Purpose This study aims to analyse the relationship between management ownership and the performance of Islamic microfinance institutions (MFIs) using panel data from Indonesian Islamic rural banks (Bank Pembiayaan Rakyat Syariah [BPRS]). Design/methodology/approach This study uses unbalanced quarterly panel data from BPRS during the period from 2011 to 2016. Performance, as the dependent variable in this study, is analysed based on three sets of measures, namely, profitability, efficiency and the financing risk. Management ownership, as the independent variable in this study, is represented by ownership by the board of directors (BOD), the board of commissioners (BOC) and the sharia supervisory boards (SSB). Findings The results show that ownership by the BOD and BOC does not have a significant relationship with profitability and efficiency. However, the BOD ownership has a negative relationship with the financing risk and vice versa for the BOC ownership. Additionally, the study reveals that ownership by the SSB plays a positive and significant role in increasing the profitability and efficiency but does not have a significant impact on the financing risk. Originality/value This is one of the first studies to provide empirical results regarding the relationship between management (BOD, BOC and SSB) ownership and the performance of BPRS. The finding reveals that ownership by the SSB is very important to increase the profitability and efficiency of the BPRS. Contribution to Impact This study fills the gap in the literature about Islamic MFIs in Indonesia, especially the BPRS. This research also provides an insight into corporate governance practices and Islamic MFIs’ performance using BPRS data. The findings provide useful information for policy makers and regulators.

Purpose Innovation in digital technologies has been the main force in promoting growth and inclusion. However, the impact of such innovations remains ambiguous. Within this context, this study aims to analyze the distribution of digitally empowered peer-to-peer (P2P) lending in Indonesia. Design/methodology/approach This study uses a quantitative approach to estimate the impact of technological innovation in promoting economic development. In particular, this study employs empirical panel data from 135 financial technology (FinTech) companies from 2015 to 2019 and use the dynamic panel threshold regression approach. This study collects secondary data to build the estimated model. Findings Contrary to conventional wisdom, this study’s evidence suggests that there is a delayed effect between the contribution of P2P lending by FinTech firms on economic growth in the country. While the immense growth of FinTech seems promising, the findings indicate that FinTech is far from its optimal point. This study calculates the optimal combination between productive and consumptive lending and between Java and non-Java. In view of this finding, this study proposes strategies to effectively distribute lending and bring about the expected benefit to the economy. Practical implications Since the contribution of P2P lending on economic development has not reached its optimum, the findings expose the limitation of current technological innovation in the financial sectors. In this sense, P2P penetration on the financing market needs encouragement. The calculations for optimal allocation between productive and consumptive and between Java and non-Java provide guidance to policymakers. This study helps practitioners to shape strategy and to begin experimenting with different approaches to distribute loans effectively. Originality/value To the best of the authors’ knowledge, there are no empirical studies that examine the impact of emerging FinTech companies in promoting economic growth and financial development. The findings close this research gap, especially in regard to innovation management literature, and provide insights for practitioners, policymakers and regulators.

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AbstrakPondok pesantren (Ponpes) merupakan salah satu lembaga pendidikan Islam tertua di Indonesia, keberadaan dan perannya dalam mencerdaskan kehidupan bangsa telah diakui oleh masyarakat. Dalam perkembangannya pondok pesantren berfungsi sebagai pusat bimbingan dan pengajaran ilmu-ilmu agama Islam telah banyak melahirkan ulama, tokoh masyarakat dan mubaligh. Seiring dengan laju pembangunan dan tuntutan zaman serta perkembangan ilmu pengetahuan dan teknologi, pondok pesantren telah melakukan berbagai inovasi untuk meningkatkan peran dan sekaligus memberdayakan potensinya bagi kemaslahatan lingkungannya. Salah satu bentuk adaptasi nyata yang telah dilaksanakan adalah pendirian koperasi di lingkungan Ponpes dan dikenal dengan sebutan Koperasi Pondok Pesantren. Dalam upaya pemberdayaan dan pengembangan koperasi di lingkungan pondok pesantren dipandang perlu melakukan pendidikan dan pelatihan manajemen koperasi agar koperasi yang sudah ada berkembang menjadi koperasi yang lebih profesional dan membawa kemaslahatan bagi anggota serta masyarakat sekitar. Kata kunci: pengembangan, manajemen koperasi, pondok pesantrenPondok pesantren merupakan pilar penting penopang kehidupan masyarakat di Jawa Timur terutama di wilayah-wilayah hampir sebagian besar pedesaan. Secara kultural, pondok pesantren yang berfungsi lembaga dakwah Islam, namun sekaligus sebagai lembaga pendidikan yang sejajar dengan pendidikan formal. Sudah lazim di wilayah pedesaan, setiap anak begitu setelah tamat SD atau SMP akan melanjutkan ke pesantren. Hal ini dikarenakan biaya yang lebih murah dibanding sekolah formal dan juga karena pesantren sebagai lembaga informal dipandang merupakan lembaga penting penggerak dinamika masyarakat pedesaan.Program pendidikan di pondok pesantren pada dasarnya bertujuan utama dakwah agama (Islam) namun dalam kenyataannya dituntut memainkan peran lebih bahkan sebagai tumpuan untuk menyikapi serta harapan dapat menyelesaikan berbagai persoalan dalam masyarakat pedesaan, mulai dari persoalan keagamaan, sosial, politik sampai ke persoalan ekonomi. Ketidak sesuaian kondisi dengan beban * Dosen UPM Soshum ITS

We develop a joint default probability index to signal potential systemic risks in the highly concentrated Indonesian banking industry. To build the index, we estimate bank-level tail risks using monthly bank financial reports. We use the copula approach to derive the joint multivariate dependencies at the bank level, as reflected in the monthly financial reports. Our results, which are based on a sample of 104 banks fromDecember 2003 to April 2020, show joint multivariate dependencies at the bank level suggesting that the standard univariate normal distribution is unsuitable for capturing tail risks of individual banks. Our index accurately captures the global financial crisis of 2007-2008 indicating that it is a valid joint default probability index. Further, our index also signaled a higher degree of joint default before the COVID-19 outbreak in2020, suggesting that it is a good indicator of potential systemic risk in the economy.