Kunuz: Journal of Islamic Banking and Finance

Analysis of Pentagon Fraud Determinants in Detecting Fraudulent Financial Statements of Banking Sector Companies Listed on the Indonesian Stock Exchange

Hasbi Hasbi — 2024-12-30

Fraudulent financial statements refer to intentional negligence or errors in the preparation of financial statements, where the presentation of these statements deviates from established accounting principles. One of the theories that explain the occurrence of fraud is the Fraud Pentagon Theory. This study aims to analyze the impact of financial targets, financial stability, external pressure, ineffective monitoring, industry nature, and auditor changes on fraudulent financial statements, both partially and simultaneously. The data used in this study is secondary data, and the sampling method applied is purposive sampling. The subject of this research consists of financial information from banking sector companies listed on the Indonesia Stock Exchange during the 2018-2022 period. A total of 10 banking companies over 5 years resulted in 50 samples. The analysis techniques employed include quantitative analysis, specifically descriptive analysis, static panel data analysis, model selection, and hypothesis testing, using Eviews 10 and 12 software. The study's findings indicate that the variables of Financial Targets, Financial Stability, Ineffective Monitoring, and Nature of Industry do not significantly affect fraudulent financial statements. Conversely, the variables of External Pressure and Changes in Auditors have a positive impact on fraudulent financial statements. Simultaneously, all six independent variables collectively influence fraudulent financial statements. Consequently, alternative solutions are needed to address fraud, such as the implementation of stricter policies related to auditing and financial transparency. These measures can help minimize external pressures that encourage fraud, while the effective implementation of sustainable development goals can play a role in preventing fraud.

Punggawa-Sawi: Financial System of Underprivileged Fishermen in South Sulawesi

Muhammad Kamil Jafar — 2024-12-30

The Punggawa-Sawi system represents a patron-client relationship mechanism that dominates the traditional fisheries sector in South Sulawesi. This relationship is characterized by the dominance of the punggawa as the primary capital provider and the dependency of the sawi as workers, creating a complex socio-economic dynamic. This study aims to deeply explore the practices of the Punggawa-Sawi system and its impact on the welfare of underprivileged fishermen. Using a qualitative approach with a case study design, data were collected through in-depth interviews, participatory observations, and document analysis. The findings reveal that the system fosters structural dependency, reinforcing the dominant position of the punggawa. Fishermen face injustices in the distribution of catch profits, burdensome debts, and limited access to formal financial institutions. Nonetheless, there are reform potentials through strengthening fishermen cooperatives, financial education, and the utilization of financial technology. These reforms require collaboration among the government, private sector, and fishing communities to create a more inclusive and equitable system. This study reinforces patron-client theory and offers new perspectives on addressing the challenges faced by underprivileged fishermen. By leveraging community-based and technological approaches, the Punggawa-Sawi system can be reformed to improve fishermen's welfare and foster economic sustainability in the fisheries sector.

Productive Financing for Micro, Small and Medium Enterprises (MSMES): Efforts to Achieve the Sustainable Development Goals (SDGS)

Fitria Ayu Lestari Niu — 2024-12-30

This study aims to describe the productive financing of Bank Syariah Indonesia for MSMEs as an effort to achieve the SDGs using a literature review approach on secondary data in the form of financial statements and supporting data. The data was processed through financial statement analysis techniques, SATF Value performance measurement, and studies on relevant articles and literature. The results on Amanah's performance with the responsibility indicator, show that financing growth in MSME customers fluctuates, especially in 2021-2023 due to the Covid-19 pandemic. However, BSI continues to strive to follow its commitment to provide opportunities and convenience in financing, especially in the MSME sector. BSI has disbursed financing to MSMEs amounting to IDR 47.72 trillion or grew 14.54% annually. BSI also expands access to sharia financing, including through BSI Agen which resulted in 4.8 million transactions with a transaction volume of Rp 11 trillion, the MSME Center to increase the capacity and capability of MSMEs which has distributed financing of Rp 39.08 billion to more than 3,281 MSMEs fostered by BSI. BSI also has a platform namely the Digital Salam Portal to make it easier for the public to apply for microfinance digitally, to meet all business and investment needs, and provides financing for entrepreneurs at various levels of business, ranging from the micro level to corporations. BSI realizes that productive financing in the MSME sector has a huge role in realizing the SDGs, especially in the Decent Work and Economic Growth Target.

The Influence of Lifestyle, Financial Literacy, Love of Money, and Fintech Payment on Financial Management Behavior Among Accounting Students

Felixia Renita Agnas — 2024-12-31

This study investigates the determinants of financial management behavior (FMB) among Accounting students at a Polytechnic institution, focusing on lifestyle, financial literacy, love of money, and fintech payment as independent variables. Utilizing multiple linear regression analysis, the research explores the relationships between these variables and students' financial management practices. The findings indicate that financial literacy and fintech payment significantly influence FMB, with financial literacy showing a substantial positive effect (β = 0.387). Conversely, lifestyle and love of money were found to exert no statistically significant impact on financial management behavior. When analyzed collectively, the four independent variables demonstrated a significant simultaneous effect on FMB, as confirmed by the F-test. The study underscores the pivotal role of financial literacy and fintech adoption in shaping sound financial management among students in the digital era. The results suggest that educational institutions should prioritize integrated financial education programs to enhance students' financial competencies. Future research could expand the scope by incorporating additional variables, such as the influence of social media or students' spending patterns in the digital age. This research contributes valuable insights into the factors influencing financial management behavior and the growing relevance of digital financial tools in personal finance management.

The Maqashid Sharia Index: An Innovative Tool for Evaluating Corporate Performance in IDX-MES BUMN 17

Ana Fitria — 2024-12-31

Company performance is not only focused on internal profits but also considers external benefits, which can be evaluated using the Maqasid Sharia Index (MSI) method. This research focuses on companies listed on the IDX-MES BUMN 17 Sharia Index, launched on April 29, 2021. The study incorporates three key concepts: individual education (tahzib al-fard), the establishment of justice (iqamat al-adl), and the promotion of welfare (jalb al-mashlahah). A descriptive quantitative analysis was conducted by measuring performance through weighting and ranking based on performance indicators derived from the annual reports of 14 companies for the period 2021-2023. The TLKM achieved the highest MSI score with a ratio of 32.13%, while PTPP ranked last with a ratio of 17.38%. Overall, the companies listed on the IDX-MES BUMN 17 index demonstrated low performance based on the MSI, with ratios ranging from 17% to 30%, and an average ratio of 21.52% out of a total weight of 100%

The Digital Revolution in Exploring the Impact of Fintech on Islamic Financial Services

Chadijah Haris — 2024-12-31

The implementation of financial technology (fintech) at Bank Syariah Indonesia KCP Bitung has significantly impacted financial inclusion, particularly through the BSI Mobile application. This study examines how fintech has enhanced accessibility to Islamic financial services, especially for individuals previously underserved by conventional banking systems. The findings reveal that fintech has not only expedited financial transactions but also provided customers with easier access to a variety of financial features, thereby improving their financial management capabilities. Interviews with bank staff and customers indicated that fintech solutions like BSI Mobile offer convenience, efficiency, and flexibility in the digital era. However, the research also identifies challenges, including the need for adequate infrastructure, intensive education and socialization regarding fintech usage, and potential security risks in digital transactions. To address these challenges, it is crucial for Islamic banks to foster innovation and collaboration with fintech providers to offer more inclusive and affordable solutions, thus broadening the reach of Islamic financial services. The emphasis on ongoing innovation and collaboration is key to integrating technology with Islamic finance, creating a more inclusive, transparent, and sustainable financial ecosystem that supports equitable economic growth within society.