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This paper aims to find several factors from religiosity aspects (perceived religiosity on property [PRP], perceived Islamic debt principle, perceived maqasid on homeownership, Shariah-compliant products [SCPs]) and financial aspects (mortgage repayment policy [MRP], well-versed bankers, perceived financial benefit [PFB], perceived risk), which influence the willingness of low-income people to choose Sharia-subsidized Kredit pemilikan rumah/mortgage (KPR) in Indonesia.

Research data was obtained from 235 respondents and analyzed using the partial least square-structural equation modeling method.

The research results show that PRP, SCPs, MRP and PFBs significantly influence the willingness to choose Sharia-subsidized mortgage. The practical implication that can be applied to increase the willingness of low-income people to choose Sharia-subsidized mortgage is by promoting it more massively with elements of community religiosity.

Sharia banking as the bank implementing Sharia-subsidized mortgage can consider the financial benefits of the debtor by implementing payment policies that make it easier for customers who have financial difficulties, such as rescheduling and payment holiday policies so that public interest in choosing Sharia-subsidized mortgage increases, so the problem of housing needs in low-income people can find its solution.

The concept of women’s empowerment is widely regarded as a crucial factor in facilitating the integration and involvement of women in the development process. The cornerstone of women’s empowerment is widely acknowledged to be social and political engagement coupled with economic independence. This research aims to contribute to understanding the effects of access to digital financial services by microfinance institutions (MFIs) in Indonesia on women empowerment, specifically focusing on women at the bottom of the economic pyramid. This empowerment is assessed through social, political and economic dimensions.

This study utilizes logistic regression (LR) to examine the effect of access to microfinance digital financial services on the social, political and economic determinants of women’s empowerment. The analysis is based on the threshold theory of decision-making. The present research includes a sample of 1,644 female entrepreneurs, namely ultra-micro small and medium-sized enterprises (SMEs), actively participating in microfinance activities in Daerah Istimewa Yogyakarta, Nusa Tenggara Barat and Sulawesi Selatan.

The findings indicate a statistically significant effect between access to credit and the two variables under investigation, namely social and economic empowerment. However, no significant effect was seen between credit access and women’s empowerment. Following this, a positive effect has been identified between credit access and several aspects of women’s empowerment.

The research establishes a framework and substantiates that women’s empowerment relies on economic autonomy, social engagement and political involvement. MFIs have been identified as significant contributors to this process. This will assist practitioners in formulating policy and implementing interventions to promote women’s empowerment, particularly in the context of digital microfinance. The results of this study will provide valuable insights for guiding future research endeavors in this field.

The work exhibits originality and serves as a valuable resource for those who recognize and appreciate its significance. This report is the first study to examine the correlation between female entrepreneurs’ access to digital MFIs and women’s empowerment dimensions.

The COVID-19 pandemic has affected economic activity both globally and nationally, which also has an impact to banking sector and Islamic banking is no exception. This study aims to see how the impact of Islamic bank financing in seven sectors affected by the COVID-19 to the credit risk of Indonesian Islamic banks. In addition, this study also tries to see whether the proportion of mudharabah-musharaka or profit-loss sharing (PLS) financing also affects credit risk in Indonesian Islamic banks.

This study uses fixed effect panel data regression over the period 2011–2020.

The results of this study show that wholesale and retail trade financing will increase credit risk in Indonesian Islamic banks as a policy implication. In terms of the proportion of PLS financing, it shows that a larger share of PLS financing will reduce credit risk in Islamic banks.

This paper demonstrates that despite the industry’s perception of PLS as riskier than murabaha-based instruments. According to the research, PLS financing will lower credit risk in Islamic banks. This study found that PLS contributes to overall economic stability by shifting the function of Islamic banks from a simple lending body to an active market catalyst/manager/consultant to market players seeking financial aid.

This paper aims to highlight on the unique aspects of Islamic microfinance based on the experience of Baitul Maal Wa Tamwil (BMT) in Indonesia.

It adopts the content analysis approach and focuses on three phases of financing, namely, pre-financing, financing and post-financing using coding and model buildings. Data are collected through in-depth interview with a sample of representatives of BMTs that offer product based on Islamic principle for the poor located in Jakarta, Bogor, Depok, Tanggerang and Bekasi (JABODETABEK), Sulawesi Selatan, Yogyakarta and Nusa Tenggara Barat (sample chosen based on the most concentrated areas of Islamic microfinance that offered product based on Islamic principles). Ultimately, a model based on the unique features of Islamic microfinance will be developed based on the findings of the content analysis.

The proposed model incorporates the peculiarities of the poor people in pre-financing, financing and post-financing activities of micro-financing products to serve as a reference for policy makers. The paper also found that each region has unique product preferences depending on the poor’s characteristics.

This study is only conducted in four areas with BMT representation, namely, Jakarta, Bogor, Depok, Tangerang, Bekasi (often abbreviated as JABODETABEK), Sulawesi Selatan, Yogyakarta and Nusa Tenggara Barat) in Indonesia. Despite the limited scope, the findings have wide applications to the Islamic microfinancing in general.

The paper adds value to the literature on Islamic microfinance by enabling researchers and practitioners to understand the model of three step financing (pre-financing, financing and post-financing) in Islamic microfinance in Indonesia. Although not a new issue, the paper provides the practice of pre-financing, financing and post-financing processes which may differ from the practices of Islamic microfinance in other settings because of different cultural influences unique to every region.

This study aims to determine the factors that impact the success of loan repayment in the ultra-micro (UMi) program in Indonesia through the application of ordinal logistic regression. Several microfinance institutions in Indonesia have already adopted digital applications to optimize their daily operational procedures, hence facilitating efficient operations. However, the success and sustainability of microfinance institutions may be proven by their capacity to increase profitability and boost the repayment track record of borrowers. The repayment performance is categorized into five levels: collectability-1 (pass), collectability-2 (special mention), collectability-3 (substandard), collectability-4 (doubtful) and collectability-5 (loss).

A sample size of 600 was used to collect data from a non-banking financial business (NBFC) in Indonesia. The data were collected from historical transactions carried out in different locations around Indonesia 20 provinces in total.

The research illustrates those variables such as income, loan size, repaid scheme, loan tenure and business sector significantly influence the performance of loan repayment. However, this study clarifies that the probability of a borrower not defaulting on their loan is affected by the flexibility of the repayment method for making the payment.

The paper suggests that financial institutions in Indonesia should reevaluate their loan policy for small and medium enterprises (SMEs) and develop a more flexible credit system that considers the borrower’s characteristics.

This study enhances the current body of research on the digital repayment performance of ultra-micro enterprises in Indonesia. This observation has significance in the context of policy decision-making and policy reversal, as it underscores the need to promote and implement skill development initiatives nationwide to foster the growth of sustainable UMi enterprises. The performed research recognizes the need to take into account the comprehensive assessment of digital repayment performance. Consequently, it offered valuable information on the borrowers, loans and business characteristics of ultra-micro enterprises.

The purpose of this paper is to analyze the potential of remote areas in Indonesia and find out the important variables that influence key success factors of Local Economic Regional Development (LERD) program in several areas.

A series of structured interviews were conducted with the chairman and staff of local government, academician, private sectors and locals who are induced to work together to improve quality of life, create new opportunities and fight poverty in Bau-Bau, Singkawang and Kupang. Subsequently, the results from the structured interviews were analyzed using qualitative analysis to arrive at the model of LERD in Indonesia.

The findings show that variables that influence the key success factors of LERD in this research are resources endowment, social capital and local support as independent variables; entrepreneurial strategy as moderating variable; and perceived performance as dependent variable.

This study was conducted only in Indonesia which focused on local economic regional development in Indonesia. Despite this limitation, the findings of this study enable the construction of a general model that highlights LERD in chosen areas. The model is also expected to give an idea of how to develop economic region.

The paper adds to the literature on LERD by enabling researchers and practitioners to understand the model of LERD in Indonesia.

Baitul Maal wa Tamwil (BMT) is an Islamic microfinance institution created by combining the functionality of Baitul Maal and Baitul Tamwil in Indonesia. While Baitul Maal plays the role of an institution that collects funds from zakah, cash waqf, infaq and sadakah, Baitul Tamwil then distributes these funds in the form of Qardhul Hassan financing to the poor at the bottom of the economic pyramid (BOP). This study aims to explain the poverty alleviation effort by BMT regarding its role in providing Qardhul Hassan financing to the people at the BOP and provide practical suggestions to maximize the outreach performance of the BMT.

In this methodology, the study adopts the qualitative analysis of reviewing the literature and interviewing the BMT staff in Jakarta, Makassar and Nusa Tenggara Barat areas to present the views of the practitioners related to the role of Baitul Maal in giving Qardhul Hassan financing to the people at the BOP using appreciative intelligence framework.

The study finds that BMT in Indonesia needs several stage-specific structures and roles to be effective. In particular, there is a need to separate the function of Baitul Maal from Baitul Tamwil to enhance its role when giving Qardhul Hassan financing to the people at the BOP. The role of Baitul Maal in alleviating the poverty figure is also drawn in this study.

The findings of this study add to the literature on Baitul Maal by enabling researchers and practitioners to appreciate the role of Baitul Maal, and these findings also contribute towards enriching the knowledge in Baitul Maal and financing requirements of the poor at the BOP. This paper also contributes to the field of Islamic accounting which is currently getting prominent.

This paper aims to examine a range of factors that may influence the intention of ultra-micro-SMEs in Indonesia in choosing the type of microfinance facilities in the case of getting better offerings.

Drawing from the theory of planned behavior (TPB) framework, religious elements factors include religious leader endorsements, religiosity and Sharia compliance, whereas socially/commercially driven factors include social and rational sociodemographic indicators. Data was obtained from 319 ultra-micro-SMEs in emerging economies such as Indonesia, and structural equation modeling was used to analyze the survey data.

The findings reveal that commercial aspects, as rational variables, have a negative influence on the intention to switch from Islamic to conventional microfinancing. On the contrary, social influence from peers and family positively influences the intention to switch from Islamic to conventional microfinancing. Religious aspects, however, have no influence on the intention to switch or actual switching behavior from Islamic to conventional. Intention to switch was shown to positively influence actual switching behavior as per the prediction of the TPB.

There is a lack of research on the choice or behavior of ultra-micro-SMEs when deciding whether to use Islamic or conventional microfinance. This study enriches the literature by providing empirical evidence on the factors affecting this choice-making.

Islamic home financing products with Murabaha contracts are widely favored among the Muslim community in Indonesia, given that the country has a population of over 230 million Muslims. To facilitate the development of products and enhance public interest, it is important for Islamic banking institutions to comprehend the elements that may impact the intents of Muslim communities in Indonesia when selecting Islamic home financing products with Murabaha contracts. The purpose of this study is to ascertain the many aspects that may have an impact on the decision-making process of Muslim communities in Indonesia when selecting Islamic home financing product that use Murabaha contracts.

The partial least square-structural equation modeling data processing techniques will be used to process and evaluate these components. The data used in this study was acquired by administering questionnaires to a sample of 298 Muslim communities, which were randomly selected from a pool of 301 possible customers of Islamic house finance in Indonesia.

The results of this research show that attitude, subjective norms and perceived behavioral control have positive influence on intention to choose an Islamic home financing scheme with Murabaha agreement, while price fairness of Islamic home financing and Islamic altruism have direct and indirect influence on intention to choose Islamic home financing.

Analyzing factors that affect intention to choose Islamic home financing product under Murabaha contract is essential. Future study is required to analyze other Islamic home financing products, such as istisna, ijarah muntahia bi tamlik and diminishing musharakah. This study only serves as a foundation for further investigations into conventional approaches to home financing in emerging nations. The areas can be expanded to be implemented in other countries.

It is anticipated that Islamic banks have the capacity to cultivate a favorable and constructive perception, hence fostering a positive disposition among the Muslim populace in Indonesia. Furthermore, it is essential for Islamic banks to guarantee that all stakeholders within the sharia-compliant institution, particularly the frontline staff, have enough expertise and understanding of the intricacies of Islamic home financing products including Murabaha contracts, which are intended for prospective customers. In the foreseeable future, it is anticipated that the Muslim population in Indonesia would exhibit a greater intention toward the use of Islamic home financing solutions that use Murabaha contracts, facilitated by the establishment of a conducive environment.

This research integrates the impacts of pricing fairness and Islamic charity as a modified model, alongside the theory of planned behavior model, to examine the influence of these factors on individuals’ intentions to use Islamic home financing in Indonesia.

This study aims to analyze the adoption of the people entrepreneurship credit with online platform – a government-sponsored subsidy of small and medium enterprises to reduce poverty and to improve welfare – in the Central Java, Indonesia. The objective of the research is also to analyze the motivation of small and medium enterprises to adopt the credit with online platform in supporting business activities. The research framework used the technology acceptance model – the effect of perception of usefulness, perception of ease of use, subjective norm and four As – availability, affordability, awareness, acceptability and trust – to analyze them as the determinants on the intention to adopt the People Entrepreneurship Credit.

The quantitative method with survey was deployed in the study by distributing questionnaires. The number of collected data was 380 credit users, and the criteria used for the respondents were the small entrepreneurs with the use of the people entrepreneurship credit as the micro credit program.

Results indicated that perception of usefulness, perception of ease of use, subjective norm, availability, trust and affordability have direct effect on the intention to adopt the credit. Interestingly, the strongest direct effect on the adoption intention was more likely to come from the perception of ease of use. Meanwhile, awareness and acceptability have no direct effect on the intention to adopt.

This study provides new theoretical insights regarding the implementation of technology acceptance model to analyze the intention to adopt and the analysis of four As concept. The findings of the study will provide a better strategy for banking as service industries in formulating the program of credit access for the entrepreneurs to run the business properly.