The Role of Zakat, Infaq and Shadaqah in Indonesia’s Economic Growth: An Islamic Perspective

This study uses a quantitative associative technique to examine how Indonesia's digital economy contributes to economic growth. For the years 2014–2023, secondary data were acquired from the Central Bureau of Statistics, Bank Indonesia, and the World Bank. The Two-Stage Least Square (TSLS) method and a simultaneous model with two equations were used to analyze the impact of monetary variables (interest rates, money supply, and inflation) and digital economy variables (internet users, e-commerce growth, and e-money users) on economic growth. The findings indicate that while e-commerce expansion and inflation have a negligible negative impact on economic growth, internet and e-money users have a large beneficial impact. In the meanwhile, inflation is significantly impacted positively by the money supply and negatively by interest rates and economic growth. These results highlight how crucial it is to manage monetary factors and improve digital infrastructure in order to promote Indonesia's economic growth in the digital age.

Since independence, Indonesia has experienced seven changes of national leadership. Starting from Soekarno, Soeharto, BJ Habibie, Abdurahman Wahid, Megawati, Susilo Bambang Yudhoyono (SBY), to Joko Widodo. During that time, foreign debt is always present to patch the development budget deficit. Debt is expected to move the wheels of the economy, create growth, create jobs, and alleviate poverty. This study aims to analyze the effect of debt, inflation and government regime differences on economic growth and poverty levels in Indonesia, from the Old Order era, the New Order, to the Reform Order. The study used secondary data obtained from Bank Indonesia, the National Development Planning Agency (Bappenas), the Central Bureau of Statistics (BPS), the World Bank, and other reference sources such as books, journals and scientific papers. The data used are the value of foreign debt, national income (Gross Domestic Product / GDP), population, number and ratio of the poor, inflation rate in the period 1949 - 2017. The results of multiple regression analysis with dummy variable (using Eviews 10 application program) show the following results: Foreign debt has correlation with the national economic condition, in particular the value of Indonesian Gross Domestic Product and the level of poverty. Debt tends to increase the value of GDP and reduce poverty. In terms of debt governance as a driver of the economy and poverty, the Suharto and Habibie Era tend to be different and better than the Sukarno Era. While the debt management of Era Abdurrahman Wahid, Era Megawati, Era SBY and Era Jokowi no different or no better than Era Sukarno. Although nationally can increase GDP and reduce poverty, debt can not improve people's prosperity (read per capita income). Foreign debt even tends to reduce the level of welfare of the people. This applies to all government regimes.

Since independence, Indonesia has experienced seven changes of national leadership. Starting from Soekarno, Soeharto, BJ Habibie, Abdurahman Wahid, Megawati, Susilo Bambang Yudhoyono (SBY), to Joko Widodo. During that time, foreign debt is always present to patch the development budget deficit. Debt is expected to move the wheels of the economy, create growth, create jobs, and alleviate poverty. This study aims to analyze the effect of debt, inflation and government regime differences on economic growth and poverty levels in Indonesia, from the Old Order era, the New Order, to the Reform Order. The study used secondary data obtained from Bank Indonesia, the National Development Planning Agency (Bappenas), the Central Bureau of Statistics (BPS), the World Bank, and other reference sources such as books, journals and scientific papers. The data used are the value of foreign debt, national income (Gross Domestic Product / GDP), population, number and ratio of the poor, inflation rate in the period 1949 - 2017. The results of multiple regression analysis with dummy variable (using Eviews 10 application program) show the following results: Foreign debt has correlation with the national economic condition, in particular the value of Indonesian Gross Domestic Product and the level of poverty. Debt tends to increase the value of GDP and reduce poverty. In terms of debt governance as a driver of the economy and poverty, the Suharto and Habibie Era tend to be different and better than the Sukarno Era. While the debt management of Era Abdurrahman Wahid, Era Megawati, Era SBY and Era Jokowi no different or no better than Era Sukarno. Although nationally can increase GDP and reduce poverty, debt can not improve people's prosperity (read per capita income). Foreign debt even tends to reduce the level of welfare of the people. This applies to all government regimes.
 

La balance commerciale, les termes de l'échange et la croissance économique

This research examines the impact of export value and investment on Indonesia's economic growth from 2013 to 2022 from an Islamic perspective. Using secondary data from the Central Bureau of Statistics and the World Bank, the Error Correction Model method is applied to analyze the long-term and short-term relationships between variables. Stationarity Test, R-Square Test, F Test, and T Test are used to ensure the model's validity. The research results show that export value and investment significantly affect long-term economic growth. In the short term, exports are significant at the 5 percent significance level, and investment is significant at the 10 percent significance level for economic growth. From the Islamic perspective, the economic growth resulting from increased exports and investment positively impacts the economic and social dynamics of society, ensuring a fair distribution of welfare. By applying Sharia principles, the benefits of economic growth can be felt evenly, avoiding unethical practices. Exports and investment are crucial factors in driving Indonesia's economic growth, while Sharia principles provide a strong foundation for economic justice and sustainability.

This research aims to analyze the effect of MSME fund disbursement and non-performing financing (NPF) on Indonesia's economic growth in the 2015-2022 period. The research method used is quantitative with a descriptive approach. The data used comes from secondary data sources, such as the financial statements of the Financial Services Authority (OJK) and the Central Bureau of Statistics. The results showed that partially, the distribution of MSME funds had a positive and significant effect on Indonesia's economic growth. This shows that financial support provided to MSMEs through the distribution of funds makes an important contribution in encouraging better economic growth. However, partially, non-performing financing (NPF) has an insignificant negative effect on economic growth. Although the NPF problem may affect the financial sector, the results of this research show that its impact on overall economic growth is not significant. Simultaneously, MSME disbursement and NPF have a positive and significant influence on Indonesia's economic growth. This result confirms the importance of good management of MSME disbursement and NPF control in supporting sustainable economic growth. The implication of this research is that proper allocation of funds to MSMEs can improve business efficiency and development. In addition, effective handling of the NPF problem can minimize its negative impact on economic growth. Thus, policies that support good disbursement of MSME funds and effective NPF control can contribute to stronger and more sustainable economic growth in Indonesia.

International trade is crucial for countries to fulfill their needs and boost their economies. The COVID-19 pandemic has affected domestic and international trade. Indonesia's economy remains relatively strong, with growth projections above global projections. National income is an important indicator for measuring a country's economic growth. There are three approaches to calculating national income: production, income, and expenditure. This study focuses on the expenditure approach. The purpose of this study is to examine the impact of the increase in exports and imports from October 2021-2022 on Indonesia's national income. The research was conducted by collecting and analyzing data from the Indonesian Central Bureau of Statistics (CBS), as well as utilizing library research methods. The findings suggest that changes in the value of exports and imports will affect national income, making them significant factors that impact a country's national income.

The purpose of this study is to analyze the effect of monetary policy on Indonesia’s economic growth in the period of 2015–2024 using the interest rate of the Indonesian Bank Certificate Sertifikat Bank Indonesia, the money supply, the exchange rate, and inflationary pressure as the independent variable, and the economic growth as the dependent variable. The study used the quantitative research method by taking secondary data from the Central Bureau of Statistics and the Bank of Indonesia then analyzed using multiple linear regression with the Ordinary Least Squares method which is supplemented by t test, F test, coefficient of determinant R², and classic assumption test to ensure if the model is valid. The research findings showed that the SBI interest rate has a negative and significant influence on economic growth, inflation has a positive and significant effect, and the money supply and the exchange rate do not have a significant influence. Simultaneously, all four independent variables have a significant impact on economic growth by a value of R² of 73.35%. It means most of the variation of economic growth can be explained by independent variable of this model, while the rest is influenced by other factors beyond this research. In conclusion, the research finding asserted that monetary policy has an important role in maintaining stability and promoting economic growth in Indonesia, especially with main contribution as a recommendation for policymakers and monetary authorities to control interest rate and inflation and to recommend for further research by adding more variable such as investment, export, import, and government expenditure.

Economic growth is the primary objective to enhance the quality of human resources, societal welfare, and equitable national development within a country. Investment is considered a key determinant in achieving sustainable economic growth. Moreover, to meet developmental expenditure needs, governments often resort to borrowing. Therefore, this study investigates the impact of domestic investment, foreign investment, foreign debt, and state Islamic securities on Indonesia's economic growth. By utilizing secondary data from various reputable statistical institutions such as the Central Bureau of Statistics (BPS), the Fiscal Policy Agency (BPKPM), Bank Indonesia (BI), and the Financial Services Authority (OJK) spanning from 2012 to 2022, this research aims to provide a deeper understanding of the factors influencing Indonesia's economic growth. Multiple Linear Regression analysis is employed to analyze the data in this study. The results indicate that domestic investment does not significantly affect Indonesia's economic growth, while foreign debt is found to have a significant impact on economic growth. However, no evidence exists that state Islamic securities influence Indonesia's economic growth.

Environmental degradation is a primary indicator in reducing sustainability and causing many of the challenges faced by humankind, such as climate change, water scarcity, inequality, and hunger. One way to resolve the sustainable issue (environmental degradation) is to promote sustainable development through a commitment to social progress, environmental balance, and economic growth. In conjunction with the present issue, this study aims to analyse the nexus of human development index, economic and population growth on environmental degradation in South Aceh District, Aceh Province, Indonesia. This quantitative study uses secondary data that involved three main variables: environmental degradation, economic growth, and population growth. This study data were collected from the Central Bureau of Statistics, Aceh, Indonesia and related Regional Government Agency for 20 years started 1997 to 2017. This study found that the human development index and population growth positively and significantly affect environmental degradation. Also, economic growth has no significant impact on environmental degradation. In conclusion, this study identifies that when the human development index low and population growth high, it would increase environmental degradation. Surprisingly, whereas economic growth does not significantly contribute to environmental degradation, this study can provide an overview of the nexus of human development index, economic and population growth on environmental degradation and its impact on society.

Tujuan dari penelitian ini yaitu untuk mengetahui pengaruh Jumlah Uang Beredar (JUB), tingkat inflasi dan suku bunga terhadap pertumbuhan ekonomi di Indonesia periode 2013Q1-2022Q4. Metode penelitian yang dipakai yaitu metode kuantitatif dengan data sekunder yang diperoleh dari Badan Pusat Statistik dan Bank Indonesia. Adapun teknik analisis yang dipakai yaitu regresi linear berganda dengan software SmartPLS 4.0. Hasil penelitian membuktikan bahwa secara parsial variabel Jumlah Uang Beredar (JUB) berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di Indonesia dihitung dengan Produk Domestik Bruto, tingkat inflasi berpengaruh negatif dan signifikan terhadap pertumbuhan ekonomi di Indonesia dihitung dengan Produk Domestik Bruto, suku bunga tidak berpengaruh terhadap pertumbuhan ekonomi di Indonesia dihitung dengan Produk Domestik Bruto dan secara simultan variabel Jumlah Uang Berdar (JUB), tingkat inflasi dan suku bunga berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di Indonesia dihitung dengan Produk Domestik Bruto. Kemudian untuk hasil determinasi (R Square adjusted) diperoleh 92,2% yang artinya berpengaruh kuat dan sisanya 7,8% dipengaruhi oleh aspek lain yang tak dikaji pada penelitian ini. The purpose of this study is to determine the effect of Money Supply, inflation rate and interest rate on economic growth in Indonesia for the period 2013Q1-2022Q4. The research method used is quantitative method with secondary data obtained from the Central Bureau of Statistics and Bank Indonesia. The analysis technique used is multiple linear regression with SmartPLS 4.0 software. The results of the study prove that partially the variable Amount of Money in Circulation has a positive and significant effect on economic growth in Indonesia calculated by Gross Domestic Product, the inflation rate has a negative and significant effect on economic growth in Indonesia calculated by Gross Domestic Product, interest rates have no effect on economic growth in Indonesia calculated by Gross Domestic Product and simultaneously the variable Amount of Money in Circulation, inflation rate and interest rates have a positive and significant effect on economic growth in Indonesia calculated by Gross Domestic Product. Then for the results of determination (R Square adjusted) obtained 92.2% which means a strong effect and the remaining 7.8% is influenced by other factors not mentioned in this study.

This study aims to describe the value of imports in Indonesia, the description of Indonesia's foreign debt, the description of economic growth in Indonesia, and the effect of imports and foreign debt on economic growth either simultaneously or partially. The data analysis method used is descriptive statistical analysis to find out the description of each variable, product moment correlation analysis, and will be continued in multiple linear regression analysis if there is a significant relationship to determine the relationship between variables either simultaneously or partially. The data sources used in this study are: secondary data in this study were obtained from Indonesia's macroeconomic data for 2018-2022. Data on import values ​​were obtained from the publication of data from the Ministry of Trade, data on foreign debt were obtained from publications by Bank Indonesia, and economic growth was obtained from publications from the Central Bureau of Statistics. The results of the study show that the picture of imports in Indonesia in the 2018-2022 period is in the moderate category. The description of foreign debt in the 2018-2022 period is in the moderate category. The description of Indonesia's economic growth in the 2018-2022 period is in the high category. The results of data processing show that there is a positive relationship between imports and economic growth, but it is not significant. Foreign debt has a negative relationship with economic growth but not significant.

A country is said to be successful and successfully represented through a high rate of economic growth, it can be achieved by one of them is through export and import activities. As Islam views the economy by looking at the practices that have been carried out by the Prophet Muhammad, his family and companions who have conducted cross-country trade in the Arabian Peninsula, the border areas of Yemen, Bahrain, Syria and others. The problem arises that export activities are lower than imports, causing the trade balance to be negative, the exchange rate and people’s purchasing power to decline so that it can affect economic growth. Economic growth cannot be far from economic development, because economic development encourages economic growth, and conversely economic growth will facilitate the process of economic development. This article discusses the role of international trade for Indonesia’s economic growth from an Islamic perspective using the literature review method. It can be seen that Indonesia’s economy has improved in 2022. This can be seen from the increase in export and import activities that are being carried out by Indonesia and the increase in national income as indicated by the value of GDP obtained by Indonesia. Exports carried out by Indonesia are one of the steps to increase the country’s national income, thus the economy can grow and improve in the future. AbstrakSuatu negara dikatakan sukses dan berhasil terpresentasikan melalui laju kecepatan pertumbuhan ekonominya yang tinggi, hal itu dapat dicapai dengan salah satunya ialah melalui kegiatan ekspor dan impor. Sebagaimana Islam memandang ekonomi dengan melihat praktik yang telah di lakukan oleh Rasulullah SAW, keluarga dan para sahabatnya yang telah melakukan perdagangan lintas negara di Jazirah Arab, wilayah perbatasan Yaman, Bahrain, Syria dan lainnya. Permasalahannya muncul kegiatan ekspor ternyata lebih rendah dari impor sehingga menyebabkan neraca perdagangan menjadi negatif, nilai tukar serta daya beli masyarakat menurun sehingga hal tersebut dapat berpengaruh terhadap pertumbuhan ekonomi. Pertumbuhan ekonomi (economic growth) tidak bisa jauh dari pembangunan ekonomi, sebab pembangunan ekonomi mendorong terjadinya pertumbuhan ekonomi, dan sebaliknya pertumbuhan ekonomi akan memperlancar jalannya proses pembangunan ekonomi. Artikel ini mendiskusikan tentang peranan perdagangan internasional bagi pertumbuhan ekonomi Indonesia perspektif Islam menggunakan metode literature review. Dapat diketahui bahwa ekonomi Indonesia telah membaik pada tahun 2022. Hal ini terlihat dari meningkatnya kegiatan ekspor dan impor yang tengah dilakukan oleh Indonesia serta meningkatnya pendapatan nasional yang ditunjukkan oleh nilai GDP yang diperoleh Indonesia. Ekspor yang dilakukan oleh Indonesia merupakan salah satu langkah untuk meningkatkan pendapatan nasional negara, dengan demikian maka ekonomi dapat semakin tumbuh dan membaik kedepannya.

This study aims to examine and analyze the long-term and short-term impact of the trade balance on economic growth in North Sumatra. A quantitative approach using the Vector Error Correction Model (VECM) was employed to test the existence of both long-term and short-term relationships between export-import data and economic growth in North Sumatra. The study population includes all export-import and economic growth data published by the North Sumatra Central Bureau of Statistics (BPS), while the sample consists of quarterly data from 2012 to 2023, totaling 48 samples. The VECM analysis technique was implemented using EViews 10 software to estimate the model. The results show that in the long term, exports have a positive but insignificant effect on economic growth, while imports have no effect. In the short term, exports significantly influence economic growth, while imports do not. From an Islamic economic perspective, these findings suggest that trade balance policies have not yet achieved optimal results. Islamic economics emphasizes the importance of balance in trade for achieving broader societal well-being (maslahah). Therefore, the government should formulate more comprehensive policies that not only focus on increasing exports but also on product diversification, improving productivity, and enhancing human resource development to create a more sustainable and just economic environment

The Impact of Exchange Rate Movements on Trade Balance between Vietnam and Japan: J Curve Effect Test