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Although the number of Islamic co-operatives' memberships only amounted to 2.51 million people (11.19%) to the total membership of co-operatives in Indonesia nationwide, but it has shown a rising trend in its membership by 76.11% over the last decade (Ministry of Co-Operatives & SMEs, 2019). These figures raise an essential research question: what drives the decision of Indonesian citizens to patronage Islamic co-operatives? Specifically, this study explores pertinent determinants of decision-making made by the members to select Islamic co-operatives in Aceh, Indonesia. A number of 280 members and non-members of Islamic co-operatives were selected as the sample of the study using a purposive sampling technique. Based on the logistic multiple regression technique, the study recorded that the members' decision-making in selecting Islamic co-operatives was mainly determined by their shari'ah compliance and characteristics' uniqueness. Meanwhile, physical facilities and services quality provided by the Islamic co-operatives have insignificant effects on the people's decision-making to become the memberships of Islamic co-operatives. This empirical evidence suggested that to attract more memberships, the Islamic co-operatives should improve their shari'ah compliance and characteristics' uniqueness.

Purpose The purpose of this study is to empirically analyze the role of sukuk in the monetary policy transmission mechanism through the asset price and exchange rate channels in the Indonesian economy. Design/methodology/approach Using the monthly data from January 2003 to November 2017, this study uses a multivariate vector error correction model causality framework. To examine the role of sukuk in the monetary policy transmission mechanism through the asset price channel, this study uses the variables of consumption, inflation, interest rates, economic growth and the composite stock price index. Meanwhile, to examine the role of sukuk in the monetary policy transmission mechanism through the exchange rate channel, this study used variables of inflation, interest rates, economic growth, foreign investment and exchange rate. Findings This study documented that sukuk has no causal relationship with inflation through asset price and exchange rate channels. Nevertheless, sukuk has a bidirectional causal relationship with economic growth through asset price and exchange rate channels. Sukuk is also documented to have a causal relationship with monetary policy variables of interest rate and stock prices through asset price and exchange rate channels. Finally, a unidirectional causality is recorded running from the exchange rate to sukuk in the exchange rate channel. Research limitations/implications The finding of independence of the sukuk market from interest rates provides evidence that the trading of the sukuk in Indonesia has been in harmony with the Islamic tenets. Practical implications The relevant Indonesian authorities need to enhance both domestic and global sukuk markets as part of efforts to promote the sustainability of Islamic capital market development in Indonesia. Originality/value To the best of the authors’ knowledge, this study is among the first attempts to empirically investigate the role of sukuk in monetary policy transmission through asset price and exchange rate channels in the context of the Indonesian economy.

This study aims to empirically determine and analyze the role of women's participation in politics, female population growth, trade balance, and women's labor force participation in promoting economic development across 15 OIC countries during the 2006-2017 period, both in short- and long-run from an Islamic perspective. Using the Panel Autoregressive Distributed Lag (ARDL) method, this study found that, in the short term, trade balance and women's labor force participation have promoted Islamic economic development. In contrast, women's participation has a negative effect on the economic development of OIC countries. In the long term, on the other hand, all variables have promoted Islamic economic development in OIC countries, except for the trade balance variable. These findings suggest that coordination and synergy for strengthening economic development among OIC countries need to be enhanced, focusing on women's role in politics, labor force, quality of population, and economic dimensions.JEL Classification: C33, F16, J16, O11, P48Ramdayani, S., Majid, M. S. A., & Suriani, S. (2021). Does Women's Participation in Politics Matter for Economic Development in OIC-15? An Islamic Perspective. Signifikan: Jurnal Ilmu Ekonomi, 10 (2), 209-222. https://doi.org/10.15408/sjie.v10i2.20214.

This study examined the influence of remittances and macro-economic variables on poverty in ASEAN-4 countries (i.e., Indonesia, Malaysia, Thailand, and the Philippines) over the 1991 to 2019 period using a panel Autoregressive Distributed Lag (ARDL) model. The study documented that remittance and unemployment have a significant effect on poverty reduction in the long run. Meanwhile, economic growth and the Gini coefficient were found to have an insignificant influence on poverty reduction. The speed of adjustment due to shocks in the short term is restored within eight months into the long-run equilibrium. Our results emphasize that poverty in ASEAN-4 must be addressed with pragmatic macroeconomic policies, especially policies that affect the poor's income. Besides, with the real contribution of remittances, the strengthening of international cooperation related to migrant workers is also essential to alleviate poverty.JEL Classification: F22, F24, I32, J01, O15How to Cite:Fahrizal, T., Aliasuddin., & Majid, M. S. A. (2021). Do Remittances Matter for Poverty Reduction in ASEAN?. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 13-30. https://doi.org/10.15408/sjie.v10i1.19154.

The presence of the 2008 Global Financial Crisis (GFC) has adversely impacted both conventional and Islamic banking performances. This study aims to empirically compare the financial performances between Islamic banks and conventional banks during the pre- and post-2008 GFC periods. It also attempts to compare the financial performance of each Islamic and conventional bank between the pre- and post-2008 GFC periods. Three state-owned banks from each conventional and Islamic banking category were selected as the study sample using the purposive sampling technique. Based on the independent sample t-test, the study found a significant difference between the Islamic and conventional banking performances during the pre- and post-2008 GFC periods. Meanwhile, based on the paired t-test, the decline in Islamic banking performance from the pre-2008 GFC to the post-2008 GFC periods was significantly smaller than their conventional banking counterparts. These findings show the Islamic banks' superiority over their conventional banking counterparts due to fair and just practices based on Islamic tenets. Due to theirreliance in facing the episodes of crises, the Islamic banks deserve a strong support by government by enhancing prudent Islamic banking regulation. The Islamic banks should strive to operate fully based on the shari'ah principles and prudent banking management.

This study contributes to the existing literature by empirically exploring the causes of child labor in the Indonesian labor market. Factors identified include rate of poverty, average wages, education participation, and quality of education. This study utilized an aggregate data of 301 districts and cities across 34 provinces sourced from the National Labor Force Survey and the National School/Madrasah Accreditation Board of the Republic of Indonesia. Using a multiple regression analysis, the study found strong evidence of the positive effect of poverty on child labor. Conversely, the study documented the adverse impact of average wages on child labor in Indonesia. Similarly, the participation in the education system also contributed negatively to the child labor. Finally, the quality of education services is found to have a negative effect on child labor in Indonesia. The findings of this study suggest that, in efforts to reduce the involvement of children in the workforce, the poverty eradication program should be enhanced. The wages should be continuously improved, at least, in par with the changes in prices. Finally, the quality of education and its services ought to be further enhanced to attract more child student participation rates across junior high schools nationwide.

This study contributes to the existing literature on the phenomenon of lower valume of Profit-Loss Sharing (PLS)-based products offered by Islamic banks by comprehensively discussing and analyzing the issue from the internal, external, and regulation perspectives, taking the case of PT. Bank Aceh Syariah (BAS) in Indonesia. Using a grounded theory approach, this study interviews selected informants who are knowledgeable in Islamic economics, banking, and financial theories and practices, including experts, practitioners, customers, and regulators. Viewed from three aspects, namely: internal, external, and regulation, the study found that, from the internal aspect, the problem of the low volume of PLS-based financing products is caused by six factors, namely: high risk, lack of quality and quantity of human resources, complicated handling, lack of banking product innovation, asymmetric information, and lack of socialization. Meanwhile, from the external aspects, it is caused by three factors, namely: moral hazard, lack of community's knowledge of Islamic banking products, and low demand. Finally, from the aspect of the regulation, it is caused by a lack of supportive regulation. By tackling these issues, it is believed that the Islamic bank could offer more PLS-based products that finally contribute to the prosperity of the public.

The present study empirically explores the factors influencing the decision of Muzakki (zakat payers) to pay zakat at an official institution, i.e. Baitul Mal Banda Aceh, Indonesia. The factors comprise faith, altruism, service quality, role of the zakat economy, and role of Ulama (Islamic scholars). To gather the data, 140 questionnaires were disseminated to the participants who were selected based on the purposive sampling technique. The data were further analyzed by employing a binary logistic regression. The results of this study revealed that faith, altruism, service quality, role of the zakat economy, and role of Ulama significantly and positively affected the decision of Muzakki to pay zakat at Baitul Mal. These findings imply that to attract Muzakki to pay zakat at a Baitul Mal, it not only needs to enhance relevant knowledge about the obligation to pay zakat and its benefits, but it also needs to improve the quality of services provided by the Baitul Mal. All in all, Ulama also has an important role in influencing Muzakki to pay zakat at the Baitul Mal institution.

The main objective of this study is to empirically assess the volatilities of the monetary policy instruments and their effects on the Indonesian Islamic and conventional stock market. The changes in exchange rate, interest rates, and money supply and their effects on the stock markets are investigated using the using the Generalized Autoregressive Conditional Heteroskedasticity frameworks. As a big-open economy, the capital market of Indonesia is vulnerable to the global monetary shocks changes, thus the US federal funds rate is also incorporated into the GARCH model. The study documented that, with the exception of the US interest rate, the volatilities of all monetary policy variables of interest rate, exchange rate, and money supply were documented affecting the volatilities of both Islamic and conventional stock markets. These findings imply that the volatilities of Islamic and conventional stock markets have similar determinants, thus to stabilize the markets, the investigated monetary policy variables should be controlled for by the policy-makers. Any monetary policy design imposed by the policy-makers would have a similar effect on both conventional and Islamic stocks in Indonesia.DOI: 10.15408/sjie.v7i2.7352

This study empirically explores the factors motivating Muzakki (zakat payers) to pay zakat at the Baitul Mal Aceh, Indonesia. The factors motivating Muzakki to pay zakat investigated in the study comprises culture, regulation, motivation, and Muzakki understanding on zakat. 600 questionnaires were disseminated to the respondents, which were selected based on the convenience sampling technique. Then, the data were analysed using a binary logistic regression. The results of this study showed that culture, regulation, motivation, and understanding of the Muzakki on zakat significantly and positively affected the decision of Muzakki to pay their zakat at the Baitul Mal Aceh. This study implies that in order Muzakki to pay their zakat at the Baitul Mal, Islamic cultures should be preserved among Achenese, government should enhance regulation pertaining zakat management and the people of Aceh need to be equipped with the relevant knowledge on the obligation of zakat payment. DOI: 10.15408/sjie.v6i1.4302

Employees’ loyalty is being described as the ability of the employee or staff members of the organization to stay and contribute well in their jobs for such a long term. In the recent years, resignation of employees did show an increment in many companies in Malaysia. This research specifically study on a developer company which is one of the constructions developers company in Johor, Malaysia The purpose of this study is to investigate the factors of training, rewards and benefits and working condition as determinants toward employee loyalty and how job satisfaction mediate the relationship between independent variables and dependent variables as the factors that influence the employee loyalty in organizations. A stratified sampling method was adopted as the sampling method and questionnaires is chosen as the research instrument adopted previous researcher and adopt it into this research. Respondents of this research consists of 155 respondents who are employees of the developer company. In general, we conclude that employee loyalty in the developer company has positive relation between the working condition, rewards and benefits, training and job satisfaction and confirms the partial mediation of Job Satisfaction between the independent variables, rewards/benefits and training with employee loyalty. Keywords: Employee Satisfaction, Employee Loyalty, Working Condition, Training, Malaysia

PurposeThe purpose of this paper is to explore empirically the effects of the current financial crisis on the integration and co‐movements of selected stock markets of the emerging economies, namely Indonesia and Malaysia.Design/methodology/approachThe paper employs the standard time series technique and vector autoregressive framework.FindingsThe results of this paper support the general view that stock markets tend to show greater degree of integration or increased co‐movements during the crisis period, resulting in lesser benefit of diversification that can be gained by investors participating in these markets.Research limitations/implicationsThis paper only focuses on emerging equity markets of Malaysia and Indonesia.Practical implicationsThis paper reveals that unlike during the pre‐crisis period, the long‐run diversification benefits that can be earned by investors across the emerging equity markets of Indonesia and Malaysia during the crisis period tend to diminish.Originality/valueBy dividing the study periods into the pre‐crisis period and during the crisis period, it enables us to explore whether the cross‐market linkages between these markets change due to the crisis.

PurposeThe purpose of this paper is to explore the extent to which macroeconomic variables affect the Islamic stock market behavior in Malaysia in the post 1997 financial crisis period.Design/methodology/approachThe paper employs the latest estimation technique of autoregressive distributed lag (ARDL) model approach to cointegration.FindingsThe results suggest that real effective exchange rate, money supply M3, treasury bill rate (TBR) and federal fund rate (FFR) seem to be suitable targets for the government to focus on, in order to stabilize the Islamic stock market and to encourage more capital flows into the market. As for the interest rates and stock returns relationship, the paper finds that when interest rates rise either domestically (TBR) or internationally (FFR), the Muslim investors will buy more Shari'ah compliant stocks; thereby escalating the Islamic stock prices.Research limitations/implicationsThe results of this study are limited to the post 1997 financial crisis period until the beginning of the year 2006 for a small open economy, Malaysia.Practical implicationsThe paper reveals that both changes in the local monetary policy variables and in the US monetary policy as measured by the changes in the FFR have a significant direct impact on the Islamic stock market behavior in Malaysia.Originality/valueThe paper adopts the latest time series econometrics technique to test for cointegration, ARDL. And it is among the earliest attempts to investigate the long‐run effects of the macroeconomic variables changes either domestically or internationally on the Islamic stock market.

This research empirically and comparatively examines the quality of conventional and Islamic banks’ asset management in Indonesia during the period 2009-2011. Four general conventional banks [i.e., Bank Mandiri Indonesia (BMI), Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA), and Bank Nasional Indonesia (BNI)] and four Islamic banks (Bank Muamalat, Bank Syariah Mandiri, Bank Syariah Mega Indonesia, and Bank Syariah BRI) were, respectively, explored. Specifically, the purpose of this study is to compare the quality of the Islamic and conventional banks’ asset management with the CAMEL (capital, asset, management, earning, and liquidity) method. It also attempts to analyse the influences of the ROA (Return on Asset), TLTA (Total Loan to Total Assets), and OITL (Operating Income to Total Liabilities) on the quality of the banks’ asset management. The CAMEL method was used to evaluate the quality level of the banks’ asset management, while the multiple regression analysis was then adopted to explore the determinants of the quality of the banks’ asset management. The study documented that Bank Syariah BRI was the best performing bank, with the highest CAMEL score of 50.33, while Bank Mandiri Indonesia was the worst performer with the lowest CAMEL score of 26.33. As a group, the Islamic banks were found to have better rankings, i.e., positions 1, 2, 3, and 6, while the conventional banks were found in 4, 5, 7, and 8, respectively. The study proved that the Islamic banks have a better asset management quality compared to their conventional counterparts. The Islamic banks were also proved to be better able to withstand the risks, particularly the financing risk.

Construction consulting companies of today are a part of what has been called the knowledge society. The reason behind this name is the increasing importance of intangible assets as the major source of wealth creation in construction industry. As such, Knowledge Management (KM) has become a critical concern for construction consulting companies to improve project performance. The purpose of this paper is to analyse Malaysian practitioner’s perception on KM in the construction consulting companies. The finding of this study was based on an analysis of transcribed data from semi-structured interviews conducted on Malaysian practitioners in the construction consulting companies to identify pattern and themes accordingly. The findings of the study indicate that all participants have expressed the significant contributions of KM to their success as a professional construction consultant in Malaysia. These participants shared a common characteristic of being professional in construction industry such as they agreed that manage database (data record) and filing system is perceived as important and also the professionals must build extensive social and business networks both locally and overseas that were relevant and have impact on their business success. The professionals have a personal desire to learn and they preferred to learn informally from a variety of people that they can access usually through discussion, seminar/conference and media. Learning from personal experience and experiences from others through learn on job and mentoring were a common characteristics among all the professionals and all of them strongly prescribed that such transfer of learning’s will enable one to shortcut learning and improve their knowledge. However, both internal and external environmental factors have equal impact on the transfer of knowledge in construction consulting companies. Internally, personal interest has the biggest impact followed by culture, commitment from management, incentive or reward for the staff and openness or willingness (more on trust) to share and listen. Externally, business factor/competition has the biggest impact on transfer of knowledge in construction consulting companies.

This study empirically examines market integration among five selected ASEAN emerging markets (i.e., Malaysia, Thailand, Indonesia, the Philippines and Singapore) and their interdependencies from the US and Japan based on a two-step estimation, cointegration and Generalized Method of Moments (GMM). Closing daily stock indices starting from January 1, 1988 to December 31, 2006 are used. The study reveals that the ASEAN stock markets are going towards a greater integration either among themselves or with the US and Japan, particularly in the aftermath of the post-1997 financial turmoil. This implies that the long-run diversification benefits that can be gained by investors across the ASEAN markets tend to diminish. As for the long run causal relations between ASEAN stock markets with the US and Japan, the study discovers that Indonesia was relatively independent of both the US and Japan; Malaysia was more dependent on Japan rather than the US; Thailand was relatively independent of the US, but to some extent dependent on Japan; the Philippines is more affected by the US than Japan; and the US and Japan have bidirectional Granger causalities with Singapore.