Soni Agus Irwandi

Fraud and financial crimes involving banking employees have become serious and complex problems throughout the world, including Indonesia. This study aimed to analyze a fraud prevention through anti-fraud strategy and modified situational crime prevention theory. Data were obtained using a questionnaire distributed and interviewed to accounting officers, marketing departments, customer services, tellers, operational supervisors and risk management of banks in Indonesia. Respondent filled in 217 questionnaires completely. The data analysis technique used is a path analysis technique with the WarpPLS. The results show that anti-fraud strategies have a positive effect on fraud prevention. Banking in Indonesia has succeeded in implementing anti-fraud strategy through a whistleblowing policy, which focuses on efforts to protect whistleblowers and disclose potential fraud, compliance with the implementation of internal controls in activity units, and the proper functioning of risk management. The modified situational crime prevention theory also has a positive effect, and religiosity is a moderating variable. The results have also informed that banks have attempted to create conditions and awareness for perpetrators that the benefits of fraud are less and not commensurate with the high risks borne, and narrowing opportunities and providing strict sanctions to perpetrators can prevent fraud.

Type of the article: Research Article

Abstract
This study examines the impact of budget planning, participation, and internal control on preventing fraud in the budget and testing the mediating role of effective budgetary policy. A quantitative research approach was carried out in which a structured survey was administered to 178 heads of work units in local government agencies of 14 districts in East Java Province, Indonesia. These respondents were purposively sampled, considering their active role in the budget preparation, to enhance data relevance and reliability. The data collection period was from February to March 2025. The study adheres to rigorous ethical standards to protect human participants and the integrity of the research process. The study found that budget participation is the most significant variable for fraud prevention (β = .747, p < 0.001), followed by budget planning (β = 0.147, p = .017). Internal control and budget policy had no direct effect on fraud prevention. Notably, budget policy had a significant mediation effect between each predictor and fraud prevention, particularly for budget planning (indirect effect β = .352, p < 0.001). The results indicate that fraud prevention can best occur using participatory practices and planning that are contained within a strong, enforceable budgetary policy. It is suggested that there should be institutionalized budget systems with integrated governance systems to facilitate financial integrity.

Type of the article: Research Article

Abstract
This study examines the effect of Shariah-compliant fintech, financial inclusion, Shariah banking governance, and financial literacy on maintaining micro, small, and medium enterprises (MSMEs) in Indonesia. A standardized survey was administered to 157 owners and managers of MSMEs who are current clients of Shariah-compliant banking entities in West Java. Purposive sampling was used to obtain relevance since West Java is among Indonesia’s most dynamic MSME regions with robust Islamic banking penetration. Data were collected from June to September 2024 and analyzed using WarpPLS. This study demonstrates a profound ethical commitment regarding the protection of human subjects and the integrity of the research. The results indicate that financial literacy has the most significant direct impact on the sustainability of MSMEs (β = 0.847, p < 0.001), as it helps entrepreneurs make sound financial decisions and fortifies business endurance. Shariah banking fintech also has a direct significant but minor effect (β = 0.057, p = 0.008), while Shariah banking governance has a positive but also minor effect (β = 0.065, p = 0.005). Notably, financial literacy mediates the role of Shariah fintech and governance towards MSME sustainability in boosting their contribution. Nevertheless, it does not manage financial inclusion, which directly aids sustainability. These results underscore the important relationship between financial literacy and the effectiveness of Sharia-compliant financial services. The study proposes that targeted financial literacy campaigns, advanced fintech, and robust governance frameworks are needed to bolster the resilience of MSMEs and advance Indonesia’s economy.