is limited to textual and documentary sources and does not examine the practical implementation of Bahtsul Masail decisions in pesantren communities. Future empirical studies are needed to assess their social impact and effectiveness.

Originality/value – This study offers a novel perspective by conceptualizing the transformation of Bahtsul Masail as an epistemological shift toward maqashid-oriented legal reasoning. It contributes to the discourse on Islamic legal reform and demonstrates the potential of pesantren institutions to address contemporary challenges related to gender and equality.

Abstract View: 65 PDF Download: 28 DOI https://doi.org/10.53515/lt.v8i1.206
A Collaborative Governance Model to Prevent and Reduce Early Muslim Divorce through Islamic Economic Empowerment and Family Financial Resilience in the Horseshoe Region: A Maqashid al-Shari'ah Perspective

Muzayyanah • Iffatin Nur • Dede Nurrahman

Hal: 169-188

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Purpose – This study aims to formulate a collaborative governance model for the prevention and mitigation of early divorce among Muslim families in the Tapal Kuda region of East Java through the perspective of Maqashid al-Syari’ah as developed by Jamaluddin Athiyyah. The increasing rate of marital instability and early divorce has become a critical social issue that threatens family resilience and the achievement of Islamic family welfare. This study argues that collaborative governance involving multiple stakeholders can strengthen family resilience and reduce divorce risks through an integrated and value-based approach.

Design/methods/approach – This research employs a qualitative approach with a case study design. Data were collected through in-depth interviews, observations, and document analysis involving religious affairs offices, religious courts, local governments, Islamic organizations, community leaders, marriage counselors, and affected families in the Tapal Kuda region. Data were analyzed using an interactive model consisting of data reduction, data display, and conclusion drawing, while the analytical framework was based on collaborative governance theory and Jamaluddin Athiyyah’s Maqashid al-Syari’ah.

Findings – The study reveals that effective divorce prevention requires collaborative engagement among governmental, religious, and community institutions. The collaborative model contributes to strengthening five dimensions of family resilience: religious, educational, economic, social, and psychological resilience. The implementation of premarital education, family counseling, economic empowerment, and community-based mediation significantly enhances family stability and aligns with the maqashid objectives of preserving religion (hifz al-din), family lineage (hifz al-nasl), intellect (hifz al-‘aql), wealth (hifz al-mal), and human dignity (hifz al-karamah).

Research implications/limitations – The findings are limited to the socio-cultural context of the Tapal Kuda region and may not be fully generalizable to other regions with different demographic characteristics.

Originality/value – This study offers a novel integration of collaborative governance and Jamaluddin Athiyyah’s Maqashid al-Syari’ah framework as a comprehensive strategy for strengthening Muslim family resilience and addressing early divorce through multi-stakeholder cooperation.

Abstract View: 79 PDF Download: 40 DOI https://doi.org/10.53515/lt.v8i1.224
Shariah Compliance and Amanah as Drivers of Member Satisfaction

Muchamad Iqbal Fatah • Nur Asnawi • Vivin Maharani Ekowati

Hal: 189-204

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Introduction: Islamic cooperatives (KSPPS/BMT) operate under the dual mandate of financial intermediation and adherence to Islamic principles. Despite their rapid growth in Indonesia, empirical evidence on how Shariah compliance and the prophetic value of Amanah (trustworthiness) jointly shape service quality and member satisfaction remains limited. Objective: This study examines the direct and indirect effects of Shariah compliance and Amanah on member satisfaction at KSPPS BMT UGT Nusantara, with Service Quality as a mediating variable. Methodology: A quantitative approach using Partial Least Squares-Structural Equation Modeling (PLS-SEM) was applied to survey data collected from 400 members across 52 branches. Instruments measuring Shariah Compliance (16 items), Amanah (5 items), Service Quality (18 items), and Member Satisfaction (15 items) were validated using SmartPLS 4.0. Results: Shariah Compliance significantly influences both Service Quality (β = 0.440) and Member Satisfaction (β = 0.106), while Amanah positively affects Service Quality (β = 0.278) and Member Satisfaction (β = 0.107). Service Quality is the strongest direct predictor of Member Satisfaction (β = 0.508). Indirect effects confirm Service Quality mediates both Shariah Compliance→Member Satisfaction (β = 0.224) and Amanah→Member Satisfaction (β = 0.141) pathways. All constructs demonstrate sound reliability (Cronbach's α ≥ 0.794) and validity (AVE ≥ 0.506, HTMT < 0.65). Conclusion: Embedding Shariah values and Amanah in institutional practice substantially improves service quality, which in turn elevates member satisfaction. These findings offer practical guidance for cooperative managers and policymakers seeking to strengthen Islamic microfinance performance.

Abstract View: 54 PDF Download: 34 DOI https://doi.org/10.53515/lt.v8i1.246
Integration Of Productive Zakat And Sustainable Development Goals (SDGs) In Community-Based Poverty Reduction: A Study Of Baznas Bondowoso Zakat Village And Baznas Jember SDGs Village

Abdul Wasik

Hal: 205-219

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Introduction: Poverty remains a major challenge to global and national development, requiring a multidimensional and sustainable approach. From an Islamic economic perspective, productive zakat is an Islamic Social Finance instrument with significant potential in supporting poverty alleviation and community empowerment. This study aims to analyze the contribution of productive zakat to the achievement of the Sustainable Development Goals (SDGs) through a community-based empowerment model in the Zakat Village of BAZNAS Bondowoso and the SDGs Village of BAZNAS Jember.

This study aims to analyze the contribution of productive zakat to the achievement of Sustainable Development Goals (SDGs), identify community-based community empowerment mechanisms applied in the BAZNAS Bondowoso Zakat Village and the BAZNAS Jember SDGs Village, and formulate a model for integrating productive zakat and SDGs based on Good Community Governance as an approach to sustainable Islamic economic development.

The research used a qualitative approach with a multiple case study method. Data were obtained through in-depth interviews, participant observation, and documentation studies, analyzed using the Miles, Huberman, and Saldaña model.

The results of the study show that productive zakat contributes significantly to the achievement of SDGs, especially SDGs 1 (No. Poverty), SDGs 2 (Zero Hunger), SDGs 3 (Good Health and Well-being), SDGs 4 (Quality Education), and SDGs 8 (Decent Work and Economic Growth). This success is supported by community governance that positions the community as the subject of development through participation, transparency, accountability, and ongoing mentoring. This research offers a Productive Zakat- SDGs Integration Model Based on Good Community Governance as a new approach in the development of sharia economics that is oriented towards strengthening the intellectuality, spirituality, integrity, and economic independence of the community.

Abstract View: 47 PDF Download: 25 DOI https://doi.org/10.53515/lt.v8i1.239
The The Effect of Muslim Friendly Tourism (MFT) on the Number of Foreign Tourists

Ahmad Yunadi • Defia Ifsantin Maula • Ridho Satria Harahap

Hal: 220-237

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Introduction: This research discusses the effect of Muslim-Friendly Tourism (MFT) on the number of foreign tourists. MFT indicators are selected by the Global Muslim Travel Index (GMTI) variables which is published by Mastercard-Crescent Rating every year. From the GMTI variable, five MFT indicators variables were taken in the period 2015 to 2019.

Methods: The study sampled 63 countries listed in the Global Muslim Travel Index (GMTI) continuously over a five-year period, from 2019 to 2023, resulting in 315 observational data sets. The analytical tool used in this study was panel data regression using Stata-17 software.

Results: The results found thera are two of the five selected GMTI independent variables partially has a significant effect on the number of foreign tourists. The two variables are Safe Travel Environment (X1) with a coefficient value of - 0.41534, and Dining Options and Assurance (X2) with the coefficient value of 0.137116.

Conclusion and suggestion: The five selected independent variables did not have a significant partial effect on foreign tourist visits, although they simultaneously showed a significant effect. This result supports the findings of previous research, which also showed that the selected variables did not have a significant effect in OIC countries. This is in contrast to Asia Pacific countries, where several variables had a significant effect.

Keywords: Tourism, Muslim, GMTI

Abstract View: 32 PDF Download: 29 DOI https://doi.org/10.53515/lt.v8i1.188
Developing a Digital and Maqasid-Based Waqf Governance Framework: A Systematic Literature Review

Muhammad Syahrullah • Muhammad Lisman

Hal: 238-252

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Introduction: In order to improve waqf institutions' sustainability, accountability, and openness, good corporate governance, or GCG, has become essential. Despite the increasing amount of research, the studies that have already been done are still dispersed and mainly concentrate on specific aspects of governance rather than offering an integrated framework that takes stakeholder viewpoints, digital transformation, and Islamic values into account. The objective of this study is to provide a thorough conceptual framework and conduct a methodical evaluation of the literature on GCG in waqf organizations.

Methods: The PRISMA 2020 guidelines were followed in this study's Systematic Literature Review (SLR). Using predetermined inclusion and exclusion criteria, pertinent papers published between 2016 and 2026 were extracted from the Scopus database. To find governance themes and synthesize conceptual links, the chosen studies were examined using grounded theory methodologies that included open coding, axial coding, and selective coding.

Results: Governance Principles, Islamic Governance, Digital Governance, Stakeholder Governance, and Governance Outcomes are the five fundamental components of governance that were recognized by the review. The results show that while emerging themes like digital governance, artificial intelligence, blockchain, and maqasid al-shariah have grown in significance in boosting institutional performance and public trust, transparency and accountability continue to be the predominant governance principles. An Integrated Good Corporate Governance Framework for Sustainable Waqf Institutions, which blends traditional governance concepts with Islamic ethical values, digital innovation, stakeholder involvement, and sustainability, is the outcome of the synthesis.

Conclusion and suggestion: The theory and practice of waqf governance are advanced by this study's comprehensive governance structure. Future studies should use quantitative or mixed-method approaches to experimentally validate the suggested framework in various institutional and national contexts.

Abstract View: 53 PDF Download: 26 DOI https://doi.org/10.53515/lt.v8i1.241
Entrepreneurial Intention of Gen Z: A Theory of Planned Behavior Perspective

Mai Simahatie • Iskandar • Jamaluddin • M. Saleh

Hal: 253-275

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The increasingly dynamic and competitive global labor market requires young generations not only to seek jobs but also to create them through entrepreneurship. Generation Z (Gen Z), born between the late 1990s and early 2010s, is recognized for its digital literacy, creativity, and adaptability; however, many still lack strong entrepreneurial intentions. This study investigates the factors influencing Gen Z’s intention to become entrepreneurs using the Theory of Planned Behavior (TPB). Employing a quantitative approach, 140 respondents were selected using the indicator-based sampling method of Hair et al., and data were analyzed through Structural Equation Modeling (SEM) using WarpPLS. The results reveal that attitude toward behavior does not significantly affect entrepreneurial intention (β = 0.06, p > 0.05), while subjective norms (β = 0.22, p < 0.01) and perceived behavioral control (β = 0.63, p < 0.01) show significant positive effects. Furthermore, intention significantly influences entrepreneurial behavior (β = 0.52, p < 0.01). These findings highlight the critical roles of social influence and self-efficacy in shaping Gen Z’s entrepreneurial aspirations. The study contributes valuable insights for educators, policymakers, and industry practitioners to design more targeted entrepreneurship programs that align with the psychological and motivational characteristics of young generations in achieving Sustainable Development Goals.

Abstract View: 48 PDF Download: 14 DOI https://doi.org/10.53515/lt.v8i1.214
Integrating Yusuf Al-Qaradawi’s Concept of Maqasid Zakat with the Maqasid al-Muʿāmalāt al-Māliyyah for the Development of Islamic Economics

Hambari • Qurroh Ayuniyyah • Hilman Hakiem • Fithriyyah Shalihati • Mohammad Hidir Baharudin

Hal: 276-294

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This study explores the integration of Yusuf al-Qaradawi’s concept of maqāṣid al-zakāt with the objectives of maqāṣid al-muʿāmalāt al-māliyyah as a unified framework for advancing Islamic economics. Al-Qaradawi emphasizes zakat not only as an act of worship but as a dynamic socio-economic tool that aims to eliminate poverty, ensure equitable wealth distribution, and promote social solidarity. Meanwhile, Islamic financial transactions rooted in maqāṣid al-sharīʿah prioritize ethical principles such as justice, wealth preservation, transparency, and risk-sharing. Through a qualitative conceptual analysis using thematic synthesis and comparative ijtihād, this research reveals that both systems share a mutual aim: achieving public welfare (maṣlaḥah). The convergence of these maqāṣid enables a comprehensive model that combines redistributive mechanisms (zakat) with productive instruments (Islamic finance). This model addresses critical challenges in Muslim societies such as poverty, underdevelopment, and inequality, while aligning Islamic economics with sustainable development goals (SDGs). The study proposes practical collaboration between zakat institutions and Islamic financial entities and highlights the significance of ethical reintegration in financial design. By adopting Al-Qaradawi’s purposive jurisprudence, this research offers a transformative framework for Islamic economic development that balances legal compliance, spiritual obligation, and social justice.

Abstract View: 104 PDF Download: 43 DOI https://doi.org/10.53515/lt.v8i1.227
Enhancing Accountability through Artificial Intelligence: Evidence from Islamic and Conventional Banking Customers

Rusmini Creative • Faried Kurnia Rahman • Umi Suswati Risnaeni

Hal: 295-310

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Artificial intelligence (AI) has significantly reshaped the banking industry and is increasingly important in influencing perceived accountability. Nevertheless, perceptions of accountability are not identical. Customers of Islamic banks are more likely to associate accountability with adherence to Sharia principles, ethical values, and fairness, whereas customers of conventional banks tend to focus more on system efficiency, reliability, and technological performance. This study analyses how AI-driven features affect accountability based on survey data. Furthermore, it also examines if Islamic banking customers affects perceived accountability.

Abstract View: 35 PDF Download: 19 DOI https://doi.org/10.53515/lt.v8i1.184
Analysis of the Effectiveness of Zakat Management in Poverty Alleviation: A Comparative Study of Indonesia and Malaysia

Siti Maulidia • Siti Nur Latifah • Raihan Nasir

Hal: 311-332

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Introduction: This study aims to analyze the effectiveness of zakat fund management in reducing poverty in Indonesia and Malaysia during the 2015–2025 period. The study is motivated by a theoretical gap regarding the role of zakat as an instrument for poverty alleviation, which in practice shows different results across countries.

Methods: This research employs a quantitative approach using linear regression analysis with the assistance of the EViews application. The regression estimation method applied in this study is the Ordinary Least Square (OLS) method. The data used in this study consist of secondary data on zakat collection and poverty levels in Indonesia and Malaysia during the observation period.

Results: The results show that zakat in Indonesia has a negative and significant effect on poverty, while in Malaysia zakat has a negative but insignificant effect on poverty. Based on the R-square value, zakat management in Indonesia is more effective in reducing poverty than in Malaysia. These findings indicate that the optimization of productive zakat distribution is able to improve community welfare more effectively.

Conclusion and suggestion: Zakat institutions should strengthen productive zakat programs, improve management efficiency, and enhance collaboration with relevant stakeholders to maximize the role of zakat in poverty reduction. Future research may include additional variables and broader country coverage to provide more comprehensive results.

Abstract View: 60 PDF Download: 13 DOI https://doi.org/10.53515/lt.v8i1.198
Understanding Future Taxpayer Compliance: The Role of Religiosity and Tax Knowledge

Muhammad Asmeldi Firman • Farhanah • Erina Maulidha

Hal: 333-353

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Introduction: This study aims to test the effect of religiosity and tax knowledge on taxpayer compliance from the prospective taxpayer. Prospective taxpayers are potential future taxpayers who have had subjective tax obligations since birth but do not yet have a tax object, so they do not yet have tax obligations.

Method: This research is a quantitative associative study using the SPSS 25 application for data processing. Data collection was carried out by distributing questionnaires online with a purposive sampling technique and obtaining a sample of 113 respondents.

Results: The findings reveal that religiosity and tax knowledge significantly influence future taxpayer compliance among prospective taxpayers. Religiosity functions as a strong internal moral control that encourages voluntary compliance based on ethical and spiritual values, while tax knowledge enhances awareness, confidence, and understanding of tax obligations. The study also identifies the phenomenon of “Taxation as a Spiritual Duty” and highlights the emergence of “Transformative Tax Literacy” among highly educated young prospective taxpayers.

Conclusion and suggestions: This study concludes that future taxpayer compliance is shaped by the interaction between moral-spiritual values and cognitive understanding. Religiosity encourages taxpayers to perceive tax compliance as both a civic and spiritual responsibility, whereas tax knowledge promotes voluntary compliance through awareness and critical understanding rather than fear of sanctions. The study recommends strengthening tax education among prospective taxpayers by emphasizing not only technical tax knowledge but also the ethical and social values of taxation. In addition, improving transparency and accountability in tax management is essential to maintain public trust and encourage voluntary compliance.

Abstract View: 45 PDF Download: 11 DOI https://doi.org/10.53515/lt.v8i1.189
Halal Washing in Digital Marketing of Sharia-Compliant Fintech: Content Deconstruction and Consumer Complaints

Muhamad Masrur • Maghfur • Susminingsih • Khairul Anwar

Hal: 354-373

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Abstract:
Introduction: This research deconstructs halal washing practices in digital marketing of six OJK-licensed sharia-compliant P2P lending fintech platforms in Indonesia. Deconstruction is necessary because existing studies analyze gaps in sharia compliance from either marketing content or consumer complaints separately, never simultaneously, so the mechanism linking symbolic sharia claims to documented consumer losses has not yet been empirically mapped.

Methods: Qualitative Content Analysis (QCA) with critical-interpretive paradigm was applied to 799 coding units from two corpora: 412 units of digital marketing content and 387 units of consumer complaints (January 2022–December 2024), using an 8-dimension/31-code codebook (Cohen's Kappa κ = 0.74). Derridean Deconstruction and Signaling Theory serve as dual epistemological frameworks.

Results: a. A three-level halal washing typology was identified: Symbolic-Visual (65.8% of content), Terminological (78.4%), and Authoritative (38.1%), each confirmed by directly correlated consumer complaints, b. Sharia différance proven empirically: 0% of content provided publicly accessible contract documents or DPS reports, c. Empty signaling market confirmed: signal costs far lower than actual compliance costs, causing all sharia signals including DPS endorsements to lose informative function. d. A Digital Halal Washing Reproduction Cycle Model was constructed through four structural mechanisms: information asymmetry, digital oversight deficit, visual-symbolic heuristics, and asymmetric economic incentives.

Conclusion and suggestion: This study concludes that halal washing in Indonesian sharia fintech digital marketing is a systemic phenomenon in which symbolic sharia claims are not consistently supported by substantive compliance, creating a gap between marketing narratives and consumer experiences. By integrating Derridean Deconstruction and Signaling Theory, this study extends the concept of halal washing and proposes a three-level typology comprising symbolic-visual, terminological, and authoritative halal washing. The findings imply that OJK and DSN-MUI should establish explicit standards and periodic audits for digital sharia marketing claims to strengthen consumer protection and industry credibility. Future studies are encouraged to examine halal washing across other Islamic financial sectors and different regulatory contexts to validate and refine the proposed conceptual framework.

Abstract View: 54 PDF Download: 18 DOI https://doi.org/10.53515/lt.v8i1.226
Strengthening Regional Food Security through the Free Nutritious Meal Program in North Sumatra: An Analytic Network Process (ANP) Approach

Riski Sahyuri • Maryam Batubara • Nur Ahmadi Bi Rahmani

Hal: 374-394

Abstract:
ABSTRACT
The Free Nutritious Meal Program (Makan Bergizi Gratis/MBG) has been positioned as a strategic government policy to strengthen food security in North Sumatra, yet little empirical work has ranked the many factors, constraints, and strategies that jointly determine its effectiveness. This study analyzes the priority of factors, constraints, and strategies for optimizing the MBG program as a food security strategy in North Sumatra Province. A qualitative approach was applied using the Analytic Network Process (ANP) to capture interdependence among clusters. Data were collected through in-depth interviews and pairwise-comparison questionnaires administered to nine purposively selected informants (three experts, three practitioners, three regulators) and processed with Super Decisions software. Results show that within the food security cluster, food availability (GM = 0.259) is the dominant priority; within the MBG program cluster, menu nutritional quality (GM = 0.294) ranks highest; within the human-resource cluster, manager competence (GM = 0.337) is most decisive; recipient-data accuracy (GM = 0.281) is the foremost constraint; and strengthening the local food supply chain (GM = 0.278) is the top-priority strategy. All clusters recorded a Kendall's Coefficient of Concordance of W = 1.000, indicating very high agreement among informants. These findings indicate that MBG's effectiveness as a food security strategy depends less on expanding coverage than on securing local food supply, safeguarding nutritional quality, strengthening managerial competence, and correcting recipient data, providing an empirical basis for food policy formulation in North Sumatra.

Abstract View: 45 DOI https://doi.org/10.53515/lt.v8i1.266
Capital Intensity And Asset Efficiency In Regional Islamic Banks: Evidence From Bank BJB Syariah

Nanik Eprianti • Mohamad Andri Ibrahim • Yayat Rahmat Hidayat • Popon Srisusilawati • Aam Slamet Rusydiana

Hal: 395-405

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Abstract:
Introduction: Bank BJB Syariah, as a regional Islamic financial institution, continues to face challenges in maximizing financial performance, particularly in optimizing asset utilization to support product sales. This study aims to investigate the impact of Capital Intensity Ratio (CIR) a key economic metric measuring capital efficiency in generating productive assets on the asset growth of Bank BJB Syariah over the period 2009–2024.

Methods: This research applies a quantitative descriptive approach using annual financial data from 2009 to 2024. The empirical analysis is conducted using simple linear regression, incorporating classical assumption testing, a partial t-test, and the coefficient of determination to evaluate the significance and strength of the relationship between CIR and asset value.

Results: Findings reveal that CIR has a positive and significant effect on asset performance, with the coefficient of determination indicating that CIR contributes 56.7% to the total variation in asset growth.

Conclusion And Suggestion: The results highlight Bank BJB Syariah’s ability to manage capital effectively, leading to enhanced asset productivity, profitability, and competitive positioning within the Islamic banking sector. It is suggested that the bank maintains and further optimizes its capital utilization strategies to support sustained long-term financial performance.

Abstract View: 19 PDF Download: 5 DOI https://doi.org/10.53515/lt.v8i1.231
The Influence of Fraud Hexagon Theory Elements on Indications of Financial Statement Fraud in Construction Sector Companies Listed on the ISSI (2022–2025)

Ilham Wisnu Herlambang • Agustina Mutia • Nurfitri Martaliah

Hal: 406-422

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Abstract:
Financial statement fraud remains a low-frequency but high-impact risk and is particularly relevant in construction companies whose long-term projects, large contract values, and complex revenue recognition create substantial reporting judgment. This study examines whether the six elements of Fraud Hexagon Theory stimulus, capability, collusion, opportunity, rationalization, and ego explain indications of financial statement fraud among construction companies listed in the Indonesia Sharia Stock Index (ISSI) during 2022–2025. Using an explanatory quantitative design, the study analyzes secondary data from annual reports and financial statements. Purposive sampling produced 14 firms and 56 balanced panel observations. Financial statement fraud is measured using the F-Score, while the hexagon elements are proxied by return on assets, director change, cooperation with government-project, ineffective monitoring, auditor change, and the frequency of CEO pictures. Panel regression using EViews 14 selects the Common Effect Model. The results show that financial target (β=3.1001; p=0.0008) and CEO-picture frequency (β=0.1084; p=0.0424) have positive and significant effects, whereas director change, government-project cooperation, ineffective monitoring, and auditor change are insignificant. The model is jointly significant (p=0.0169) with an adjusted R² of 17.16%. These findings suggest that pressure to achieve financial targets and managerial ego warrant greater attention in fraud-risk monitoring, even among firms that have passed sharia stock screening.

Abstract View: 22 PDF Download: 17 DOI https://doi.org/10.53515/lt.v8i1.252
Cash Waqf and Religious Moderation: A New Path To Strengthen Pancasila Values Among Indonesian Muslim Youth

Muhammad Syukri Albani Nasution • Budi Harianto • Fauzi Arif Lubis • Wulan Dayu • Imam El Islamy • Bambang Lesmono • Malkan Yahya Abdillah • Rudy Rifalgi

Hal: 423-437

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Introduction: Cash waqf has developed as an important instrument in Islamic social finance that connects religious commitment with socioeconomic empowerment. However, previous studies have mainly focused on cash waqf as a philanthropic and financial mechanism, while its role in strengthening civic values and social cohesion among Muslim youth remains limited. This study aims to examine how cash waqf management contributes to religious moderation and strengthens Pancasila values among Indonesian Muslim youth.

Methods: This research employs a qualitative approach using in-depth interviews involving 68 participants from North Sumatra, Jakarta, Yogyakarta, and South Sulawesi. Data were analyzed through thematic analysis to identify patterns related to cash waqf practices, religious moderation, and civic values.

Results: The findings reveal that cash waqf functions not only as a charitable instrument but also as a form of faith-based civic engagement that transforms religious values into socioeconomic actions. Religious moderation plays an important role in ensuring inclusive, transparent, and socially responsible waqf management. Furthermore, this study introduces the Faith-Based Civic Economy model, explaining how cash waqf can strengthen civic identity and social solidarity among Muslim youth.

Conclusion and suggestion: The study concludes that productive cash waqf provides a strategic pathway for integrating Islamic social finance with Pancasila values through justice, welfare, and collective responsibility. Therefore, waqf institutions and policymakers should strengthen youth-oriented waqf programs, improve professional governance, and develop innovative cash waqf management strategies to achieve sustainable social empowerment.

Abstract View: 23 PDF Download: 2 DOI https://doi.org/10.53515/lt.v8i1.251
Empowering Productive Zakat through Capability Building for the Improvement of the Welfare of Mustahik (Case Study at the Cirebon City and Regency Baznas)

Dody Dahwana Putra • Achmad Kholiq • Abdul Aziz • Ayus Ahmad Yusuf

Hal: 438-460

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Abstract:
Introduction: Productive zakat has increasingly become an important instrument for poverty alleviation by transforming the role of zakat from consumptive assistance into a sustainable empowerment mechanism. The success of productive zakat programs depends not only on the provision of business capital but also on strengthening the capabilities of mustahik to improve their entrepreneurial competence, financial management, and economic independence. This study aims to analyze the empowerment of productive zakat through capacity strengthening in improving the welfare of mustahik at the National Amil Zakat Agency (BAZNAS) of Cirebon City and Cirebon Regency. Methods: This study employed a qualitative case study approach. Data were collected through in-depth interviews, observation, and documentation involving BAZNAS administrators, program facilitators, and productive zakat beneficiaries. The collected data were analyzed using the interactive model of data analysis, including data reduction, data display, and conclusion drawing to identify patterns of empowerment and their implications for mustahik welfare. Results: The findings indicate that productive zakat contributes positively to improving the economic welfare of mustahik through business capital assistance accompanied by entrepreneurial mentoring, financial literacy, and capacity-building activities. Strengthened capabilities enable beneficiaries to enhance business productivity, increase household income, and gradually achieve greater economic self-reliance. Nevertheless, differences in mentoring intensity, managerial capacity, and market accessibility remain challenges affecting the sustainability of productive zakat outcomes. Conclusion and Suggestion: The study concludes that strengthening the capabilities of mustahik is a fundamental component in optimizing the effectiveness of productive zakat programs. Sustainable mentoring, entrepreneurship development, and collaboration among stakeholders should be enhanced to maximize the long-term impact of zakat empowerment programs and support the transformation of mustahik into economically independent members of society

Abstract View: 19 PDF Download: 17 DOI https://doi.org/10.53515/lt.v8i1.248
INTEGRATING PRODUCTIVE WAQF IN INDONESIA’S HEALTH SECURTY SYSTEM

Ripki Mulia Rahman • Indupurnahayu • Qurroh Ayuniyyah • Didin Hafidhuddin

Hal: 461-471

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Abstract:
This study aims to analyse productive waqf models and their integration with the health social security system in hospitals. The approach used is qualitative-descriptive with primary data obtained through interviews with waqf experts, BPJS experts, and hospital practitioners, as well as secondary data from relevant literature studies. The results show that the productive waqf model in the health sector consists of five main forms, namely: (1) waqf health facilities, (2) productive investment waqf for hospital financing, (3) cash waqf for health services, (4) partnership waqf (hybrid model), and (5) social-entrepreneurship waqf for health. The integration of productive waqf with the social health Security system is carried out through several schemes, including BPJS premium subsidies from waqf proceeds, financing of services not covered by BPJS, provision of waqf-based health facilities in partnership with BPJS, blended sharia finance that combines waqf funds, zakat, infaq, sadaqah, and BPJS, and the development of a waqf-based “BPJS Plus” concept. The results of the study show that the synergy between waqf institutions, BPJS, and hospitals can create a health financing system that is inclusive, sustainable, and in line with the principles of maqāṣid al-syarī‘ah, particularly in protecting life (ḥifẓ al-nafs).

Abstract View: 25 PDF Download: 8 DOI https://doi.org/10.53515/lt.v8i1.255
Artificial Intelligence Readiness, Digital Infrastructure, and Sustainable Profitability: Evidence from Bank Syariah Indonesia

Mohammad Hatta Fahamsyah • Dian Sulistyorini Wulandari • Muhammad Najamuddin Dwi Miharja • Listian Indriyani Achmad • Nizar Febriana • Rifki Saputra

Hal: 472-490

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Introduction: The rapid advancement of Artificial Intelligence (AI) and digital transformation has significantly reshaped the Islamic banking industry, requiring financial institutions to strengthen technological capabilities while maintaining sustainable performance. This study aims to examine the effects of Artificial Intelligence Readiness and Digital Infrastructure on the Profitability of Islamic Commercial Banks in Indonesia, with Sustainability Performance serving as a mediating variable.

Methods: This study employs a quantitative explanatory research design using secondary panel data collected from the Annual Reports, Sustainability Reports, and audited financial statements of Islamic Commercial Banks in Indonesia during the 2020–2025 period. Artificial Intelligence Readiness, Digital Infrastructure, and Sustainability Performance are measured using disclosure indices developed through content analysis, while Profitability is measured using Return on Assets (ROA). The data are analyzed using panel regression and mediation analysis.

Results: The findings indicate that Artificial Intelligence Readiness and Digital Infrastructure positively influence Sustainability Performance. Furthermore, Artificial Intelligence Readiness, Digital Infrastructure, and Sustainability Performance have positive and significant effects on profitability, indicating that sustainability performance partially mediates the relationship between digital capabilities and financial performance. These findings demonstrate that technological readiness and digital infrastructure contribute to improving operational efficiency, governance quality, and the long-term financial performance of Islamic Commercial Banks.

Conclusion and Suggestion: The study concludes that integrating AI readiness with robust digital infrastructure supports sustainable profitability through improved sustainability performance. Islamic Commercial Banks are therefore encouraged to strengthen investments in AI technologies, digital infrastructure, and sustainability initiatives as integrated strategic priorities. Future research is recommended to expand the observation period, include cross-country Islamic banking data, and incorporate additional variables such as digital innovation capability, cybersecurity readiness, and corporate governance to provide a broader understanding of sustainable digital transformation in the Islamic banking sector.

Abstract View: 5 PDF Download: 2 DOI https://doi.org/10.53515/lt.v8i1.212
The Synergy of Maqashid al-Shariah and Social Capital in Fostering Pesantren Economic Empowerment An Indonesian Conceptual Model

Nuntupa • Nur Asnawi • Siswanto • Ihya' Ulumudin

Hal: 491- 513

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Abstract:
Introduction: Pesantren have long been recognised as centres of Islamic education; however, their role as institutions for developing Islamic entrepreneurship remains insufficiently conceptualised. Existing Islamic entrepreneurship models are predominantly derived from social entrepreneurship frameworks and often overlook the ethical and spiritual dimensions embedded in Islamic legal principles. This study aims to develop a comprehensive Santripreneurship model by integrating Maqashid al-Shariah and social capital within the pesantren context.

Methods: This study employed a qualitative conceptual approach through an integrated literature review of Islamic economics, Islamic entrepreneurship, Maqashid al-Shariah, and social capital theory to construct a theoretically grounded Santripreneurship model.

Results: The findings demonstrate that Maqashid al-Shariah functions as the ethical foundation guiding entrepreneurial behaviour, while bonding, bridging, and linking social capital serve as relational mechanisms that strengthen entrepreneurial capacity. Furthermore, pesantren culture provides the institutional identity shaping entrepreneurial values and practices. The proposed framework generates four theoretical propositions linking the internalisation of Maqashid al-Shariah, social capital, and sustainable economic empowerment, which can be empirically examined in future studies.

Conclusion: The study concludes that Santripreneurship represents a value-oriented model of Islamic entrepreneurship that extends beyond profit generation by promoting ethical entrepreneurship, community empowerment, and institutional resilience. Future research should empirically validate the proposed model across diverse pesantren settings and examine its implications for Islamic microfinance and community-based economic development

Abstract View: 0 PDF Download: 0 DOI https://doi.org/10.53515/lt.v8i1.225
An Empirically Grounded Hybrid Green Waqf Framework for Forest Ecosystem Sustainability: Evidence from YPM Sidoarjo, Indonesia

Murtadho Ridwan • Suparwi • Dwi Putri Restuti

Hal: 513-536

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Abstract:
Introduction: Accelerating forest ecosystem degradation and limited public environmental financing have increased the need for innovative and sustainable conservation funding mechanisms. This study aims to analyze the hybrid green waqf financing model implemented by Yayasan Pendidikan Sosial dan Ma'arif (YPM) Sidoarjo, Indonesia, to support forest ecosystem sustainability.

Methods: This study employed a qualitative case study approach using semi-structured interviews, field observations, and document analysis. Informants were purposively selected from institutional leadership, operational management, and administrative personnel, while the data were analyzed using an interactive thematic analysis.

Results: The findings indicate that YPM has developed a hybrid green waqf financing model integrating institutional waqf assets, grant-based technological support, digital fundraising, community-based philanthropy, stakeholder engagement, and trust-based governance. Institutional waqf land functions as a long-term ecological endowment, whereas grants and digital fundraising strengthen conservation capacity, public participation, and financial sustainability. However, limited cross-sector collaboration and low public literacy regarding green waqf remain significant implementation challenges.

Conclusion and suggestion: Hybrid green waqf financing provides a viable Islamic social finance mechanism for sustainable forest conservation. Strengthening stakeholder collaboration, improving green waqf literacy, and developing supportive regulatory frameworks are recommended to enhance the scalability and long-term sustainability of conservation financing.

Abstract View: 0 PDF Download: 0 DOI https://doi.org/10.53515/lt.v8i1.211
Sharia Financing Access and Sharia Financial Literacy on MSME Performance: The Mediating Role of Sharia Financial Inclusion among MSME Actors in Aceh Province

Zulfahmi • Rahmad Purnama • Alfian Sani

Hal: 537-549

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Introduction: Aceh Province has implemented a fully sharia-based financial system since the enactment of Aceh Qanun Number 11 of 2018, making sharia financing access and sharia financial literacy critical factors for the performance of micro, small, and medium enterprises (MSMEs). This study aims to examine the effect of Sharia financing access and Sharia financial literacy on MSME performance, both directly and through the mediation of Sharia financial inclusion.

Methods: The study employed a quantitative confirmatory approach with a cross-sectional survey of 378 MSME actors in Aceh Province, analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 4.

Results: Bootstrapping results (5,000 resamples) show that Sharia Financing Access and Sharia Financial Literacy have a positive and significant effect on both Sharia Financial Inclusion and MSME Performance, and that Sharia Financial Inclusion also has a positive and significant effect on MSME Performance while partially mediating the effect of both exogenous predictors. All model quality criteria (reliability, discriminant validity, and model fit) were well satisfied.

Conclusion and suggestion: These findings confirm the central role of sharia financial inclusion as a strategic bridge toward improved MSME performance, while offering practical implications for sharia financial institutions and Aceh's local government in designing policies to strengthen sharia financial access, literacy, and inclusion among MSME actors. Future research is recommended to extend the model with additional variables and adopt a longitudinal design to strengthen the generalizability of these findings.

Abstract View: 0 PDF Download: 0 DOI https://doi.org/10.53515/lt.v8i1.223

Internalization of Qur'anic Values in the Consumption Behavior of Islamic Students: A Study of the Gap Between Norms and Practices at the Zainul Hasan Genggong Islamic Boarding School

Abd Ghafur

• Nur Asnawi

• Ahmad Djalaluddin

Abstract:

ABSTRACT

Introduction: The consumption behavior of Muslims is normatively regulated by the principles of halal (permissible), balance (wasathiyah), and prohibition of excess (israf) as emphasized in the Qur'an, Surah Al-A'raf, verse 31. Islamic boarding schools, as the oldest Islamic educational institutions in Indonesia, numbering more than 42 thousand institutions, ideally become social spaces that foster simple and worshipful consumption patterns among students. However, initial observations at the Zainul Hasan Genggong Islamic Boarding School indicate a gap between the normative regulations of Islamic boarding schools and the actual consumption practices of students. This article aims to explain the background, urgency, and novelty of research on the gap between Qur'anic values and students' consumption behavior.

Methods: This article is compiled based on a literature review (state of the art) of twelve previous studies on the consumption behavior of Islamic boarding school students and Muslims as well as preliminary interview data with six male and female Islamic boarding school informants at the Zainul Hasan Genggong Islamic Boarding School, Probolinggo Regency, which is strengthened by secondary data from the Indonesian Ministry of Religion and the State of the Global Islamic Economy Report 2024/2025.

Results: Initial research indicates that despite strict regulations in Islamic boarding schools, including boarding house systems, closed cooperatives, and daily spending restrictions, students' consumption practices continue to exhibit excessive spending on food, appearance, and personal care, including through online shopping. Previous research has also failed to produce a model of consumption behavior explicitly based on Quranic values and empirically tested within Islamic boarding schools.

Conclusion and suggestion: A consistent gap was found between the normative Qur'anic values taught in Islamic boarding schools and the actual consumption behavior of Islamic boarding school students, as well as the absence of an operational Qur'anic value-based consumption model in previous literature. This situation emphasizes the urgency of further research to formulate a model of Islamic boarding school student consumption behavior based on Qur'anic values that can serve as a theoretical and practical reference for Islamic boarding school management.

Abstract View: 0 DOI https://doi.org/10.53515/lt.v8i1.244

A Sustainability Model of Cashless Payment Continuance in Islamic Banking: Integrating Digital Trust, Islamic Financial Literacy, and Sharia Compliance

Riyan Pradesyah • Khairunnisa

Abstract:
Introduction: The rapid advancement of digital payment technologies has transformed the financial services industry, including Islamic banking, which is expected to provide cashless payment services that are not only efficient and secure but also compliant with Islamic principles. This study aims to develop a sustainability model of cashless payment continuance in Islamic banking by examining the roles of Digital Trust, Islamic Financial Literacy, and Sharia Compliance in influencing customers' continuance intention.

Methods: This study employed a quantitative approach with an explanatory research design. Data were collected through questionnaires distributed to Islamic bank customers who actively use cashless payment services. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4

Results: The findings indicate that Islamic Financial Literacy has a positive and significant effect on continuance intention (β = 0.459; p < 0.001), while Sharia Compliance also exerts a positive and significant influence (β = 0.377; p = 0.002). Conversely, Digital Trust does not significantly affect continuance intention (β = 0.104; p = 0.392). Furthermore, the structural model explains 71.6% of the variance in continuance intention (R² = 0.716), indicating substantial predictive power

Conclusion and suggestion: The sustainability of cashless payment usage in Islamic banking is primarily driven by customers' Islamic financial literacy and their perception of sharia compliance rather than by digital trust. Therefore, Islamic banks should strengthen Islamic financial literacy programs and consistently implement sharia principles in digital financial services to foster customers' long-term continuance intention and enhance the sustainability of cashless payment adoption.

Abstract View: 0 DOI https://doi.org/10.53515/lt.v8i1.247
Digital Endorsement Effectiveness, Marketing Capability, and Product Quality as Drivers of Sustainable Skincare G2G Performance

Sharon Estefania

Abstract:
Introduction: The swift expansion of the skincare sector in the digital age has heightened competitiveness and prompted businesses to implement digital tactics to enhance organizational effectiveness. This study aims to examine the effects of endorser credibility, digital marketing, and digital capability affect organizational performance and how that affects product quality in the G2G skincare sector. Methods: This study used a quantitative methodology with an informative concept. Purposive sampling and online surveys were used to gather data from 300 respondents, including skincare consumers and business players. The acquired data were reviewed using appropriate statistical techniques to evaluate the connections among the variables.

Results: The findings indicate that Endorser Credibility has a significant positive effect on Organizational Performance (β = 0.441; p < 0.001). Digital Marketing (β = 0.420; p < 0.001) and Digital Capability (β = 0.434; p < 0.001) also positively influence Organizational Performance. Furthermore, Organizational Performance significantly affects Product Quality (β = 0.791; p < 0.001).

Conclusion and Suggestion: The findings suggest that strengthening digital marketing, utilizing endorsers, and enhancing digital capability can improve organizational performance.

Abstract View: 0 DOI https://doi.org/10.53515/lt.v8i1.209

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