Indonesia Conference Directory

Corresponding Author
Rafika Rahmawati

Institutions
Universitas Islam "45" Bekasi

Abstract
The importance of the banking role in the stability of the country and the increasing competitiveness of the financial sector, especially banking, both domestic and international scale requires the national banks to have a good performance and competitive. In this study will analyze the internal and external factors that determine the level of efficiency of sharia banking in Indonesia. The method used in this research is Two-Stage Data Envelopment Analysis. In the first stage, this research measures efficiency by using Data Envelopment Analysis (DEA) approach and the second stage is regression analysis of Tobit Model. The efficiency scores that have been obtained are used as the dependent variable in the regression model in determining the efficiency determination on the Sharia Commercial Banks in Indonesia. The result of the research shows that the efficiency level of Sharia Public Bank during the research period is 69.28% and it is categorized as less efficient. Based on the tobit model results, internal factors that determine the efficiency level include asset, FDR, and ROA. All of them have a negative effect on the efficiency level of Sharia Commercial Banks. Meanwhile, the external factors determining the efficiency level of Sharia Commercial Banks are GDP, inflation, and market share. All of them have a positive effect on the efficiency level of Sharia Commercial Banks.

Keywords
Efficiency, Islamic Banking, Two-Stage DEA

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/NDCP6zQrx34t

Corresponding Author
kiki hardiansyah siregar

Institutions
a) School of Economic, International Business Management Indonesia, Medan, North Sumatera, Indonesia
* qq.hardiansyah017[at]gmail.com
b) Faculty of Economic, State University of Medan, Medan North Sumatera, Indonesia

Abstract
This research to analyze the market structure of the Islamic banking in Indonesia according to the Panzar-Rosse model and the level of competition between Islamic bank. To find out the market structure of the islamic banking it must be analyzed the effect of EAR, NPF, BOPO, FAR, FS, PL, PFF, PCE measured by ROA. The is used secondary data for a period of 6 years using the selected panel data method. The analysis model related to market structure use the Panzar-Rosse model by looking for the H-statistic value and identified the Islamic banking equilibrium test on the panel data model of the performance of islamic bank. The result found that the performance measured by ROA simultaneously affected EAR, NPF, BOPO, FAR and FS and Panzar-Rosse will produce H-Stat value which is the sum of three main coefficients of banking inputs. With H-Stat valued at 0.735 can be concluded that the islamic banking into the category of monopolistic market. The levels of the Islamic banking of Bank BNI, Bank BRI, Bank Panin and Bank Bukopin are monopolistic market while Bank Muamalat and Bank Mandiri are directed towards a joint monopoly market in the position of long-term equilibrium.

Keywords
islamic banking industry, Panzar-Rosse test, h-stat, monopolistic market

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/mT8bZ4MHJKxD

Corresponding Author
Faralaily Erika Putri

Institutions
Airlangga University

Abstract
Spin off is a change in the business activities of conventional banks into Islamic banks. The three spin off approaches are pure method, acquisition, and conversion. The success of spin off can be measured through the performance of Islamic banks (fixed assets, deposits, BOPO, NPF, FDR, ROA, and CAR). This study aims to see whether there are differences from the three methods of separation before and after spin off, and see which spin off method is considered the best seen from the performance of Islamic banks. In this study the authors used a quantitative method with Wilcoxon Test and One Way MANOVA Test, which later will be processed using SPSS 22 software. The data collection technique used was purposive sampling, where the sample consisted of six Islamic banks that did spin off. Data processing consists of literature studies, data collection, and results analysis. The results of this study state that not all variables have differences between before and after spin off. Furthermore, from the three spin-off methods there are two methods that have advantages in the performance of Islamic banks. The acquisition method is better if seen from the BOPO and CAR variables, while the conversion method is better in FDR and ROA variables.

Keywords
Spin off, Islamic bank, Performance of Islamic banks

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/RjMT6NbvC8ry

Corresponding Author
DELVIANA RODZIFATUL DARMAWANTI

Institutions
Department of Sharia Economics, Faculty of Economics and business, Universitas Airlangga, Surabaya

Abstract
The importance of the existence of micro-economy in the development of BPRS society makes the existence of the BPRS in Indonesia is increasingly high. The rapid developments on the BPRS in Indonesia offset by intense competition in the market. The number of banks who compete by offering similar products make increasing levels of competition. In this study, the authors use quantitative methods approach Panzar and Rosse models, the Concentration Ratio, and the Herfindahl-Hirschman Index. Data capture techniques used are purposive sampling, where there are 80 BPRS that have met the criteria of research samples. The data used are secondary data in the form of financial statements BPRS published in official website of BI or OJK. This study analyzed data on using the Fixed Effect Model. The results of this research show that Sharia in BPR Indonesia during the period 2012-2017 earn income under his monopolistic competition market with a value of H-statistics of 0.858433. While based on the analysis of the Concentration Ratio and the Herfindahl-Hirschman Index shows that the large bank group is a bank that has a very high concentration levels, while the bank group for middle and small banks working in the environment a more competitive with a relatively low concentration levels.

Keywords
Total Assets, Total DPK, Total Financing, BPRS, Panzar-Rosse models, CR4, HHI

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/9nxVbRdZ8hFL

Corresponding Author
MIFTAHUR RAHMAN

Institutions
Faculty of Economics and Business, Airlangga University, Surabaya

Abstract
Tarbiyah savings BMT UGT is intended for members who want to prepare tuition fees and meet the education costs that require changes every year. But in a fairly short time, this savings has absorbed more than 1000 members. By using a qualitative research method with a phenomenological approach, the researchers tried to find the efficiency of tarbiyah savings and the quality service strategy implemented by BMT. The results of this study show that it is very efficient in increasing the number of prospective members. Pick Up Ball strategy, Pickup Service, Using language that is easily understood by the public, providing friendly, easy and fast service to attract public interest.

Keywords
Strategy, Quality of service, Tarbiyah Savings

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/zEAe8km6D2pJ

Corresponding Author
Dyah Titis Kusuma Wardani

Institutions
Universitas Muhammadiyah Yogyakarta (a)
Universitas Gadjah Mada (b)
Universitas Negeri Malang (c)

Abstract
This paper evaluates the extent to which Islamic banks support SMEs financing as compared to conventional banks. The evaluation is conducted using dynamic panel regression estimations, where the sample includes aggregate level data from Indonesian Islamic and conventional banking industries. The results provide evidence that, there is no indication that Islamic banks are more SMEs friendly than conventional banks. Most SMEs do not have access to credit, or have limited access to credit. SMEs limited access to finance reflects the interaction of demand, supply, institutional, regulatory, and other policy factors that are a hindrance for the growth of SMEs. SMEs also lack awareness and knowledge regarding Islamic banking products and what products may suit their requirements.

Keywords
Islamic banking; Conventional banking; SMEs; Financing

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/NYBWRcH2rky8

Corresponding Author
Rifka Mustafida

Institutions
IIUM Institute of Islamic Banking and Finance

Abstract
The ultimate objective of shariah is to protect the well-being of people and nature, which lies in the safeguarding of these five fundamental objectives through the promotion of social justice. These objectives have great resemblance to the United Nations- Sustainable Development Goals (SDGs). In order to solve the specific and social issue, a new developed innovative Islamic financial instrument, Socially Responsible Investment (SRI) Sukuk might be used. SRI Sukuk is a viable solution to address global needs for green and other forms of sustainable and responsible financing. SRI sukuk has been issued by several countries to finance green and society development project. However, it is also clear that it is customarily issued by powerful institutions and government agencies, therefore sukuk become very costly in terms of issuances and it has not taken the opportunity to compete with the far larger and well-developed conventional global debt market. Smart sukuk structure using blockchain technology could be significant to improve the efficiency of the issuance process (such as time of market) and also widen both the issuer and investor base. This paper aims to explore the potential of Smart SRI sukuk and propose scheme in attempt to achieve SDGs. This paper reviews the benefit, opportunity, cost and risk of Smart SRI sukuk to discern the possibility of issuing that feature. The first smart SRI sukuk is issued by Blossom. It is Mudharaba facility to finance SMEs in Indonesia. Several Sharia contracts like istisna, ijarah and wakalah have potential to be implemented as well. Smart SRI sukuk has potential to support SDGs. Ethical, equitable, social and sustainable investments concept of SRI sukuk are relevant in achieving SDGs. Implementation smart contract for sukuk will robust sukuk issuance for all sustainable and responsible projects. In the other side, a regulatory framework and infrastructure is a must to promote this feature.

Keywords
Smart SRI Sukuk, Blockchain, SDGs

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/eaW43fxQvHF2

Corresponding Author
Siti Dalilah

Institutions
Politeknik Negeri Jakarta

Abstract
According to Indonesian Financial Service Authority, Islamic Bank has reached 5,70 % market share in the last five years. For acknowledge this, it represents that Islamic Banking has shown up the good performance i.e. the growth of total asset year by year has been increased. The opposite condition between the growth of Islamic Bank-s Asset and Islamic Bank-s performance, these can be disclosure from credit risk, operational expenses, net profit, and capital. Therefore, this research aims to determine the effect of risk profile, liquidity, earnings, efficiency, and capital on the condition of financial distress using Multiple Linear Regression and Springate-Score. It also compares between Islamic Bank and Conventional Bank within Mann Whitney Test. The study conducted in the scope of Bank in Indonesia; with the object of study are Islamic Foreign Banks and Conventional Non-Foreign Banks. Sample of this research are 13 Banks.

Keywords
market share, financial distress, springate score,multiple regression, mann whitney test, islamic foreign banks, conventional non-foreign banks

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/E2dwVZPtArWB

Corresponding Author
Lina Nugraha Rani

Institutions
1) Department of Islamic Economics, Faculty of Economics and Business
Airlangga University, Airlangga Street Number 4, Surabaya, Indonesia
2) Department of Islamic Economics, Faculty of Economics and Business
Airlangga University, Airlangga Street Number 4, Surabaya, Indonesia
3) Department of Economics and Management Sciences
International Islamic University Malaysia
53100 Gombak Street, Kuala Lumpur, Malaysia
{ linanugraha, puji.sucia }[at] feb.unair.ac.id, marhanum[at]iium.edu.my

Abstract
The development of Islamic banks very rapidly in the ASEAN, such as Indonesia, Malaysia and Brunei Darussalam. The comparison among the three countries is very important as the operational considerations and consideration of State institutions. One of the performance indicators of banking are efficiency and productivity. Comparison of the productivity of the banking between these countries would be helpful to identify the successes and failures of the policy bank. The methods used in this study are Index Malmquist. Malmquist index is an index used to compare bilateral production technology the two elements of the economy. In this case, the index consists of several results i.e.: efficiency change, technological change, pure efficiency change, economic change and the scale of the TFP change. Malmquist index is a measure of TFP changes from time to time, described the companys performance during a certain period. Stages of the development of this research was the collection of data of Syariah bank in Indonesia, Malaysia and Brunei Darussalam year period 2012-2017 and processing the data using the method of Malmquist Productivity Index (MPI).

Keywords
Islamic Bank, Southeast Asia, Productivity, Malmquist Productivity Index

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/wZ4a3KTRVmYM

Corresponding Author
hamdi agustin

Institutions
fakultas ekonomi universitas islam riau

Abstract
The purporse of this research to analyze the effects of inflation, Certificates of Indonesian Bank of Sharia (CIBS), deposit funds (DF) and Non Performing Financing (NPF) to murabahah lending. The population and sample consists of 22 Islamic business units, only 10 banks were selected to be the sample. The period of this study is from 2011 to 2015. This study using panel data and using pooled Ordinary Least Squares (OLS). The results showed that Certificates of Indonesian Bank of Sharia has a negative effect on murabahah lending. This suggests that banks have a greater Bank interest rate spread that has also been shown to affect to lending behavior. it is one of the instruments for placing funds at Bank Indonesia which is used to absorb the excess liquidity of Islamic banks in the context of open market operations to control the amount of money in circulation. Deposit funds have a positive effect on murabahah lending. This suggests that deposits what a bank accepts are demand forms which are repayable to depositors on demand. As a result banks may maintain a large amount of customer deposits as a reserve to meet customers demand instead of lending. NPF has a negative effect on ML These results illustrate that the higher Non performing finance is followed by a decrease in the distribution of funds made by the Bank to reduce the risk of bad credit.

Keywords
lending, Islamic business units and Sharia

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/TGXquEU83hHQ

Corresponding Author
Madha Adi Ivantri

Institutions
Ekonomi Syariah, Universitas Nadhatul Ulama Surakarta

Abstract
This study investigates the relationship of access to finance and the dimensions of sustainable development in OIC countries. The analysis technique used Fixed Effect Estimation (FE) and Random Effect (RE) from the panel data of selected OIC member countries in the period 2006-2014. The estimation results show that financial access does not have a significant effect on economic growth and environmental quality, but has a positive effect on human development. Based on these results, the OIC countries are expected to increase the reach and ease of funding for all levels of society. On the other hand, careful funding is needed to avoid projects that endanger sustainable development.

Keywords
Access to Finance, Sustainable Development; OIC Members Countries

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/ztcVW9TdbjY3

Corresponding Author
Nadia Fazira

Institutions
Faculty of Economy and Islamic Business, State Islamic Institute of Bukittinggi

Abstract
Continuing the efforts and achievements of the MDGs that have changed the face of the world towards a better direction, in 2015 OECD countries launched the SDGs agreement. One of the SDGs targets is the achievement of food security in a country. This study aims to analyze the effect of investment in Islamic Commercial Banks, Sharia Business Units and Sharia Rural Bank through financing programs in agriculture on Indonesian food security measured through rice production. The data used are panel data consisting of 33 provinces in Indonesia from 2014 to 2017 and estimated using common effect method. The estimation results show that the financing program of Sharia Commercial Banks and Sharia Business Units in agriculture significantly affecting rice production by 6.7 percent. Then the Sharia Rural Bank financing program in agriculture is significantly positive affecting rice production by 4.2 percent. Variable of labor in agriculture and land area also has a positive effect on rice production both in the Sharia Commercial Bank program, Sharia Business Unit and Sharia Rural Bank. While variable of fertilizer subsidies has no effect on rice production.

Keywords
Islamic Commercial Banks; Sharia Business Units; Sharia Rural Bank, Financing, Food Security

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/qdfrv2ETFWcH

Corresponding Author
Muhammad Anif Afandi

Institutions
Student at Master of Islamic Economics and Finance, Study Program of Islamic and Middle East Studies, School of Strategic and Global Studies, Universitas Indonesia, Salemba Raya Street Number 4, Central Jakarta, Indonesia
afandianif[at]gmail.com

Abstract
Islamic economic principles, well-being, is in accordance with Sustainable Development Goals (SDGs) program which is not only concerning on commercial aspects but also social aspects. Islamic banking as one of the parts of Islamic economic should carry out its operational activities based on that principle. Then, this paper aims to examine the effects of Islamic bank financing on quality of life measured by Human Development Index (HDI) in the provinces on Java Islands, Indonesia. To examine of that then used panel data regression using random effects model. The results showed that Islamic bank financing consisting by working capital, investment and consumption provide non-significant effects on HDI. However, dummy SDGs provides significant effects on HDI or in other word SDGs program starting on 2015 can trigger improving quality of life as big as 0.029 point. In addition, each independent variable can explain their dependent variable as big as 70.9 percent and the remaining is 29.1 percent influenced other variables outside the model.

Keywords
Islamic Bank Financing, HDI, SDGs, REM, Java Islands

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/heu2fzYxHCp3

Corresponding Author
aulia delvina

Institutions
bank bjb syariah

Abstract
The development of the Sharia Banking Industry is now very rapidly marked by the increasing prevalence of Sharia Commercial Banks. Of course this is in line with business competition, Islamic banks are required to always prioritize better quality services, but are also bound by the good provisions stipulated in the legislation and the Financial Services Authority Regulation (POJK), one of the efforts to improve services is by the Use of Electronic Signatures in Submission of Financing based on sharia principles. The reason for the launch of the Electronic Signature service in the Filing of Financing is to accommodate service users who want convenience in banking transactions. Electronic Signature Service in Submission of Sharia-based Financing in addition to providing easier offers and schemes also provides certain restrictions on the certification of electronic signatures. Demand for the Use of Electronic Signatures in Submission of Sharia-based Financing that continues to increase is supported by the market share of service users from the Indonesian community, the majority of whom are Muslims.Regulation of the Financial Services Authority (POJK) and Sharia Compliance.

Keywords
Electronic Signatures, Financing, islamic bank

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/24RD8CGqTMam

Corresponding Author
Achmad Rifa-i

Institutions
1) Faculty of Economics, Andalas University, Jalan Rangkao Said, Kota Payakumbuh, Sumatera Barat 26218, Indonesia
*putriayu.payakumbuh[at]gmail.com
2) Faculty of Islamic Studies, Muhammadiyah University of Yogyakarta, Jalan Brawijaya, Kasihan, Bantul, Yogyakarta 55183, Indonesia
3) Ministry of National Development Planning, Jalan Taman Suropati 2, Menteng, Jakarta Pusat 10310, Indonesia

Abstract
Poverty is a challenge that must be encountered by every country in the world. Therefore, it is not surprising that the poverty issue occupies the first goal out of the 17 Goals in the SDGs framework. Although, in general, the trend of poverty in Indonesia continues to decline, it turns out that the indication of a more acute poverty level is still difficult to alleviate. The index is reflected in the poverty severity index and poverty gap index. In this case, Islamic financing provides a more inclusive concept of poverty alleviation. The results of estimation using panel data from 32 provinces during 2014-2018 in Indonesia reveal empirically that Islamic financing contributes to poverty alleviation programs through the financing of productive working capital. Hence, the financing made by Islamic banking has supported greatly to achieve the SDGs Goal 1: No Poverty. However, the achievement of Islamic banking needs to be expanded to reach the lowest point of people suffering from poverty through financing and assisting productive economic activities.

Keywords
Financing, Islamic Banking, SDGs, Poverty, Data Panel

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/ECLQVh43pTaH

Corresponding Author
Wardatul Firdaus

Institutions
University Airlangga

Abstract
This study aims to determine the effect partially and simultaneously the variable capital adequacy ratio, financing to deposit ratio, non-performing financing, operating costs and operating income, asset size, gross domestic product, inflation and BI rate to the profitability of Syariah Commercial Banks in Indonesia period 2011-2017. Profitability measurement using Return On Assets (ROA) This study uses quantitative methods. The analysis technique used is panel data regression analysis. The sampling technique was purposive sampling from the established criteria, obtained by 10 Syariah Commercial Banks consisting of Bank Muamalat Syariah, Bank Syariah Mandiri, Bank Mega Syariah, Bank BRI Syariah, Bank Bukopin Syariah, Bank Panin Syariah, Bank Victoria Syariah, Bank BCA Syariah, Bank BNI Syariah, Bank Maybank Syariah The results of this study indicate that partially the financing to deposit ratio, operating costs and operating income and bi rate variables have a negative and significant effect, variable capital adequacy ratio, non-performing financing and inflation have a positive and non-significant effect, asset size and gross domestic product variables negative and not significant to the profitability of Syariah Commercial Banks in Indonesia. Simultaneously, the variable capital adequacy ratio, financing to deposit ratio, non-performing financing, operating costs and operating income, asset size, gross domestic product, inflation and bi rate have a significant effect on the profitability of Syariah Commercial Banks in Indonesia

Keywords
CAR, FDR, NPF, BOPO, Asset Size, GDP, Inflation and BI Rate, Profitability

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/bmkEaAWvZ9FY

Corresponding Author
Herry Ramadhani

Institutions
Economic and bussiness faculty,Mulawarman University

Abstract
This study purpose to analyze the behavior of investment decisions based demographic factors among Islamic Investors in East Kalimantan province. The data obtained from primary data sources using questionnaires to 30 Islamic Investors at East Kalimantan. This research model is exploratory research with a survey method and accidental sampling technique. The data analysis method used in this study is chi square. the result show significant relationship between age and investment type decisions. The younger the age of Islamic Investors to find out new things is very high that makes young Islamic Investors almost invest in the real and financial sectors but not building. the insignificant results in the relationship between gender and investment decisions, with the level of education between women and men almost the same, then there are indications that men and women have very good knowledge of investment which results in increased independence and high trust in making investment decisions in all types of investment, significant results between types of occupation and investment decisions, indicating that investors Muslims will make investment decisions in accordance with the income from their work, while the significant results of the relationship between marital status and investment type decisions, there are indications that married Islamic Investors have a sense of responsibility to the family arga so invest in all types of investment in the real and finacial sectors, while an unmarried / single person is indicated to tend to feel free and have no responsibility, so many invest in savings where funds from investment can be taken at any time.

Keywords
Investment Decisions, Islamic Investors, Age, Gender, Occupation and Marital Status

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/9VAJPCKEXxcL

Corresponding Author
Atina Shofawati

Institutions
Faculty of Economics and Business
Universitas Airlangga

Abstract
Government in Prophet era has many sources of fund for conducting activity to manage country. Islam has many sources of fund to operate the governance which is known as Islamic public finance. One of the source of Islamic public finance which is suitable until now is zakat and waqf. This paper emphasizes the waqf as source of public finance. This paper has purpose to describe the role of waqf as source of Islamic public finance. This paper uses descriptive qualitative method with literature review approach. The result of this paper can describe the role of waqf as source of public finance to achieve the welfare of society.

Keywords
Waqf, Public Finance, Islamic Public Finance

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/cDWmpf2dZMGe

Corresponding Author
ahmad abbas

Institutions
IAIN Parepare, Universitas Sembilanbelas November

Abstract
The core of this research is to highlight marketability in the growth of sharia banking in Indonesia and to test the role of sharia financial inclusion and literacy. The sample of this research is Indonesia sharia banking consisting of sharia commercial banks and business units listed in Indonesia Bank and Financial Services Authority over the period of 2014-2019. Data of monthly financial statements are analyzed using the test of interaction effect with multiple moderators. The starting result of this research points out that the marketability at the degree of sharia bankings- growth is in a moderate power. The main result is found that the nexus between marketability and the growth is empirically affected by the role of sharia financial literacy and inclusion, nevertheless both have opposite roleS.

Keywords
Market Power, Marketability, Financial Inclusion, Financial Literacy

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/cCW9fz8ahPRH

Corresponding Author
Ecky Imamul Muttaqin

Institutions
Center for Economic Development and Public Policy (CEDPP), University Muhammadiyah Yogyakarta, Brawijaya Street, Yogyakarta, Indonesia

Abstract
The behavior of procyclicality is one of the important sources that encourage systemic risk in banking system in Indonesia. This study aims to analyze amplitude and frequency on credit cycle of Islamic and conventional banking in Indonesia. The data used are total Islamic bank financing and total conventional bank lending in monthly from 2004 to 2017. The methodology used is frequency based filter analysis (FBF) and turning point analysis. Determination of time range of cycle is examined using equation of standard deviation ratio between credit cycle and business cycle. The results showed that size of Islamic bank-s amplitude is larger than size of conventional bank-s amplitude. This is as characteristic of Sharia banks based on the pattern of financing of real sector. Meanwhile, unlike conventional banks encourage creation of bubble capital because it is related on the credit pattern based on speculative activities on basis of the interest system. Therefore, conventional banks need to encourage credit patterns based on the capital. Meanwhile, for the size of the frequency of Sharia banks has a longer frequency measure than conventional banks, but number of cycles formed is the same as a perfect cycle.

Keywords
Amplitude, Bank Lending, Credit Cycle, Dual Banking System, Frequency, Procyclicality

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/FDUphb7cGBZR

Corresponding Author
Muhammad Abubakar Siddique

Institutions
International Institute of Islamic Economics (IIIE),International Islamic University Islamabad

Abstract
In Pakistan, banking sector was brought under the umbrella of Islamic financial paradigm since 2004. Many studies has proved that Islamic banking industry (IBI) with its macro indicators was performing well. But no study has been done yet to analyze the role of Shariah compliant financing of IBI in achieving the SDGs. This study attempt to explore this role of Pakistani IBI considering one of the SDGs economic growth. This study used Islamic bank-s products like Salam, Murabaha, Diminishing Musharkah (DM), Ijarah and Istisna as independent variables, while GDP growth rate was used as dependent variable. Keeping in view the availability of data, this study selected thirteen banks; four full-fledged Islamic banks and standalone Islamic Branches of nine conventional banks in Pakistan. The study employed annual unbalanced panel data spanning from 2004 to 2018. In the light of findings obtained from Im, Pesaran and Shin panel unit root test, Breusch-Pagan LM test, and Hausman test, Random Effect (R.E) estimation technique was employed. The results showed that Islamic bank specific variables as well as macroeconomic variables had significant impact on economic growth in Pakistan. The study concluded and recommended that Shariah compliant financing has great potential to boost up the economic growth of Pakistan and to achieve other SDGs in Pakistan as well, if government of Pakistan takes solid steps to promote Shariah compliant financing.

Keywords
SDGs, Islamic Banking, Economic Growth, Islamic Financial Instruments.

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/rvABgRp6nmML

Corresponding Author
isfandayani anjono

Institutions
Universitas Islam "45" Bekasi (UNISMA BEKASI)

Abstract
One of contracts used by financing product of islamic bank is agreement based on profit sharing. This contract is very exceptional because one of the distinguis elements of islamic bank to the conventional bank is the profit sharing system and/or loss and profit sharing. One of profit sharing based financing is musyarakah. This research will study the risk mitigation at the musyarakah financing at the Bank Muamalat Indonesia by using qualitative method. Bank Muamalat Indonesia has set the risk management strategy through a series technical, provisio and device in the process of identification, measurement, supervision and control and qualified risk management as reflected on implementation Quality of Risk Management (KPMR) and also Key Risk Indicators as paramater control which is contributed by Risk Oversight Committee, Risk Management Committee, Sharia Supervisory Board and Risk Management Unit. The three lines of combined assurance of risk management defense at the Bank Muamalat Indonesia are First Line Defense, Second Line Defense and Third Defense. Mitigation is conducted by way of analyzing the key risk indicators in the field of legality, character, management, industry, information technology, marketing, Environment Impact Assessment (AMDAL) and finance. Whereas the Key Risk Indicators of the Financing of Musyarakah Mutanaqishah of mortgage loans at the Muamalat iB is conducted by way of analyzing the customer individually, developer, market risk, finance and obedience. The Risk mitigation of musyarakah financing comprises finance risk, operational risk, legal risk, reputation risk, liquidation risk and market risk.

Keywords
Mitigation, Financing Risk of Musyarakah, Islamic Bank

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/zV3ue4bJGh6M

Corresponding Author
hamdi agustin

Institutions
fakultas ekonomi universitas islam riau pekanbaru

Abstract
The purpose of this study is to calculate the feasibility of investing in the financial aspects by using an Islamic perspective namely Hamdi-s Method. Hamdi-s Method uses the calculations of gold value method (GVM) and gold index (GI) which is a substitute for calculations in conventional concept, namely net present value (NPV) and profitability index(PI) The GVM method is a new method for calculating financial aspects in determining the feasibility of investing in an Islamic perspective. The calculation of the GVM and GI methods uses the gold standard based on the word of Allah ta-ala in the letter At Taubah verse 34. From the word of Allah ta-la this was developed by Ibnu Khaldun who stated that gold and silver are measure of value. In this paper try the case of opening a business an English course by using the Hamdi-s Method which then compares investment feasibility decisions using conventional method namely NPV and PI. The calculation results show that the business of English course is feasible using the Hamdi-s Method. The result is the same as using NPV and PI calculations. Thus calculating the feasibility of investing in the financial aspects by using an Islam perspective namely the Hamdi-s Method can be used as a new method in academic field.

Keywords
Hamdi-s Method, Islamic perspective and financial aspects

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/LcNqKmBRCn64

Corresponding Author
Ernawati Ernawati

Institutions
(1,2)Departement of Economics, Halu Oleo University, Kampus Bumi Tridharma Anduonohu Kendari, Indonesia
(3)Department of Informatics Management, STMIK Catur Sakti Jl.Abdullah Silondae Kendari, Indonesia
erna_unhalu[at]yahoo.com(1), nusantara.uho[at]gmail.com(2), Mansyur.asri[at]yahoo.co.id(3)

Abstract
The enormous potential of the Muslim population has not been able to drive the development of the Islamic finance industry triggered by low-level awareness. This research was conducted to determine the effect of awareness on the Islamic finance industry. The study used secondary data based on the publication of Thomson Reuters report in the period 2014 to 2017. Data analysis was data panel regression. The research findings showed that the countries with most of the size of Islamic finance assets are Malaysia, Saudi Arabia, and Kuwait, respectively. The leading connectivity of the Islamic financial industry was in Malaysia. The main interconnectivity in the regulation of the Islamic finance industry was Qatar and Saudi Arabia. Awareness and social factors have a significant positive influence on the size of Islamic finance, but regulation has not significant. The awareness was an entry point for the development of the Islamic finance industry. Social factors can also encourage Islamic financial with a smaller impact than awareness.

Keywords
awareness; social; regulation; financial; Islamic

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/dxEXnfz2YUcy

Corresponding Author
Putri Ayu

Institutions
a) Economic of Development , Faculty of Economics, Campus II Payakumbuh Universitas Andalas
H. Rasuna Said 192, Kubu Gadang, Payakumbuh 26213, Indonesia
*putri.ayu[at]mail.ugm.ac.id
b) Magister Science in Economics, Faculty of Economics and Business, Universitas Gadjah Mada
Bulak Sumur, Yogyakarta 55281, Indonesia
c) Management , Faculty of Economics, Campus II Payakumbuh Universitas Andalas
H. Rasuna Said 192, Kubu Gadang, Payakumbuh 26213, Indonesia

Abstract
As the largest Muslim population in the world, Indonesia has an excellent opportunity to lead the Islamic economy in the world, one of which is through Financing Sharia. The financing Sharia of Sharia Commercial Bank and Sharia Business Unit in Indonesia have always increased and even have a mission to contribute to the 17 pillars of sustainable development, one of which is a partnership for the goals. This study aims to analyze the influence of Sharia Commercial Bank and Sharia Business Unit financing of musharakah, mudharabah, murabahah and inflation to the exports Indonesia to Japan and the total export in Indonesia. The period of analyses from 2011q1-2018q4 using the ARDL-ECM method. The results show that the financing of musyarakah, mudharabah, murabahah and inflation together have significant on the exports to Japan and the total exports in Indonesia in the long-term effects. Partially in the long term, musyarakah significantly influences the exports to Japan and total exports in Indonesia, inflation significantly positively affects exports in Indonesia, while other variables are not significant. In the short term, the mudharabah positively affects total exports in Indonesia and the total exports to Japan, musharakah affect the total exports to Japan, and the rest do not affect in the short term. The existence of long-term relationships is expected that the government continues to develop Islamic finance through the three pillars of sharia development, especially the financing of musyarakah and mudharabah investments which significantly affect exports.

Keywords
musyarakah, mudharabah, murabahah, export, ARDL-ECM

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/hEBjnJtZ9XQe

Corresponding Author
Nikmah Mentari

Institutions
(a,b) Post Graduate Law Faculty, Universitas Airlangga
Jl. Dharmawangsa Dalam Selatan, Surabaya, Indonesia

Abstract
The rapid development of Sharia Banking has become an exciting market to become a Conventional Banking industry entrepreneur who is passionate about Sharia Business Unit as diversification in banking transactions. However, the existence of a Sharia Business Unit will be ended in 2023 due to the mandate of the Sharia Banking Act which requires a spin-off. Therefore, the Sharia Business Unit will become an independent Sharia Bank. As part of the parent bank, it is should for the conventional bank to prepare the readiness of Sharia Business Unit before spin-off so that they can compete in the global era based on the SDGs principle and still maintain the sharia compliance. The issue of this study, "What is the urgency of Conventional Bank that implements the principle of SDGs to Sharia Business Unit Pre-Spin Off 2023 and How to implement SDGs Pra-Spin Off by Sharia Business Unit become Bank Umum Syariah". The method applied is normative juridical, which relates to the prevailing norms and legal principles. The approach taken is the statute approach. The outputs are produced by focusing the objectives on SDGs goals which are correlated with Sharia Banking and Good Corporate Governance principles of Sharia Business Unit with Conventional Bank.

Keywords
Coventional Bank, SDGs, Sharia Business Unit, Spin Off

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/9F7udzM4tvqf

Corresponding Author
Mega Bintang Rahardini

Institutions
Universitas Airlangga Jalan Airlangga No 4 sampai 6 Surabaya

Abstract
This study aims to see the which indicators between Reviews These seven criteria Akad, character, capital, capacity, collateral, condition and Sharia are Considered most important in the financing agreement According to banking practicioners. This study used qualitative and Quantitative method with Analytic Network Process ANP techniques. The respondents in this study is seven respondents who are banking anlysts. The result of this study state that from the seven criteria, there are three criteria that Considered most important According to the anlysts. Those criteria are character 0.208), Syariah 0.196 and capacity 0,154.

Keywords
financing, Analytic network process, sharia banks, 5C.

Topic
Islamic Finance and Banking

Link: https://ifory.id/abstract/Ca84Rv3mwFkM