An Evaluation of the Impact of Zakah and Islamic Financial Instruments on Economic Growth

Sofyan Rizal, Nur Adibah

Abstract


This study analyzes the effect of Islamic economic instruments, such as zakat, SBSN, and Islamic Venture Capital (MVS), on Indonesia's economic growth. GDP measures economic growth, while the zakat variable is proxied by the distribution carried out by BAZNAS. Furthermore, MVS and SBSN are measured by total sharia business financing, and total ownership of State Sukuk issued during the study period. This study uses multiple linear models to analyze the impact of Islamic venture capital, ZIS, and SBSN regression from 2011 – 2020. The multiple regression tests were used to partially or simultaneously determine the effect of ZIS funds delivery, Sukuk (SBSN), and Islamic venture capital financing on Indonesia's economic growth. The results showed that the distribution of ZIS partially significantly affects economic growth. The SBSN and Venture Capital variables also have a significant and positive effect. Simultaneously, ZIS distribution and Sharia financing, namely SBSN and Islamic Venture Capital, significantly affected economic growth. This result implies that an increase in Islamic capital financing, SBSN, and distribution of ZIS funds can positively encourage Indonesia's economic growth.


Keywords


distribution of ZIS; SUKUK; Islamic venture capital; economic growth

Full Text:

PDF

References


Alkhawaja, M. M. (2019). Sukuk: Measuring the Role of Sukuk as an Economic Growth Enhancer in Turkey. Australian Journal of Basic and Applied Sciences, 13(2), 95-99.

Al Haq, M. A., & Wahab, N. B. A. (2017). Effective Zakah Distribution: Highlighting Few Issues and Gaps in Kedah, Malaysia. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah 9(2): 259-288. https://doi.org/10.15408/aiq.v9i2.4002.

Anwar, M., & Nabila, R. (2021). The Effect of Zakat, Foreign Debt and Inflation Toward the Economic Growth of Indonesia Through Consumption in 2010-2019. Journal of Economics and Regional Science, 1(1), 11-27.

Amymie, F. (2017). Optimalisasi Pendistribusian dan Pendayagunaan Dana Zakat dalam Pelaksanaan Tujuan Program Pembangunan Berkelanjutan (SDGs). Anida: Aktualisasi Nuansa Ilmu Dakwah, 17(1), 1–18.

Athoillah, M. A. (2018). The Zakat Effect on Economic Growth, Unemployment and Poverty in the Island of Java: Panel Data Analysis 2001-2012. Ekspansi: Jurnal Ekonomi, Keuangan, Perbankan, dan Akuntansi, 10(2), 205-230. DOI: https://doi.org/10.

/ekspansi.v10i2.1211.

Baznas. (2021) Zakah outlook 2021. Jakarta: Center of Strategic Studies Baznas.

Baznas. (2019). Pusat Kajian Strategis BadanAmil Zakat Nasional.

Baznas. (2019). Statistik Zakat Nasional. BAZNAS Sub Divisi Pelaporan.

De Carvalho,A. G., Netto, H. G., & Sampaio, J. O. (2013). Private Equity and Venture Capital in Brazil: An Analysis of its Evolution. Revista Brasileira de Finanças, 12(4), 499-515.

Echchabi, A., Hassanuddeen, A. A., & Idriss, U. (2018). The Impact of Sukuk Financing on Economic Growth: The Case of GCC Countries. International Journal of Financial Services Management, 9(1), 60-69. DOI: 10.1504/IJFSM.2018.089920.

Elsiefy, E. (2014). Fundamental Requirements for Building an Islamic Venture Capital Model. Accounting and Finance Research, 3(1), 55-66. DOI: https://doi.org/10.5430/afr.v3n1p55.

Fahrian, D., & Seftarita, C. (2016). The Effects of Sukuk (Islamic Bonds) In The Economy. Proceedings of The 6th Annual International Conference Syiah Kuala University (AIC Unsyiah) in conjunction with The 12th International Conference on Mathematics, Statistics and Its Application (ICMSA). Banda Aceh, Indonesia.

Hafidhuddin, D. (2011). Peran Strategis Organisasi Zakat dalam Menguatkan Zakat di Dunia. Al-Infaq: Jurnal Ekonomi Islam, 2(1), 1-4. DOI: https://doi.org/10.32507/ajei.v2i1.361.

Hamzah, Z. (2011). Islamic Private Equity and Venture Capital: Principles and Practice. Kuala Lumpur: IBFIM.

Haq, S. G. (2013). Distribution of Income and Wealth in Islam. South East Asian Journal of Contemporary Business, Economics and Law, 2(2), 34-40.

Hamid, A. (2015). Modal Ventura Syari'ah. Al-Masharif: Jurnal Ilmu Ekonomi dan Keislaman, 3(1), 142-157.

Hasan, Z. (2017). Consumprion and Islam: Micro Foundations and Macro Modelling. Journal of Economic and Social Thought, 4(1), 108-118. https://doi.org/10.1453/jest.v4i1.1207.

Hariyanto, E. (2017). Efektivitas Penerbitan Sukuk Negara Sebagai Instrumen Pembiayaan APBN. Jurnal Perbendaharaan Keuangan Negara dan Kebijakan Publik, 2(1). DOI https://doi.org/10.33105/itrev.v2i1.15.

Hedman, F. (2019). The Relationship Between Venture Capital and High Growth Firms. Thesis. Stockholm: KTH Royal Institute of Technology School of Industrial Engineering and Management.

Indonesia Sharia Economic Outlook. (2020). Jakarta: Pusat Ekonomi dan Bisnis Syariah FEB UI.

Jallow, O., & Joof, F. (2020). Investigating the Asymmetric Effect of Sukuk Returns on Economic Growth–Evidence from Indonesia, a NARDL Perspective. MPRA Paper No. 102939. Online at https://mpra.ub.uni-muenchen.de/102939/.

Kinyua, A. N. (2014). Factors Affecting the Performance of Small and Medium Enterprises in the Jua Kali Sector in Nakuru Town, Kenya. Journal of Business and Management, 16(1), 80-93.

Latifah, S. (2020). Peran Sukuk Surat Berharga Syariah Negara (SBSN) dalam Pertumbuhan Pembangunan Ekonomi Indonesia. Jurnal Ilmiah Ekonomi Islam, 6(3), 421-427. https://doi.org/10.29040/jiei.v6i3.1369.

Luqman. (2020). The Influence of Sharia Sukuk and Sharia Mutual Funds to National Economic Growth year 2011-2019 Jurnal Ilmu Ekonomi dan Manajemen, 7(2), 13-20. DOI: https://doi.org/10.30996/jmm17.v7i2.4557.

Manigart, S., & Sapienza, H. J. (2017). Venture Capital and Growth. Oxford: The Blackwell Handbook of Entrepreneurship.

Misissaifi, M., & Erlindawati. (2019). Investasi Syariah Melalui Surat Berharga Syariah Negara. JAS (Jurnal Akuntansi Syariah), 3(2), 226–237. https://doi.org/10.46367/jas.v3i2.186.

Mitsaliyandito, R. Q., & Arundina, T. (2018). Dynamic Relationship between Sovereign Bond and Sukuk Market Developments in Indonesia. Pertanika: Social Sciences and Humanities, 26, 27-38.

Metrick, A., & Yasuda, A. (2011). Venture Capital and The Finance of Innovation, Second Edition. John Wiley & Sons, Inc.

Munandar, R. E. M. H. (2019). Konsep Hutang Negara (SUN) dan Surat Berharga Syariah Negara (SBSN) dalam Bingkai Ekonomi Syariah. Adzkiya: Jurnal Hukum dan Ekonomi Syariah, 7(1), 103-126. DOI: https://doi.org/10.32332/adzkiya.v7i1.1822.

Nayan, S., & Norsiah, K. (2014). Sukuk and Economic Growth: Evidence from Panel Data. 16th Malaysian Finance Association Conference (MFA2014), 4 - 6 June, Sasana Kijang Central Bank of Malaysia, Kuala Lumpur.

Nopijantoro, W. (2017). Surat Berharga Syariah Negara Project Based Sukuk (SBSN PBS): Sebuah Instrumen Alternatif Partisipasi Publik Dalam Pembiayaan Infrastruktur. Substansi, 1(2), 1–17. https://doi.org/10.31949/mr.v1i2.1134.

Nurbiyanto,. & Pribadi, Y. (2020). Surat Berharga Syariah Negara Berbasis Proyek Pada Kementerian Agama: Alternatif Pembiayaan Infrastruktur Pemerintah. Jesya (Jurnal Ekonomi & Ekonomi Syariah), 3(2), 320–329. https://doi.org/10.36778/jesya.v3i2.151.

Paglia, J. K., & Harjoto, M. A. (2014). The effects of Private Equity and Venture Capital on Sales and Employment Growth in Small and Medium-Sized Businesses. Journal of Banking & Finance, 47, 177-197. DOI: 10.1016/j.jbankfin.2014.06.023.

Parisi, S. A., & Rusydiana. A. S. (2017). The Comparison of Sukuk and Bond Absorption; Deficit Budget Financing in Indonesia. Tazkia Islamic Finance and Business Review 10(2), 107–21, https://doi.org/10.30993/tifbr.v10i2.106.

Peter, B.A., & Anyieni,A. G. (2015). Influence of Venture Capital Financing on the Growth of Micro, Small and Medium Enterprises in Kenya: The Case Paper of Nairobi County. European Journal of Business and Management, 7(29), 85-89.

Powell, R. (2010). Zakah: Drawing Insights for Legal Theory and Economic Policy from Islamic Jurisprudence, 7 PITT. TAX REV. 43.

Purwanti, D. (2020). Pengaruh Zakat, Infak, dan Sedekah terhadap Pertumbuhan Ekonomi Indonesia. Jurnal Ilmiah Ekonomi Islam, 6(1), 101-107. https://doi.org/10.29040/jiei.v6i1.896.

Samad, M. N., Ariff, M., & Nassir, A. M. (2016). Impact of Zakat Payment Offset System on Income Tax Collection in Malaysia. International Journal of Applied Business and Economic Research, 14(13), 9579-9607.

Samila, S., & Sorenson, O. (2011). Venture Capital, Entrepreneurship, and Economic Growth. The Review of Economics and Statistics, 93(1), 338-349. https://doi.org/10.1162/REST_a_00066.

Schröder, C. (2009). Financial System and Innovations: Determinants of Early Stage Venture Capital in Europe, Berlin. Schumpeter Discussion Papers 2009-004. DOI: 10.1007/978-3-642-16274-9_4.

Shaikh, S. A., & Ismail, A. G. (2017). Role of Zakat in Sustainable Development Goals. International Journal of Zakat, 2(2), 1-9. DOI: 10.37706/journal.v2i2.21.

Shirazi, N. S. (2014). Integrating Zakāt and Waqf into the Poverty Reduction Strategy of the IDB Member Countries. Islamic Economic Studies, 22(1), 79-108. DOI No. 10.12816/0004131.

Smaoui, H., & Nechi, S. (2017). Does Sukuk Market Development Spur Economic Growth?. Research in International Business and Finance, 41(C), 136-147.

Smolo, E., & Mirakhor, A. (2010). The Global Financial Crisis and its Implications for the Islamic Financial Industry. International Journal of Islamic and Middle Eastern Finance and Management, 3(4), 372-385. https://doi.org/10.1108/17538391011093306.

Suprayitno, E., Aslam, M., & Harun, A. (2017). Zakah and SDGs: Impact Zakah on Human Development in the Five States of Malaysia. International Journal of Zakah, 2(1), 61-69. https://doi.org/10.37706/ijaz.v2i1.15.

Suprayitno, E. (2020). The Impact of Zakat on Economic Growth in 5 State in Indonesia. International Journal of Islamic Banking and Finance Research, 4(1), 1-7. DOI: https://doi.org/10.46281/ijibfr.v4i1.470.

Sugiono. (2014). Metode Penelitian Kuantitatif, Kualitatif dan R & D. Bandung:Alfabeta.

Tabash, M. I. (2019). Banking Sector Performance and Economic Growth: An Empirical Evidence of UAE Islamic Banks in Creative Business and Social Innovations for a Sustainable Future. Springer International Publishing.

Timmons, J. A., & Bygrave, W. D. (1986). Venture Capital's Role in Financing Innovation for Economic Growth. Journal of Business Venturing, 1, 161-176. https://doi.org/10.1016/0883-9026(86)90012-1.

World Population Review. (2020). https://worldpopulationreview.com/countryrankings/muslim-population-by-country.

World Bank. (2021). https://www.worldbank.org/in/news/press release/2020/01/30/expanding-middle-class-key-for-indonesia-future.

Website:

https://investor.id/market-and-corporate/303884/2022-penerbitan-obligasi-dan-sukuk-capairp




DOI: https://doi.org/10.18326/muqtasid.v13i1.31-46

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

                                                                

Creative Commons License

MUQTASID by http://muqtasid.iainsalatiga.ac.id/ is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

MUQTASID Jurnal Ekonomi dan Perbankan Syariah UIN SALATIGA p-ISSN: 2087-7013, e-ISSN: 2527-8304