Financial Institutions In Indonesia Research Articles

The Influence of Brand Image, and Sharia Label on Savings Decisions of Customers at PT Bank Syariah Indonesia Tbk KCP Jember Gajah Mada

This study aims to analyze the effect of brand image and sharia label on saving decisions on customers of PT Bank Syariah Indonesia Tbk KCP Jember Gajah Mada. Bank Syariah Indonesia is one of the largest Islamic financial institutions in Indonesia that provides banking products and services according to sharia principles. Factors such as brand image and the existe nce of sharia labels are considered to have an important role in influencing customer decisions to save at Islamic banks. The research method used is quantitative with data collection techniques through questionnaires distributed to Bank Syariah Indonesia customers at KCP Jember Gajah Mada. The data obtained were analyzed using multiple linear regression to determine the effect of each independent variable on saving decisions. The results showed that brand image, and sharia label simultaneously and partially had a significant effect on customer saving decisions. Brand image has a positive and significant effect, which shows that the positive image of Islamic banks can increase customer interest in saving. In addition, the sharia label, which shows compliance with sharia principles, also makes a significant contribution in influencing customer decisions. In conclusion, brand image, and sharia label are important factors that influence customer decisions in saving at Bank Syariah Indonesia. Therefore, the bank is expected to continue to strengthen the brand image, provide education about sharia products, and maintain the integrity of the sharia label to increase customer loyalty and trust.

Pengawasan Pelaksanaan Akad Notaris pada Perbankan Syariah oleh Dewan Pengawas Syariah

The rapid development of Islamic banking institutions must be supported by effective supervision so that operations are more efficient, so the Sharia Supervisory Board was formed by the National Supervisory Board (DSN) to oversee the application of sharia principles in Islamic banking. This research aims to find out the role of the Sharia Supervisory Board in supervising Islamic financial institutions in Indonesia and the Sharia Supervisory Board (DPS) related to supervising the implementation of contracts by Notary. The method used in this research is doctrinal legal research method using secondary data related to Islamic banking. The results of this study indicate that DPS supervision in Islamic banking is not optimal, which has an impact on the supervision of contracts in Islamic banking, as seen from the many problems in Islamic banking in the form of contract violations contrary to sharia principles. The conclusion of this problem is that the Sharia Supervisory Board (DPS) has not optimally carried out its supervision according to its rules to ensure compliance with sharia principles, as supervisors of Islamic banks must oversee every stage of the financing process to ensure the legal protection of their customers.

Sustainable financial institution in Indonesia: An empirical analysis of social-cultural context, nepotism, and moral hazard on the shaping of non-performing loans

This study investigates the complex relationships among social and cultural contexts, nepotism, moral hazard, and non-performing loans (NPLs) within Indonesian financial institutions. Using survey data from a sample of these institutions, it employs structural equation modeling (SEM) to analyze these relationships. The findings reveal significant paths: social context significantly influences nepotism (β = 0.345 or 34.5%) and moral hazard (β = 0.347 or 34.7%), while cultural context has notable effects on nepotism (β = 0.157 or 15.7%) and NPLs (β = 0.379 or 37.9%). Nepotism (β = 0.168 or 16.8%) and moral hazard (β = 0.325 or 32.5%) also directly impact NPLs, highlighting their roles as mediators between social and cultural contexts and loan portfolio quality. These results underscore the pivotal roles of these factors in shaping organizational behavior and risk management practices. The study provides critical insights for practitioners, policymakers, and scholars focused on enhancing the sustainability and integrity of financial institutions in Indonesia. However, its reliance on cross-sectional data and self-reported surveys, and the focus solely on Indonesian institutions, may affect the generalizability of the findings. Despite these limitations, the study underscores the importance of addressing issues like nepotism and moral hazard to improve financial stability in the region.

The Urgency Of Implementing Sharia Accounting In Sharia Financial Institutions In The Indonesian Context: Bibliometric Analysis

Sharia accounting has an important role in a sharia bank to help record financial reports. through recording financial reports will help produce quality, ideal and transparent financial report information. This research aims to determine the mapping of sharia accounting research on Sharia Financial Institutions in Indonesia from 2013 to 2023 and find out the importance of implementing sharia accounting in Sharia Financial Institutions. The approach used is quantitative with bibliometric analysis methods. The data source used is secondary data from the Garuda portal (Garba Reference Digital) and analyzed using VOSviewer software. The research results show that the number of scientific article publications on the application of sharia accounting in sharia financial institutions from 2001 to 2023 was 107 articles divided into 8 clusters and 58 topics.

Analysis of the Effect of Risk Management and Compliance Practices on Financial Performance and Corporate Reputation in the Financial Industry in Indonesia

This study examines the impact of risk management and compliance practices on the financial performance and corporate reputation of financial institutions in Indonesia. Utilizing a quantitative approach, data were collected from 160 financial institutions through a structured questionnaire and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS 3). The results indicate that both risk management and compliance practices significantly enhance financial performance and corporate reputation. Specifically, risk management practices have a stronger positive impact on both outcomes compared to compliance practices. These findings underscore the necessity for financial institutions to integrate comprehensive risk management and compliance strategies into their operations to achieve financial stability and bolster their reputation. The study provides valuable insights for practitioners and policymakers, highlighting the critical role of these practices in fostering long-term sustainability and success in the financial industry.

Penerapan Akad Wadiah Pada Produk Simpanan Idul Adha Di Koperasi Syariah Masjid Al Arif Kota Bandung Dalam Perspektif Fatwa DSN MUI

The Shariah financial institutions in Indonesia are currently undergoing rapid and significant progress.This can be observed through the profiling of various financial institutions, both bank and non-bank, which actively contribute to the progress of the Indonesian economy.The research method used in this research is qualitative descriptive research method.Qualitative method is the method of research based on postpositive philosophy used to investigate on the conditions of natural objects to obtain data with a specific purpose of use on the product storage idol adha in KOPSYAR MAJTAMAS AL ARIF in using academic wadiah yad Trust compliance with the fatwa DSN MUI NO:86/DSN-MUI/XII/2012.The academic implementation of the academic Wadiah on KOPsYAR Majtamas AL ARif in the perspective of DSN- MUI can be said to be not in line with the principle of Shariah

Farmer Satisfaction with Financing Services at Sharia Microfinance Institutions Agribusiness (Sharia MFI-A)

The total share of financing for the agricultural sector from financial institutions in Indonesia is still relatively low. It is because the agriculture sector is considered high-risk and not bankable. Even though the demand for financing from the agricultural sector is very high. Sharia MFI-A is a financing institution friendly to farmers because it has Sharia principles and shares risks. The loyalty of its customers determines the sustainability of this business. Service quality and customer expectation are affect customer satisfaction. This study aims to analyze service attributes considered necessary by customers and customer satisfaction to financing services at Sharia MFI-A. This research was conducted in West Sumatra, a province famous for its local principles of “Adat basandi sayarak, syarak basandi kitabullah”. The research was conducted on Sharia MFI-A namely in Agam Regency. The respondents were farmers who received financing in 2022. Five variables were observed: tangible, reliability, responsiveness, assurance, and empathy and measured using the Likert scale. Data analysis used Importance Performance Analysis (IPA) and Customer Satisfaction Index (CSI). The results showed that CSI’s score on Sharia MFI-A services is 88.28%, including the range of very satisfied criteria. Customers expressed very satisfaction with the performance of Sharia MFI-A services because the office is clean and comfortable, fast and friendly service, guaranteed customer confidentiality, and proft sharing transparency. This is by the principles of sharia services, namely fairness, and honesty in transactions ('adl wa tawazun), maslahah, and does not contain gharar and riba. Customer satisfaction with the services will affect farmers' loyalty to utilizing financing services from Sharia MFI-A in the future.

Exploration of Co-Creation Strategy: On the “Collaboration for Innovation” Program in the Digital Era

This research seeks to understand the exploration of co-creation strategies in the collaborative strategy program for innovation in the digital era at Bank OCBC through a qualitative descriptive approach. Study data was collected through documentation, observation, and conducting in-depth interviews directly with 4 informants. The data was then analyzed using a triangulation approach, both sources and techniques, which were guided by the theory of Miles et al. The findings indicate that marketing strategies in the current digital era see collaboration between companies and customers through co-creation. At Bank OCBC, it is implemented well by paying attention to dialogue, access, risk assessment and transparency (DART) in the current era of digital disruption, the co-creation process used by Bank OCBC can be shortened by using platforms such as websites and social media so that it takes advantage of this platform by exchanging ideas with customers to see what they want about current banking products or asking for reviews regarding products that OCBC Bank already has and customer satisfaction in using the products they have so that it has an impact on sustainability. This study is able to make a positive contribution to marketing literature in product marketing and practically for banks in maintaining the business sustainability of financial institutions in Indonesia.

The Influence of Leadership and Work Motivation on Employee Discipline at PT Bank XYZ in West Jakarta

This research examines the influence of leadership and work motivation on employee discipline at PT Bank XYZ in West Jakarta. Bank XYZ, as one of the leading financial institutions in Indonesia, is committed to employee development and maintaining a positive work culture. The lack of employee discipline can affect operational efficiency and customer service. Therefore, leadership and work motivation are considered crucial factors in influencing the level of employee discipline. This study utilizes data from 2020 to 2022 to analyze the relationship between these variables. The analysis results indicate that both leadership and work motivation have a positive and significant impact on employee discipline. The better the leadership and work motivation, the higher the level of employee discipline. The implication is the importance of the leader's role in setting a good example and providing motivation to employees to achieve optimal performance. This research contributes to the development of human resource management theory, particularly in the context of the banking industry. Additionally, the findings can serve as a guide for companies to improve employee performance through the optimization of leadership and work motivation.

Implementasi Earning Management Pada Lembaga Keuangan Dengan Prinsip Akuntansi Syariah

Companies such as financial institutions in carrying out operational activities always want to obtain high profits such as profit engineering. Earnings engineering is one of the contemporary issues in finance, especially in Indonesia. In several reports in a large company there are 77% of senior managers involved in unethical behavior by carrying out scandals that are motivated by earnings management. This is problematic for the development of accounting, especially sharia accounting. Study aims to analyze the implementation of Islamic earnings management in Islamic accounting. In this study teh method use is the literatur review by collecting secondary data from various related journal. The results show that there are still earnings engineering practices in companies and financial institutions in Indonesia. For this reason, sharia principles really need to be emphasized in order to improve the quality of sharia accounting that is completely free from fraudulent practices. One of the appropriate efforts is to apply sharia accounting in conducting profit-sharing financing, proper and effective monitoring must be carried out with adequate supervision and reporting, so that companies such as Islamic banks or companies can avoid earning management and profit engineering. Financial institutions that apply sharia accounting principles are required to implement Islamic earnings management as a profit management practice in accordance with Islamic religious rules and ethics.

Analisis Penerapan Metode Pencatatan Akuntansi Dengan Konsep Accrual Accounting Pada Perbankan Syariah

The concept of accrual accounting is a basis commonly applied in financial institutions in Indonesia. However, Islamic banks have a different perspective on implementing the accrual accounting concept. This research aims to analyze the application of accounting recording methods with the concept of accrual accounting in sharia banking. The research method is descriptive qualitative research with data collection techniques in the form of library research. The findings show that the implementation of the accrual accounting concept in sharia banking cannot be fully implemented because there are elements that conflict with sharia principles. These elements are uncertainty and gharar, as well as the high potential for institutions to fall into earnings management practices. This makes sharia banking apply a limited accrual method and adapt it to sharia principles. In calculating profit sharing, Islamic banking does not apply accrual accounting because it requires real cash inflows and receipts. Islamic financial institutions can use accrual accounting for financial reports which aims to increase transparency and accountability before stakeholders.

Analisis Pembuktian Pidana Asal dalam Kasus Tindak Pidana Pencucian Uang yang Diatur dalam Undang-Undang: Tinjauan Terhadap Prinsip Hukum dan Implementasi dalam Praktik Hukum di Indonesia

Money laundering is a serious threat to the financial stability and integrity of financial institutions in Indonesia. Proving the origin of criminal proceeds in money laundering cases is a primary focus in law enforcement efforts to combat this illegal activity. This paper provides a review of the legal principles underlying the proof of criminal origin in money laundering cases and discusses their implementation in legal practice in Indonesia.Through literature analysis and case studies, the author highlights the complexity of proving criminal origin in the context of money laundering cases. Challenges include difficulty in tracing complex financial transactions, limitations in adequate legal regulations, and the need for international cooperation for effective exchange of information and evidence. Additionally, the paper emphasizes the importance of meticulous financial analysis as a key instrument in proving the origin of laundered funds. In the context of legal practice implementation in Indonesia, this paper examines the efforts of the government and law enforcement agencies in handling money laundering cases. Despite steps taken to enhance law enforcement effectiveness, there are still challenges to be addressed, such as lack of coordination between agencies, protection of witnesses and informants, and the expertise required for complex financial analysis. Considering the relevant legal principles and challenges faced in legal practice in Indonesia, this paper concludes the need for greater efforts to enhance the capacity of law enforcement agencies, improve international cooperation, and strengthen regulatory frameworks to ensure the effectiveness of proving the criminal origin in money laundering cases in Indonesia.

Customer's Decision to Open a Bank Account Using Mobile Banking Application: Case In The Muamalat Digital Islamic Network (MDIN)

<p><em>As digital technology based on the Internet of Things (IOT) develops, it should be able to increase banking access (inclusivity) for customers and attract the interest of potential customers. Banking digitalization is currently much more developed than just transaction features but also includes a savings account opening system. Bank Muamalat Indonesia is one of the sharia banks that participates in the development of digital technology by presenting a mobile banking application called MDIN or Muamalat Digital Islamic Network. Digitalization of sharia banking should provide convenience and attract the interest of potential customers, considering that the market share of sharia financial institutions in Indonesia is still low. This research aims to determine customer preferences for opening a savings account via MDIN.</em><em> </em><em>This research uses a qualitative research method with a case study approach. The objects of research include customer preferences in using MDIN digital banking. The subjects of this research are customers who open savings accounts through MDIN. The research results show that customer preferences in using MDIN as an option for opening a savings account are based on several factors such as social factors, ease of service, benefits and personal factors. Social and personal factors are the most dominant factors in customer</em><em>’</em><em> decision making to open a savings account through MDIN digital banking.</em></p>

Islamicity Cultural Performance Index (ICPI) in increasing customer trust in KSPP syariah BMT NU East of Java Indonesia

The development of Islamic financial institutions in Indonesia, notably in East Java, has seen significant growth, particularly with the rise of Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) within conventional financial institutions. The study focuses on assessing the performance of East Java BMT NU Sharia KSPP using the Islamic Cultural Performance Index (ICPI) to enhance customer trust. Employing qualitative methods with descriptive analysis, the research evaluates financial performance from 2017 to 2021. It utilizes the Islamic Performance Index (IPI) approach, examining Profit Sharing Ratio, Equitable Distribution Ratio, and Director-Employee Welfare Ratio. Results demonstrate favorable ratios contributing to customer trust, influenced by aspects like benevolence, integrity, and religious values. While the IPI evaluates financial aspects, the Islamic Cultural Performance Index (ICPI) considers religious values' impact on trust. This study enriches understanding of customer trust dynamics, serving as a resource for enhancing quality learning and analytical frameworks in Islamic finance.

Assessing the Productivity and Technological Changes of Indonesian Zakat Institutions

Measurement of the productivity level of Islamic financial institutions in Indonesia has been widely carried out. However, not much research with the object of research in Islamic social fund institutions, one of which is zakat institutions in Indonesia. This study tries to measure the productivity performance of zakat institutions. This study uses the Malmquist Productivity Index method with DEAP 2.1 software. Data were obtained from eleven zakat institutions with a five-year research period from 2016 to 2020. This study uses the Malmquist Productivity Index method with DEAP 2.1 software. Data were obtained from eleven zakat institutions with a five-year research period from 2016 to 2020. This study is the first study to calculate the productivity level of eleven Indonesian zakat institutions with a research period of the last five years.

Strategy for Increasing Customer Financial Literacy on Decisions to Use Financial Products, Especially Savings Products at PT BPD Sumsel Babel Muaradua Branch Office

This study aims to analyze the strategy of improving customer financial literacy on the decision to use savings financial products of PT BPD Sumsel Babel Muaradua Branch Office. PT BPD Sumsel Babel is one of the leading financial institutions in Indonesia whose main objective is to support economic growth in South Sumatra and Bangka Belitung. This research is quantitative descriptive with the methods used are library research, direct observation in the field and documentation. Participant selection technique through purposive sampling model with target questionnaire that is customer. The number of respondents was 255 customers. The questionnaire in this study was processed through the Microsoft Excel application. The expected outcome of this research is the preparation of effective strategies in improving customer financial literacy and the implementation of literacy programs that can have a positive impact on customers. Policy recommendations for Bank Sumsel Babel Muaradua Branch Office involve providing ongoing financial literacy programs, improving educational communications, personal financial counseling services, developing financial literacy applications, and incentives for active customers. Enabling factors include management support, active customer participation, and availability of resources.

Analysis of Syariahpreneurship Character Strengthening Strategy at Nahdlatul Ulum Soreang Islamic Boarding School (Pesantren) Maros DistrictAnalysis of Syariahpreneurship Character Strengthening Strategy at Nahdlatul Ulum Soreang Islamic Boarding School (

Islamic financial institutions in Indonesia have experienced very rapid development and progress in the last decade. This development has occurred in almost all Islamic financial institutions, such as Islamic banking, Islamic insurance, Islamic capital markets, Islamic mutual funds, Islamic bonds, Islamic pawnshops, and Baitul Mal wa Tamwil (BMT). This condition is certainly an opportunity and a challenge that all educational institutions must be able to capture and respond positively to, including educational institutions with Indonesian characteristics called pesantren. Strengthening the character of Syariahprenuership is an urgent strategy to get attention in a pesantren Islamic educational institution. With a very large population of pesantren in Indonesia, when the students get the strengthening of the Syariah-prenuership character, they will certainly be more prepared to be able to take part to contribute to the existing dynamics and religious feel. The role of this pesantren is also very large and important in preparing students to be able to exist in their daily lives both within the pesantren and later when interacting in the environment outside the pesantren after completion. The students who live in pesantren are always interacting, communicating, and in contact with all the internal pesantren communities. Automatically strengthening the character of syariahprenuership, which has been running and in process, of course, can be held captive with the naked eye. The strategy to strengthen the syariahprenuership character for students is certainly something that must be known, especially for the internal managers of Islamic boarding schools and society in general. Based on the reason that there is no scientifically concrete data regarding the analysis of strategies to strengthen the character of syariahprenuership in pesantren, this is what makes researchers interested in researching this phenomenon. The purpose of this study was to analyze strategies to strengthen the character of syariahpreneurship students at the Nahdlatul Ulum Soreang pesantren, Maros Regency. This research is a qualitative research using a phenomenological approach. Data were collected through observation, interviews, and documentation. Data were analyzed using categorization.
 Keywords: strategy, character strengthening, syariahprenuership

The Value Relevance of Earnings and Book Values: A Case from Financial Institutions in Indonesia

Purpose: This study aims to assess the field of the accounting value relevance of earnings and book value on stock prices of banks and financial institutions listed in the Indonesia Stock Exchange. Methodology: Using a sample of available banks and financial institutions listed in the Indonesia Stock Exchange from 2014 to 2021, this paper accommodates the documented accounting information in an emerging market context by using stock price of four months after year-end as a dependent variable. This study used the panel data regression technique on 31 banks and 36 others financial institution during the study period. Findings: This research find that earnings and book value are statistically significant associated with firm stock price. Also, using these variables together is positively related to the firm stock price. Comparatively between banks and financial institutions, these obtain evidence that earnings per share is statistically more value-relevant than book value. Novelty: This research used the financial sector, both banking and other financial institutions, because both types of institutions are intermediary institutions that greatly influence a country's economy.

BMT's Role as a Strategic Partner of Sharia Banks: Reviewing the Effectiveness of Channeling Programs in Creating Islamic Financial Inclusion

This study aims to examine the role of Baitul Maal wa Tamwil (BMT) in increasing the liquidity of Islamic banks in Indonesia. This research uses qualitative research methods with a case study approach. The data used in this study came from several BMTs that have cooperation with Islamic banks in terms of liquidity. The data collection techniques used in this study were observation and documentation. The data analysis technique used in this study is qualitative data analysis with a descriptive analysis model. The results of this study show that BMT acts as a strategic partner of Islamic banks in terms of liquidity, both through the placement of deposit funds, the purchase of Islamic money market instruments, the distribution of productive financing, and the development of Islamic financial inclusion. BMT also has a fairly high liquidity performance, with ratios that show good numbers and are in accordance with standards set by relevant authorities. BMT is influenced by internal and external factors that affect its liquidity, such as BMT size, capital, profitability, asset quality, market sensitivity, and macroeconomic conditions. BMT has differences and similarities with Islamic banks and other non-Islamic bank financial institutions in terms of liquidity, depending on its characteristics, scale, and scope of business. This research provides theoretical and practical implications for the development of theory and practice of liquidity management of Islamic banks and non-Islamic bank financial institutions in Indonesia, as well as providing suggestions for further research.

Implementation of Sustainable Finance Regulation for Financial Institutions in Indonesia

The interaction between people and the environment are very vital because functioning ecosystem services are important resources for people. Economy is a subsystem of human society, which is also a subsystem of life on earth and its ecosystem. The issue of environmental change has shifted from a peripheral concern of scientists and environmentalists to being a central issue in global policymaking. To ensure global long-term financial stability and economic development, financial institutions need to significantly change their performance to promote more responsible and sustainable business practices. The Financial Services Authority of Indonesia has unveiled a roadmap, which sets forth the end goal of sustainable finance in Indonesia by the financial services industry and determines the benchmark for improvements in sustainable finance. This paper explains the reasoning and implementation of sustainable financing policies under the term of Environment, Social, and Governance concepts. This paper explains the complementarities of the Islamic worldview and sustainable financing policies by opening up the topic of the scientific nature of heterodox Islamic economics in particular. The term sustainable financing conveys the fact that society and economics, finance, environment, governance, polity, institutions, etc. cannot be independent of a unique and common set of moral and ethical values. The ESG concept is completely in line with the Maslahah concept under shariah law. It embeds moral and ethical values in the body of heterodox Islamic economic thought aligned with the shariah ruling.