Islamic economic principles emphasize the prohibition of israf (excessive consumption) as a fundamental ethical guideline in financial management. However, government economic policies that promote expanded access to financing may create tensions with this principle. This study examines the alignment between the anti-israf principle in Islamic finance and several government economic policies, namely the Financial System Stability (SSK) Regulation No. 2/KSSK/Pers/2025, the Regulation of the Minister of Public Works and Public Housing of the Republic of Indonesia No. 35 of 2021 concerning Housing Financing Facilities and Assistance for Low-Income Communities, and the regulation of Buy Now Pay Later (BNPL) schemes. This research employs a literature review method with a normative-critical approach to assess the consistency of financing policies with Islamic ethical principles, particularly within Indonesia’s dual banking system. The findings indicate that policy orientations toward increasing consumer financing have not been adequately accompanied by mechanisms that encourage prudent financial behavior. In the absence of sufficient financial literacy, such policies risk fostering consumptive behavior that contradicts the anti-israf principle in Islamic finance. Therefore, the study argues for the integration of financing regulations with value-based financial literacy rooted in Islamic ethics, so that economic policies not only support financial system stability and economic growth but also uphold moderation and justice as core values of Islamic economics.

This Community Service (PKM) activity was conducted at Sakinah Elementary School in Pandau Village, Siak Hulu District, Kampar Regency, with the aim of improving teachers' literacy and understanding of Islamic economic principles. The main problem faced by the partners was teachers' lack of understanding of the basic concepts of Islamic economics and their application in daily life and in the learning process. The activity was implemented through several stages: outreach, training, mentoring, and a workshop on the application of Islamic economics in the school environment. The results showed a 75% increase in teachers' understanding of Islamic economic concepts after participating in the training. Furthermore, three subjects were successfully integrated with Islamic economic values, and a Sharia-based mini-cooperative was established as a result of the direct application of Islamic principles in schools. Sharia economic learning modules and a simple financial recording application were also developed to support the program's sustainability. This activity had a positive impact on improving teacher competency, students' Islamic financial literacy, and the application of Islamic values ​​in economic activities and basic education

This research analyses the factors influencing the Net Asset Value (NAV) of Sharia mutual funds in Indonesia, with inflation serving as the moderating variable. The study utilizes secondary data from the Financial Services Authority (OJK), Bank Indonesia (BI), the Indonesia Stock Exchange (BEI), Statistics Indonesia (BPS), academic journals, and other sources for the period of 2021–2024. The data analysis employs Stationarity Tests, Moderated Regression Analysis (MRA), Classical Assumption Tests, and Statistical Tests. The results indicate that the exchange rate has a positive, but insignificant, effect on the NAV of Sharia mutual funds in Indonesia. At the same time, it also has a negative and significant effect on the NAV of Sharia mutual funds in Indonesia. The exchange rate, when moderated by inflation, has a negative and significant effect on the NAV of Sharia mutual funds. Furthermore, the Jakarta Islamic Index (JII), when moderated by inflation, has a positive and significant effect on the NAV of Sharia mutual funds. To obtain the best regression model, it is necessary to exclude a variable due to multicollinearity. These findings are expected to benefit investors and the government in selecting investment factors and formulating policies aligned with public welfare. Furthermore, this research is expected to enrich the literature in Islamic economics.

This study examines the feasibility and determinants of developing an international credit earning program for the Sharia Economics Study Program at Syekh Abdul Halim Hasan Institute Binjai. Using a sequential explanatory mixed-methods design, the quantitative phase surveyed 200 respondents, revealing strong institutional support and positive attitudes toward internationalization, with mean scores above 4.30 related to improving academic quality and graduate competitiveness. However, financial limitations emerged as the most severe challenge (mean = 4.70), followed by insufficient English proficiency (mean = 2.85) and low curriculum flexibility (mean = 3.20). Qualitative findings from six key informants complement these results, emphasizing institutional readiness, curriculum alignment, and strategic partnerships as core enablers. Informants stressed the need for standardized course mapping, targeted English training, and collaboration with universities that share Islamic economics perspectives. The novelty of this study lies in its integrated model that links attitudinal support, structural readiness, and partnership strategies, offering empirical insights for Islamic higher education internationalization. The study recommends establishing dedicated funding schemes, institutionalizing language support, harmonizing curricula, and implementing pilot collaborations to minimize operational risks. These measures provide practical guidance for building a sustainable and globally competitive credit earning program in Islamic higher education.

The legal protection of guarantors declared bankrupt or suspended from debt payment obligations (PKPU), together with the principal debtor, remains a critical yet underexplored issue in Indonesian insolvency law. This study examines the scope and adequacy of such protections under contemporary Islamic economic law, providing comparative insights from selected common law and Asian jurisdictions. Employing a normative juridical approach combined with comparative legal analysis, the research analyses statutory provisions, judicial precedents, and doctrinal interpretations. The study highlights the imbalance of liability between guarantors and debtors, the absence of explicit safeguards under Law No. 37 of 2004 on Bankruptcy and PKPU, and the resulting implications for creditor rights and economic justice. Comparative analysis draws from the United Kingdom and United States (standard law systems) and Singapore, Japan, and Malaysia (Asian jurisdictions), revealing more structured protections for guarantors, including mechanisms such as independent liability, automatic stay, and negotiated debt restructuring. The findings indicate that Indonesia's current framework inadequately recognises the secondary and derivative nature of guarantor obligations, exposing them to disproportionate risk. This study contributes to the academic discourse by integrating contemporary Islamic economic principles into the analysis of insolvency law, providing a normative framework for reform and offering comparative insights that can inform both legislation and future research on guarantor protection. The study recommends legislative reform to explicitly regulate guarantor protection, integrating principles of proportionality, good faith, and balanced creditor–debtor relations, in line with contemporary Islamic economic law.

This study aims to determine the priority of sukuk development problems in Indonesia using the Delphi method based on expert opinions. Data was obtained through interviews and questionnaires with 11 experts consisting of academics, practitioners, and regulators in the field of sukuk and Islamic economics. Based on a literature study, this study identified 12 main problem variables of sukuk, which were then evaluated using three main statistical indicators in the Delphi method, namely mean values, standard deviation, and interquartile range (IR). The results show that only one variable has reached full consensus, namely government commitment, which also ranks highest as the most crucial problem in the development of sukuk in Indonesia. Meanwhile, the other eleven variables have not reached the consensus level, despite having relatively high average values. These findings underscore the importance of the state's role in strengthening the sukuk ecosystem through sustainable fiscal policies, regulations, and institutional support.

The aim of the study is to perform a bibliometric mapping analysis of machine learning research on Islamic economics and finance in the Web of Science (WOS) database. In the study, a bibliometric analysis was performed on all studies written on the topic of “Machine Learning” with WOS data and in the fields of “Economics” and “Finance” as well as “Islamic Economics” and “Islamic Finance.” The tool VOSviewer (1.6.18) was used to classify the data within the research framework. As a result of the analysis, authoritative authors, journals, institutions, and the most frequently referenced sources in the field were identified. Besides that, information about the country that has done the most work in the field was also expressed as a result of the VOSViewer (1.6.18) program. When evaluating the literature, no study was identified that includes both economic and financial concerns on machine learning and presents a comparative bibliometric mapping analysis by studying Islamic economics and Islamic finance issues. It is believed that this study will contribute to literature in this regard.

ABSTRACT This study examines Corporate Social Responsibility (CSR) in Iran’s Islamic banking sector by comparing managerial and consumer perspectives using the Analytic Hierarchy Process (AHP). Stakeholders ranked CSR dimensions such as Sharia governance, employee well-being, community development, and environmental care. Experts prioritized Sharia compliance and internal ethics, while consumers emphasized visible social impact and environmental responsibility. This divergence reveals tensions between institutional framing and public ethical expectations in a Shiite context. Sensitivity analysis confirms the robustness of stakeholder preferences across decision scenarios. Methodologically, the study applies AHP to a dual-stakeholder framework within a fully Islamic economy. In doing so, it demonstrates how structured decision-making tools can capture nuanced ethical and cultural priorities that are often overlooked in conventional CSR assessments. Theoretically, it extends stakeholder theory by integrating managerial and consumer CSR dimensions in Shiite banking. It also highlights how Shiite jurisprudential principles shape CSR expectations in ways that differ from Sunni-majority systems. Practically, the findings offer guidance for Islamic banks to align managerial strategies with consumer expectations. Overall, the study highlights the need for inclusive and context-sensitive CSR strategies that reconcile institutional mandates with societal values and enhance the legitimacy of Islamic banking in an evolving socio-economic landscape.

Purpose: This study comparatively analyses geoeconomic strategies for advancing green Islamic finance and digital economic resilience in the Indo-Pacific region through the integration of Islamic economics, sustainability, and digital transformation to strengthen national resilience from an Asta Gatra perspective. Study Design/Methodology/Approach: This study uses a descriptive qualitative approach with content and thematic analysis based on the Theory of Tawhid Relationship and the Theory of Absorption Capacity to explain the adaptation of Islamic finance to technological and environmental changes. Findings: The findings show that Islamic finance demonstrates strong conceptual alignment with sustainability and digital ethics; however, implementation gaps remain in policy coherence, digital infrastructure, and human resource readiness. The study identifies three key enablers for effective integration: ESG-orientated Sharia financial instruments, Sharia-compliant digital solutions, and value-driven strategic alignment at the organisational level. A conceptual framework is proposed linking maqasid al-Shari’ah, particularly hifz al-mal and hifz al-bi’ah, with digital inclusion and environmental stewardship to strengthen economic and environmental resilience in the Indo-Pacific within the Asta Gatra framework. Originality/Value: This study offers an integrative framework that consolidates Islamic finance, sustainability, and the digital economy into a unified strategic approach. It extends the applied scope of Tawhid String Relation and Absorptive Capacity Theory and provides practical insights for strengthening Islamic financial development, digital transformation, and sustainability-orientated national resilience.

The development of the digital era has driven a significant transformation in economic activity through the use of e-commerce, which has changed transaction patterns between consumers and business actors, so that in the context of Islamic economics it is necessary to apply contracts that comply with Islamic principles in order to avoid elements of injustice and ambiguity. This study aimed to analyze online buying and selling practices using the akad salam conducted by students of the Faculty of Islamic Economics and Business. The research employed a qualitative approach with a field research design, involving 20 students as informants selected through purposive sampling. Data were collected through in-depth interviews and documentation, and were then analyzed using qualitative descriptive techniques. The results show that students’ online buying and selling practices generally reflect the application of the akad salam, particularly in terms of advance payment, clarity of product specifications, and agreed timing and mechanisms for product delivery. Transactions are conducted through various digital platforms and social media by utilizing non-cash payment systems and, in general, already fulfill the pillars and conditions of sale in Islam, as well as sharia business principles such as honesty, justice, product permissibility, and a spirit of mutual assistance, although several obstacles in technical implementation remain. These findings contribute to strengthening contemporary fiqh muamalah studies in the context of e-commerce and underscore the importance of enhancing literacy on sharia contracts among students as prospective Islamic economic actors in the digital era.

The surge in cooking oil prices in recent periods has caused distortions in the market mechanism and disrupted the economic stability of society, especially in the household and MSME segments that heavily rely on this commodity as a staple need and production material. The unreasonable price increase has led to public anxiety and indicates structural problems in the national cooking oil trade system, ranging from market dominance by large players to weak distribution control by the government. From an Islamic economic perspective, this condition needs to be examined because it concerns the principle of public welfare (maslahah ammah) and the prohibition of exploitative practices such as hoarding or ikhtikar. Therefore, this study aims to analyze the forms of ikhtikar carried out by stakeholders and their relevance to the principles of Islamic economics in responding to this price volatility. The study uses a literature review method with a descriptive analytical approach through a review of historical price data, government policies, and fiqh muamalah literature related to market practices. The findings indicate that price fluctuations are driven by a combination of production factors, distribution, and speculative actions leading to ikhtikar. Intervention policies such as market operations, price controls, and export restrictions temporarily reduce prices in the short term, but they have not addressed structural causes such as distribution inequality and lack of transparency in the supply chain. The study concludes that the control of ikhtikar from the perspective of Islamic economics must be focused on preventing monopoly, ensuring equitable distribution, strengthening the government's supervisory role, and promoting transparency in price information to support the creation of market stability and the sustainability of public welfare.

This study aims to analyze the understanding, implementation, and strategies of the Nagori Senio community in applying the principles of interest-free (riba-free) Islamic economics as a foundation for strengthening financial independence. A community empowerment approach was employed through socialization, education, and collaboration with village authorities and Islamic financial institutions to enhance Islamic financial literacy and encourage changes in economic behavior. The results indicate that the community's understanding of riba, Islamic contracts (aqad), and muamalah principles is strongly influenced by access to education and experience in utilizing Islamic financial services. Continuous education has been proven to improve the community’s to distinguish between halal and non-halal transactions and promote prudence in selecting financing sources. The implementation of riba-free principles is reflected in the utilization of murabahah, mudharabah, musyarakah, and qardhul hasan contracts, providing fairer and more transparent financing alternatives for both the community and MSME actors. Islamic financial institutions play a crucial role in providing interest-free capital access and helping the community avoid dependency on high-interest loans. Strategies for financial independence are carried out through the enhancement of Islamic literacy, business mentoring, and the use of sustainable Islamic microfinance. These findings demonstrate that riba-free Islamic economics can serve as an effectivframework for strengthening local economic resilience and promoting the welfare development of rural communities.

During the Islamic Golden Age, culture, economics, and science flourished across the Islamic world. Islamic scholars and polymaths from different parts of the world with different cultural backgrounds contributed to almost all aspects of human knowledge. This chapter examines the contributions of Al-Farabi to almost all aspects of knowledge, such as language, logic, theology, philosophy, education, metaphysics, and music. The main contribution of the chapter is its illustration of the definitions and characteristics of Al-Farabi’s ethical and political theories, and the assessment of the leadership of modern Turkey and its current president. It also demonstrates the implications of Al-Farabi’s ethical and political theories for Islamic economics and finance. According to his ethical theory, moral values can be acquired through learning and instruction. In order to implement and practice genuine Islamic economics and finance, we have to equip ourselves with high standards of Islamic ethics and values. This chapter concludes by examining how a state can play a vital role in implementing these ethics and values in our Islamic financial system.

Islamic economics has emerged as a prominent alternative framework to conventional economic systems, particularly in the aftermath of recurring global financial crises that have exposed structural weaknesses in interest-based, speculative, and debt-driven economic models. Rooted in Islamic ethical principles such as justice (ʿadl), welfare (maṣlaḥah), balance (tawāzun), and the prohibition of ribā, gharar, and maysir, Islamic economics aspires to construct an economic order that harmonizes material prosperity with moral responsibility. Despite its rapid institutional expansion especially through Islamic banking, finance, and halal industries significant debates persist regarding the extent to which contemporary practices genuinely reflect the foundational ideals of Islamic economic thought. This article revisits Islamic economics through a conceptual–critical lens, interrogating the growing gap between its normative ideals and practical implementation. Employing a qualitative conceptual analysis and narrative literature review, the study synthesizes classical Islamic economic thought, modern theoretical formulations, and contemporary empirical critiques from both global and Indonesian contexts. The findings reveal three interrelated challenges: the dominance of form-over-substance compliance in Islamic financial institutions, the marginalization of socio-economic justice objectives in favor of market competitiveness, and persistent epistemological tensions arising from the adaptation of conventional economic paradigms. By problematizing these issues, the article contributes to the discourse on Islamic economics by advocating a reorientation toward its ethical–social foundations without neglecting institutional realities. This revisiting is crucial not only for strengthening the academic coherence of Islamic economics but also for enhancing its transformative capacity in addressing real-world economic inequalities and development challenges. The article concludes that Islamic economics must evolve beyond symbolic differentiation toward substantive ethical integration if it is to fulfill its promise as a viable and credible alternative economic paradigm.

Islamic economics has increasingly gained scholarly attention as an alternative economic system amid growing dissatisfaction with conventional capitalist and socialist frameworks. The global economy continues to face persistent challenges such as financial instability, widening income inequality, ethical degradation, and recurrent economic crises, which expose structural weaknesses in dominant economic paradigms. Islamic economics offers a value-based framework grounded in Sharia principles that integrates ethical considerations, social justice, and economic efficiency. This article aims to conceptually review Islamic economics as an alternative economic system through a thematic literature review approach. By systematically synthesizing theoretical and conceptual studies from both classical and contemporary literature, this article identifies core themes that define Islamic economics, including its philosophical foundations, normative principles, institutional mechanisms, and socio-economic objectives. The review highlights how Islamic economics differs fundamentally from conventional systems by emphasizing the prohibition of interest (riba), risk-sharing mechanisms, equitable wealth distribution, and moral accountability. Furthermore, this article discusses the relevance of Islamic economics in addressing modern economic challenges, particularly in developing countries such as Indonesia, where economic inequality and financial exclusion remain significant issues. Secondary data from national institutions indicate a growing role of Islamic financial institutions and halal industries in supporting inclusive economic development. Despite its potential, the literature also reveals several challenges related to conceptual clarity, institutional implementation, and integration within the global economic system. This article contributes to the academic discourse by providing a structured conceptual understanding of Islamic economics and identifying research gaps for future empirical and policy-oriented studies. The findings are expected to serve as a theoretical reference for scholars, policymakers, and practitioners interested in developing alternative, ethical, and sustainable economic systems.

Purpose This study aims to examine how key stakeholders – Shariah scholars, Islamic bankers and Islamic economists – perceive the interplay and potential tensions between Shariah compliance, service quality and social well-being in realizing the Maqasid Shariah within Islamic banking. Design/methodology/approach Using a qualitative, interpretivist approach, this study draws on 18 semi-structured interviews with purposively selected participants from three stakeholder groups, supplemented by documentary analysis of relevant industry reports. Inductive Qualitative Content Analysis (QCA), aided by NVivo, was employed to capture converging and diverging perspectives. Findings The analysis reveals that while all three dimensions are considered integral, prioritization varies. Shariah scholars regard Shariah compliance as the non-negotiable foundation, Islamic bankers emphasize service quality as a driver of customer trust and operational success and Islamic economists place social well-being at the heart of Islamic banking legitimacy. Tensions often emerge when institutional structures treat these objectives as isolated rather than interdependent. However, participants pointed to several ways of bridging this divide. These include embedding Maqasid-aligned criteria into product design, using technology to integrate Shariah compliance and service quality, and adopting standardized metrics to measure social impact of Islamic banking. Research limitations/implications The research is context-specific to Pakistan, focused on three stakeholder groups and based on a purposive sample, which may limit its generalizability. Future studies could adopt cross-country comparisons, longitudinal designs and incorporate customer and regulator perspectives to broaden applicability. Practical implications Findings offer actionable strategies for integrating Shariah compliance, service quality and social well-being through institutional design, performance measurement and technology-enabled solutions. Social implications By fostering synergies among the three dimensions, Islamic banking can fulfill both its legal obligations and its societal mandate, contributing to equitable economic development and enhanced community trust. Originality/value This study contributes to the literature by offering a multi-stakeholder perspective on Islamic banking’s ethical framework. It highlights the tensions and synergies among its three core values and presents a pathway toward a more holistic and socially responsive Islamic financial model grounded in Maqasid Shariah.

The rapid advancement of digital technology has significantly transformed payment systems, with electronic money (e-money) emerging as a dominant non-cash transaction instrument in many economies, including Indonesia. As part of the broader digital financial ecosystem, e-money has been widely adopted due to its efficiency, convenience, and integration with mobile platforms. According to data from Bank Indonesia, the volume and value of e-money transactions have increased substantially over recent years, reflecting a structural shift in consumer payment behavior toward cashless transactions (Bank Indonesia, 2023; Bank Indonesia, 2024; World Bank, 2023). Despite these developments, the widespread use of e-money raises important questions within the framework of Islamic economics, particularly regarding its compliance with Sharia principles such as the prohibition of riba (interest), gharar (excessive uncertainty), and maysir (speculation). This study adopts a qualitative descriptive approach based on a comprehensive literature review, without relying on primary empirical data. The research aims to examine how e-money is conceptualized, regulated, and practiced from an Islamic economic perspective, drawing on scholarly works, regulatory documents, and institutional reports at both national and international levels. The findings indicate that e-money is generally considered permissible (mubah) under Islamic law, provided that its operational mechanisms comply with Sharia principles and align with the objectives of Islamic law (maqāṣid al-sharīʿah), particularly the protection of wealth (ḥifẓ al-māl) and the promotion of public welfare (maṣlaḥah) (Syamsuri et al., 2020; Baso et al., 2023; Hassan et al., 2021). However, the study also identifies several challenges, including limited public understanding of Sharia-compliant e-money, the dominance of conventional providers without explicit Sharia certification, and regulatory gaps in ensuring consistent Sharia governance. These challenges highlight the need for stronger regulatory coordination, enhanced Islamic financial literacy, and deeper academic engagement with digital payment innovations. Overall, this study contributes to the growing discourse on Islamic digital finance by offering a structured conceptual analysis of e-money within the Islamic economic paradigm.

Muslim consumer trust in sharia-compliant products plays a crucial role in the development and sustainability of the Islamic economy. As the global Muslim population continues to grow, demand for products that comply with Islamic principles particularly halal and ethically produced goods has increased significantly. Trust becomes a central issue because Muslim consumers are required not only to consider functional product attributes but also religious compliance, ethical values, and institutional credibility. This study aims to examine the concept of Muslim consumer trust in sharia-compliant products through a systematic and conceptual literature review without employing primary data. Using a qualitative systematic literature review approach, this article synthesizes findings from prior national and international studies on Islamic consumer behavior, halal certification, sharia compliance, and trust theory. The review reveals that Muslim consumer trust is shaped by multiple interrelated dimensions, including halal certification credibility, perceived product quality aligned with the concept of halalan thayyiban, Islamic ethical branding, and institutional assurance from regulatory bodies. Empirical evidence from previous studies consistently demonstrates that halal certification and perceived sharia compliance reduce consumer uncertainty and perceived risk, thereby strengthening trust and increasing purchase intention and loyalty. In the Indonesian context, trust in sharia-compliant products is further reinforced by regulatory frameworks such as mandatory halal certification and the increasing role of government-authorized institutions in halal assurance. However, challenges remain, including uneven halal literacy, limited transparency in supply chains, and variations in consumer interpretation of sharia compliance across product categories. This article contributes theoretically by integrating trust theory with Islamic economic principles and offers a comprehensive conceptual framework for understanding Muslim consumer trust in sharia-compliant products. Practically, the findings provide insights for policymakers and industry practitioners to enhance trust through credible certification systems, transparent communication, and value-based marketing strategies consistent with Islamic ethic

Socioeconomic inequality is a global issue caused by unequal access to resources and wealth. Islamic economics offers a solution through a just and ethical approach to wealth distribution. This study explores Islamic instruments such as zakat, infāq, ṣadaqah, and waqf as tools to reduce inequality and promote social welfare. Using a qualitative library research method, the study finds that these mechanisms help redistribute wealth, strengthen social solidarity, and support inclusive development. In the digital era, innovations like Islamic fintech, crowdfunding, and digital waqf expand access to financial services while staying true to Islamic values. However, challenges such as low financial literacy and regulatory barriers persist. To optimize the role of Islamic economics, it is essential to strengthen institutions, improve regulations, and promote public awareness. These efforts can enhance its contribution to building a fair and sustainable economy.

The concept of money in Islamic economics is grounded in the understanding that money is not merely a medium of exchange but a trust that must be managed according to the principles of justice, benefit, and ethical conduct. In this perspective, money cannot be treated as a commodity traded solely for profit without supporting real economic activities, making practices such as usury (riba), excessive uncertainty (gharar), and hoarding incompatible with Islamic values due to their potential to create inequality and economic instability. Islamic economics emphasizes that the circulation of money must be connected to the real sector to generate added value and support sustainable economic growth. Furthermore, the management of money aims to promote fairness and social balance through mechanisms such as zakat, infaq, and charity. Thus, the Islamic view of money provides an ethical foundation and practical framework for developing a financial system that is stable, inclusive, and oriented toward societal well-being.