INDONESIA - ARTICLES - Shariah compliant model of business entities

Shariah Compliant Model of Business Entities

Irawan Febianto - University of Padjadjaran - Faculty of Economics, Department Management and Business

World Journal of Social Science, Forthcoming

The twentieth first century has witnessed resurgence in the observance of fundamental Islamic business practices around the world. However, the fact cannot be denied that the current state of business under unbridled capitalism in the majority of cases in the Muslim world remains far from the Islamic ideal. This gap between the ideal and the reality is widening rapidly and has become a threat not only to the well being of the masses but also to the very peace and stability of Muslim societies.This paper try to describe the model of shariah compliant business entities. It presents the basic understanding of the concept of business in Islam and its business characteristics. It also explore the form of business management model that is shariah compliant. This paper will also propose a model of shariah compliant of business that is focusing on five aspects of business entities: the functions of management, the process of business, corporate culture, corporate governance, and corporate social responsibility. (source)

INDONESIA - ARTICLES - An Analysis on the Impact of Zakah Programs In Poverty Alleviation: Case Study in Bandung, Indonesia

An Analysis on the Impact of Zakah Programs In Poverty Alleviation: Case Study in Bandung, Indonesia

Irawan Febianto - University of Padjadjaran - Faculty of Economics, Department Management and Business

Arimbi Mardilla Ashany-University of Padjadjaran, Indonesia - Faculty of Economics

Asrul Kautsar- University of Padjadjaran, Indonesia - Faculty of Economics

Proceedings of the Zakat International Conference 2011, Bogor: World Zakat Forum, Bogor Agricultural Institute (IPB) and Ibnu Khaldun Islamic University

The condition of zakah in Indonesia has become increasingly arising which is marked by changes of paradigm on zakah management. Formerly it was based on individual-traditional approach, but then it moved more on collective-professional approach. This is indicated by the emerging of many zakah-managing organizations that are more professional and offer creative programs. This has positive impact towards the improvement of the Indonesian economy. At the least, appropriate zakah allocation in the certain programs may significantly have impact on the increase of the Mustahiq’s Marginal Propensity to Consume (MPC) and also increase the producer’s production rate. In macro level, it will also impact on the increase of Third Party Fund in banks.

This paper will explain how zakah, with professional management, may fulfill the three aspects as mentioned above and hence the three will gradually alleviate poverty. Specifically, this paper limits the scope of research to only several programs of certain zakah-managing institutions that operate in Bandung, West Java, Indonesia. The method using in this paper is descriptive analysis regarding to the programs of zakah-managing institutions that have and have not been implemented. The analysis has reached to a conclusion that the programs can realize the increase of Mustahiq’s MPC thus converting them to become Muzakki, boost the producers’ level of production, and improve the balance of bank customers’ savings.(download)

PUBLICATIONS - List of publications of Irawan Febianto

Irawan Febianto was so kind to put a list of the publications related to Islamic finance at our disposal.

We will keep you updated on future release.  For the list, see hereunder.