Does Islamic Banking Contribute to Economic Development? Evidence From Malaysia

Does Islamic banking contribute to the economic development of a country? In what way Islamic banking contribute to the economic development? Are the main question might be asked to examine the viability of Islamic banking to the economic development. This paper attempts to answer those questions by examining the dynamic interactions between Islamic banking and economic development of Malaysia by employing the Cointegration test and Vector Error Model (VECM) to see whether the Islamic financial system contributes to the economic development and economic development that contribute to the transformation of the operation of the Islamic financial system in the longrun. We use time series data of total Islamic bank financing (IB financing) and real GDP per capita (RGDP), fixed investment (GFCF), and trade activities (TRADE) to represent real economic sectors. We found that in the short-run only fixed investment that granger cause Islamic bank to develop for 1997:1-2005:4. Where as in the long-run, there is evidence of a bidirectional relationship between Islamic bank and fixed investment and there is evidence to support ‘demand following' hypothesis of GDP and Islamic bank, where increase in GDP causes Islamic banking to develop and not vice versa. Islamic banking is also found to have less contribution to the International trade in the form of export and import of goods and services

The Foundations of Islamic Finance: Appraising the Approaches and Challenges

The emergence of Islamic finance as a system of thought and practice is timely in the midst of world crisis and the uncertain proposals for solving it. It is hoped that Islamic finance could offer a coherent perspective for understanding real economic problems as well as a genuine alternative to the very foundations of how finance should be managed to actualize human prosperity. It is widely expected that Islamic finance will continuously evolve into a more sophisticated form and structure in the next decade. Some, however, question whether the development is moving on the right track to realize the hopes pinned on it at the time of its initial establishment. This embarks from the differences in understanding the raison d?etre of Islamic finance emergence and hence approach taken in developing the industry. In this paper we argue that Islamic finance should be directed to provide for meaningful development in thetwenty-first century, Islamic finance must realize its full potential as a system, not merely a stopgap means of surviving the crisis. It must go beyond that to provide the guidelines for managing a good economy, stimulating growth and development, realizing socio-economic justice and promoting employment and stability. It cannot limit itself to merely offering economic and financial practices that satisfy the minimum standard of legal requirements

PRESISI DAN AKURASI POSISI PARKIR PESAWAT (PARKING STAND) BANDAR UDARA INTERNASIONAL NGURAH RAI â DENPASAR

Penentuan Posisi Parkir Pesawat (Parking Stand) di Bandara Internasional Ngurah Rai Denpasar telah dilakukan dengan teknologi GPS dan diyakini dengan presisi dan akurasi yang tinggi. Permasalahan timbul, tatkala PT. Angkasa Pura I sebagai pengelola Bandara mendapatkan keluhan dari beberapa maskapai asing antara lain Singapore Airlines, Japan Airlines, dan China Airlines yang menginformasikan bahwa posisi parking stand pesawat salah sekitar 6â busur. Hal ini merupakan kesalahan yang cukup besar, dan tidak mungkin ditimbulkan oleh peralatan GPS dengan metode pengukuran absolut sekalipun. Lalu mengapa bisa demikian? Dalam studi ini dilakukan penelusuran tentang penyebab kesalahan yang dimaksudkan oleh para pihak pelapor. Untuk itu dilakukan pengecekan lapangan dengan pengukuran ulang dengan ketelitian yang memadai dan merekonstruksi letak titik-titik navigasi yang diperlukan dalam penentuan posisi parking stand untuk membantu menganalisa penyebab kesalahan. Tulisan ini dimaksudkan untuk memaparkan kesalahan-kesalahan pengguna aplikasi GPS dalam penggunaannya untuk memetakan posisi parking stand pesawat. Kata Kunci: GPS, Navigasi, Parking Stand

What is Islamic Economics? the View of Muhammad Baqir Al-Sadr

Muhammad Baqir al-Sadr (1935-1980) is a well-known Muslim scholar of the late twentieth century. Al-Sadr is considered as one of the pioneers of Islamic revival in the contemporary Muslim world. His keen intellectual interests inspired him to critically study a wide range of areas in contemporary philosophy, economics, politics, sociology, history and law, from a distinct Islamic point of view. Al-Sadr's magnum opus on economics, Iqtisaduna (Our Economics) has put his name as one of the pioneers of contemporary Islamic economics. His work, in various degrees has influenced the formation and development of Islamic economics as a system and as a body of knowledge. This paper attempts to investigate some aspects of al-Sadr's economic thought by focusing on his view on the nature, subject matter and methodology of Islamic economics, areas that have not received sufficient attention by contemporary Islamic economists

Zakat for Economic Empowerment (Analyzing the Models, Strategy and Implications of Zakat Productive Program in Baitul Mal Aceh and Baznas Indonesia)

Sustainable wellbeing is one of the goals of zakat distribution whereby the poor (mustahiq) are not only able to survive by having the basic needs fulfilled, but also are able to work and fulfill his needs and his family independently. The mustahiq independency is important to solve the problem of inequalities in society, marginalization, unemployemnt and poverty. This can only be achieved if zakat is able to used as a means for economic empowerment of the poor that would increase their capacity and enable them to become enterpreneur and hence able to fulfil their needs by themselves. This article attempts to observe various zakat productive programs initiated by zakat institutions in Indonesia and also analyze their implications in empowering the poors and increase their level of wellbeing. The case study in this paper is Baitul Mal Aceh and Baznas Indonesia

Edukasi Pentingnya Mencuci Tangan dengan Sabun di Era New Normal

Tangan merupakan bagian tubuh yang paling sering bersentuhan dengan permukaan obyek di sekitar kegiatan manusia, yang tentunya akan sangat rentan sebagai pembawa kuman dan pathogen termasuk virus covid-19 yang saat ini menjadi musuh terbesar dunia. Untuk mendukung kegiatan sosial manusia, mencuci tangan dengan sabun merupakan salah satu langkah sanitasi yang dianjurkan di era new normal ini untuk mencegah penyebaran dan penularan covid-19. Sehingga, sabun cuci tangan dapat dikategorikan sebagai kebutuhan pokok. Bertepatan dengan memperingati “Hari Cuci Tangan Sedunia”, maka kegiatan pengabdian ini meliputi edukasi untuk meningkatkan pemahaman dan kesadaran masyarakat mengenai pentingnya mencuci tangan dengan sabun dan langkah mencuci tangan dengan benar untuk mencegah penyakit dan hidup yang aman di era new norma