The Probability of the Financing Sustainability of Micro-firms Supported by Islamic Social Fund

This study aims to identify factors that influence financing sustainability, thereby determining the probability of attaining the subsequent financing from Islamic social funds. Islamic social funds provide funding for micro-firms using a financing scheme that differs from conventional financing terms. For the lower level, Islamic social funds usually offer a limited amount of no-cost financing called qard. In contrast, for more profitable micro-firms, Islamic social funds provide low-cost financing called murabahah. However, most micro-firms need financing in sustainable terms, either using a qard scheme or a murabahah scheme. We assume that only micro-firms showing business growth may generate higher financing using the murabahah scheme. We use data from 1,346 micro-firms. We found several factors that contribute significantly to a micro-firm having a higher chance of generating further funding, such as group-type financing, amount of funding (plafond), time to maturity, and demographic aspects such as age and number of dependents. However, we found that the initial contract scheme. How to Cite:Hakim, A. & Dalimunthe, Z. (2022). The Probability of Financing Sustainability of Micro firms Financially Supported by Islamic Social Fund. Etikonomi, 21(1), 127-138. https://doi.org/10.15408/etk.v21i1.12316

HOW FEASIBLE IS A CONVERTIBLE IJARAH CONTRACT FOR SME FINANCING?: A SIMULATION APPROACH

Islamic financial institutions have relied for decades on margin-based contracts to provide financing for the business sector, despite the basic idea that Islamic finance is expected to provide an equity-based or a profit and loss sharing (PLS) contract. This fact raises the need to encourage the use of a margin-based instrument with an innovative scheme that allows for conversion of the contract into a PLS-based contract. Moreover, we propose a convertible ijarah contract to fill this need. A convertible ijarah contract is an ijarah (rent) contract that is convertible to a PLS contract according to the Islamic financier’s decision. In this study, we simulate three scenarios of project financing with (a) murabaha as a margin-based contract, (b) musharaka as a PLS contract and (c) a convertible ijarah contract. The aim is to evaluate whether the convertible ijarah contract will provide a higher return for the financier compared to the other contracts. The main input of the simulation is nine sectors of Indonesian SMEs’ financial performance. We found that when the financial performance of Indonesian SMEs was measured by short-term financial performance, the convertible ijarah contract outperformed the murabaha contract for all sectors but did not outperform the musharaka contract, except for low-margin sectors. However, when the financial performance of Indonesians SMEs was measured by long-term economic performance, we found that the convertible ijarah contract outperformed the murabaha contract and musharaka contract for almost all sectors

How Does Public Service Motivation Explain Knowledge Sharing Behavior among Indonesian Civil Servants?

The Indonesian government conducted bureaucratic reforms to create excellent and clean governance. The reforms need government institutions to utilize the wealth of knowledge they have. However, knowledge is still scattered among institutions employees and not well documented. Thus, it is critical to apply knowledge management, especially to share the knowledge. This study aims to determine the antecedents that influence knowledge-sharing behavior among Indonesian civil servants (Aparatur Sipil Negara, ASN), especially in the finance ministry, which is the scope of this research. This research analyzes the effect of job autonomy on knowledge-sharing behavior. This study also examines the mediating role of public service motivation and intrinsic motivation. We spread the questionnaire across seven echelons III working units in the headquarters of the finance ministry. The researchers limited respondents to work periods of more than one year and collected 252 valid responses. The researchers captured respondents' perceptions of the overall research variables and processed the data using structural equation modeling with AMOS software. The results showed that job autonomy positively affects public service motivation and intrinsic motivation. However, there is not enough evidence to conclude that there is significant knowledge-sharing behavior between ASN evaluated here unless there is a need to provide public service. This finding indicates that Indonesian ASN would not share their knowledge voluntarily. We also found no difference in the behavior between millennial ASN and their senior counterparts. We suggest that the administration design a working procedure with enough autonomy to push the ASN to share their knowledge

Indonesian Stock's Influencer Phenomenon: Did Financial Literacy on Millennial Age Reduce Herding Behavior?

In Indonesia's capital market, there was a phenomenon that famous influencers seem to lead to behavioral bias in the stock market. The stock price changed significantly after those stock influencers shared information or recommended certain stocks. This research examined how the stock influencer's credibility affected investors' investment in recommended stock. We collected data from 132 individual investors who participated in the research. We used a questionnaire with a 5-Likert scale. The result showed that an influencer's credibility had a significant influence on investors' herding behavior. However, there was no significant evidence that financial literacy matters in that relationship. Interestingly, we found there was no significant difference in herding behavior between millennial and non-millennial investors

Manajemen portofolio dan investasi. Edisi 9. Buku 2

Jakartaxxiv, 552 p.: glos., indeks; 28 c

Manajemen portofolio dan investasi. Edisi 9. Buku 1

Jakartaxxiv, 520 p.: glos., indeks; 28 c

Etikonomi : jurnal ekonomi volume 21 (1) 2022

ii, 212 hlm, 29,5 x 21 c