Tazkia Islamic Finance and Business Review

The Integrating Sharīʿah Principles into Digital Finance: Implications for Taxing Cryptocurrency Transactions

Tutut Adiningsih — Thu, 25 Dec 2025 00:00:00 +0000

This study examines the implementation of tax on cryptocurrency transactions from an Islamic legal perspective. Using a descriptive qualitative approach and secondary data, this research analyzes the alignment between Indonesian crypto tax regulations and the principles of Fiqh al-Mu‘āmalāt and Maqāṣid al-Sharī‘ah in the framework of Technology Acceptance Model. The findings indicate that crypto assets can be categorized as Māl Mutaqawwam, but tax implementation must consider the principles of justice and public benefit. The study recommends the necessity of a comprehensive sharīʿah guidelines for fiscal policies concerning digital assets

Waqf for Economic Empowerment in Indonesia: Assessing the Effect of Institutional Trust and Waqf Innovation Using SEM-PLS

Rina Nur Shabrina, Aminah Nuriyah, Shofi Arofatul Marits — Thu, 25 Dec 2025 00:00:00 +0000

Waqf is an Islamic philanthropic instrument with significant potential to support sustainable economic empowerment in society. In Indonesia, the realization of productive waqf remains suboptimal, despite the estimated potential of cash waqf exceeding IDR 180 trillion annually. Low public participation in productive waqf is partly due to a lack of trust in waqf management institutions (institutional trust) and limited innovation in waqf practices (waqf innovation). This study aims to examine the influence of institutional trust and waqf innovation on waqf participation intention, and its impact on economic empowerment, with waqf participation intention as a mediating variable. A quantitative approach was employed using the Structural Equation Modeling – Partial Least Squares (SEM-PLS) method. Data were collected through an online questionnaire involving 150 Muslim respondents in Indonesia who are familiar with waqf programs. The results reveal that both institutional trust and waqf innovation significantly affect waqf participation intention. Furthermore, waqf participation intention positively influences economic empowerment and mediates the relationship between institutional trust, waqf innovation, and economic empowerment. These findings highlight the crucial role of enhancing trust and innovation in optimizing waqf as a sustainable and inclusive tool for economic empowerment in Indonesia.

The Palestine Occupation and Its Impact to Millennial’s Intention to Boycott Israeli Related Products in Indonesia

Anita Priantina, Putri Syifa Amalia — Thu, 25 Dec 2025 00:00:00 +0000

This study examines the impact of Palestine’s occupation on Indonesian millennials' intentions to boycott Israeli-affiliated products, focusing on attitude, perceived behavioral control, and subjective norm as determinants. Millennials are chosen as the research object based on the assumption that they represent an active workforce with relatively higher financial capability, potentially increasing their influence on consumer behavior. Using Structural Equation Modeling-Partial Least Squares (SEM-PLS), findings reveal that attitude and perceived behavioral control significantly impact boycott intention, while subjective norm is not significant. These results indicate that millennials are more influenced by personal beliefs and self-efficacy than by social pressures. Policy recommendations include enhancing educational campaigns to strengthen individual attitudes and empower millennials with resources for informed choices, possibly through collaborations with influencers and educational institutions. Future studies could explore additional factors, such as media influence and availability of alternatives, to provide a broader understanding of boycott behavior among millennials.

Conceptualizing Rushd as an Islamic Development Model

Yaser Alhindi — Tue, 30 Dec 2025 00:00:00 +0000

This research explores an integrated framework that bridges Islamic epistemology and its potential for innovation and application in development contexts. Building on foundational theories articulated mainly by Elmessiri (2006) in "Bias: Epistemological Bias in the Physical and Social Sciences," the research aims to propose a contemporary theoretical Islamic development model (Rushd), informed by principles of Islamic epistemology and its manifestation in the development of waqf institutions (Islamic Endowments). This study is guided by an overarching question and a sub-question: How can Islamic thoughts in societal development facilitate the construction of a development model? What are the most important principles within the Islamic epistemology that can guide societal engagement to enrich this model? The proposed Rushd framework reveals five principles that can be used across waqfs communities. First, the continuous alignment of the philosophical view of the universe with the basic ideas of everyday interactions. Second, taking initiatives and precautions as a means of mitigating societal risks to address community challenges. Third, enhancing self-productive capabilities before looking into external resources. Fourth, the comprehension and application of a dual mindset that balances heritage values with contemporary societal demands. Fifth, connecting knowledge production to authentic knowledge systems, highlights the need for innovative development models rooted in Islamic epistemology and that complex challenges require multifaceted approaches.

Analysis of the Potential and Implementation of Digital Sharia Financing for the Empowerment of Fisherwomen A Blue Economy Study in South Sulawesi

Indrawan Azis, Putri Purwandari Hasan, Laode Arahman Nasir — Wed, 31 Dec 2025 00:00:00 +0000

Women fishers play a strategic role in contributing to the coastal economy, engaging in activities ranging from production and processing to distribution and marketing of marine products. However, they continue to face significant barriers in accessing formal sources of financing due to limited collateral assets, low levels of financial literacy, and inadequate access to financial technology in coastal areas. The development of Islamic financial technology, or sharia fintech, presents an opportunity to provide a fair, inclusive, and Sharia-compliant financing system.

This study aims to analyze the potential and implementation of a digital-based Sharia financing model for women fishers in South Sulawesi within the framework of a sustainable blue economy. The research adopts a qualitative approach with a case study conducted in Pangkajene and Islands Regency, South Sulawesi. Data were collected through semi-structured interviews with groups of women fishers and administrators of Islamic financial institutions, particularly Islamic cooperatives operating within coastal communities.

Data analysis was conducted using thematic analysis, assisted by NVivo 12 Pro software. The results indicate that most women fishers are still in the early stages of the innovation diffusion process—specifically, the knowledge and persuasion stages—thus the utilization of Sharia fintech remains limited. Nevertheless, the potential for adopting Sharia fintech is promising if supported by continuous education, institutional mentoring, and the integration of empowerment programs based on the blue economy. This study recommends the development of an integrated digital Sharia financing model aligned with coastal women’s economic empowerment programs to strengthen financial inclusion in support of a sustainable blue economy.

The Fraud Pentagon Theory Perspective: Fraudulent Financial Reporting In Sharia Banking Registered At Financial Service Authority (OJK)

Agus Sulaeman, Nunung Nurhasanah, Rina Maria Hendriyani — Tue, 30 Dec 2025 00:00:00 +0000

ABSTRACT

AGUS SULAEMAN, Fraud Pentagon Theory Perspective: Fraudulent Financial Reporting in Sharia Banking registered at Financial Services Authority (OJK), Magister Managemen Study Programs, College of Singaperbangsa University karawang, 2025.

This research aims to examine the effect of fraud pentagon theory towards Fraudulent Financial Reporting in Sharia Banking registered at Financial Services Authority (OJK). Fraud pentagon theory includes five elements, namely Pressure proxied by financial target, financial stability, external pressure, and institutional ownership, Opportunity proxied by ineffective monitoring, and quality of external auditor, Rationalization proxied by change in auditor, Capability proxied by change in directors, and Arrogancy proxied by frequent number of CEO’s picture. This type of research is quantitative research. Samples were taken by using purposive sampling and data analysis tool used is SPSS (Statistical Package for the Social Sciences). The results of this research stated that financial target, financial stability, external pressure, institutional ownership, ineffective monitoring, change in auditor, and change in director does not affect Fraudulent Financial Reporting. While quality of external auditor and frequent of CEO’s picture has a positive significant effect on Fraudulent Financial Reporting. So its proves that Sharia Banking must carry out financial statement audits and prioritize the quality of external auditor to prevent fraudulent financial reporting.

Keywords: Fraud, Fraud Pentagon Theory, Fraudulent Financial Reporting, Sharia Bank

The Influence of the Principles of Trust and Justice on the Quality of Financial Reports in Sharia Financial Institutions

Suci, Zaenafi Ariani, Sahman Z — Tue, 30 Dec 2025 00:00:00 +0000

This study aims to analyze the influence of trustworthiness and fairness on the quality of financial statements in Islamic financial institutions. Previous research that largely emphasized governance and compliance with Islamic principles shows that these ethical values need to be examined as key determinants of financial reporting integrity. Trustworthiness and fairness are considered highly relevant because they represent the moral foundation of Islamic financial practices, particularly in promoting transparency, accountability, and objectivity in the presentation of financial information. This study employs a quantitative approach using a Likert-scale questionnaire distributed to 144 respondents. The data were analyzed through validity and reliability testing as well as multiple linear regression to determine the effect of both variables on financial statement quality. The results indicate that the regression model used is statistically significant and capable of explaining the influence of trustworthiness and fairness on report quality. Trustworthiness contributes positively, while fairness demonstrates a more dominant and consistent influence in improving the quality of financial statements. Descriptive findings show average values of 74.39 (74%) for trustworthiness, 72.85 (73%) for fairness, and 73.91 (74%) for financial report quality, all categorized as high. These results confirm that trustworthiness and fairness function not only as moral values but also as strategic factors that strengthen the credibility and integrity of financial reporting.

Analysis of High Dividend Sharia Stock Management as A Stock Wakaf Portfolio

Deryandri, Indra Indra — Tue, 30 Dec 2025 00:00:00 +0000

Indonesia with a Muslim majority inherently provides potential for the development and utilization of productive waqf as a financial instrument for social welfare and economic growth. Stock waqf is one of the productive waqf that is quite potential to be developed because it provides the potential for quite large profit sharing with minimal risk if placed in stocks that are fundamentally strong and liquid to maintain the sustainability of waqf assets in the long term. This study aims to analyze the returns and risks of sharia stock portfolios on IDX High Dividend 20 stocks and including LQ45 stocks if placed as waqf objects. In addition, it also analyzes the strategy for implementing stock waqf portfolios for wakif, nazhir and regulators. This study uses two methods to answer the problem formulation, namely Return Portfolio and Risk Portfolio. Furthermore, for the second research question, in-depth interviews and literature studies are used. The results of the study prove that the strategy of forming a portfolio based on dividend yield on stocks that fall into the criteria of IDX High Dividend 20, LQ45 and JII has been proven to consistently increase returns (yield) and total returns with increasing dividend yield. Portfolio 4 which focuses on stocks with dividend yield ≥ 5% provides the highest return (yield) of 17.06% per year, this is also a picture of the yield if applied as a stock waqf portfolio and the total return is also the highest at 18.20% per year, this is also a picture of the yield if applied as a cash waqf investment portfolio or stock futures waqf. In addition, this study emphasizes the importance of education and increasing the competence of nazir in sharia financial literacy and stock waqf management. Collaboration between stakeholders, including nazir, financial institutions, and regulators, is needed to maximize the potential of stock waqf. Effective risk management and transparency in reporting are also key elements to maintain investment stability and increase public trust.

How Sharia Rural Banks and Islamic Fintechs Are Partnering for Financial Inclusion: Indonesian Lessons from the Ground

Abrista Devi, Muhammad Faishal Hidayat, Ghefira Shindy Nofianti — Tue, 30 Dec 2025 00:00:00 +0000

This study aims to analyze potential collaboration models between sharia fintech and Bank Pembiayaan Rakyat Syariah (BPRS) in Indonesia and to determine which model offers the highest strategic impact according to expert judgment. Using the Analytic Network Process (ANP), this research evaluates four alternative collaboration models identified through literature review and expert interviews. The first model is Sharia Fintech as a Technology Enabler and Referral Partner, where fintech provides prospective customer referrals to BPRS. The second model is Sharia Fintech as a Technology Enabler and Distribution Channel, functioning as a fund channeling intermediary between BPRS and customers. The third model positions fintech as a technology enabler for creditworthiness assessment, focusing solely on credit scoring activities. The fourth model is Sharia Fintech as a Sharia Peer-to-Peer (P2P) Financing Enabler, in which fintech provides a project marketplace for BPRS to fund, with financing flows conducted through the P2P platform. ANP results show that Model 4 is the most preferred option, while Model 3 is the least recommended. Managerially, BPRS should prioritize Model 4 and establish a joint coordination team with fintech under the supervision of the sharia fintech association.