EJESH: Journal of Islamic Economics and Social

Islamic Financing Institutions in Indonesia: Concepts, Regulations, and Financing Products

2025-10-24T16:20:40+07:00

The dynamic evolution of the global economy necessitates a financial system that is not only efficient but also just and ethical. In this context, Islamic financial institutions emerge as a strategic alternative by offering financial solutions grounded in Islamic principles such as justice, transparency, and social responsibility. This study aims to examine the concepts, regulations, operational principles, and various Islamic financing products developing in Indonesia. Employing a library research method, this study draws on academic literature, official regulations, and fatwas issued by the National Sharia Council of the Indonesian Ulema Council (DSN-MUI). The findings reveal that Islamic financial institutions perform financial intermediation through Sharia-compliant contracts such as murabahah, mudharabah, musyarakah, ijarah, and others. In terms of regulation, these institutions operate under a formal legal framework that includes Law No. 21 of 2008, Minister of Finance Regulation No. 84/PMK.012/2006, various regulations from the Financial Services Authority (OJK), and Sharia fatwas. The financing products offered encompass consumptive, productive, syndicated, take-over, and letter of credit (L/C) financing. The study underscores the significant role of Islamic financial institutions in promoting inclusive and sustainable economic growth in Indonesia

The Influence of Financial Knowledge, Lifestyle, and Religiosity on the Consumption Patterns of State Civil Apparatus (ASN) in the Bangka Regency Government

2025-10-26T12:45:08+07:00

In Islamic economics, consumption is regarded as an essential aspect of achieving falah (prosperity) that must align with Islamic principles. However, the recent phenomenon of State Civil Apparatus (ASN) exhibiting consumerist and hedonistic lifestyles on social media has triggered public criticism. Since the income of ASN employees is financed through public taxes and remains relatively stable, they are expected to demonstrate financial prudence and simplicity. This study examines the effects of financial knowledge, lifestyle, and religiosity on the consumption patterns of ASN employees within the Bangka Regency Government. This research applied a quantitative inferential approach using multiple regression analysis with the assistance of SPSS 26.0. The study involved 160 respondents, obtained through both online and printed questionnaires distributed between September and October 2024. The findings reveal that financial knowledge (p = 0.001) and religiosity (p = 0.000) significantly influence consumption patterns, while lifestyle (p = 0.604) does not. Simultaneously, all three independent variables significantly affect consumption patterns (F = 19.028, p < 0.05). The results emphasize the crucial role of financial literacy and religiosity in shaping rational and ethical consumption behaviors among ASN employees, highlighting the need for stronger moral and financial education within the civil service sector.

The Impact of FOMO Culture and Digital Social Pressure on the Ethical Behavior of Young Consumers Toward Local Products

2025-10-26T12:49:57+07:00

The rise of social media and digital culture has reshaped how young consumers make moral decisions, particularly in purchasing local products. The phenomenon of Fear of Missing Out (FOMO) has emerged as a psychological driver that fuels impulsive and symbolic consumption among Generation Z. This study aims to analyse the extent to which digital social pressure and FOMO culture influence the ethical behaviour of young consumers when buying local products in the era of algorithmic capitalism. A qualitative conceptual approach was employed through a systematic literature review of relevant studies published between 2020 and 2025. The analysis followed a deductive–thematic process to explore the relationships among intrinsic moral motivation, digital social pressure, and ethical fading in consumer behaviour.

The findings reveal that while ethical awareness toward local products is increasing, social pressure and FOMO culture tend to shift consumers’ moral orientation from intrinsic values to extrinsic motivations based on trends and social validation. This phenomenon amplifies the attitude-behaviour gap and indicates a transformation of morality from personal reflection to algorithmic conformity. The study concludes that ethical consumer behaviour in the digital age must be understood as the outcome of an interaction between individual values, technological design, and social media pressure. It recommends enhancing digital moral literacy and encouraging local businesses to build authentic ethical narratives so that young consumers’ decisions remain grounded in moral awareness rather than transient digital trends.

Baitul Mal wat Tamwil (BMT): The Pillar of Islamic Microfinance in Indonesia

2025-10-26T16:46:40+07:00

Baitul Mal wat Tamwil (BMT) is a sharia-based microfinance institution founded on both profit-oriented and social principles. Its functions include collecting funds from the community in the form of savings and deposits, administering these funds, and redistributing them through financing, receivables, or loans under a profit-sharing system based on Islamic principles. The historical development of BMT in Indonesia originated from grassroots initiatives that applied various sharia contracts in Islamic muamalah. In the context of microfinance, BMT’s contributions to community economic empowerment—such as business financing, training and mentoring, local economic development, social fund management (ZISWAF), income generation, and poverty alleviation—have effectively enhanced financial inclusion by providing access to financial services for individuals and community groups previously underserved by conventional financial institutions