Islamic Banks In Indonesia Research Articles

Analisis Laporan Keuangan Syariah – PT Bank Muamalat Indonesia Tbk

PT Bank Muamalat Indonesia Tbk (BMI) became a pioneer of Islamic banking in Indonesia after the 1997-1998 monetary crisis. Established in 1992, BMI continues to innovate with Islamic financial products, such as Mudharabah Subordinated Sukuk and Shar-e as the first instant savings product in Indonesia. BMI's focus is not only on customer service, but also on green banking with a policy of not financing businesses that harm the environment. With this, the focus of this research is to analyze the products offered by BMI from 2020 to 2022. Data is obtained through the company's annual financial statements. The performance of this bank is also proven to be in accordance with existing sharia regulations. However, it also has shortcomings in the transparency of the company.

Concentration Level and Market Power of Islamic Bank Industry: Analysis of Pre and Post Bank Syariah Indonesia Merger

This paper attempted to examine the concentration and the degree of market power in the Indonesian Islamic Bank Industry during the pre and post-Bank Syariah Indonesia mega-merger. However, using the Strategic Tripod concept, this paper explored the response of the competitor pursuant to the merger. This paper used two main secondary data sources, which were 2 quarterly financial reports before the merger and 1 quarterly financial report after the merger of 34 Islamic bank data, and applied the Herfindhal-Hircsmann Index and Concentration Ratio of the top 5 Islamic banks. This paper discovered that the concentration ratio was at a moderate level. Moreover, based on the CR5 calculation result, Islamic banks have an oligopoly market structure. As for the response to the mega-merger, this paper divides 34 islamic banks into 3 clusters which are full-fledged Islamic banks (Bank Umum Syariah), Private Owned Islamic Subsidiary (Unit Usaha Syariah), Province Owned Islamic Subsidiary (Unit Usaha Syariah Bank BPD). Based on the strategic tripod, the strategy of the Islamic full-fledged bank orchestrates resources to win the competition. The privately owned Islamic Subsidiaries are taking advantage of their resource sharing with their parents. Meanwhile, the Province Islamic subsidiary's strategy relies on the regulations determined by the bank shareholders, who, in this case, are the government province.

THE PRICE AND ISLAMIC SERVICE QUALITY ON CUSTOMER SATISFACTION IN ISLAMIC BANKING

The rapid growth of Bank Syariah Indonesia in recent years has strongly emphasized the importance of pricing and Islamic service quality in gaining a competitive advantage. This research aims to analyze the influence of price and Islamic service quality on customer satisfaction of Bank Syariah Indonesia in Kudus. The study employs the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach to examine the conceptual framework. Data were collected from 140 Indonesian Islamic banking customers in Kudus using questionnaires. The analysis findings confirm that both price and Islamic service quality positively and significantly impact customer satisfaction in Bank Syariah Indonesia. Competitively priced products and services, aligned with Islamic principles, play a pivotal role in creating customer satisfaction.

The Role of Customer Intention Regarding Environmentally Sustainable Islamic Banking in Indonesia: Examining the Structural Model

Environmental degradation is a global concern for businesses, requiring consistent effort to maintain sustainable environmental practices. Environmental sustainability is a crucial issue of concern to everyone, an increasing proportion of people are paying attention to various environmental issues in all parts of their lives, including in the context of Islamic banking. This research aims to develop and test a contextual framework for studying customer intentions in adopting sustainability Islamic banking activities and services. The study uses the Theory of Planned Behavior (TPB) model, adding new constructs to the main variables, such as trust, environmental consciousness, and perceived environmental outcomes. The survey collected data from 198 customers of Islamic banks in Indonesia, with the PLS-SEM modeling technique used to test the research model. The results show that perceived behavioral control is a significant influence on behavioral intentions, while attitude and subjective norms have no significant effect on behavioural intentions. Environmental consciousness significantly affects perceived environmental outcomes, which, in turn, significantly affect trust as well as behavioural intentions. Other statistical results find that environmental consciousness can affect behavioral intentions when mediated by perceived environmental outcomes. Overall, this study has theoretical and managerial implications and offers directions for future research on environmentally sustainable Islamic banking.

Sustainability Disclosures and Financial Performance of Islamic Banks in Indonesia

Sustainability practices and disclosures of Islamic banking in Indonesia are still very low. Currently, the disclosure of sustainability reports has been required by the Financial Services Authority (OJK). This paper measures the level of sustainability disclosures (economic, social, and environmental) based on OJK Regulation No. 51/2017 and investigates its impact on the financial performance of Islamic banks in Indonesia. The study was conducted in Islamic banks during 2018-2020 with a total sample of 12 banks obtained through purposive sampling. The results show that there is no significant effect of the sustainability disclosure dimensions on ROA. On the other hand, there is a significant effect of the sustainability disclosure dimensions on ROE and EPS. These results encourage Islamic banks to consistently issue a sustainability report. In the long term, the sustainability disclosure is expected to have a positive impact on the growth of Islamic banks in Indonesia.

Editorial

Editorial

Investigating Equity-Based Financing and Debt-Based Financing in Islamic Banks in Indonesia

Purpose — This study empirically examines whether equity-based financing (EBF) generates fixed income similar to debt-based financing (DBF) in the context of Islamic banks in Indonesia. It also investigates whether the Islamic bank financing return rate (IBFRR) has a relationship with the conventional bank lending interest rate (CBLIR). Design/Methodology/Approach — This paper uses monthly data for the period 2009–2019 and produces 132 units of analysis. The object of the study is Islamic banks (IBs) and conventional banks (CBs) in Indonesia. The study uses the Vector Error Correction Model (VECM) as the tool of analysis. Findings — This study provides evidence that, contrary to DBF products, EBF does not have fixed income. EBF in Indonesian IBs has been executed according to the requirements of Islamic law. The study also finds that CBLIR is not correlated with IBFRR. Originality/Value — This is the first study to correlate equity-based financing return rate (EBFRR) with debt-based financing return rate (DBFRR). This paper also examines the no-causality relationship between CBLIR and IBFRR. Research Limitations — This study uses Islamic banking data in the aggregate. Therefore, it cannot explain whether research results differ between banks. Practical Implications — EBF in Indonesian IBs has been applied according to its epistemology. However, the significant increase in mushārakah financing noted over the study period should be followed by a careful customer business feasibility analysis.

POLITIK HUKUM DI INDONESIA: REGULASI PERBANKAN SYARIAH DALAM TATA HUKUM INDONESIA

This article is motivated by the banking sector which is undergoing dramatic changes because the concept of interest has resulted in the inability of the community in economic matters and also eventually propagated to other orders of life, including social life, politics, and other fields in a country. The presence of Islamic banking in Indonesia has had a major impact on the economy of the community, because Islamic banking is not the concept of interest. This article uses a qualitative descriptive approach that is more specific to library research data. In this paper the authors produce that the politics of law as a policy to implement the objectives of the state, especially in the field of law on the law that will run, is running and has been applied that dimbil through the values in society to achieve the goals of the state. Furthermore, the implementation of Sharia banking law is carried out in stages in the early stages of Sharia banking regulation regulated in law Number 7 of 1992 by accommodating banks in the principle of profit sharing. Sharia banking regulation in the next stage is regulated in Law No. 10 of 1998 by implementing the Sharia principle Bank model. And in the end a new law was issued Law No. 21 of 2008 which regulates Islamic banks separately from conventional banks. Keywords: Politics, Law, Islamic Banking.

How Does Bank Syariah Indonesia's Financial Performance Measure Up Using The RGEC Method's Bank Health Assessment?

Banks are required to conduct periodic self-assessment of their health level and take effective corrective measures using an assessment of factors including risk profile, good corporate governance (GCG), earnings, and capital, abbreviated as RGEC. The RGEC method is what banks currently use to assess the health level of banks because it is a refinement of previous methods. The degree of bank health as determined by the RGEC technique is the subject of this quantitative descriptive study, which analyzes Bank Syariah Indonesia's health for the years 2019 to 2022. The study's secondary data sources are the yearly financial reports of Islamic Commercial Banks covering the years 2019 to 2022. The following findings are derived from the debate of Bank Syariah Indonesia's Islamic banking sharia for the 2019–2022 evaluation period, The non-performing financing ratio (NPF Nett in composite position 1 may be considered to be in very good health. Conversely, Bank Syariah Indonesia's FDR ratio values in composite positions 1 and 2 might be considered highly healthy. Bank Syariah Indonesia's GCG ratio in composite position 2 may be considered healthy. The Bank Syariah Indonesia's earnings evaluation, or its capacity to turn a profit, received a composite score of 3 to 1, indicating that it is both fairly healthy and extremely healthy from 2019 to 2022. Bank Syariah Indonesia's bank capital was evaluated from 2019 to 2022, and it received a composite evaluation of 1, meaning it is in excellent condition.

Peran Moderasi Islamic Marketing Ethic terhadap Keputusan menjadi Nasabah Bank Syariah

In this study, it discusses the moderating role of Islamic marketing ethics on the influence of the decision to become a customer of an Islamic bank (studies at BSI KC Bone) and is analyzed using a quantitative research type. In this study three research question were proposed, namely: (1) the effect of attitudes and subjective norm on the decision to become a customer of an Islamic bank, (2) the effect of Islamic marketing ethics on the decision to become a customer of an Islamic bank, and (3) Islamic marketing ethics moderates the influence of attitudes and subjective norm of the to become a customer of Islamic banks. To answer these three research questions, statistical data were collected through questionnaires which were distributed to customers of the Indonesian Islamic bank (BSI) KC Bone as many as 100 using simple linear regression analysis through the smart PLS application.

What Drives MAIS Quality of Islamic Banks in Indonesia?

What Drives MAIS Quality of Islamic Banks in Indonesia?

Analisis Kinerja Keuangan Perbankan Syariah Indonesia Sebelum dan Sesudah Merger Bank Syariah Indonesia

This research is motivated by the measurement of financial performance in Islamic banking. The existence of financial performance in Islamic banking will affect the good value for the banking company, because it will become a reference for investors and become a reference in how much the value of the stock price will be determined by investors. This study aims to analyze the existence of financial performance in Islamic banking in Indonesia before and after the merger. The data in this study were obtained and obtained from the financial reports of Islamic banking in Indonesia. This study uses secondary data by taking data sources on the internet. The method of data analysis used is comparative analysis. The results of this study provide an indication that there are significant differences between profitability, liquidity, solvency, activity ratios, and market ratios before and after the merger to become Bank Syariah Indonesia, with the merger making Bank Syariah Indonesia experience rapidly increasing revenues. This means that Working Capital has a significantly positive influence on the results of operations at Bank Syariah Indonesia. 
 Keywords: Profitability, Liquidity, Solvency, Activity Ratio, Market Ratio, Before and After Merger

STRATEGI PEMBELAJARAN MELALUI MAGANG PROGRAM MERDEKA BELAJAR KAMPUS MERDEKA PADA PROGRAM STUDI PERBANKAN SYARIAH DI ERA PANDEMI

The development of Islamic banking in Indonesia increases the need for competent practitioners from Islamic Banking Study Program graduates. These graduates can reduce the need for basic training, thereby increasing the efficiency of Islamic banks. The government supports this through policies such as the Indonesian National Qualifications Framework (KKNI) and Merdeka Belajar Kampus Merdeka (MBKM), which aim to create a link and match between higher education and industry. Internships are a form of MBKM learning that can strengthen student competencies. The Analytic Network Process (ANP) method identifies and analyzes problems supporting MBKM in the Islamic Banking Study Program. The research shows two main issues: the duration of internships that the industry considers too long and the difficulty of ensuring learning outcomes (LLOs) by academics. The recommended strategies to overcome these problems include: Establishing good relationships with partners, Improving systems and procedures, Conducting partner selection, Increasing the number of partners. Implementing these strategies is expected to improve the effectiveness and efficiency of the learning process through internships.

The Impact of Covid-19 Outbreaks on the Profits of Islamic Banks in Indonesia

The Impact of Covid-19 Outbreaks on the Profits of Islamic Banks in Indonesia

The Role of Islamic Banking Through Green Investment in Increasing Economic Growth in Indonesia

Research Aims: This study aims to explore how much potential Islamic banks in Indonesia have in contributing through environmental improvement. Methodology: This research uses the literature review method which is then supported by descriptive analysis. Research Findings: The research shows that Indonesia has great potential regarding green economic opportunities, which in turn can contribute greatly to national economic growth. Theoretical Contribution : The increasing trend in the green economy index in Indonesia and its correlation with progressive economic indicators contribute theoretically by suggesting that a green economy can coexist with economic growth Research limitation and implication: This research has limitations, one of which is only finding out how the role of Islamic banking in Indonesia in participating in protecting the environment. as for the factors discussed in this study are also limited, namely only looking at the green investment or green financing of Islamic banks.

THE EFFECT OF FINANCIAL RATIO ON FINANCIAL DISTRESS IN INDONESIA SHARIA COMMERCIAL BANKS

An early warning system can be implemented to anticipate the presence of financial distress, which will threaten financial problems. Altman Z-score is a tool for predicting a company's bankruptcy level by calculating several financial ratios. This study aimed to see whether finances can affect financial distress in Indonesian Islamic Banks. This study used Eviews software version 10 with panel data analysis techniques. The research object is the Indonesian Sharia Commercial Bank, which published semiannual financial reports from 2017-2022. Based on information on the official OJK website, there are 12 Islamic Commercial Banks, but only 9(nine) banks meet the sample criteria in this study. The results of the study show that ROA and CR have a significant positive effect on financial distress. Meanwhile, ROE and DER have a significant negative effect on financial distress. Unlike the case with NPF, which has no significant effect on financial distress.

The Effect of Bank Health on Profitability and Firm Value of Islamic Banks in Indonesia

<p><em>This study aims to determine the effect between bank health on profitability and firm value of Islamic Commercial Banks in Indonesia. This research employs a quantitative approach. Researchers conducted tests through the SPSS application and path analysis. The research included a total of 12 Islamic Commercial Banks for the financial year 2020-2022. The findings of this research demonstrate that RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) have a simultaneous impact on bank health, specifically on profitaility through Return on Assets (ROA). Partially, only payments affect ROA. Meanwhile, other indicators of RGEC do not affect ROA. Partially, risk profile and earnings indicators affect Return on Equity (ROE). In contrast, two other indicators, namely good corporate profile and capital, do not affect ROE. Simultaneously, the influence of bank health on firm value is mediated by RGEC. Partially, the four RGEC indicators have no impact on firm value. In other tests, through the mediation flow, neither ROA nor ROE can mediate the effect of RGEC on firm value. Meanwhile, profitability through ROA and ROE affects firm value. The implications of this research significantly contribute to understanding the financial stability of bank health, its effect on profitability, its effect on firm value, and its contributions to the field of academic research.</em></p>

An Analysis of the Sustainability Performance of Indonesian Banks and Islamic Financial Institutions Using a Triple Bottom Line Model

The Triple Bottom Line-based Sustainability Performance model in Indonesian Islamic banks and financial institutions is the subject of this dissertation research. Using theoretical vantage points from resource dependency theory, interest theory, agency theory, institutional theory, and legitimacy theory, this study investigates the impact of Islamic Corporate Governance (ICG) on Corporate Sustainability Performance (SP), which employs Islamic corporate governance mechanisms. It primarily focuses on sharia board attributes and ownership structure.
 Regression analysis is done in this study using Eviews 10, and thirteen recommendations are made to enhance sustainability performance. By visiting each company's official website and the website www.idx.co.id, secondary data was gathered. 49 Islamic financial institutions that were registered with the OJK between 2016 and 2021 comprised the research sample of Indonesian Islamic banks and financial institutions. Data from financial reports were used for six years, making 294 total samples of data from the panel.
 This study will look at the characteristics of the Sharia Board (DS), which will be used as independent variables. The Corporate Sustainability variable will be used as a dependent variable, and the variables Independent Sharia Board, size of the Sharia Board, Sharia Board Meetings, Gender Diversity, and the existence of a sustainability committee and the application of AAOIFI standards will be used as proxies.
 The research results show that Indonesian Islamic corporate governance has a significant effect on sustainability performance, with Independent sharia boards, Gender diversity, and AAOIFI implementation being able to influence sustainability performance while size, board meetings, and sustainability committees do not influence the sustainability performance of Islamic banks and financial institutions in Indonesia. Institutional ownership is partially able to moderate the relationship between independent sharia boards, gender diversity and implementation with sustainability performance. Institutional ownership is unable to moderate the size of the sharia board, sharia board meetings and sustainability committee on sustainability performance.
 This research provides policy insights for policymakers, practitioners, and corporate boards to promote sustainable operations through Islamic corporate governance, adding to existing development plans to address sustainability-related issues. This research contributes to the literature by establishing a relationship between Islamic corporate governance and triple-bottom-line performance in Indonesian Islamic banks and financial institutions

Efficiency in Islamic Banks: Some Empirical Evidences in Indonesian Finance Market

Purpose: The aim of the present paper is to examine the revenue efficiency of the Indonesian Islamic banking sector. The study also seeks to investigate the potential internal (bank specific) and external (macroeconomic) determinants that influence the revenue efficiency of Indonesian domestic Islamic banks. Method/design/approach: We employ the whole gamut of domestic and foreign Islamic banks operating in the Indonesian Islamic banking sector during the period of 2009 to 2018. The level of revenue efficiency is computed by using the Data Envelopment Analysis (DEA) method. Furthermore, we employ a panel regression analysis framework based on the Ordinary Least Square (OLS) method to examine the potential determinants of revenue efficiency. The results indicate that the level of revenue efficiency of Indonesian domestic Islamic banks is lower compared to their foreign Islamic bank counterparts. Results and conclusion: We find that bank market power, liquidity, and management quality significantly influence the improvement in revenue efficiency of the Indonesian domestic Islamic banks during the period under study. Research implications: By calculating these efficiency concepts, we can observe the efficiency levels of the domestic and foreign Islamic banks. In addition, by comparing both cost and profit efficiency, we can identify the influence of the revenue efficiency on the banks’ profitability. Orinalitty/value: The preferred method allows us to distinguish between three different types of efficiency, namely cost, revenue, and profit efficiencies. Furthermore, we perform a series of parametric (t-test) and non-parametric (Mann- Whitney [Wilcoxon] and Kruskall-Wallis) tests to examine whether the domestic and foreign Islamic banks are drawn from the same population.

Analysis of Service Strategy in Increasing Customer Satisfaction at Indonesia Islamic Bank

In recent years, Islamic banking in Indonesia has shown positive developments as shown by the increasing number of Islamic banks in Indonesia. To increase its market share, Islamic banking needs to analyze what factors influence the public to be willing to become customers at Islamic banks, one of which is through service quality. This study aims to examine the effect of service quality on customer satisfaction at Bank Syariah Indonesia. The research method used in this study is using data collection methods. The data collection method used is library research, library research. Methods of data collection in the library, reading, recording and managing research materials. The type of data used is qualitative data.