Milkiyah: Jurnal Hukum Ekonomi Syariah

The Contribution of Islamic Financial Instruments to Maritime Development: Evaluation and Policy Recommendation for Maluku Regions

Mar'atun Shalihah — 2024-02-28

Maritime development in the Indonesian archipelago faces structural challenges, particularly in obtaining inclusive, sustainable, and locally suitable funding in Maluku. To address these issues, Islamic financing system is considered as a potential alternative to conventional system, using instruments based on Maqasid al-sharia principles. This study aims to evaluate five Islamic financial instruments focusing on productive Waqf, Mudarabah, Ijarah, Musyarakah, and Sukuk, in supporting the development of maritime regions in Maluku. We used MCDA with AHP and TOPSIS methods to evaluate these instruments. The evaluation criteria were economic feasibility, Sharia compliance, risk management, social support, and environmental impact. The results rank instruments, with productive Waqf being the most effective, followed by Mudarabah, Ijarah, and then Musyarakah and Sukuk being less suitable. The study reveals that productive Waqf is at the top due to its non-commercial nature, community participation, and reaching marginalised groups. Mudarabah is considered good for micro and small businesses with profit-sharing. Ijarah is for financing assets without ownership transfer. Musyarakah and Sukuk are less flexible for coastal communities. The findings of this study highlight that Islamic financing systems have an essential role in guiding decision-making in the maritime development.

Bridging Regulatory Diversity: Halal Certification Frameworks in Indonesia, Malaysia, and Singapore and the Road to ASEAN Harmonisation

Didih Muhamad Sudi — 2024-02-28

With the growing significance of halal product assurance in ASEAN, the demand for regulatory harmonisation is alarming with the phenomenon of globalization. This study attempts to analyse and compare the regulatory frameworks of halal product assurance from countries in ASEAN to find similarities and differences and aspects that require development. In this study, a comparative method was used to compare the legal and policies of the halal product assurance in Indonesia, Malaysia and Singapore. This study demonstrates that mandatory certification under Indonesian JPH law does ensure comprehensive regulation but impedes several industry sizes as well as intricacies during implementation. In Malaysia, JAKIM has established a known voluntary scheme all over the globe. Its governance system is excellent and has enabled Malaysia to lead the halal market globally. On the other hand, Singapore's model is highly regulated and overseen by MUIS. It serves the global economy while ensuring strict halal standards. The differences in regulations should be harmonised as they could otherwise translate into trade barriers besides affecting consumer confidence. A more integrated, competitive, and visible halal industry in the ASEAN global market can be achieved by harmonising such differences through policy alignments, coordination among agencies, and technological utilisation

Corporate Governance and Sustainability in Islamic Banking: The Mediating Role of Green Banking Practices

Mister Candera — 2024-02-28

The banking sector plays a strategic role in advancing sustainable business practices through green banking initiatives, which reduce environmental risks and enhance banks’ reputations amid growing global concerns about climate change. This study examines corporate governance and sustainability performance in Islamic banks, with green banking as a mediator. The data were collected from 158 middle and upper management employees in Islamic banking institutions in South Sumatra, Indonesia. This study used mediation path analysis to assess the effect of corporate governance on sustainability performance directly and through green banking practices indirectly. The results confirm a positive relationship between corporate governance framework and sustainability performance in Islamic banks, suggesting that strengthening governance structures directly improves sustainability outcomes. Moreover, green banking practices partially mediate the nexus between corporate governance and sustainability performance, indicating that corporate governance indirectly improves sustainability performance by promoting green banking initiatives. These findings show the necessity of aligning corporate governance frameworks with green banking initiatives to achieve long-term sustainability goals in Islamic banking.

Yelim Philanthropy: Exploring Social Cohesion and Alignment with Sharia Economic Law in Kei Society

Syah Awaluddin — 2024-02-28

The practice of Yelim as a form of interfaith philanthropy has yet to be scrutinised in the intersecting fields of legal sociology and Islamic economic law. The purpose of this study is to reveal the practice of Yelim in encouraging legal consciousness and social cohesion in the Kei Community and to show the harmony of its practice under the principles of Sharia economic law. This study is qualitative research under the phenomenological approach to deeply interpret the practice of Yelim with a focus on philanthropy, and fund management. Data were obtained through interviews, observation and documentation. The results disclose that Yelim is undertaken accountably by traditional figures and community members. The funds have been used for social purposes, including weddings, funerals, religious buildings, and education support. The philanthropy of both Muslims and Christians in the collection and utilisation exemplifies social solidarity and the principle of distributive justice. According to Islamic economic law, the philanthropy management has been in line with maqāṣid al-sharī'a in the principles of Hifzh al-Nafs and Hifzh al-Māl, linking to maslahah, trust, humanity and justice. The tradition undertaken has shown the legal awareness rooted in social norms and ancestral values, not merely formal legal texts. Yelim serves as a model for integrating customary law and Sharia economic principles in multicultural communities.

Strategic Interventions of Zakat Institution in Empowering MSEs: The Case of BAZNAS in Bone Regency

Ahmad Faidh Annur Ramli — 2025-02-28

Productive zakat is an important part of Islamic social finance that aims to help reduce poverty by supporting micro and small businesses. Unlike traditional charity, productive zakat gives business capital to help zakat recipients (Mustahik) become independent. In Indonesia, especially in rural areas, this type of support plays a key role in improving people’s economic conditions. This study focuses on how a zakat institution attempts to help micro and small businesses through its productive zakat programmes. The research used a qualitative method with the case study approach taking place in BAZNAS in Bone Regency, Indonesia. Data were collected through interviews and field observation involving BAZNAS staff, Mustahik, and leaders of local MSEs, and related document review. The results show that the mentoring provided is mostly limited to short verbal guidance when the funds are first given. There are no structured trainings and regular follow-up. These issues are compounded by a lack of staff, long distances between locations, and no clear way to measure progress. However, we find that there are also chances to improve the programme, such as the use of digital tools, building partnerships, and strengthening local MSE organisations. This study demonstrates that mentoring needs to be more measurable to make sure productive zakat truly helps people become economically independent. We also offer insights from this study for improving zakat programmes in other rural areas.

Incoterms: Reconstructing International Sales Contracts in Harmony with Sharia Economic Law

Junaidi Arif — 2025-02-28

In global trade, Incoterms play an important role as a standardised framework that defines the allocation of responsibilities and risks between sellers and buyers. However, from the perspective of Islamic economic law, the application of Incoterms in some cases has the potential to cause gharar (uncertainty) which can affect the validity of the agreement. This study aims to analyse the gap between the provisions of Incoterms 2020 and the principles of fiqh muamalah, particularly in terms of responsibility sharing and risk transfer in international sales contracts. This study conducted searches in various academic databases, and after applying pre-determined criteria, obtained relevant studies for review, which were reinforced by normative juridical analysis based on fiqh literature and Islamic legal doctrine. There are discrepancies between the Incoterms 2020 standard and the principles of fiqh muamalah, especially in the risk transfer clauses (such as FOB and CIF) which have the potential to cause gharar. Vagueness in the division of responsibilities can lead to uncertainty which is contrary to the principles of justice and transparency in Islamic law. Therefore, there is a need for an updated contract system that accommodates Sharia principles without ignoring the practical needs of international trade. The findings of this research serve as a way to formulate a more transparent and fair contractual framework.