SHACRAL: Shari'ah Economics Review Journal

DIGITAL TRANSFORMATION OF ISLAMIC BANKING IN INDONESIA: ANALYZING OPPORTUNITIES, CHALLENGES, AND STRATEGIES FOR ENHANCING COMPETITIVENESS IN THE DIGITAL ECONOMY ERA

2026-06-17T04:37:09+00:00

This study aims to analyse the digital transformation strategies implemented by Islamic banks in responding to challenges whilst capitalising on opportunities in the digital age. The primary focus of this study is the relationship between technological innovation and compliance with Sharia principles, as well as how digitalisation strategies can strengthen the competitiveness of Islamic banking without compromising the integrity of Islamic law. The methodology employed is a descriptive qualitative approach through a literature review, examining various academic references such as national and international journals, regulatory reports (from the OJK and Bank Indonesia), and strategic documents from leading Islamic banks. This secondary data was systematically analysed to identify opportunities, challenges, and actual strategies implemented. The findings indicate that digitalisation presents significant opportunities for expanding Islamic financial inclusion, operational efficiency, and technology-based product innovations such as e-mudharabah, e-wakaf, and mobile zakat. However, the main challenges faced include regulatory frameworks that have yet to adapt, data security risks, disparities in digital infrastructure, and a shortage of human resources with dual expertise (in digital technology and Sharia law). The proposed strategies include strengthening the digital Sharia ecosystem, collaborating with halal fintech firms, adopting innovative technologies such as AI and open banking APIs, and providing staff training based on the integration of technology and fiqh muamalah. Through a holistic approach, digital transformation is expected to consolidate the position of Sharia banking as a pillar of the modern Islamic economy that is inclusive, efficient, and sustainable.

Rupiah Depreciation and Sharia Equity Performance: Evidence from the Indonesian Sharia Stock Index During Economic Turbulence

2026-06-17T05:00:23+00:00

This study investigates the impact of the Indonesian Rupiah (IDR) exchange rate against the United States Dollar (USD) on the Indonesian Sharia Stock Index (ISSI) during the 2020–2025 period. Using monthly time-series data comprising 72 observations, the analysis employs the Ordinary Least Squares (OLS) method, supported by the Augmented Dickey–Fuller (ADF) unit root test, classical diagnostic tests, and the Engle–Granger cointegration approach. The ADF results reveal that both variables are non-stationary at level but become stationary after first differencing, indicating integration of order one, I(1). The level regression initially suggests a positive and statistically significant relationship between the exchange rate and ISSI (R² = 0.684). However, the relatively low Durbin–Watson statistic indicates the possibility of spurious regression. After transforming the variables into first differences, the relationship turns negative and remains statistically significant (β = −177.18; p = 0.027), supporting the predictions of the flow-oriented exchange rate model. Furthermore, the cointegration test confirms the existence of a long-run equilibrium relationship between the exchange rate and ISSI. The findings suggest that Rupiah depreciation exerts downward pressure on the Sharia stock market in the short run, while both variables maintain a stable long-run relationship. The contrast between the level and differenced estimations highlights the importance of addressing non-stationarity when examining exchange rate–stock market relationships in Islamic capital markets. This study contributes to the literature by providing updated evidence from a period characterized by the COVID-19 pandemic, post-pandemic recovery, and global monetary tightening, while also emphasizing the methodological importance of distinguishing between short-run dynamics and long-run equilibrium relationships. The findings offer practical implications for investors, regulators, and policymakers in managing exchange-rate-related risks within Indonesia’s Islamic financial market.

THE ROLE OF ISLAMIC FINANCIAL INCLUSION IN ENHANCING SOCIAL WELFARE AND REDUCING ECONOMIC INEQUALITY IN INDONESIA: A LITERATURE REVIEW

2026-06-17T05:01:46+00:00

Economic inequality remains a significant challenge in Indonesia despite various developmental efforts. This study aims to examine the role of Islamic financial inclusion in improving community welfare and reducing economic disparity. Using a systematic literature review approach, this paper analyzes data and existing research from the Financial Services Authority (OJK), Bank Indonesia (BI), and Central Bureau of Statistics (BPS), alongside scholarly articles. The findings indicate that Islamic financial inclusion, driven by the expansion of Islamic banking and Sharia fintech, provides equitable access to capital, particularly for Micro, Small, and Medium Enterprises (MSMEs). By adhering to the principles of Maqashid Sharia and distributive justice, Islamic financial inclusion not only mitigates poverty but also fosters sustainable economic empowerment. The study concludes that collaborative stakeholder strategies are essential to accelerate Sharia financial literacy and inclusion, ultimately driving broader national economic welfare

THE INFLUENCE OF ISLAMIC BRAND IMAGE AND SERVICE QUALITY ON TOURIST LOYALTY IN MUSLIM-FRIENDLY TOURISM DESTINATIONS: A STUDY OF THE AL-JABBAR GRAND MOSQUE TOURISM AREA, BANDUNG

2026-06-17T04:49:53+00:00

This study addresses the growing need to understand tourist behavior in the rapidly expanding Muslim-friendly tourism sector, specifically focusing on the Kawasan Wisata Masjid Raya Al-Jabbar Bandung. While previous literature extensively reviews general service quality, there remains a critical gap in synthesizing how religious brand identity works simultaneously with tangible service elements to retain visitors. Grounded in contemporary consumer behavior theory, this research evaluates the impact of Islamic Brand Image and Service Quality on Tourist Loyalty. Utilizing a quantitative causal approach, data were gathered from 150 Muslim tourists through structured questionnaires and analyzed using multiple linear regression via SPSS. The empirical findings reveal that both Islamic brand image (t = 4.120, sig. = 0.000) and service quality (t = 6.845, sig. = 0.000) significantly and positively influence tourist loyalty, with service quality emerging as the more dominant predictor (β = 0.453). Simultaneously, both variables explain 53.2% of the variation in tourist loyalty (Adjusted R² = 0.532, F = 52.410). This paper demonstrates that a robust religious brand reputation must be backed by excellent operational standards to secure long-term loyalty. The value of this manuscript lies in its integration of spiritual and physical service dimensions, offering a strategic framework for destination managers to optimize their marketing strategies in competitive halal tourism markets.

THE INFLUENCE OF STREAMER TRUSTWORTHINESS, PRICE DISCOUNTS, AND TIME PRESSURE ON IMPULSE BUYING BEHAVIOR IN TIKTOK LIVE STREAMING COMMERCE

2026-06-20T06:13:56+00:00

The rapid growth of TikTok Live Streaming Commerce has transformed consumer purchasing behavior, particularly by increasing the tendency toward impulse buying. This study aims to analyze the effects of streamer trustworthiness, discounted price, and time pressure on impulse buying behavior in TikTok Live Streaming Commerce among Muslim consumers. In addition, this study examines the moderating role of religiosity in the relationships between these variables and impulse buying behavior. A quantitative approach was employed using a survey method with purposive sampling. Data were collected from 200 Muslim consumers who had previously purchased products through TikTok Live Shopping and were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that streamer trustworthiness, discounted price, and time pressure have positive and significant effects on impulse buying behavior. Furthermore, religiosity significantly weakens the effects of discounted price and time pressure on impulse buying behavior, indicating that higher levels of religiosity can reduce consumers’ susceptibility to promotional stimuli and urgency-driven purchases. However, religiosity does not significantly moderate the relationship between streamer trustworthiness and impulse buying behavior. These findings suggest that religiosity functions as an internal self-control mechanism that helps Muslim consumers avoid excessive and spontaneous purchasing behavior, particularly in response to price promotions and time-limited offers. This study contributes to the literature on digital consumer behavior and Islamic economics by providing empirical evidence regarding the role of religiosity in live streaming commerce.