Achieving Sustainable Economic Growth: Analysis of Islamic Debt and the Islamic Equity Market

Purpose This study aims to investigate the relationship between financial inclusion and sustainable economic development in Indonesia by exploring the potential impact of Takaful. Specifically, the study seeks to examine the feasibility of leveraging Takaful as a means to foster financial inclusion and drive economic growth in Indonesia. Design/methodology/approach This study uses a qualitative analysis methodology, specifically using content analysis techniques, to investigate the relationship between financial inclusion and sustainable economic growth in Indonesia, focussing on the role of Takaful. The content analysis enables a systematic study of the data to identify trends and topics pertinent to Takaful and its potential to advance financial inclusion. Findings The study’s results reveal a direct causal link between economic growth and achieving financial inclusion through the use of Takaful. The findings also indicate a positive correlation between the increased presence of Takaful markets and accelerated economic growth. Research limitations/implications The study examines only the use of Takaful in achieving financial inclusion and sustainable economic growth in Indonesia. Nonetheless, the practical implications of this research are substantial, as they highlight the potential of Takaful to foster financial inclusion and stimulate economic growth in Indonesia. Practical implications This study contributes to the limited body of research on the relationship between financial inclusion and economic growth in Indonesia, specifically in the context of Takaful. Originality/value This study’s value lies in its exploration of an under-researched area, providing crucial insights into the potential of Takaful to promote financial inclusion and drive economic growth in Indonesia. The social implications of this study are also noteworthy, as increased financial inclusion and economic growth can positively affect poverty reduction, job creation and overall societal well-being in Indonesia.

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

Digital economy has a major contribution to Indonesia's Gross Domestic Product (GDP). Digital economy sector that has the highest growth is e-commerce. The development of e-commerce and rapid improvements in internet infrastructure are expected to encourage public consumption, so as to increase GDP growth. The purpose of the research examines the general overview of economic growth and several e-commerce indicators in Indonesia and analyzes the effect of several e-commerce indicators on economic growth in Indonesia from 2016 to 2018. Economic growth and several e-commerce indicators in Indonesia have a positive trend. DKI Jakarta has some of the highest e-commerce indicators compared to other provinces, while East Nusa Tenggara has the biggest number of additional points internet access locations from 2016 to 2018. The results of panel data regression analysis show that the variable computer users, e-commerce users, internet access, and expenditure on information technology communication have a positive and significant effect on economic growth in Indonesia and the e-commerce indicators that have the greatest influence is computer users. Thus, the results of this study indicate the importance of utilizing the role of e-commerce in promoting economic growth in Indonesia. Keywords: economic growth; e-commerce; panel

The growth of Islamic finance in Indonesia has experienced very significant growth. The Indonesian government hopes that the financial sector will become an important instrument in promoting economic growth in Indonesia, but it seems that the percentage of economic growth in Indonesia has declined over the past decade. This study aims to analyze the impact of Islamic financial instruments on economic growth in Indonesia. This study uses a quantitative method with an Autoregressive Distributed Lag (ARDL) model analysis tool. The results of this study show that all Islamic financial instrument variables have a negative effect on economic growth in the short term. Meanwhile, in the long term, all independent variables have a positive effect on economic growth except for Sharia Mutual Funds which show a negative effect and Sharia Bank Financing and Sharia Stocks have no effect on economic growth in Indonesia. Thus, it can be concluded that Islamic financial instruments in the long term have a positive influence on encouraging economic growth in Indonesia.

The aim of this research is to determine the influence of Domestic Investment, Labor, Exports and Government Expenditures on Economic Growth in Indonesia. This research explains the influence of Domestic Investment (X1), Labor (X2), Exports (X3), and Government Expenditures (X4) on Economic Growth (Y) in Indonesia. The data used is time series data and was obtained from the Indonesian Central Bureau of Statistics (BPS) for 2006-2020. The data analysis method uses multiple linear regression analysis using eviews 10 software. The research results show that partially domestic investment has a positive and significant effect on economic growth in Indonesia. Partially, labor has a positive and insignificant effect on economic growth in Indonesia. Simultaneously domestic investment, labor, exports and government spending have a positive and significant effect on economic growth in Indonesia.

The purpose of this study is to analyze the effect of world oil prices and inflation on economic growth in Indonesia. The type of data used is time series data from 1987 to 2020 taken from FRED Economic Data, the World Bank and the Central Statistics Agency. This type of research is descriptive and associative research. The data analysis used is descriptive analysis and inductive analysis. Stationarity test is one of the tests used in inductive analysis; (2) Cointegration Test; (3) Multiple Linear Regression Test and Error Correction Model (ECM); (4) Classical Assumption Test; (5) T test and F test. The results of this study reveal that: (1) world oil prices (X1) have an insignificant negative effect on economic growth (Y1) in Indonesia in the long term and in the short term world oil prices (X1) have an insignificant negative effect on economic growth (Y1) in the long term. positive and significant to economic growth (Y1) in Indonesia; (2) inflation (X2) has an insignificant negative effect on economic growth (Y1) in Indonesia in the long term while in the short term inflation (X2) has an insignificant negative effect on economic growth (Y1) in Indonesia.

The primary objective of this study is to examine the causal relationships among exchange rates, economic growth, and inflation in Indonesia. The data used in this research is secondary data with time series data for the period 2000 to 2019, obtained from the Bank Indonesia, Indonesia Central Bureau of Statistics, and World Bank. The method used in this research is Granger Causality. The outcomes of the analysis reveal a bidirectional causal relationship between economic growth and the exchange rate in the short term, as well as between inflation and the exchange rate. An appreciation of a country's exchange rate of one percent has an impact on changes in the overall price of goods, while an increase in the inflation rate causes a depreciation of the exchange rate. The relationship between inflation and economic growth shows that there is a one-way causal relationship, namely that inflation affects economic growth but not vice versa. These findings have significant policy implications, indicating that the Indonesian government needs to prioritize efforts to control inflation to support sustainable economic growth. Therefore, it is necessary to implement appropriate monetary and fiscal policies to maintain price stability and encourage balanced economic growth in Indonesia.

Sustainable economic growth is a key goal for every developing country, including Indonesia. In this context, several key factors have been identified as the main determinants influencing the pace of economic growth. This study investigates Indonesia’s economic growth in relation to foreign direct investment (FDI), private investment, government spending, and labor. The Autoregressive Distributed Lag (ARDL) method is applied to analyze time series data from 1986 to 2022. The results indicate that, in the long term, government spending has a positive and significant effect on economic growth in Indonesia, while labor has a negative effect. In the short term, FDI has a positive and significant impact on economic growth. Therefore, regulations and policies are needed in Indonesia regarding tax collection, currency stabilization, and the facilitation of permit acquisition, protection, and legal certainty.

The implementation of a clean government free from corrupt behavior is a crucial aspect in ensuring sustainable economic growth and development in Indonesia. This article discusses the urgency of bureaucratic reform as a first step in overcoming various obstacles affecting the effectiveness of government. Institutional structuring, management, and human resources, as well as strengthening accountability are the main focuses of reform efforts. In addition, active community participation, firm law enforcement, transparency, and responsiveness to public needs are also important elements in good governance. Through the implementation of these principles, it is hoped that Indonesia can build a government system that is transparent, accountable, and able to provide quality services to all people.

Sustained economic growth is essential to sustainable development and overall societal prosperity. This phenomenon denotes the continuous enhancement of a nation's economic conditions over time, characterised by elevated levels of economic activity compared to preceding periods. Economic growth is typically correlated with improved societal welfare, which is a key indicator of successful economic development. However, it is imperative to consider additional factors such as income distribution to comprehensively assess the impact of growth on well-being. Establishing economic growth is fundamental to sustainable economic development and prosperity. The primary objective of this study is to investigate the short- and long-run effects of Property Investment and Inflation on economic growth in Indonesia and examine the equilibrium relationship between Property Investment and Inflation on economic growth from the short run to the long run. To achieve this objective, this study employs the autoregressive distributed lag (ARDL) Panel Model and a cointegration test to establish short- and long-run relationships. The results indicate a short-to long-run equilibrium among the variables. An additional finding is that property investment has a positive effect on economic growth in the long run but no effect in the short run. The inflation variable demonstrates a positive effect on economic growth in the long run but no effect in the short run.

This study aimed to determine the effect of the money supply and population on economic growth in indonesia in the short and long term. This study used time series data from 1994 to 2017. The data analysis method used is the Auto Regressive Distributed Lagged (ARDL) approach. The results showed that all variables are stationary at the co-integrated in the long run. The model stability test results showed that the model used was stable. The results show that all variables were stationary at the co-integrated level in the long run. The model stability test results showed that the model used is stable. Partially, in the analysis of short-term money supply had a negative and significant effect on the economic growth in Indonesia, and the population had a positive and significant effect on the value of economic growth in Indonesia. In the long-term analysis, the money supply had a negative and significant effect on the economic growth in Indonesia, and the population had a positive and significant effect on the economic growth in Indonesia. The coefficient determination R2 was 91.56 percent.

Climate-related economic growth has been a major topic to current economic development issues. This study tries to examine the causal relationship between economic growth, carbon emissions, and energy consumption in Indonesia using annual data from 1978 to 2022. The data is taken from the World Bank and BP-Statistical Review of World Energy. This study employs wavelet analysis to investigate the complex, time-dependent links among economic growth, carbon emissions, and energy consumption in Indonesia, offering insights into their dynamic interactions across several temporal scales. Granger causality is applied to help uncover temporal relationships and their strength, while wavelet coherence reveals frequency-specific associations across different time scales. This includes analysing cross wavelet power and cross wavelet transform. The study provides a set of research findings, economic growth in Indonesia is still supported by carbon emissions and fuel energy consumption. It shows that fossil fuels continue to dominate the economic growth engine. The consumption of coal and oil is still the leading cause of carbon emissions. This study suggests that the government should enforce consistent regulations, promote collaboration among institutions, and engage public awareness to renewable energy sources. Allocating resources to green investments and incentivizing private industry through financial instruments like carbon trading and green bonds. It can stimulate economic growth while preserving the environment. Moreover, emphasizing the long-term benefits will help establish a sustainable framework for the transition to net-zero emissions.

Economic growth is no longer just to improve the economy alone, but economic growth must also pay attention to the welfare of the community and be carried out by paying attention to the quality of the economic growth. Good economic growth is not only temporary but long term. One of the government's efforts by this concept is to create inclusive and sustainable economic growth. The measure of the quality of economic growth can be seen through the Inclusive Economic Development Index (IGI). However, achieving inclusive economic growth is not easy. The novelty of the research is that inclusive economic growth is not only approached with an economic approach but non-economic variables are also included, to see further this interrelation. The method used in this research is quantitative with a descriptive approach. Panel regression analysis models and techniques using stata. The results of this study indicate that technology and human resources have a significant and positive effect on inclusive economic growth in Indonesia from 2017 to 2019. Meanwhile, politics has a positive but not significant effect on inclusive economic growth in Indonesia from 2017 to 2019. From the results of this study, it can be seen that also that technology, politics, and human resources simultaneously have a significant and positive effect on inclusive economic growth in Indonesia from 2017 to 2019. The implications of this research include, among others, the government needs to optimize HR productivity. Keywords: Inclusive Economy; Political; Human Resources; Technology

This paper examines the relationship between foreign direct investment, trade, labor, capital formation and economic growth in Indonesia. We use annual time series data covering period of 1985-2015 and examine using autoregressive distributed lag (ARDL). The ARDL bound test for cointegration reveals that there are three proposed model of cointegration among variables specifically when direct investment, trade, and capital formation as dependent variables. The long-run effect comes from at least two important variables affecting each relationship. Evidence of convergence to long-run equilibrium is found in the three models. Labors are found to be an important factor attracting foreign direct investment and improving production scales for trade activities. It is also found that foreign direct investment is the main contributor in capital formation injection. The study suggests that the policy and government efforts to build competent human capital as preparation for future generation is widely believe as a wise option. Continuing policies to attack foreign direct investment would promote further Indonesian economic growth. Simultaneously, the technological spillovers derive drom FDI can be absorp and adopt by the local labor force.

This study examines the effect of inflation, labor force participation rate and exports on economic growth in Indonesia. This study analyzes the data using the Autoregressive Distributed Lag (ARDL) model with time-series data from 1990 to 2021 obtained from the World Bank and the Central Statistics Agency of Indonesia. The results conclude that in the short and long terminflation has a negative and significanteffect on economic growth in Indonesia. In the short term, labor force participation rate hasa positive and significant effect on economic growth in Indonesia. In the long term, labor force participationrate has a positive but insignificant effect on economic growth in Indonesia. In the shortand longterm, exports have a positive and significant effect on economic growth in Indonesia. Based on the research results, it is suggested that inflation control, improvement in the quality of the labor force, and export enhancement are necessary.