Economica: Jurnal Ekonomi Islam is a scientific journal in Islamic economics studies published twice a year by the Institute of Islamic Economic Research and Development (LP2EI), Faculty of Islamic Economics and Business UIN Walisongo Semarang. The editors receive scientific articles in the form of conceptual script or unpublished research results, or other scientific publications related to Islamic Economics themes. That covers Islamic Finance, Islamic Banking, Islamic Accounting, Islamic Marketing, also Behavioral Economics, Management, and Human Resources in Islamic perspective. Journal title Economica: Jurnal Ekonomi Islam Initials Economica Abbreviation Econ. J. Ekon. Islam Language English, Indonesian Management Style Open Access Subject Areas Islamic Economics themes. That covers Islamic Finance, Islamic Banking, Islamic Accounting, Islamic Marketing, also Behavioral Economics, Management, and Human Resources in Islamic perspective Frequency Biannual (June & December) DOI Prefix 10.21580/economica ISSN 2541-4666 (online); 2085-9325 (print) Publisher Institute of Islamic Economic Research and Development (LP2EI), Faculty of Islamic Economics and Business Universitas Islam Negeri Walisongo Semarang Editor-in-Chief Nasrul Fahmi Zaki Fuadi, Lc., M.Si. Citation Analysis Dimensions | Google Scholar This journal has been indexed by: CROSSREF, DOAJ, Dimensions, Google Scholar, Moraref, Sinta Ristek Dikti (SINTA 2), One Search Indonesia, EBSCO, etc. This journal has become a CrossRef Member; therefore, all articles published by Economica: Jurnal Ekonomi Islam will have a unique DOI number. Geographical Coverage of 25 Countries Indonesia Jordan United Kingdom Malaysia Nigeria Pakistan Turkey United States Bahrain Australia Morocco France Romania South Africa Thailand Brunei Darussalam India Italy Netherlands Saudi Arabia Australia Hungary China Iraq Gambia
Fakultas Ekonomi dan Bisnis Islam UIN Walisongo
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From Values to Visits: Exploring the Economic Development Potential of Halal Tourism Through Islamic Destination Attributes
There is a growing acknowledgment of Halal tourism as a strategic sector for economic development in Muslim-majority countries. This research investigates how Islamic destination features, including worship amenities, halal compliance, and overall Islamic values, influence travelers’ choices to halal destinations in Indonesia, moderated by tourism image. Using a quantitative method, this study analyzed data with structural equation modeling in SmartPLS 3, based on responses from 1,000 tourists visiting Indonesia’s ten leading halal destinations. The results indicate that all three Islamic attributes significantly influence the positions of a tourist attraction, while only worship facilities directly affect visiting decisions. Destination image itself plays a mediating role in shaping tourist behavior. These results underline the importance of integrating Islamic values into tourism development strategies to enhance destination competitiveness. The study provides practical insights for government officials, including the standardization of halal certification in tourism facilities, the provision of adequate worship infrastructures at leading destinations, and the integration of halal tourism into national and digital marketing strategies. These analytical procedures enhance Indonesia’s role as a worldwide frontrunner in halal tourism. The results further emphasize halal tourism’s capacity to drive continuous local economic growth grounded in cultural and religious values.
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Beyond Religiosity: How Social Capital Drives Institutional Zakat Payment Preferences in Indonesia - A Behavioural Economics Analysis
Notwithstanding the fact that Indonesia has the world’s largest Muslim population, zakat collection through formal institutions is substantially below expectations. In light of this shortfall, this study investigates the interplay between religiosity and social capital on individual preferences for zakat payments and the proportion allocated to official zakat agencies, with the overarching aim of contextualizing the fiqh zakat framework in contemporary Indonesia. Drawing upon the data from a nationwide survey of 794 respondents, the empirical analysis employs Linear Probability Model (LPM) and Poisson Pseudo Maximum Likelihood (PPML) regression techniques to examine the determinants of zakat payment behaviour. Findings reveal that social capital significantly increases both the likelihood of choosing zakat institutions and the portion of zakat paid through them. In contrast, religiosity shows a weaker direct effect on institutional zakat payment. Taken together, these results highlight the pivotal role of social networks and trust in enhancing institutional zakat collection. Therefore, the study advocates for a strategic reform of fiqh zakat practices that integrate social capital strategies to reinforce religiosity and improve zakat compliance through formal channels.
Nexus Islamic Finance Development and Income Inequality in Indonesia: Testing Kuznets Curve Hypothesis
This study analyzes the applicability of the Kuznets curve hypothesis within the specific context of Islamic finance development in Indonesia and its resultant implications for income inequality. The novelty of this research lies in integrating Islamic finance, specifically from the banking sector, with Islamic social finance instruments, namely zakat, infaq, and sadaqah. Crucially, it interrogates whether the Kuznets curve hypothesis remains pertinent within this expanded framework. Utilizing secondary panel data encompassing 25 Indonesian provinces over the 2019–2020 period, the study employs panel data regression techniques, specifically common effect, fixed effect, and random effect models, which were systematically selected via the Chow, Hausman, and Lagrange multiplier tests. The empirical findings demonstrate unequivocally that the development of Islamic finance, spanning both the financial and social sectors, significantly influences income inequality. This substantiates the Kuznets curve hypothesis: inequality initially escalates but subsequently diminishes as development matures. Furthermore, the results underscore the role of the Human Development Index (HDI) and the prevalence of mosques in mitigating inequality, while population density exhibits a positive association with inequality. This study conclusively argues that strengthening financial inclusion and professionalizing the management of Islamic social finance constitute strategic approaches for mitigating income inequality in Indonesia.
Transforming Mosque Sustainability: Leveraging Islamic Economics and Finance for Community Empowerment
This research focuses on the shift in mosque empowerment models, particularly in terms of financial sustainability, rooted in Islamic economics and finance. By exploring the correlation of Islamic economics (Y), Islamic finance (Y), and mosque sustainability (Z), this research can utilize the mixed method approach of quantitative analysis to survey 200 congregation members, conduct in-depth interviews with five key informants, and employ PLS-SEM. This is the first mosque sustainability performance study to provide a quantitative analysis, along with PLS-SEM, and to correlate finance and economics in the Islamic context. Findings indicate that Islamic finance intermediates the influence of Islamic economics on mosque sustainability (indirect β=0.527; p<0.001). Islamic economics is explained to have a considerable direct influence on Islamic finance (β=0.782; p<0.001) as well as Islamic finance being the greatest contributor to mosque sustainability (β=0.673; p<0.001). This research affirms the four-dimensional sustainability pillar and the anticipation of mosque management to respond to the SDGs. This provided strong financial governance, partnership with Islamic banking, trained financial governance, and Islamic financial literacy courses.
Social Assistance Policies Amid the 2024 Presidential Election Contestation: An Islamic Political Economy Perspective
This research examines the dual function of social aid in Indonesia as a social safety net and as a political tool for the upcoming 2024 Presidential Election. This research used Fairclough's model of critical discourse analysis through the policymaking process of social assistance programmes, including articles in the online media, social aid (PKH, BPNT, KIP, and others), and the dynamics of public opinion from January to June 2024. The analysis of the data showed that in election years, the social aid budgets are increased. The social assistance is therefore politically motivated. However, these programmes help to some extent reduce poverty and improve access to education and health. Because of the political motivation, the assistance programmes lose their main social purpose. From the perspective of the Islamic political economy, the social assistance programmes should be based on maṣlaḥah al-‘āmmah. The underlying principle is the equitable social welfare of the people and the politically unmotivated equitable social wealth. This research demands that these assistance programmes and services be legally and politically unmotivated, and social welfare programmes be legally focused on the redistribution and social justice of the people, be oriented to the long-term social welfare of politically and legally unmotivated social welfare programmes.
Exploring the Link Between Islamic Philanthropy (ZIS) and Happiness: A Panel Data Analysis in Indonesia
This study investigates the determinants of the Indonesian Happiness Index, specifically examining the impact of income and Islamic philanthropy (Zakat, Infaq, and Sedekah or ZIS). Utilizing panel data from 19 provinces for the years 2017 and 2021, the research employs a Random Effect Model (REM) to analyze the relationships between happiness and key socio-economic variables, including Gross Regional Domestic Product (GRDP), charitable giving, poverty, and health. The empirical findings reveal that charitable giving through ZIS has a positive and significant effect on happiness, suggesting that religiously motivated altruism is a key driver of well-being in Indonesia. In contrast, income demonstrates a significant negative relationship with happiness, aligning with the Easterlin Paradox which posits that economic growth does not necessarily lead to greater life satisfaction. Furthermore, health complaints significantly reduce happiness, whereas poverty levels show no statistically significant impact. These results imply that policymakers should prioritize strengthening philanthropic governance, as promoting ZIS offers a strategic pathway to enhance societal well-being beyond material economic measures
Arima Forecasting of Indonesia’s Sovereign Sukuk as a Sustainable Financing Instrument
Sukuk development in Indonesia, along with SBSN (Surat Berharga Syariah Negara) sovereign securitization sukuk SBSN, sovereign securitization sukuk (SBSN), sustainable and diverse in-structure financing sukuk SBSN, is being balanced with the increasing usage of Sharia-compliant instruments for the financing of fiscal deficits and the management of sovereign debts, which continues to expand. An Autoregressive Integrated Moving Average (ARIMA) model is employed in this study, using monthly time series data for the period 2019 to 2024. Among the time series modeling techniques, ARIMA was chosen because explicit macroeconomic theories are not required for time series projection; thus, it is more suitable for modeling historical time series. The study has found that while the values of outstanding sukuk will no doubt increase, the uncertainty of longer-term forecasting will also increase. Forecasting in the present study lacks immediate quantification; however, the analyses provide a relevant and sustained policy framework for sovereign debt, and the analyses support the potentially strategic role of thematized instruments in fiscal management and for the sustainability of sukuk, in particular, focused sukuk, green sukuk, and retail sukuk. The research outlines strategic considerations for managing Shariah-compliant, long-term, and dynamic debt in Indonesia, thereby aligning financial innovation with national development interests.
Determinants of Public Participation in Retail Cash Waqf Linked Sukuk (Retail CWLS): Evidence from Indonesia
Indonesia continues to be the world leader in sukuk; on the other hand, Islamic social finance has not yet developed in the country. As of today, six series of Retail Cash Waqf Linked Sukuk (SWR001-SWR006) have been issued in the market; however, there is still a gap in both objectives policy and public goals. Micro-level studies on the behavior of retail investors have been neglected, while a majority of the studies have focused on macro-level studies of the regulatory environment. This research attempts to analyze public participation in Retail Cash Waqf Linked Sukuk (Retail CWLS) to gain an understanding of the dynamics, potential, and policy implications through the lens of the Analytic Network Process (ANP). Primary data through in-depth interviews with middle government officials of Indonesia is used to analyze interdependent relationships and feedback loops of barriers to Retail CWLS and prioritize them for policy recommendations. Results of this research state that for Retail CWLS to improve, there is a need to strengthen, invest, measure social impact, and identify the motivators of the investors. Investors demand fund distribution transparency, digital platforms that are easy to use, and competitive returns.
US–China Tariff War 2025 and Its Implications for Global Gold Prices in the Perspective of Islamic Economics
The re-escalation of the US–China tariff war in 2025 intensified global market uncertainty and reshaped investor behavior across commodity and equity markets. Amid escalating trade tensions, gold prices surged to USD 3,433 per ounce in April 2025, while major stock indices, including the S&P 500 and the Indonesian Sharia Stock Index (ISSI), declined. This study investigates the impact of the 2025 US–China tariff conflict on global gold price movements and evaluates these dynamics from the perspective of Islamic economics. Employing a qualitative-descriptive approach based on literature review, the study synthesizes secondary data on gold prices, equity indices, trade policy developments, and relevant Sharia principles. The findings indicate that gold acted as a short-term safe-haven asset during the escalation phase but lost part of this function during the de-escalation period in May 2025, when market sentiment improved and equity prices recovered. From an Islamic economics perspective, gold remains a legitimate instrument for wealth protection (hifz al-mal), provided that investment practices avoid riba, gharar, and maysir. These findings underline the importance of prudence, long-term asset preservation, and the strengthening of Sharia-compliant gold investment instruments under geopolitical uncertainty.