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The rapid development of Islamic finance has encouraged central banks in dual banking systems to design monetary instruments that comply with Sharia principles while maintaining macroeconomic stability. However, the effectiveness of Islamic monetary instruments and their transmission mechanisms remain widely debated in the literature. This study aims to systematically review the empirical and conceptual literature on Islamic monetary instruments, focusing on their effectiveness, transmission channels, and macroeconomic outcomes. Using a Systematic Literature Review (SLR) approach guided by the PRISMA framework, this research synthesizes findings from major studies examining Islamic monetary policy operations, banking transmission mechanisms, and their impacts on inflation, output, and financial stability. The results reveal that the financing/credit channel and the interest–profit pass-through mechanism are the dominant transmission pathways in dual banking systems. Although Islamic banks often demonstrate relative stability during monetary shocks, policy transmission remains partly influenced by conventional interest rate benchmarks due to institutional and market structure factors. The effectiveness of Islamic monetary instruments is largely determined by the depth of Islamic money markets, the availability of liquid instruments such as central bank sukuk, and the strength of regulatory and institutional infrastructure. Furthermore, empirical evidence linking Islamic monetary instruments directly to macroeconomic outcomes such as inflation and growth remains limited. This study proposes an integrated conceptual framework linking Islamic monetary instruments, transmission channels, and macroeconomic outcomes, moderated by institutional quality, market share of Islamic banking, and market depth. The findings contribute to the literature by providing a comprehensive synthesis of existing research and offering policy insights for strengthening Islamic monetary policy frameworks in dual financial systems.

Poverty remains a fundamental problem rooted in Indonesia's socio-economic structure, despite various mitigation schemes implemented by the government. As the country with the largest Muslim population in the world, Indonesia has enormous sharia-based public financial resources, where zakat should be positioned as a strategic means of wealth distribution. However, in reality, this instrument is often not optimally realised in national macroeconomic policy. This study aims to analyse Monzer Kahf's Islamic economic thinking on zakat and its relevance to poverty alleviation efforts in Indonesia. The research method used is qualitative with a library research approach through a systematic literature review of Monzer Kahf's fundamental works and various studies related to national zakat management, which are analysed descriptively and analytically to connect the theoretical framework with the socio-religious dynamics in Indonesia.  

Sharia-compliant investment in Indonesia has experienced rapid growth, in line with increasing public interest in instruments compliant with Islamic principles. However, market fluctuations remain a major challenge in maintaining the performance of sharia investments, particularly sharia mutual funds. This article analyzes the dynamics of sharia investment in Indonesia in the face of market volatility, focusing on the performance of sharia mutual funds. The research method used is a quantitative approach, with secondary data analysis from various scientific studies and recent statistical data. The results indicate that macroeconomic fluctuations and market conditions significantly influence the performance of sharia mutual funds. Nevertheless, sharia mutual funds continue to demonstrate resilience and certain advantages compared to conventional mutual funds, particularly in the face of market uncertainty. These findings have important implications for sharia investors, investment managers, and policymakers in designing more optimal investment strategies and strengthening the position of sharia mutual funds in an increasingly dynamic market.

The rapid development of Islamic banking in Indonesia faces significant challenges in maintaining liquidity and profitability amidst dynamic capital market conditions. The urgency of this study arises from the need to examine whether traditional financial ratios, such as the Financing to Deposit Ratio (FDR) and Return on Equity (ROE), play a decisive role in influencing investment decisions, which are proxied by the Price to Earning Ratio (PER). The main objective of this research is to empirically test the effect of liquidity and profitability, both partially and simultaneously, on investment decisions in Islamic commercial banks listed on the Indonesia Stock Exchange during the 2021–2025 period. This study adopts an associative design with a quantitative approach, utilizing secondary data from financial reports obtained from the IDX, and analyzed using multiple linear regression on 68 observation samples. The findings reveal that neither liquidity nor profitability significantly influence investment decisions, either partially or simultaneously. These results suggest that investors in the Islamic banking sector tend to prioritize non-financial factors such as sharia compliance, governance, macroeconomic conditions, and ESG trends, rather than conventional financial indicators. In conclusion, this research extends the understanding of the limitations of Signaling Theory in the sharia context and recommends the development of a more holistic investment evaluation model. Future studies are encouraged to incorporate non-financial variables for a more comprehensive analysis.

This study aims to reconstruct the Islamic macroeconomic paradigm by focusing on fiscal policy and responses to resource scarcity. Using a descriptive qualitative approach based on literature review, the study reveals that fiscal policy in Islam functions not only as a tool for economic stabilization but also as an instrument for equitable distribution and sustainable resource management. Historical analysis of fiscal practices during the Prophet Muhammad's era illustrates a zakat-, kharaj-, and fai-based system managed transparently and justly through baitul mal. In the modern context, challenges such as inequality, resource exploitation, and energy crises require a new approach grounded in maqashid shariah as the foundation of macroeconomic planning. Therefore, reconstructing Islamic macroeconomics is essential to establishing a just, sustainable, and spiritually rooted economic system.

Indonesia’s Islamic capital market has experienced remarkable growth in recent years, evidenced by the increasing number of investors and the rising market capitalization of Sharia-compliant stocks. This article aims to analyze the performance and management strategies of Sharia stock portfolios by reviewing academic literature published in Indonesia between 2019 and 2024. Utilizing a literature review methodology, the study compares the return and risk characteristics of Sharia stocks with those of conventional stocks. It also evaluates the applicability and effectiveness of classical portfolio theories—namely, the Markowitz Model and the Single Index Model—in managing Sharia-compliant investments. The findings reveal that Sharia stock portfolios often perform competitively and tend to exhibit greater resilience and stability during financial crises. This resilience is attributed in part to the rigorous stock screening mechanisms that comply with Islamic principles, excluding sectors and companies that do not meet Sharia criteria. Additionally, various macroeconomic factors such as inflation, interest rates, exchange rates, and global economic fluctuations are found to impact the performance of Islamic stock portfolios. The article highlights that while Sharia investments align with ethical and religious values, they also offer practical advantages in risk management and diversification. Furthermore, digital technology and fintech innovation are seen as essential tools to enhance transparency, accessibility, and investor engagement in the Islamic capital market. The study concludes that the development of Sharia-compliant stock investments in Indonesia holds promising potential, especially if accompanied by improved financial literacy, inclusive investor education, and stronger technological infrastructure. This paper offers valuable insights for policymakers, market regulators, and investors interested in promoting sustainable and faith-based financial practices within Indonesia’s rapidly evolving capital market ecosystem.

The objective of this study is to examine whether the macroeconomic variables Exchange Rate, Money Supply (M2), and the international stock indices Dow Jones Islamic Market (DJIM) and Dow Jones Industrial Average (DJIA) have an influence on the movement of Sharia stocks in Indonesia and Malaysia (Jakarta Islamic Index and FTSE Bursa Malaysia Hijrah Shariah Index). The analytical method used in this research is multiple regression analysis. The data utilized are monthly data spanning the period from January 2015 to December 2024. The results of the study indicate that the Jakarta Islamic Index (JII) is significantly influenced by the Exchange Rate and the Dow Jones Industrial Average (DJIA). Specifically, both the Exchange Rate and DJIA show effects that are consistent with the hypothesis expectations. The Exchange Rate has a negative and significant effect on the Jakarta Islamic Index (JII), while the DJIA has a positive and significant effect. Meanwhile, the Money Supply (M2) and the Dow Jones Islamic Market (DJIM) are not found to have a significant effect on the Jakarta Islamic Index (JII). The FTSE Bursa Malaysia Hijrah Shariah Index (FHSI), on the other hand, is significantly influenced by the Dow Jones Islamic Market (DJIM). Specifically, DJIM has a positive and significant effect on FHSI. Conversely, the Exchange Rate, Money Supply (M2), and Dow Jones Industrial Average (DJIA) are not found to have a significant effect on the FTSE Bursa Malaysia Hijrah Shariah Index (FHSI).

Amidst the dynamic global economy that is often characterized by inequality, the development of an inclusive and equitable Islamic monetary system is a crucial urgency. An Islamic monetary system based on sharia principles and values can offer a promising alternative. In this context, blockchain can be utilized as a transformative technological innovation that can be aligned with the Islamic monetary system. This research utilizes a comprehensive literature review methodology from scientific journals and related books. This literature study analyzes the use of blockchain in the development of an inclusive and equitable Islamic monetary system, exploring the alignment of principles, potential applications and implementation challenges and implications. The findings of this study show that the core characteristics of blockchain such as decentralization, transparency, immutability and cryptographic security are aligned with the objectives and philosophical foundations of Islamic macroeconomics, such as the prohibition of riba, gharar, maysir, fairness of wealth distribution and financial inclusion. Potential applications include developing the efficiency of zakat, waqf and alms, issuing digital sukuk and developing Islamic crowdfunding. Although the opportunities are wide open, the implementation still faces significant challenges, such as sharia compliance issues related to digital volatility, fatwa fragmentation, scalability issues, data security, consumption of shariah-compliant digital assets, and the need for digitalization.

The continuing economic inequality in Indonesia reflects the need for alternative approaches in macroeconomic policy. This study aims to analyze the integrative role of Islamic fiscal and monetary policies in realizing sustainable economic justice. The method used is a literature study of various relevant national and international scientific journals. The results show that Islamic fiscal policy through zakat and waqf instruments plays a role in wealth redistribution, while usury-free and real sector-oriented Islamic monetary policy maintains economic stability in an ethical manner. Compared to conventional economic systems, the Islamic approach offers a balance between spiritual values and economic effectiveness. The findings also show the importance of institutional synergy, public literacy, and integrated regulation to optimize the integration of the two policies. The implications of this research provide theoretical contributions for the development of Islamic economic models and offer strategic recommendations for the formulation of more equitable and inclusive public policies.  

The purpose of this study is to identify and analyze the effects of inflation on household consumption in Indonesia. Thus, the focus on the dynamics of people's spending is based on basic needs and non-smoking. This study uses a descriptive qualitative approach enhanced by secondary data from macroeconomic literature and primary data in the form of national statistical reports published by the Central Bureau of Statistics (BPS). This analysis is carried out based on the concept of Keynes' consumption theory, Friedman's permanent income hypothesis, and Modigliani's life cycle theory. The results show that increasing inflation has a significant impact on lower household consumption. In particular, the low group with moderate sorting shows a large allocation of income for basic needs. Groups with higher incomes through alternative strategies or delayed consumption tend to be more adaptable. These results suggest that price control policies and social security networks are strengthened as an effort to maintain consumption stability in the budget. This summary includes the background, objectives, methods, results, and conclusions related to explaining the actual conditions and political impacts of the relationship between Indonesian inflation and household consumption.

This research aims to analyze the trade-off between unemployment and inflation, as well as government policies from an Islamic perspective. Inflation and unemployment issues remain primary challenges for governments in maintaining economic stability. Unlike conventional economic perspectives that accept the trade-off between these two variables, Islamic economics offers a more integrative and holistic approach. Using a literature review method, this study analyzes various literature related to the relationship between unemployment and inflation from both conventional and Islamic economic perspectives. Research findings reveal that in conventional economics, the Phillips Curve depicts a trade-off between unemployment and inflation in the short term, though its validity is questioned in the long term. In contrast, from an Islamic economic perspective, there is no dichotomy between reducing unemployment and controlling inflation, as both can be addressed simultaneously through a just economic system aligned with Sharia principles. Islamic economics offers solutions through strengthening the real sector, profit-sharing financial systems, and implementing zakat, infaq, and waqf instruments that can create employment without generating inflationary pressures. This research provides insights into government policies that align with Sharia values in addressing current macroeconomic challenges.

Ibn Khaldun is recognized as a prominent Muslim thinker who made significant contributions to the fields of economics, sociology, and politics. In his seminal work Muqaddimah, he introduced economic ideas that were far ahead of his time, including the concepts of national wealth, wage theory, market mechanisms, and the role of the state in fiscal policy. This study aims to examine the core economic thoughts of Ibn Khaldun and their relevance to current economic dynamics. Using a qualitative descriptive approach based on literature review, the study finds that many of Khaldun's ideas remain highly relevant, particularly regarding the importance of productivity, fiscal justice, and the integration of social and economic aspects in building a sustainable system. Most people know that Ibn Khaldun is one of the most famous Muslim thinkers, and he did a lot in the fields of politics, economics, and sociology.  In his monumental work, Muqaddimah discusses various long-established economic concepts, such as the market mechanism, wage theory, national wealth, and the role of the state in fiscal policy.  The purpose of this research is to study Ibn Khaldun's ideas on economics and evaluate how these impact contemporary economic developments.  The study found that many of Khaldun's ideas are still relevant today thanks to the use of descriptive qualitative methodology based on literature study. A sustainable and inclusive economic system relies on the idea of productivity as the source of economic growth, fiscal justice in the taxation system, and integration between social and economic aspects.  The results show that classical economic thought not only has historical value, but also offers solutions to many modern economic problems such as inequality, productivity stagnation, and institutional crisis.

This research aims to analyze the influence of macroeconomics, capital and good corporate governance on the profitability of Islamic banks listed on the Indonesia Stock Exchange (BEI) during the 2020-2023 period, both partially and simultaneously. The approach used in this research is quantitative, with a population consisting of four sharia banks listed on the IDX, which were selected through a purposive sampling technique. The data source was obtained from the website www. idx. co. id, www. bps. go. id, and www. bi. go. id. Data analysis was carried out using multiple linear regression using SPSS version 25 software, with the significance level set at 0.05. Research findings show that overall, macroeconomics (X1), capital (X2), and GCG (X3) do not have a significant influence on bank profitability. Specifically, macroeconomics (X1) and GCG (X3) do not show a significant impact on profitability. On the other hand, the capital variable (X2) is proven to have a significant influence on profitability. For future research, it is recommended that the study period be expanded, considering that only one variable shows a significant effect. In addition, it is necessary to consider other factors that may also influence profitability beyond the variables analyzed in this study.

This study aims to analyze the contribution of Islamic economic policies to macroeconomic stability in Indonesia through various Islamic financial instruments. The results show that Islamic economic policies, including Islamic banking, zakat, waqf, and sukuk, play a significant role in supporting economic stability and fostering real sector growth. Profit-sharing financing offered by Islamic banking, for instance, provides a fairer and more flexible alternative compared to conventional systems. Furthermore, wealth redistribution instruments such as zakat and productive waqf have proven to help reduce poverty and improve community welfare. However, challenges remain regarding the low financial literacy of Islamic finance and the lack of infrastructure supporting its implementation. This study suggests the need for strategic steps to strengthen Islamic financial literacy, enhance digital technology, and strengthen collaboration between the government, Islamic financial institutions, and society in promoting inclusive and sustainable Islamic economic growth.

This study explores the evolution of Islamic economic thought from its classical roots to contemporary interpretations, highlighting significant paradigm shifts and the contributions of influential figures throughout its history. During the classical era, Islamic economic thought drew heavily from the teachings of the Qur'an and Hadith, as interpreted by scholars such as Abu Yusuf, al-Ghazali, and Ibn Khaldun. At the heart of this thinking are the principles of social justice, the prohibition of usury, and the need for a fair distribution of wealth. Recently, there have been important updates in Islamic economic thought, shaped by the global socio-economic context and the imperative to address modern economic problems. Key figures such as Muhammad Baqir al-Sadr and Umar Chapra have played an important role in developing a more relevant Islamic economic theory, combining concepts such as Islamic banking, macroeconomics, and entrepreneurship based on Islamic ethics.

Economic development is the main goal that every country wants to achieve to improve people's welfare, reduce poverty, and encourage sustainable economic growth. This study examines the important role of philanthropic institutions and fiscal policy in encouraging economic development, both in general and from an Islamic economic perspective. Philanthropy, through voluntary contributions such as zakat, infaq, alms, and waqf, helps fill gaps that cannot be fully addressed by the public sector, improves people's welfare, and reduces socio-economic disparities. Fiscal policy, as the main tool of government, plays an important role in managing state revenues and expenditures, influencing economic growth, income distribution, and macroeconomic stability. Through in-depth literature analysis, this research finds synergies between the philanthropic sector and fiscal policy that can strengthen sustainable economic development. This study also provides insight into the development of Islamic economics in the last three decades, showing significant progress in academic research and operational practice. It is hoped that the results of this research can provide significant policy recommendations to maximize the potential of these two tools in achieving fair and sustainable economic development.  

This research analyzes Islamic monetary policy and state revenues in the context of economic growth, especially in Indonesia. Monetary policy is the government's effort to improve economic conditions by regulating the amount of money in circulation. In the context of an economic crisis, monetary policy becomes important to balance the real sector and overcome the problem of currency value and the role of money as a commodity that sells interest or usury. This research reveals that monetary policy has input in the form of monetary policy instruments that influence the amount of money in circulation, while the output includes price stability and economic output. Islamic monetary policy is emphasized as a policy that must be free from usury and interest, following the principle of profit sharing in money management. Apart from that, this research also reviews monetary policy during the time of Rasulullah SAW, where monetary management was based on the principle of baitul mal and the allocation of funds for the spread of Islam, education, infrastructure development and social welfare. an Islamic economic perspective, monetary policy must pay attention to economic welfare with full employment opportunities, socio-economic justice, income distribution, and stability of the value of money. This refers to the principles of maqasid sharia in creating balance and prosperity for society. Monetary policy in Indonesia, led by Bank Indonesia, uses various instruments such as reference interest rates, open market operations, provision of liquidity, regulation of storage facilities, and reserve requirements. mandatory to achieve price stability, economic growth and financial system stability. This research provides in-depth insight into the importance of Islamic monetary policy in achieving macroeconomic goals and its impact on economic growth in Indonesia.

This article discusses the role of Islamic economic mitigation in achieving social justice and economic sustainability in the context of natural disasters. The main focus of this research is how the principles and instruments of Islamic economics, such as zakat, infaq, alms, waqf, andIslamic microfinance institutionscan be used to reduce the social and economic impact of natural disasters. Islamic economics, based on the principles of social justice and redistribution of wealth, offers a holistic and sustainable approach to dealing with disasters. These instruments are capable of providing immediate and effective assistance, as well as supporting long-term rehabilitation and development programs. This research uses a descriptive analysis method with a library research approach. The research results show that Islamic economics not only functions as an economic system, but also as a mechanism for achieving social justice and economic sustainability, which can significantly increase society's resilience to future disasters. This paper emphasizes that the application of Islamic economic principles can be an effective and sustainable solution in dealing with the macroeconomic impacts of natural disasters.

The development of Islamic economics with the application of sharia principles in economic activities is starting to be practiced in the field of sharia finance. This started with the establishment of sharia banking, then followed by the emergence of the sharia capital market as an investment tool to attract profits and seek capital. The Jakarta Islamic Index (JII) as the antithesis of the conventional capital market has challenges when carrying out investments using sharia principles, this is because securities in the form of shares are greatly influenced by macroeconomic aspects such as interest rates. So sharia share prices are very sensitive to the dynamics of interest rates. This research seeks to see the extent of the influence of interest rates on sharia sham prices at JII. The method used is VECM analysis to see long-term effects. The results of this research found that the interest rate variable did not significantly influence sharia stock prices in the long term, however the results of the VECM analysis found that there was a negative relationship, meaning that there was still an influence, although not significant. So sharia share prices can still be affected by changes in conventional interest rates.

This research aims to investigate the relationship between savings and investment theory in the concept of economic growth. Savings and investment theory are two main elements in macroeconomi analysis that play an important role in determining the level of economic growth of a country. This research explores the impact of the interaction between savings and investment levels on economie growth. In both conventional and Islamic economic contexts, savings and investments are importan inancial instruments in managing personal finances, supporting economic growth, and achieving the inancial goals of individuals and society as a whole. However, in Islamic economics, both must comply with Sharia principles to create economic justice and religious obedience. reserves of funds that can be used for future consumption or investment. Meanwhile, in Islamic economics, sharia-based savings must comply with sharia principles which prohibit usury and transactions involving haram elements. The goals of savings in Islam include sharia compliance, financial security, and distribution of wealth to the needy.