CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE

Utilizing State Sharia Securities (SBSN) as an Alternative Financing Mechanism for Madrasah Infrastructure Development

2026-05-09T05:07:01+00:00

Indonesia continues to face significant challenges in providing adequate educational infrastructure, particularly for madrasahs, due to budget limitations and increasing student enrollment demands. In response, the government has utilized State Sharia Securities (Surat Berharga Syariah Negara/SBSN) as an alternative Islamic financing instrument to support public infrastructure development. This study analyzes the utilization of State Sharia Securities (Surat Berharga Syariah Negara/SBSN) as an alternative financing mechanism for madrasah infrastructure development at the Jakarta Regional Office of the Ministry of Religious Affairs. The research employs a qualitative approach using a case study method. Data were collected through interviews, observations, and document analysis involving stakeholders responsible for SBSN-funded projects. The findings reveal that SBSN has played a significant role in supporting the construction of new classroom buildings and improving the quality of madrasah educational infrastructure in Jakarta. Through the SBSN financing scheme, madrasahs have been able to increase classroom capacity, enhance educational facilities, and accommodate growing student enrollment demands. The implementation process involves coordination among the Ministry of Religious Affairs, the Ministry of Finance, and the National Development Planning Agency (Bappenas). However, several challenges remain, including land readiness, administrative procedures, maintenance costs, and technical infrastructure limitations. This study concludes that SBSN represents a strategic and sustainable alternative financing mechanism for public educational infrastructure development. Strengthening institutional coordination, improving project planning, and enhancing monitoring systems are necessary to optimize the effectiveness of SBSN implementation in supporting the development of madrasah infrastructure in Indonesia.

Digital Waqf Ecosystems and the Institutional Coordination of Climate Finance

2026-07-13T06:01:15+00:00

Climate finance plays a critical role in supporting the transition to a low-carbon, climate-resilient economy. However, persistent financing gaps, fragmented governance, and limited institutional coordination continue to constrain the mobilization and effective allocation of resources for climate mitigation and adaptation. Islamic social finance, particularly waqf, has attracted growing attention as a complementary mechanism for promoting sustainable development. This study proposes a Digital Waqf Ecosystem (DWE), an integrated conceptual framework linking waqf institutions, digital governance, and climate finance to enhance transparency, accountability, and institutional coordination. The study adopts a conceptual research design, synthesizing literature on climate finance, Islamic social finance, digital governance, and institutional theory to develop the proposed framework. To examine its internal consistency under uncertainty, the study employs Monte Carlo simulation as an exploratory technique, evaluating interactions among digital governance, institutional trust, ethical capital mobilization, catalytic climate finance, and climate impact efficiency across alternative governance scenarios. The simulation results suggest that stronger digital governance improves institutional trust, mobilizes ethical capital, enhances integration with climate finance mechanisms, and produces consistent climate impact outcomes. While exploratory rather than predictive, the findings demonstrate the potential of digitally governed waqf institutions to strengthen institutional coordination within sustainable finance ecosystems. The study contributes to the literature by developing an integrated institutional framework that connects Islamic social finance, digital governance, and climate finance within a unified governance architecture. The findings offer practical insights for policymakers, waqf institutions, Islamic financial institutions, and development organizations seeking to strengthen governance and improve the effectiveness of climate finance initiatives.

Health Assessment of Sharia Cooperative Using an Adapted Guideline of Deputy for Cooperatives Technical Instruction No. 15 of 2021

2026-07-31T02:41:40+00:00

Assessing the health of Sharia Savings and Loan and Financing Cooperatives (KSPPS) requires an integrated review of governance, risk, financial performance, and capital adequacy; however, the official assessment procedure also relies on field verification and internal documents that are not always accessible in secondary-data studies. This study therefore assesses the health level of KSPPS BTM West Sumatra using an adapted framework based on the Deputy for Cooperatives Technical Instruction No. 15 of 2021 and documentary evidence from the 2025 Annual Member Meeting (RAT) report, signed financial statements, and supervisory report. Using a descriptive quantitative case-study design, the assessment covers four aspects: governance, risk profile, financial performance, and capital. Indicators requiring on-site examination or unavailable internal schedules were excluded rather than inferred. Indicator-level scoring was reconstructed transparently from the RAT evidence and reweighted using the official aspect weights of 30% for governance, 15% for risk profile, 40% for financial performance, and 15% for capital. Governance obtained 27.50, risk profile 8.25, financial performance 25.00, and capital 7.50, producing a total health score of 68.25 and the predicate ‘Fairly Healthy’. The main constraints were high non-performing financing, low capital independence, weak profitability and operational efficiency, and limited supervisory capacity. These findings support case-specific priorities for KSPPS BTM West Sumatra, namely strengthening financing risk management, improving operational efficiency, reinforcing internal supervision, and increasing members’ capital participation. Because the study examines a single cooperative using documentary data, the findings and recommendations should not be generalized to other KSPPS without considering their institutional and operating contexts.

Legal Challenges Concerning Quantum Computing in Islamic Banking System under Islamic Law in Uganda

2026-07-25T02:28:59+00:00

Quantum computing is an innovative technology that could revolutionize the operations of Islamic banking by improving computation, secure transactions, and risk management. Nevertheless, the inclusion of quantum computing in Islamic banking is subject to numerous legal and Sharia challenges especially in Uganda which is yet to develop a legal framework for Islamic banking. These challenges include questions on Sharia compliance, data security, validity of contracts, consumer protection, and ethical governance. This research aims to analyze the legal issues related to quantum computing in the Islamic banking system in Uganda from the Islamic law (Sharia) point of view and in relation to banking and technology laws of Uganda where appropriate. The research employs a qualitative doctrinal legal approach using Islamic legal sources such as the Qur'an, Sunnah, Ijma' and Qiyas as well as statutes, policies and other literature. The research establishes that while Islamic legal provisions could be used to regulate innovative technologies such as quantum computing, they should be contextually interpreted. The research concludes that the development of a Sharia compliant legal and regulatory framework for quantum computing in Uganda is recommended.