Journal Islamic Economic Minangkabau

ASSESSING THE RESILIENCE OF ISLAMIC MICROFINANCE INSTITUTIONS AGAINST THE DISRUPTIVE FORCES OF PLATFORM ECONOMICS

2026-01-31T12:02:35+07:00

The rapid expansion of platform economics has fundamentally altered financial intermediation through digital platforms, algorithmic decision-making, and data-driven services. These developments pose significant challenges for Islamic Microfinance Institutions (IMFIs), which are grounded in ethical principles, relational trust, and community-based financial inclusion. The growing dominance of platform-based financial models raises concerns regarding the capacity of IMFIs to remain resilient while preserving their Islamic moral and social missions. This study aims to assess the resilience of Islamic Microfinance Institutions against the disruptive forces of platform economics, with particular attention to institutional, technological, and ethical dimensions. The research employed a mixed-method explanatory design, combining quantitative survey data from selected IMFIs in Southeast Asia with qualitative case studies, interviews, and document analysis. Resilience was examined through indicators of governance quality, adaptive capacity, digital readiness, and ethical sustainability. The findings reveal that resilience among IMFIs is uneven and strongly influenced by ethical governance and institutional coherence rather than by technological adoption alone. Institutions with strong shariah governance and community trust demonstrate greater resilience despite limited digital capabilities, while technology-driven adaptation without ethical integration yields fragile outcomes. The study concludes that sustainable resilience of Islamic Microfinance Institutions in platform-driven economies requires ethically grounded adaptation strategies that balance digital innovation with moral continuity and relational accountability.

STRATEGIC VISION FOR ISLAMIC ECONOMIC RESILIENCE POST-PANDEMIC: LESSONS FROM GLOBAL CRISES AND SYARIAH PRINCIPLES

2026-02-17T22:54:20+07:00

The unprecedented systemic disruptions caused by the COVID-19 pandemic have exposed the inherent vulnerabilities of conventional debt-based financial architectures. This research addresses the urgent need for a more stable economic framework by evaluating the strategic resilience of Islamic finance in the face of global shocks. The study aims to synthesize lessons from historical crises to formulate a post-pandemic vision grounded in Shariah principles of risk-sharing and asset-backed financing. Utilizing a multi-dimensional explanatory design, the methodology analyzed performance metrics from forty Islamic financial and social finance institutions across Southeast Asia and the Middle East from 2020 to 2025. Results indicate that Shariah-compliant institutions maintained significantly higher capital adequacy ratios and lower non-performing financing levels compared to conventional peers. Furthermore, the integration of digital Zakat and Waqf platforms provided a critical 35% surge in social liquidity for the micro-entrepreneurial sector. This research concludes that the structural prohibition of speculative leverage acts as a natural stabilizer, effectively mitigating systemic risk. The findings suggest that a strategic pivot toward digitalized Islamic social finance and risk-sharing contracts is essential for global economic sustainability. This study asserts that Shariah principles offer a robust, ethical blueprint for building resilient post-pandemic financial systems.

THE SYARIAH-COMPLIANT DIGITAL TRANSFORMATION: MAPPING ETHICAL FRAMEWORKS FOR ISLAMIC FINTECH ADOPTION IN SOUTHEAST ASIA

2026-01-31T11:59:55+07:00

Rapid digital transformation has reshaped financial services, positioning Islamic fintech as a strategic alternative grounded in syariah ethics. In Southeast Asia, the expansion of Islamic fintech has outpaced the development of coherent ethical frameworks, raising concerns about the depth of syariah integration beyond procedural compliance.This study aims to map and critically examine ethical frameworks guiding syariah-compliant digital transformation and Islamic fintech adoption across Southeast Asian contexts. The research employed a qualitative comparative design using secondary regulatory data, institutional documents, and selected case studies from major Islamic fintech markets. An ethical mapping approach was applied to analyze how principles such as transparency, justice, risk-sharing, and maqasid al-shariah are embedded within fintech governance and design. The findings reveal uneven ethical integration across jurisdictions, with stronger alignment in countries possessing mature regulatory and shariah governance systems. Most platforms emphasize formal compliance, while transformative ethical objectives remain weakly operationalized. Case evidence shows that early-stage ethical integration enhances governance coherence and stakeholder trust. The study concludes that sustainable Islamic fintech adoption requires shifting from compliance-oriented models toward integrative ethical frameworks embedded throughout the digital innovation lifecycle. This orientation supports inclusive finance, regulatory legitimacy, and long-term socio-economic resilience regionally sustainability.

BEYOND CONVENTIONAL METRICS: DEVELOPING A FALAH-BASED ECONOMIC INDICATOR FOR MEASURING NATIONAL PROSPERITY AND WELL-BEING

2026-02-26T23:52:14+07:00

Conventional measures of national prosperity, particularly Gross Domestic Product, have long dominated economic evaluation despite their inability to capture ethical, social, environmental, and spiritual dimensions of well-being. This limitation has generated increasing concern regarding the adequacy of growth-centered metrics in reflecting holistic human flourishing. This study aims to develop a Falah-Based Economic Indicator (FBEI) as an alternative framework for measuring national prosperity and well-being grounded in the normative foundations of Islamic economics. The research employs a mixed-methods design that integrates conceptual analysis with quantitative index construction, drawing on secondary national-level data across economic, social, governance, environmental, and moral–spiritual dimensions. Composite indicators are constructed using normalization, weighting, and aggregation techniques aligned with the principles of falah. The results demonstrate that the FBEI captures significant disparities between material affluence and holistic prosperity, revealing that ethical governance, environmental balance, and moral–spiritual well-being exert independent and statistically meaningful influences beyond income levels. Countries with similar economic performance often display divergent falah-based outcomes, underscoring the inadequacy of conventional metrics as comprehensive measures of prosperity. The study concludes that a falah-based indicator offers a conceptually coherent and empirically viable alternative for assessing national well-being. This framework contributes to development economics by integrating ethical purpose into prosperity measurement and provides policymakers with a more balanced tool for evaluating sustainable and inclusive development.

MODELING RIBA-FREE CIRCULAR ECONOMY: A STRATEGIC ROADMAP FOR SUSTAINABLE RESOURCE MANAGEMENT IN MUSLIM-MAJORITY COUNTRIES

2026-01-19T10:26:10+07:00

The growing urgency of environmental degradation and resource inefficiency has intensified the search for sustainable economic models that are not only environmentally sound but also ethically grounded. In Muslim-majority countries, sustainability initiatives often face structural tension due to reliance on interest-based financial systems that conflict with Islamic economic principles, particularly the prohibition of riba. This study aims to develop a conceptual model of a riba-free circular economy and to formulate a strategic roadmap for sustainable resource management that aligns circular economy principles with Islamic economic ethics. The research adopts a qualitative–conceptual design supported by systematic analysis of secondary data, policy documents, and comparative case studies from selected Muslim-majority countries. Conceptual modeling and analytical synthesis are employed to integrate circular economy mechanisms with riba-free financial instruments and governance structures. The findings demonstrate a strong normative and operational compatibility between Islamic economic principles and circular economy objectives, particularly in promoting long-term investment, risk-sharing, and real-sector engagement. The proposed strategic roadmap highlights the roles of regulatory alignment, Islamic finance innovation, and institutional coordination in operationalizing sustainable resource management. The study concludes that a riba-free circular economy constitutes a viable and contextually relevant pathway for advancing sustainability in Muslim-majority countries, offering both theoretical enrichment and practical guidance for policymakers and practitioners.

INTEGRATING ISLAMIC SOCIAL FINANCE (ZAKAT, WAQF, SADAQAH) WITH THE SUSTAINABLE DEVELOPMENT GOALS (SDGS) IN DEVELOPING NATIONS

2026-02-21T11:15:22+07:00

Achieving the Sustainable Development Goals (SDGs) in developing nations remains constrained by limited fiscal capacity, governance challenges, and unequal access to development financing. Islamic Social Finance instruments—zakat, waqf, and sadaqah—offer ethically grounded mechanisms for wealth redistribution and social welfare that are normatively aligned with the objectives of sustainable development. However, their integration with formal SDG frameworks has not been systematically institutionalized. This study aims to examine how Islamic Social Finance can be effectively integrated with the SDGs in developing nations and to identify institutional and governance factors shaping this integration. The study employed a qualitative–comparative research design using secondary data, policy documents, and selected case studies from developing countries. An integrative mapping framework was applied to analyze the alignment between Islamic Social Finance instruments and specific SDG goals and targets. The findings reveal that zakat and sadaqah primarily support short-term poverty alleviation and social protection, while waqf demonstrates stronger potential for long-term development outcomes. Integration with the SDGs remains largely implicit and uneven, with stronger alignment observed in institutions possessing robust governance and coordination mechanisms. The study concludes that Islamic Social Finance can function as a strategic complement to SDG financing when supported by institutional reform, clear governance structures, and systematic alignment with development indicators. Strengthening this integration enhances both ethical legitimacy and sustainable development impact.

TACKLING FINANCIAL EXCLUSION: THE EFFICACY OF ISLAMIC BANKING OUTREACH MODELS IN RURAL AND UNDERSERVED COMMUNITIES

2026-03-10T23:26:18+07:00

Financial exclusion remains a persistent barrier to inclusive economic development, particularly in rural and underserved communities where access to formal banking services is limited. Islamic banking, grounded in Shariah principles of risk-sharing and social justice, has introduced various outreach models aimed at expanding financial inclusion through agent-based banking, mobile services, and integrated social finance instruments. This study aims to evaluate the efficacy of Islamic banking outreach models in enhancing access, utilization, and socio-economic outcomes among rural households. A mixed-methods explanatory sequential design was employed, combining survey data from 420 household respondents with institutional performance indicators and qualitative case studies. Multiple regression and comparative model analyses were conducted to assess relationships between outreach participation, financial literacy, income stability, and repayment discipline. Findings indicate that agent-based and integrated social finance models significantly improve account ownership, savings frequency, and income growth, while maintaining non-performing financing rates below rural industry averages. Financial literacy functions as a mediating factor strengthening sustained service utilization. The study concludes that Islamic banking outreach can effectively mitigate financial exclusion when strategically aligned with community engagement, literacy enhancement, and cost-efficient delivery mechanisms.