The Support of Sharia Rural Banks Financing on National Financial Inclusion

Nenny Ariani,Pancawati Hardiningsih,Etna Nur Afri Yuyetta

doi:10.28918/ijibec.v4i1.1980

Nenny Ariani, Pancawati Hardiningsih + Show 1 more

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https://doi.org/10.28918/ijibec.v4i1.1980

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Abstract

The purpose of this study is to examine the effect Sharia Rural Banks Financing through Micro Small Medium Entreprise (MSMEs) financing on Financial Inclusion in Indonesia from 2011 to 2018. The study samples consists of Financial Reporting of Sharia Rural Bank from the Indonesian Financial Service Authority and Financial Inclusion from Growth Economi Report of Indonesia Central Bank. This study uses a quantitative approach with secondary Financial Inclusion data as measured by MSME Business Expansion Credit and Gross Domestic Product (GDP) using linear regression method to test the effect of variables.The results show that Sharia Rural Banks Financing has a significant effect to GDP (Gross Domestic Product) as a Financial Inclusion in Indonesia. The results of the study also showed that MSMEs Financing in Sharia Rural Banks did not have a significant relationship with Net Expansion credit because of Internal inhibiting the development of MSMEs such as low human resources, organizational management, addition limitations information technology and creativity

Highlights

National economic growth has increased over the last three years as indicated by the figures of GDP (Gross Domestic Product), which had a 4.88 per cent in 2015 to 5.18 percent in 2017, (PPN/BAPPENAS, 2018) According to BPS (Central Bureau of Statistics) figures were possible will continue to increase along with the growing number of businesses Micro Small Medium Entreprise (MSMEs) industry in Indonesia
Based on the purpose of this study is to examine the effect Of Sharia Rural Banks Financing through Micro Small Medium Entreprise (MSMEs) financing on Financial Inclusion to be achieved, the author only limit the problems on Financing of Small and Medium Sized Enterprise (SMEs) in the SRB and its influence on Financial Inclusion in Indonesia
This study are expected to be able to add to the scientific discourse of various studies that have been conducted which generally provide the view that Financing in Islamic Banking, more suitable for application in encouraging the development of SMEs through the capital more in reach, especially SRB believed closer to the community

Summary

Introduction

National economic growth has increased over the last three years as indicated by the figures of GDP (Gross Domestic Product), which had a 4.88 per cent in 2015 to 5.18 percent in 2017, (PPN/BAPPENAS, 2018) According to BPS (Central Bureau of Statistics) figures were possible will continue to increase along with the growing number of businesses MSMEs industry in Indonesia. World Bank Global Data Findex explained that Indonesia has a Financial Inclusion progress is quite high. The numbers gap between rich and poor is quite high at 20 percent. This illustrates that the economic growth in Indonesia is uneven. Financial Inclusion Index in Indonesia reached 19.6 percent in the years 2011, lower than countries in Asia. Contributes to the unequal distribution of financial inclusion in Indonesia

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