Jurnal REKSA: Rekayasa Keuangan, Syariah dan Audit

Unveiling Budgetary Slack: How Internal Control Systems Mediate the Effects of Competence and Whistleblowing

2026-02-02T02:00:15+00:00

This study examines the effect of village apparatus competence and whistleblowing on budgetary slack, with the internal control system serving as a mediating variable. Employing a quantitative research design, the study applies the Structural Equation Modeling–Partial Least Squares approach to test both direct and indirect relationships among the variables. The sample for this study was determined using a census approach, encompassing all 226 villages in Jember Regency. Primary data were obtained through a structured questionnaire administered to a designated village official serving as a key informant, specifically those responsible for budgeting and financial management at the village level. The results indicate that the village apparatus competence and whistleblowing positively affect the effectiveness of the internal control systems. At the same time, both variables exert a negative effect on budgetary slack. Furthermore, the internal control systems negatively affect budgetary slack and partially mediate the relationships between village apparatus competence, whistleblowing, and budgetary slack. Theoretically, this study extends the Goal-Setting Theory by demonstrating that the alignment between budgetary objectives and actual outcomes in village governments depends on the integration of individual competence and ethical reporting mechanisms through an effective internal control system. Practically, the findings provide evidence-based insights for strengthening village financial governance through capacity building, robust internal controls, and accessible whistleblowing mechanisms.

Intrinsic Motivation and Local Tax Compliance: An Exploratory Study in the Hospitality Sector

2025-10-31T18:41:02+00:00

This study identifies the intrinsic drivers of local tax compliance in the Indonesian hospitality sector, especially in Yogyakarta, and explores how business actors’ perceptions and experiences influence the optimization of regional tax revenue. Using a convergent mixed-methods design, the research employed a five-point Likert-scale survey with open-ended items administered to 31 personnel responsible for tax matters through purposive snowball sampling. The quantitative data were analyzed descriptively, while the qualitative responses were examined thematically. The study reports a consistently high level of intrinsic motivation among hospitality taxpayers, with item means ranging from 4.39 to 4.45. It suggests that the respondents perceived tax compliance as a meaningful contribution to social welfare and regional development. The qualitative findings indicate that intrinsic motivation grounded in ethical responsibility is a key predictor of timely tax payments and accurate reporting. Perceived regulatory fairness, constructive responses from tax authorities, adequate taxpayer knowledge, and clear government communication all enhance both capacity and willingness to comply. Incentives and penalties also play a role in reinforcing compliant behavior. This study provides a valuable reference point for understanding intrinsic motivation in local tax compliance. The study contributes to the literature by applying CET to Indonesia’s self-assessment system. It offers new insights into the psychological drivers of compliance in local tax environments. The research highlights how intrinsic motivation contributes to tax compliance through constructive interaction between taxpayers and the government.

Sustainable Role of Baitul Mal wat Tamwil in Expanding Islamic Microfinance Inclusion for Marginalized Communities

2025-11-08T08:29:52+00:00

This study explores the role of Baitul Mal Wat Tamwil (BMT) in enhancing access to Islamic microfinance for marginalized communities in Sorong, Southwest Papua Province. Using a qualitative case study approach, data was collected through in-depth interviews with managers and clients of three BMTs in Sorong and supplemented with user observations. The findings show that BMTs provide inclusive, Sharia-compliant financing to microenterprises, informal workers, and women-led businesses through flexible contracts such as murabahah, ijarah, qardhul hasan, and hiwalah. They adopt proactive service models and leverage community engagement to strengthen trust and outreach. One notable innovation is the establishment of local Puskopsyah (syariah cooperative-based risk-sharing center), inspired by the Islamic value of ta’awun, offering internal protection against defaults. Despite challenges such as low digital literacy and poor infrastructure, BMTs remain sustainable by relying on member-based capital, contextual product design, and strong social networks. This study contributes to the theoretical discourse on social intermediation in Islamic finance and offers practical insights for replicating community-based Islamic microfinance in other underdeveloped regions. The novelty lies in documenting a grassroots takaful initiative and human-centered financing approach that supports BMT resilience in 3T (frontier, outermost, and underdeveloped) areas. These findings align with the strategic goals of the Regional Committee for Sharia Economy and Finance (KDEKS) to foster an inclusive Islamic financial ecosystem in Papua.

Reinforcement Learning for Portfolio Optimization: Evidence from the Indonesian Stock Market

2026-01-17T09:00:48+00:00

Stock portfolio management in emerging markets such as Indonesia remains challenging due to high volatility, market inefficiencies, and the strong presence of retail investors. In this setting, conventional approaches, including buy-and-hold strategies, the Markowitz framework, and the Capital Asset Pricing Model (CAPM), often struggle to perform consistently under rapidly changing market conditions. While reinforcement learning (RL) has gained increasing traction in global finance, its application in the Indonesian stock market remains limited. This study examines the effectiveness of an RL-based approach, specifically the Deep Q-Network (DQN) algorithm, in optimizing stock portfolios on the Indonesia Stock Exchange (IDX). Using a quantitative experimental design, the analysis is based on back-testing simulations of IDX30 stocks over the 2022–2024 period, with samples selected purposively based on liquidity and market capitalization. The findings show that the DQN-based strategy consistently outperforms conventional methods, delivering higher returns, improved risk–return efficiency, and better control of downside risk. These results suggest that RL models are better suited to adapt to dynamic market conditions. Theoretically, this study extends portfolio optimization literature by incorporating adaptive, learning-based models into emerging market contexts. Practically, it offers evidence for investors and practitioners to consider AI-driven strategies as a more responsive alternative to traditional approaches in a volatile market.

Ending the Stick and Embracing the Carrot: The Middle Way of Spin-Off Policy in Indonesian Islamic Banking

2026-01-24T04:45:32+00:00

The implementation of the P2SK Law has triggered debate over the mandatory spin-off of UUS from BUK into BUS. This study examines the arguments from both sides to identify potential areas of consensus. It finds that poor communication, particularly on the "purification" issue, has fueled disagreement. Consequently, stakeholders missed the chance to propose a voluntary spin-off mechanism to OJK. Such a proposal should be supported by affirmative government action to grow the Islamic banking sector. This study aims to critically integrate insights from literature and expert perspectives by examining competing arguments surrounding the spin-off policy to develop a robust and evidence-based direction for its optimal design and implementation. It employs a mixed methodology utilizing a structured literature review, in-depth interviews, and FGDs with key stakeholders selected through purposive sampling. The study also incorporates sentiment analysis and utilizes NVivo for thematic mapping and matrix coding. The findings reveal a high degree of discursive convergence between proponents and opponents, identifying the "Middle-Way Policy" as the primary area of consensus. The analysis shows that both groups align on the necessity of regulatory incentives ("carrots") and readiness-based criteria rather than forced compliance ("sticks") to ensure the sustainability and efficiency of the Islamic banking industry. This study recommends that the OJK needs to develop policies that reflect shared goals to expand the Indonesian Islamic banking market share. Importantly, it urges avoiding blanket mandatory spin-offs, as these may harm smaller UUS and unfairly burden regulators.

Adaptability, Digital Transformation, and Financial Performance: The Moderating Role of Transformational Leadership in Private Higher Education

2026-02-17T14:31:16+00:00

The study aims to examine the impact of adaptability and digital transformation on the financial performance of Private Higher Education Institutions (HEIs) in Indonesia, with transformational leadership as a moderator variable. Motivated by the escalating competition within the higher education sector, this research posits that private institutions must enhance their adaptive capacities and strategically leverage digital transformation to achieve sustainable financial performance. The study was conducted through a survey of 281 senior leaders with financial decision-making authority from Private HEIs across Indonesia. Data analysis uses the Partial Least Squares method of Structural Equation Modeling. The results demonstrate that both adaptability and digital transformation positively affect financial performance. While transformational leadership functions as a pure moderator, it significantly strengthens the positive relationship between digital transformation and financial performance, but weakens the effect of adaptability on financial performance. This study offers a theoretical contribution to the literature on strategic management in HEIs, particularly in Private HEIs, and provides practical implications for leaders of private institutions seeking to foster transformational leadership and optimize digital technology integration to enhance financial performance.

Faith and Finance: How Religiosity Shapes Islamic Fintech Adoption in Indonesia

2025-10-31T18:15:57+00:00

Islamic Fintech has developed in Indonesia over the past few years. This study examines Indonesians’ perceptions and intentions of both Muslim and Non-Muslim respondents on Islamic Fintech. Primary data was gathered through an online survey from 252 participants, who were chosen based on a convenience sampling method. Nine hypotheses were formulated and tested using SEM-PLS. The results show that perceived ease of use, perceived usefulness, trust, subjective norms, and religiosity significantly influence the intention to adopt Islamic Fintech. Furthermore, the interaction between trust and subjective norms in shaping usage intention was found to be moderated by religiosity. These findings suggest that individuals with stronger religiosity align their trust and social influence with religious values when evaluating Islamic Fintech adoption. To gain deeper insights, a multi-group analysis was conducted by dividing respondents into low and high-religiosity groups. For low religiosity users, only perceived ease of use and trust significantly affect intention. For high religiosity users, only religiosity does not have a significant effect on intention to adopt. No significant moderating effects were found across groups. The study contributes to understanding user behavior in the context of Islamic Fintech and highlights the importance of religiosity in shaping adoption decisions within a diverse religious society. Practically, it suggests that Islamic Fintech providers should focus on user-friendly platforms, trust-building mechanisms, and targeted strategies that account for varying levels of religiosity.

Political Connection and Compensation: The Moderating Role of Corporate Governance and Ownership Type

2026-02-08T17:21:46+00:00

This study examines the effect of political connections on executive compensation, with corporate governance and ownership type as moderating variables. Drawing on agency and political economic theories, political connections may distort compensation-setting processes by increasing executives’ bargaining power and reducing alignment with shareholder interests. Using a quantitative approach, this research analyzed 2,977 firm-year observations from state-owned and non-state-owned enterprises listed on the Indonesian Stock Exchange between 2018 and 2023. A random-effects panel-data regression model was employed. The results revealed that political connections increased executive compensation, as hypothesized. The effect was more pronounced in organizations exhibiting superior corporate governance, as indicated by the independence of the Board of Commissioners (BoC). Meanwhile, the independence of BoC might not adequately reflect substantive independence in politically embedded corporate contexts. Theoretically, this study enriches the literature on emerging markets by highlighting how corporate governance legitimizes the utilization of political connections within a fragile institutional context. As the findings indicate that political connections can elevate executive compensation even under ostensibly strong governance structures, this study provides practical implications of strengthening substantive board independence and enhancing transparency in compensation-setting.

Beyond Formal Accountability: A Prophetic Social Science Perspective on Waqf Governance

2025-11-08T08:49:49+00:00

This study critically examines the practices and underlying dynamics of accountability within a waqf management institution by exploring how accountability is constructed, enacted, and experienced through the lens of Kuntowijoyo’s Prophetic Social Science. Adopting a qualitative case study approach, the research focuses on the Sultan Agung Waqf Foundation in Semarang, Indonesia. Data were collected through in-depth interviews, observations, and document analysis, and subsequently analyzed using thematic analysis guided by Kuntowijoyo’s framework of Prophetic Social Science. The findings reveal that accountability within the institution extends beyond administrative and legal-formal dimensions to encompass the values of humanization, liberation, and transcendence. It suggests that accountability in waqf institutions is not merely procedural but reflects a form of prophetic practice oriented toward social welfare and spiritual responsibility. This study contributes to the literature on Islamic accountability by illustrating how prophetic values can be operationalized within waqf governance, offering a more holistic and value-driven perspective. Practically, the findings suggest that waqf managers should integrate ethical and spiritual values into formal accountability systems to enhance transparency, social impact, and long-term sustainability.

Halal Awareness as a Boundary Condition in Halal Consumer Behaviour: Evidence from Gen Z in Indonesia and Malaysia

2026-03-04T14:01:16+00:00

This study addresses a gap in halal marketing literature by examining halal awareness not only as a direct predictor but also as a moderator in the relationship between halal brand perceived quality and halal purchase intention among Generation Z consumers in Indonesia and Malaysia. A cross-sectional survey of 420 Muslim respondents aged 18–27 was conducted. Then, the primary data gathered were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that halal brand perceived quality significantly enhances purchase intention, while halal awareness also plays an important direct role in shaping consumers’ behavioural intentions. More importantly, halal awareness strengthens the relationship between perceived quality and purchase intention, indicating that consumers with higher awareness are more responsive to halal quality signals. The results are consistent across both countries, suggesting that the underlying behavioural mechanism is stable despite differences in institutional contexts. This study contributes theoretically by integrating the Theory of Planned Behaviour, signalling theory, and the Elaboration Likelihood Model, and by positioning halal awareness as a boundary condition in halal consumer behaviour. Practically, the findings suggest that firms should complement improvements in halal product quality with targeted efforts to enhance consumer awareness, as this can strengthen the impact of quality signals and more effectively drive purchase intentions among Generation Z consumers.