Proceeding of International Conference on Finance Business and Banking
The International Conference on Finance, Business, and Banking brought together scholars, professionals, and researchers to discuss recent developments in finance, business, and banking. Major themes included global economic trends and financial stability, fintech and digital banking innovations, risk management, corporate governance, sustainable finance, and ESG investing. Discussions highlighted the impact of economic uncertainty on financial systems, the role of fintech and digital banking in enhancing financial inclusion, and effective corporate governance's influence on performance. Sustainable finance and the integration of ESG criteria were key focuses, alongside the impact of banking regulations and risk management strategies. Notable contributions included studies on digital wallets in emerging markets and the effects of interest rate changes on SMEs. The conference emphasized the need for collaboration, innovation, responsible governance, and sustainable practices in the evolving financial landscape.
Analyzing the Impact of the “Pesona Budaya” Festival on Village Branding and Cultural Sustainability in Pengadangan Village, East Lombok
This study explores how a community based cultural festival sustains identity and strengthens destination branding in Pengadangan village. This qualitative study employs thematic analysis based on semi-structured interviews (purposive sampling) with key informants such as the village head, Pokdarwis members, and local residents. Theories of Place Branding and Cultural Sustainability serve as the conceptual foundation. The results indicate that the festival, with its central ritual Betetulak and traditional Sasak performances, strengthens the village’s religious and customary identity, fosters mutual cooperation (gotong royong), and creates economic opportunities through local creativity. Overall, the Pesona Budaya Festival supports cultural sustainability and enhances Pengadangan Village’s branding, positioning it as a potential model for sustainable cultural tourism development.
Copyright (c) 2025 Proceeding of International Conference on Finance Business and Banking
Integrating ESG and Maqashid Syariah Principles in the Islamic FinTech Ecosystem: Developing a Framework for Sustainable Digital Finance
This study aims to develop a conceptual framework that integrates the principles of Environmental, Social, and Governance (ESG) with the values of maqashid syariah within the Islamic digital financial ecosystem (Islamic financial technology). This integration is intended to bridge global sustainability values with the ethical foundations of Islam, thereby strengthening the theoretical basis for the development of sustainable Islamic digital finance. The research employs a qualitative and conceptual approach using an integrative literature-based analysis method. Data were obtained from open-access academic journals, policy reports, and official publications issued by institutions such as the Financial Services Authority (OJK) and Bank Indonesia between 2020 and 2025. All literature was analyzed using content analysis and theoretical synthesis techniques to formulate a conceptual model called the ESG–Maqashid Syariah Integration Framework (ESMIF) as a new model in Islamic digital finance. The findings reveal a strong relationship between the dimensions of ESG and the objectives of maqashid syariah. The ESMIF model illustrates how digital transformation through Islamic fintech can operationalize environmental, social, and governance values in a sustainable manner while maintaining compliance with Sharia principles. The model also highlights the strategic role of fintech as a digital enabler in enhancing transparency, accountability, and inclusivity within the Islamic financial system. This study provides a theoretical contribution by offering an integrative model that combines global ESG principles and Islamic legal objectives through digital innovation, serving as a new framework for policymakers and practitioners in developing a green, ethical, and sustainable Islamic financial system in the digital era
Sustainable Halal Tourism in the Digital Age: Lessons from Lombok’s Green Economy Initiatives
This study aims to analyze the interrelationship between green economy prctices, digital transformation, and halal values in advancing sustainable halal tourism in Lombok, Indonesia. It seeks to address the existing research gap where previous studies have mainly focused on digital promotion and halal certification, with limited attention to environmental sustainability and community empowerment. A mixed-methods approach was employed using a sequential explanatory design. Quantitative data were collected through surveys of 200 respondents—including halal tourism entrepreneurs and Muslim tourists—and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). Qualitative data were gathered through semi-structured interviews with key stakeholders and analyzed thematically to complement and validate quantitative findings. Findings indicate that green economy practices have the strongest influence on sustainable halal tourism performance, followed by digital transformation and halal value adherence. Qualitative insights reveal that halal and green initiatives in Lombok have evolved in parallel, but their integration remains partial. However, digitalization serves as a critical enabler linking environmental responsibility with halal compliance, enhancing competitiveness and community engagement. This study introduces the Halal–Green–Digital (HGD) Model, a new conceptual framework integrating ethical, environmental, and technological dimensions into a unified construct. The HGD Model contributes theoretically to Islamic tourism studies and practically to policy formulation for sustainable, inclusive, and technology-driven halal destinations.
The Role of Green Human Resource Management (GHRM) and Islamic Ethical Leadership in Fostering Organizational Citizenship Behavior for the Environment (OCBE) in Islamic Financial Institutions
As the global financial sector shifts toward sustainability, Islamic Financial Institutions (IFIs) are increasingly being urged to adopt "Green Economy" principles not only in their financial products but also in their internal organizational practices. However, research linking human resource practices to environmental performance in the Islamic banking context is limited. This study aims to examine the influence of Green Human Resource Management (GHRM) and Islamic Ethical Leadership on employees' Organizational Citizenship Behavior for the Environment (OCBE). This research uses a quantitative approach, utilizing a survey distributed to employees in Islamic financial institutions. The study hypothesizes that GHRM practices—such as environmentally friendly recruitment, training, and performance appraisal—increase employees' ability and motivation to perform environmentally friendly tasks. Furthermore, Islamic Ethical Leadership, grounded in the concept of humans as stewards (Khalifah) of the earth, is expected to significantly inspire voluntary green behavior among staff. The findings aim to demonstrate that while GHRM provides structural support for sustainability, Islamic Ethical Leadership provides the necessary moral and spiritual motivation. This study contributes to the literature by integrating Islamic management values ​​with environmental sustainability, offering practical insights for Islamic financial institutions to foster a green organizational culture through human resource development and strategic leadership.
Identification Criteria for Evaluating the Quality of Implementation of Tourism Destination Development Policies
For decades, the criteria for measuring tourism policy implementation have tended to be dominated by studies of government and public administration, leaving tourism science merely an object. This article aims to identify and synthesize criteria for measuring the implementation of tourism destination development policies in accordance with Sharia-compliant tourism. The research method used is descriptive qualitative with the approach used being a review of related literature by adapting and modifying research results through the process of identification, composition, visualization, decomposition, and adaptation. The results of the study indicate that the assessment of policy implementation has so far been under the culture of public administration including communication, resources, disposition, bureaucratic structure. From these parameters, only communication and resources can be integrated into the culture of tourism science that focuses on tourists and tourism destinations. The integration of communication and resources produces 9 criteria and 50 indicators for measuring the quality of implementation of Sharia Tourism destination development policies for further empirical research adaptation processes, namely 1) Community 2) Tourism Consumers 3) Islamic Clothing 4) Tourist Attractions 5) Tourist Accommodation 6) Public Facilities 7) Products with halal logos 8) Information Services; 9) Services that ensure the security of personal belongings. This study contributes to the field by introducing a novelty consisting of the implementation of tourism destination development policies that are consistent with tourism science, cultural values, and Sharia principles.
Digital Transformation of Hajj Financial Planning: Modelling Sharia-Compliant Hajj Financial Planning For Generation Z
This study examines how Islamic financial literacy influences Generation Z’s preparedness for the Hajj pilgrimage and evaluates their understanding of essential Hajj and Sharia finance concepts. Using a qualitative approach supported by interviews, FGDs, and document analysis, the research provides a clear overview of how young people perceive Islamic financial principles and plan for Hajj-related expenses. The findings show that although Gen Z is highly exposed to digital information, their comprehension of Islamic finance remains insufficient. Prior to the FGD, their literacy level averaged 60% and rose to 88% afterward, demonstrating that targeted educational activities can significantly improve their knowledge. To mitigate these shortcomings, the study developed a digital Hajj-saving model based on the Wadiah yad dhamanah contract. This model emphasizes consistent saving behavior rather than large deposit amounts. Simulations reveal that monthly contributions of IDR 100,000–300,000 allow younger members of Gen Z to reach the IDR 25 million Hajj registration threshold within 7–20 years, while older individuals require higher monthly savings due to shorter preparation times. The research also formulates an investment framework combining Islamic deposits, Sharia money market mutual funds, and Sharia fixed-income mutual funds, adjusted to different age groups and investment horizons. The proposed digital model integrates automated calculations, progress tracking, reminders, Sharia education, and connectivity with Islamic financial institutions. Overall, the study highlights the importance of enhancing Islamic financial literacy and expanding digital financial planning tools to strengthen Hajj readiness among Generation Z.
Digital Innovation and Green Economy: Synergy For Sustainable Islamic Finance in Southeast Asia
This study investigates the synergy between digital innovation and the green economy in enhancing the sustainability of Islamic finance in Southeast Asia, emphasizing the interaction between technological advancement and environmental responsibility within Shariah-compliant financial systems. Using a qualitative comparative method with a multiple case study design, the research focuses on Indonesia, Malaysia, Brunei Darussalam, and Singapore. Data were obtained through semi-structured interviews, documentation, and content analysis of institutional reports from OJK, Bank Negara Malaysia, and international organizations such as IFSB, UNDP, and the World Bank, complemented by academic publications from 2020–2025. Informants included regulators, Islamic finance practitioners, and academics selected through purposive and snowball sampling techniques. Thematic analysis following the Miles and Huberman model revealed three key themes: the rapid digital transformation of Islamic finance, the growth of green financial instruments such as green sukuk and ESG funds, and the emerging digital–green synergy through blockchain-based carbon tracking and fintech for sustainable microfinance. Findings show that integrating digital innovation and green initiatives promotes transparency, efficiency, and inclusivity while reinforcing maqasid al-shariah values of environmental preservation and social equity. Theoretically, this research contributes to the integration of Triple Bottom Line and Institutional Theory perspectives within Islamic sustainable finance, while practically emphasizing the importance of harmonized ASEAN digital–green finance policies and institutional readiness. Future studies are encouraged to explore the application of artificial intelligence and regulatory technology to strengthen digital–green integration in the Islamic finance sector.
From Bedug to Sound Horeg: The Digital Transformation of Takbiran and Its Implications for Halal Tourism and Cultural Heritage in Indonesia
This study aims to explore the cultural transformation of the takbiran ritual in East Java, focusing on the shift from traditional bedug drums to the digital sound system known as sound horeg. It seeks to understand how this evolution reflects the adaptation of religious and cultural practices amid technological advancement and social dynamics, as well as its implications for halal tourism development. Using an exploratory qualitative approach, the study employs participant observation, in-depth semi-structured interviews with various stakeholders, and digital content analysis of social media and local news. Data triangulation and thematic analysis are applied to uncover the social, cultural, and spiritual dimensions of the phenomenon. Findings reveal that sound horeg represents a performative cultural innovation that integrates religious values with modern entertainment, driven primarily by youth as cultural agents. This shift embodies a negotiation between tradition and modernity, creating new social spaces and challenges in maintaining spiritual authenticity. Additionally, sound horeg holds significant potential as a unique cultural attraction within halal tourism, promoting community-based sustainable development. This study contributes novel insights into how digital technology reshapes Islamic ritual practices in Indonesia, highlighting the role of youth in cultural innovation and the intersection of tradition, modernity, and tourism. It also advances understanding of intangible cultural heritage adaptation in the digital era, with practical implications for policy and community empowerment.
Beyond the Plate: How Delivery Time and Price Value Shape Consumer Satisfaction in Online Food Ordering
This study investigates the factors that influence customer satisfaction in online food delivery services, focusing on the roles of price value, food quality, and delivery time. A quantitative research approach was adopted, with data collected from 105 respondents using an electronic questionnaire. The study utilized statistical analyses to evaluate the impact of the three key factors on customer satisfaction. The study found that both price value and delivery time significantly enhance customer satisfaction in online food ordering, while food quality had a positive but non-significant effect. The results suggest that customers place more importance on timely deliveries and fair pricing rather than food quality alone. The novelty of this research lies in applying customer satisfaction theory to online food ordering services, offering new insights into how delivery time and price value contribute to customer satisfaction, an area that has been underexplored in the current literature.
The Role of Islamic Business Ethics in Strengthening the Green Economy: A Sharia Economics Perspective (A Literature Study)
This study aims to conduct an in-depth analysis of the role of Islamic business ethics principles in strengthening the framework and practices of the green economy, viewed from a Sharia economics perspective. This research uses a qualitative approach with a literature study method. Data was collected from secondary sources such as scientific journals, books, international institution reports, and other trusted publications related to Islamic business ethics, Sharia economics, and the green economy. Data was analyzed thematically by identifying, grouping, and interpreting key themes emerging from the literature. The findings indicate that Islamic business ethics, grounded in Maqashid al-Shari'ah (the objectives of Islamic law), offers a comprehensive ethical framework to support the green economy. Principles such as tauhid (Oneness of God), khalifah (stewardship), justice ('adl), and the prohibitions of israf (wastefulness) and ifsad (corruption) align with the pillars of sustainability. Sharia economics, with instruments like zakat, waqf, and sukuk, can fund the transition towards a green economy. However, its implementation still faces challenges, such as a lack of awareness, weak policy integration, and the need for robust standardization. This study provides a holistic and integrated synthesis between Islamic business ethics concepts and the global green economy agenda, which has rarely been discussed comprehensively in previous literature. This research also specifically identifies operational mechanisms and implementation challenges.
Religiosity, Halal Knowledge, and Halal Awareness on the Purchase Intention of Halal Food among Generation Z in Tulungagung East Java
The Islamic economy and Islamic finance industry are currently experiencing significant development, particularly in the halal food sector. The halal industry has now become one of the fastest-growing economic sectors, not only in Muslim-majority countries but also in global markets, including Indonesia. This study connects an economic factor, namely Purchase Intention, with aspects of Religiosity, Halal Knowledge, and Halal Awareness based on the theory of consumer behaviour economics. The study aims to examine the influence of Religiosity, Halal Knowledge, and Halal Awareness on Purchase Intention; to examine the influence of Religiosity on Purchase Intention; to examine the influence of Halal Knowledge on Purchase Intention; and to examine the influence of Halal Awareness on Purchase Intention. The findings of this study emphasize the importance of increasing public knowledge about halal product standards and benefits, as well as strengthening halal awareness to encourage purchase intention. This study employs a quantitative approach with an associative research design. The data used consist of primary data obtained from the research sample. The sample comprises 100 respondents from Generation Z. Additionally, supporting data, such as demographic information, were obtained from the Central Bureau of Statistics of Tulungagung Regency for the year 2023. The findings of this research reveal that: 1) Simultaneously, Religiosity, Halal Knowledge, and Halal Awareness significantly influence the purchase intention of halal food. 2) Partially, Religiosity does not significantly influence the purchase intention of halal food. 3) Halal Knowledge significantly influences the purchase intention of halal food. 4) Halal Awareness positively and significantly influences the purchase intention of halal food.
Implementation of Islamic Business Ethics: A Case Study of Agung Karya Printing Company
This study aims to analyze the implementation of Islamic business ethics at Percetakan Agung Karya as a practical reflection of the Islamic economic system in the modern era. Using a qualitative approach through interviews and observations, the research reveals that applying Islamic business ethics not only benefits the company internally but also generates positive social impacts for the surrounding community. Percetakan Agung Karya emphasizes values such as honesty, transparency, and social responsibility, demonstrated through the use of high-quality raw materials and its consistent practice of zakat payment. Furthermore, the company upholds justice and avoids prohibited practices in Islam, such as riba and maysir, to maintain integrity and ethical compliance in its business operations. These findings highlight the company’s role as a potential model for other enterprises seeking to implement sharia-based business ethics while contributing to broader community welfare.
Beyond Compliance: How Csrd Shapes Profitability In Indonesia’s Sharia Mining
This paper investigates the influence of green accounting and Corporate Social Responsibility Disclosure (CSRD) on the profitability of mining companies listed in the Jakarta Islamic Index (JII). The research is motivated by increasing global attention to sustainability and the limited evidence linking environmental practices to financial performance, particularly in Sharia-compliant firms in Indonesia’s mining sector. The study adopts a quantitative descriptive approach using secondary data from annual and sustainability reports of 10 mining firms listed in the JII. The variables include PROPER scores and environmental cost ratios for green accounting, GRI-based disclosure indices for CSRD, and Return on Assets (ROA) for profitability. Data analysis was performed using panel data regression (common effects model), supported by classical assumption tests and model selection diagnostics. The findings reveal that green accounting and environmental costs do not have significant effects on profitability, while CSRD has a statistically significant negative impact on ROA. These results imply that sustainability disclosures, if not integrated strategically, may impose short-term costs without immediate financial returns. The results suggest that companies should go beyond compliance by embedding environmental and social practices into their business models to enhance long-term value. Regulators should provide clearer guidelines and support mechanisms to align sustainability practices with financial outcomes. The study emphasizes the importance of balancing profitability with accountability in Sharia-compliant businesses. This study is among the first to simultaneously assess green accounting, environmental costs, and CSRD within the context of Sharia-compliant mining firms in Indonesia using panel data. It contributes to narrowing theoretical and empirical gaps on the sustainability-profitability nexus, particularly in Islamic financial contexts where ethical dimensions intersect with corporate performance.
Islamic Fintech as a Catalyst for Green Economic Transformation: A Deep Dive into Zakat-Based Funding Models in Bengkulu
This study aims to examine the role of Islamic fintech in optimizing zakat collection and distribution to advance green economic transformation in the Bengkulu region, while identifying the opportunities, challenges, and impact potential of integrating zakat-based funding with digital Sharia-compliant platforms. Using a qualitative case study approach, the research synthesizes documentary analysis of national policies (e.g., BAZNAS’s Green Zakat Framework), institutional reports, and field-level operational data from Bengkulu’s zakat bodies, Islamic financial institutions, and green investment initiatives (e.g., the Hello Green Nusantara PT Bengkulu Mandiri partnership). The results indicate that Islamic fintech offers transformative opportunities particularly through blockchainenabled transparency, AI-driven targeting, and crowdfunding scalability to channel zakat toward productive green projects such as mini-hydro power and circular economy enterprises. However, major challenges persist, including fragmented regulation, weak monitoring and mentoring capacity at the local zakat management level, low digital and financial literacy, and eroded public trust due to governance failures. The study’s novelty lies in its granular, regionally grounded analysis that bridges macro-level national strategy with micro-level operational realities, proposing a hybrid implementation model where trusted zakat institutions partner with specialized fintech providers to overcome capacity gaps. This work contributes a practical, context-sensitive roadmap for policymakers and Islamic finance practitioners seeking to mobilize zakat as a scalable instrument for sustainable and inclusive development.
Financial Accounting Information System Analysis of Nurul Huda Mosque, South Pontianak
This study aims to analyze the implementation of a financial accounting information system in Masjid Nurul Huda, South Pontianak. As a non-profit entity, mosques hold a crucial role in social and religious activities. Therefore, transparency and accountability in financial management are essential to maintaining public trust and meeting the expectations of the congregation. This research adopts a qualitative approach using the phenomenological method to gain an in-depth understanding of the experiences of mosque administrators in managing finances. Data was collected through a series of in-depth interviews, participatory observation involving direct observation of financial management processes, and documentation analysis including financial reports and related records. The research results highlight that Masjid Nurul Huda has adopted an Accounting Information System (AIS) in line with ISAK 35 standards. This implementation aims to improve efficiency and accuracy in financial recording, while minimizing the potential for errors and data loss. AIS assists the mosque in fulfilling its reporting obligations to the congregation and related parties, thereby increasing the level of public trust in mosque fund management. Despite a decrease in total revenue over the last three years, the mosque has been able to maintain a positive financial balance, which demonstrates efficiency in managing expenditures.
Green Sukuk and Low-Carbon Transition: An Econometric Analysis of Environmental Policy and Islamic Finance Development
This research examines the influence of the Environmental Policy Index, Green Sukuk Issuance, Islamic Finance Development Index, and the Muslim majority dummy (MSLM) on carbon emission reduction across countries. Data for this research were collected from reputable and internationally recognized databases, including Climate Watch, the World Bank, the Refinitiv Islamic Finance Development Report, and the Yale Environmental Performance Index. The empirical results demonstrate that the Environmental Policy Index, Green Sukuk Issuance, and Islamic Finance Development Index have significant and positive effects on carbon emission reduction across countries. These findings suggest that nations with stronger environmental governance and more advanced Islamic financial systems are more effective in achieving emission mitigation targets. Conversely, the Muslim-majority dummy variable shows a significant negative relationship with carbon emission reduction, implying that Muslim-majority countries, despite their potential in Islamic finance, may face structural or policy-related challenges in translating financial mechanisms into effective environmental outcomes. Policymakers should reinforce the implementation of environmental regulations, promote broader issuance of Green Sukuk, and strengthen the institutional infrastructure of Islamic finance to enhance the allocation of sustainable investments. Moreover, the negative effect of the Muslim-majority dummy suggests that socio-religious characteristics alone are insufficient to achieve emission reduction objectives. Institutional strength, regulatory consistency, and environmental policy enforcement remain the critical determinants of success in achieving carbon mitigation.
Development of Sustainable Community-Based Village Tourism (Study of Sukerara Tourism Village, Central Lombok Regency)
This study aims to analyse the role of community-based tourism in strengthening cultural identity and improving socio-economic welfare in Sukerara Tourism Village, one of 99 tourism villages developed by the West Nusa Tenggara (NTB) Provincial Government. The research focuses on the synergy between local cultural preservation and economic empowerment through a sustainable tourism approach.The research method used was a descriptive qualitative approach with data collection techniques through in-depth interviews, field observations, and document reviews. Data were analysed interactively with an emphasis on triangulation of sources to obtain validity of findings.The results of the study show that the implementation of community-based tourism (CBT) in Sukerara Village has encouraged active community participation in preserving the culture of songket weaving and developing creative-based MSMEs. The NTB regional government's programme to establish 99 tourist villages has contributed positively to local economic improvement and cultural preservation, as reflected in activities such as the “Begawe Jelo Nyensek” Festival and weaving artisan training. The synergy between the government, community, and private sector has created a model of tourism development that is socially, economically, and ecologically sustainable.The novelty of this research lies in the identification of an integrative model for developing culture-based tourism villages that balances the conservation of traditional values and the creative economy. This model can be used as a reference for the development of sustainable tourism policies in other regions with similar characteristics.
Mediating Faith Through Technology: Socio-Environmental Consequences of Platform-Based ZIS Systems
This study aims to examine how platform-based Zakat, Infaq, and Sadaqah (ZIS) systems mediate faith-driven charitable practices and to analyze their socio-environmental consequences within contemporary digital ecosystems. This research employs a qualitative conceptual approach by synthesizing interdisciplinary literature on Islamic social finance, digital mediation, socio-technical systems, and environmental sustainability. Thematic analysis was used to construct an integrated conceptual framework. Findings show that digital ZIS platforms enhance transparency, accessibility, and donor engagement through automation and real-time reporting. However, they also reshape spiritual experiences of giving, introduce ethical risks related to data governance, create platform dependency, and contribute to environmental impacts through energy-intensive digital infrastructures. The originality of this study lies in its integration of spiritual, technological, social, and environmental perspectives to evaluate digital ZIS systems—an approach not commonly addressed in existing scholarship. The study proposes a multidimensional understanding of how digital mediation influences faith practices and sustainability outcomes.
Digital Transformation in Bilebante Green Tourism Village: its Impact on Sustainable Economic Development
Digital transformation in the rural tourism sector has an impact on sustainable economic development. The purpose of this study is to analyze the implementation of digital transformation in the Bilebante Green Tourism Village and its impact on sustainable economic development in the economic, social, and environmental aspects. This study used a descriptive qualitative method conducted through in-depth interviews with tourism village managers and MSMEs. The results show that the application of digital technologies such as social media, online reservation systems, digital literacy training, and cashless payments can improve the efficiency of tourism management, expand promotional reach, and strengthen community participation in creative economic activities. From an economic perspective, digitalization increases community income and productivity, while from a social perspective it can encourage empowerment and collaboration. From an environmental perspective, it can reduce promotional waste and support green tourism practices. Thus, digital transformation is a strategic factor in strengthening the competitiveness of Bilebante Green Tourism Village and realizing inclusive and sustainable economic development.
An Exploration of Corporate Tax Avoidance from the Perspective of Environmental, Social, and Governance (ESG) Performance
This research aims to analyze the influence of environmental, social, and governance (ESG) performance on corporate tax avoidance. While companies may engage in tax avoidance to minimize their tax burden, they are also expected to demonstrate accountability to stakeholders, including through the disclosure of their environmental, social, and governance performance. This study uses companies listed by the Bumi Global Karbon (BGK) Foundation as the research objects, with a total of 263 firm-year observations for the 2020–2023 period. The data analysis technique used is static panel data regression, with the random effects model selected as the best-fit model. The results of the study show that environmental performance increases tax avoidance practices, while companies with strong governance performance and aggregate ESG performance are less likely to engage in tax avoidance. This study provides novelty by showing that each ESG dimension has a different influence on tax avoidance practices. This finding suggests that corporate sustainability commitments do not always result in a decrease in tax avoidance, especially in the environmental dimension. The results of this study enrich the existing literature on the relationship between ESG and tax avoidance, especially in the context of companies listed in the BGK Foundation index.
Strategies to Support the Implementation of Sustainable Development Goals (SDGs) Through Sharia Financial Technology: Potential and Challenges
Islamic finance, especially Islamic financial technology, in its development has shown great potential in supporting the implementation of the Sustainable Development Goals (SDGs) launched by the United Nations (UN) to protect human welfare and the environment. The presence of sharia fintech can increase people's financial inclusion, business development and income, as well as fulfillment for the economy. This research is qualitative using the study library research method with a literature review approach. This study aims to further review how the strategy of using sharia fintech in supporting the implementation of the SDGs is accompanied by its potential and challenges. Based on the results of the study, there are several strategies for using sharia fintech in supporting the implementation of the SDGs to overcome global problems, namely through poverty alleviation, quality education, gender equality, infrastructure innovation, and climate action. Some of the opportunities for the development of sharia fintech in Indonesia include the OJK providing opportunities for sharia fintech actors to freely register their businesses legally, the ease of technology for investment and donation activities, and the opportunity for sharia fintech to show its advantages due to fintech The majority of Indonesia's population is Muslim, and the rapid development of technology in Indonesia has the opportunity to be used quickly and more efficiently by the Muslim community. However, although the opportunities for the development of sharia fintech in Indonesia are quite promising, based on the facts that occur in the field of sharia fintech, several challenges are still faced, including: 1) Lack of public literacy and knowledge of sharia financial services, 2) Government regulations, 3) Lack of religious awareness, 4) Lack of human resources who understand and understand the rules related to the sharia economy, 5) Green project risk management, 6) Technology gaps, and 7) Lack of data security.
Climate Change and Financing Risks: A Study of Islamic Commercial Banks in Indonesia
Climate change has emerged as a critical global issue, creating new and unanticipated risks for the banking industry, including Islamic financial institutions. Climate-related shocks and natural disasters may increase credit default risk, particularly in vulnerable economic sectors. This study examines the impact of climate change—proxied by temperature—along with the Financing to Deposit Ratio (FDR), primary sector growth measured by agricultural GDP, inflation, and a moderating variable on financing risk proxied by Non-Performing Financing (NPF) in Indonesian Islamic commercial banks. Using a quantitative associative approach, secondary panel data from 32 provinces were collected from the Statistics Indonesia (BPS) and the Financial Services Authority (OJK). Panel data regression analysis was employed. The findings reveal that temperature has a significant negative effect on NPF, FDR has no significant effect, agricultural GDP positively affects NPF, and inflation has no significant effect. The moderating variable exhibits a significant positive effect. Jointly, all variables significantly influence NPF. This study contributes by addressing climate-related financing risks in a developing-country context and by introducing a novel model combining climate variables and agricultural sector strength as a moderating mechanism for Islamic banking risk exposure.
Harnessing Digital Technologies for Sharia-Based Finance: Exploring Opportunities and Strategic Challenges in the Transformation of Islamic Financial Institutions
This research aims to develop a conceptual framework for the digital transformation of Islamic financial institutions by integrating modern technologies such as fintech, blockchain, artificial intelligence (AI), and smart contracts into a financial system based on the principles of maqāṣid al-sharīʿah. The focus is on explaining how digital innovation can improve efficiency, financial inclusion, and sharia compliance without neglecting the values of justice ('adl), trust (trust), and benefit (maṣlaḥah). This study uses the Systematic Literature Review (SLR) method with PRISMA guidance on 131 internationally reputable scientific publications for the period 2020 to 2025 obtained from the Scopus database. The analysis was conducted using VOSviewer to map the interconnectedness of key themes such as fintech, Islamic finance, blockchain, and sharia compliance, as well as identify research gaps and future development directions. The results show that digitalization plays a significant role in strengthening operational efficiency and expanding Islamic financial inclusion. The application of AI and blockchain improves the accuracy of sharia compliance verification and transaction transparency. Innovations such as digital sukuk, sharia P2P financing, as well as zakat and digital waqf strengthen the socio-economic function of Islam. However, challenges such as low digital literacy, regulatory disharmonization, and cybersecurity risks still need to be addressed. The novelty of this research lies in the integration of the concept of embedded sharia compliance and smart fatwa system in the design of modern financial technology. This approach places sharia values as the main foundation of digital innovation, while offering a new direction for the development of an ethical, inclusive, and sustainable Islamic finance ecosystem.
Green Islamic Financial Planning Among Gen Z Muslim Students: A Qualitative Investigation of Anti-Wasteful Consumption, Halal Savings, and Sharia Awareness
The purpose of this study is to investigate in detail how Muslim students in Generation Z comprehend and use Green Islamic Financial Planning in their lives. In the context of consumer culture and the digital economy, the emphasis is on understanding Islamic financial ideals and environmental sustainability, halal savings practices, and anti-wasteful buying patterns. With a phenomenological orientation, the study employed a descriptive qualitative methodology. The data were subjected to thematic analysis in accordance with Braun and Clarke's processes, which include coding, theme grouping, and the creation of thematic narratives that illustrate the connection between environmental concern, savings habits, and Islamic financial awareness. The findings demonstrate that the majority of informants continue to struggle with basic financial management issues, including consumptive behavior, trouble saving money, and poor control over impulsive spending. Though it has not yet been converted into regular practice, normative understanding of Sharia is fairly strong. Implicitly, the "green" dimension became apparent. Wastefulness is more accurately defined as wasteful spending than as actions that harm the environment. The development and operationalization of the Green Islamic Financial Planning concept at the micro level, the individual financial behavior of Muslim students in Generation Z by concurrently integrating three dimensions Islamic financial awareness, halal savings practices, and anti-wasteful consumption, which is closely related to ecological responsibility is what makes this research novel
Improving Indonesia’s Education Quality through SDGs for Gen Z Empowerment
This study examines how the Sustainable Development Goals (SDGs)—particularly SDG 4 on quality education—can be operationalized to improve education quality in Indonesia and, in turn, empower Generation Z as a demographic dividend. A qualitative, integrative literature review synthesizing policy documents, scholarly articles, and program reports. Sources were mapped to SDG 4 targets (e.g., access, equity, early childhood, TVET, teacher quality, safe learning environments) and analyzed thematically to identify constraints, policy instruments, and implementation gaps. The review identifies four persistent constraints that hinder education quality and equitable outcomes: (1) uneven access and infrastructure (including connectivity in remote areas), (2) curriculum and delivery misalignment with 21st-century competencies, (3) teacher capacity and distribution disparities, and (4) socio-cultural barriers that limit participation for vulnerable groups. Evidence from Indonesian initiatives—such as Kurikulum Merdeka, SATAP (single-roof schools), SM3T (pre-service teacher deployment to 3T regions), and foundational literacy–numeracy (Calistung) programs—shows partial progress but fragmented execution. The study proposes a coherent strategy bundle: targeted infrastructure and digital inclusion, systematic teacher professional development and incentives for underserved areas, strengthened early childhood and TVET pathways, gender and inclusion safeguards, and culturally embedded approaches that leverage local wisdom and community actors. These measures collectively link SDG 4 delivery to Generation Z empowerment through improved learning outcomes, employability, and civic capability. The article integrates dispersed SDG-related programs into a single strategy map explicitly framed around Generation Z empowerment. It contributes a practicable alignment between SDG 4 targets and Indonesia’s policy instruments, highlighting how culturally responsive implementation can close quality and equity gaps in remote and diverse settings.
Building a Future Halal Tourism Model in the Takabonerate Atoll Area through the Synergy of Smart Tourism and Conservation
The global tourism landscape has transformed into a value-based industry, with the Halal Tourism segment experiencing phenomenal growth. Indonesia has a comparative advantage to dominate this market, as evidenced by its top ranking in the Global Muslim Travel Index. However, development in eastern regions, such as Takabonerate National Park, the world's third-largest atoll, faces a fundamental paradox. The atoll's world-class ecological potential is inversely proportional to its vulnerability to uncontrolled tourism pressures and limited halal infrastructure, such as access to clean water for ablutions and precise determination of the direction of the Qibla at sea. This study aims to formulate a new management model to fill the strategic gap and literature that tends to discuss Halal Tourism, Conservation, and Smart Tourism separately. Using a descriptive qualitative approach, this study proposes the "Takabonerate Smart Halal Eco-System" model. This model consists of three synergistic pillars: Smart Halal Services (e.g., Digital Qibla and E-Halal Traceability for thayyib assurance), Digital Conservation (e.g., IoT Environmental Monitoring and E-Ticketing based on carrying capacity quota), and Community-Based Digital Economy. This model positions digital technology as a bridge (enabler) that harmonizes human vertical needs (worship/halal) with their horizontal responsibilities to nature (conservation). The synergy of the three produces a spiritual, sustainable, and seamless tourism model, while also providing a practical roadmap for its gradual implementation.
To What Extent Does Small Business Development Strengthen the Halal Ecosystem at the Ad-Dinul Qayyim Islamic Boarding School?
This study explores the extent of the effectiveness of economic empowerment at the Ad-Dinul Qayyim Kapek Gunung Sari Islamic boarding school through a small business development program in supporting the halal ecosystem. It focuses on the management of the boarding school canteen business unit as a provider of food for students, a means of learning entrepreneurship, a strengthening of the economic independence of the boarding school, and a contribution to the welfare of the surrounding community. This study utilized a qualitative approach with a case study method through interviews, observation, and documentation techniques. The data was processed and presented in various forms and assessed based on arguments supported by several theories for verification and justification. The results of the study indicate that the economic empowerment of Islamic boarding schools through canteen businesses is quite effective with the support of boarding school management, active participation of students, and involvement of the surrounding community in the form of consignment products. In addition, boarding schools also collaborate with teachers and local health institutions in business assistance so that the values of halal, hygiene, and responsibility are maintained. Furthermore, the researchers also identified a number of challenges, such as limited capital, insufficient knowledge about halal standards and hygiene, limited production capacity, and consumer behavior that delays payments. To see the novelty of this research, refer to the effectiveness of small business development specifically for building a halal ecosystem in Islamic boarding schools.
The Role of Financial Technology (Fintech) in Promoting Innovation in Islamic Financial Products
This study aims to examine the role of financial technology (fintech) in driving innovation in Islamic financial products. The research addresses critical gaps in understanding how digital technologies can be strategically leveraged within the Islamic finance ecosystem to enhance product innovation, accessibility, and operational efficiency while maintaining rigorous sharia compliance. This study employs a qualitative research approach combining comprehensive literature review and case study analysis. Data collection involved systematic searches of academic databases (JSTOR, ProQuest, Google Scholar), industry reports from OJK and KPMG, and Islamic finance publications. The research covers the period 2014-2024, with particular emphasis on the Indonesian fintech and Islamic finance landscape. Findings conclusively demonstrate that fintech possesses significant potential to enhance innovation in Islamic financial products through strategic application of blockchain, artificial intelligence (AI), and mobile banking platforms. These technologies facilitate development of new sharia-compliant financial instruments, substantially improve operational efficiency, extend financial services to previously underserved populations, and strengthen sharia compliance verification processes. This research contributes a comprehensive assessment of fintech-Islamic finance integration by providing systematic analysis of multiple innovation mechanisms (Digital Investment Solutions, Digital Banking, Sharia Compliance Automation), identifying concrete case study examples from the Indonesian market, and offering actionable recommendations.
Governance and Performance of Indonesian Islamic Banks: Toward Sustainable Green Finance
This study aims to examine the influence of Islamic Corporate Governance (ICG) mechanisms on the financial performance of Islamic banks in Indonesia within the perspective of sustainable green finance. The analysis focuses on seven governance components mandated by regulatory frameworks, namely the Board of Directors (BOD), Audit Committee (AC), Board of Commissioners (BOC), Nomination and Remuneration Committee (NRC), Risk Committee (RC), Sharia Supervisory Board (SSB), and External Audit (EA). This quantitative study uses secondary data from eight Islamic commercial banks in Indonesia for the 2016–2023 period and is analyzed using multiple linear regression in EViews 12. The results show that the BOC has a positive and significant effect on financial performance, indicating the importance of effective supervisory oversight. In contrast, the SSB has a negative and significant effect, suggesting that strict sharia compliance may restrict investment flexibility and reduce short-term profitability. Meanwhile, the BOD, AC, NRC, RC, and EA show no significant influence, indicating that their roles remain primarily administrative rather than strategic. Islamic banks should strengthen the strategic roles of internal governance committees and harmonize coordination between the BOC and SSB to balance sharia compliance with financial performance. Regulators (OJK and IFSB) are encouraged to enhance governance standards that support ethical integrity and financial sustainability. This study integrates all mandatory ICG components into a comprehensive governance-performance model and contextualizes the findings within sustainable and ethical financial practices.
Impact of Green Accounting and Environmental Performance on Financial Performance: An Empirical Study of IDX-Listed Mining Companies, 2021–2024
This study examines whether green accounting and environmental performance are associated with the financial performance of mining firms listed on the Indonesia Stock Exchange during 2021–2024. Using a quantitative, associative design, we compile a balanced panel of four issuers over four years (16 firm-year observations). Green accounting is operationalized as a binary indicator of environmental-cost recognition in the annual report; environmental performance is proxied by the national PROPER rating (black = 1; gold = 5). Financial performance is measured by return on assets (ROA). We estimate firm fixed-effects panel regressions in EViews 12 and conduct standard diagnostics (normality, multicollinearity, heteroskedasticity, and autocorrelation). The model explains 76.54% of the variation in ROA (R² = 0.7654). Individually, green accounting does not exhibit a statistically significant effect (p = 0.0764 > 0.05), and environmental performance is likewise insignificant (p = 0.3474 > 0.05). However, the regressors are jointly significant (Prob(F-statistic) = 0.0060 < 0.05). Estimated coefficients indicate a positive association for green accounting (β = 0.114) and a small negative association for environmental performance (β = −0.033). The study distinguishes environmental-cost recognition from generic disclosure, employs the ordinal PROPER scale as an external environmental proxy, and applies firm fixed effects to a focused mining sample in the post-pandemic period. The findings clarify that while individual predictors may be insignificant in small samples, their combined contribution is economically and statistically relevant to profitability, highlighting the value of integrating environmental accounting practices with environmental performance management.
Implementation of ESG Principles in Empowering a Local Community-Based Green Economy: A Case Study of Sidan Kapuas Hulu Woven Bag Charm MSMEs
This study examines the implementation of Environmental, Social, and Governance (ESG) principles in community-based green economic empowerment with a case study of the Bag Charm Tenun Sidan MSME in Kapuas Hulu Regency, West Kalimantan. The main objective of this study is to analyse how the application of ESG principles can strengthen local economic resilience while maintaining environmental sustainability and cultural preservation. This study uses a qualitative descriptive approach with a case study method through direct observation and semi-structured interviews with business owners, craftsmen, and local stakeholders. The results show that ESG principles have been contextually integrated into daily business activities. From an environmental perspective, this MSME implements eco-efficiency practices through the use of natural materials, fabric waste recycling, and the application of the circular economy concept. From a social perspective, these MSMEs play an important role in women's empowerment through training and employment, while also preserving the traditional Sidan weaving culture, in line with Sustainable Development Goals (SDGs) points 5 and 8. From a governance perspective, business management is conducted transparently based on the principles of Islamic business ethics of adl (justice), amanah (responsibility), and sidq (honesty) and is supported by digital transformation through social media and marketplaces to improve efficiency and transparency. The novelty of this research lies in how ESG principles can be implemented contextually at the rural SME level through local wisdom and collective awareness, thereby making a real contribution to strengthening the sustainable green economy model in Indonesia.
Company Value in Islamic Commercial Banks: The Role of Intellectual Capital, Liquidity, and Capital Structure, with Profitability as an Intervening Variable
The goal of this research is to evaluate the performance of Indonesian Islamic Commercial Banks across dimensions like liquidity, capital structure, and intellectual capital. The study then analyzes the path of influence these factors have on firm value, using profitability as an intermediary factor. This research utilized a quantitative methodology and utilized secondary data from 2019 to 2022 to analyze 96 observations from two intentionally selected banks. The data analysis was conducted using Structural Equation Modelling (SEM) via the Partial Least Squares (PLS) approach. Specifically, the statistical model was tested using the WarpPLS Version 07 software. The study established that profitability significantly mediates the effect of intellectual capital on firm value. However, no mediating effect was found for profitability in the relationship between firm value and liquidity or capital structure. These latter factors were instead shown to have a direct, positive influence on firm value. This finding shows how important profitability is as a strategic link between intangible and financial resources in creating value for shareholders.
The Effectiveness of Ta'zir and Ta'widl in Preventing Moral Hazard of Islamic Bank Customers in Indonesia and Malaysia
The paper examines the comparative implementation of ta'zir and ta'widl, two key Shariah-compliant mechanisms for addressing default and moral hazard in Islamic banking. Through regulatory analysis and empirical evidence from Indonesia and Malaysia, this study clarifies the philosophical, legal, and operational distinctions between these mechanisms. While both countries follow the Syafii jurisprudential tradition, implementation differs significantly due to varying regulatory frameworks and operational contexts. Ta'zir functions as a disciplinary instrument targeting capable customers who deliberately delay payment, whereas ta'widl operates as a compensatory mechanism recovering documented losses from default. The analysis reveals that both mechanisms serve critical functions in protecting depositor interests, enforcing contractual discipline, and maintaining systemic stability. However, implementation inconsistencies, particularly in Indonesia's discretionary approach, create potential market fragmentation. The study concludes that while ta'zir and ta'widl represent sophisticated Islamic legal responses to moral hazard, their effectiveness depends fundamentally on clear regulatory mandates, transparent communication with stakeholders, and careful balance between disciplinary enforcement and customer protection.