Islamic Banks In Indonesia Research Articles

DOES CORPORATE GOVERNANCE, LIQUIDITY, AND BANK SIZE AFFECT THE EFFICIENCY OF SHARIA BANKS IN INDONESIA?

Introduction: The aim of this research was carried out in order to show whether corporate governance, liquidity, and business size might impact the efficiency of an Islamic bank in Indonesia prior to the merger of three Islamic banks, namely BNI Syariah, BRI Syariah, and Bank Syariah Mandiri, and from 2016 to 2021. Methods: Sharia governance is measured using CEO duality proxies and board size, whereas liquidity is measured using DAR, bank size is calculated using the logarithm of total assets, and bank efficiency is measured using three proxies: managerial efficiency, expenses, and profits. The information was compiled from annual financial reports 2016–2021 of 14 Indonesian Islamic commercial banks. Multiple linear regression and testing of conventional hypotheses are used to process the data in SPSS 25. Results: The results of the hypothesis testing indicate that factors affecting management effectiveness are board size, CEO duality, bank size, and liquidity. Conclusion and suggestion: The observation period of the previous five years can be used in future studies to add measurement indicators to corporate governance factors. In order to acquire more varied results with distinct settings of bank efficiency between conventional banks and Islamic banks, study samples might be used that come from conventional banks in addition to these other choices.

Preferensi Generasi Milenial dalam Menggunakan QRIS sebagai Alat Pembayaran Digital

The understanding of the millennial generation in using and utilizing QRIS is still low, even though Bank Indonesia and OJK have supported the implementation of QRIS in finance. This study aims to determine the preferences of Indonesian Islamic Bank customers, especially the Millennial Generation in Using Digital Payment Instruments, namely QRIS in DKI Jakarta. The type of research used is a quantitative method with the population is the millennial generation who live in the province of DKI Jakarta. The sample obtained was 100 respondents using purposive sampling technique. The data analysis technique used is multiple linear regression with the help of SPSS software. The findings obtained are partially usefulness perception and trust perception have a positive and significant effect on preferences in using QRIS. Meanwhile, the perceived convenience and risk perception variables have a negative and insignificant effect on customer preferences. Simultaneously, these factors have an influence on the preferences of Indonesian Islamic Bank customers.

Dispute Resolution in Indonesian Islamic Banking: Previous Trends and Future Perspectives

Currently, the legal environment for dispute resolution in the Islamic banking industry in Indonesia is not sufficient to achieve the main purpose of establishing a bank. Although Islamic legal frameworks are important for resolving financial disputes recognized under classical Islamic law, this paper aims to overcome increasing disputes as Islamic banking revenues increase. , provides arguments and solutions for resolving Islamic banking disputes using the Engel curve theory of microeconomics. Therefore, changes in the income of Islamic banks in Indonesia do not significantly affect changes in alternative dispute resolution/ADR requests. Even if the demand for ADR continues to grow, the demand for ADR will be relatively smaller than the change in Islamic banking earnings. The legal framework is dispute resolution in the Islamic banking industry based on the alternative dispute resolution (ADR) process that Prophet Muhammad has demonstrated since his stay in Medina. Conclusion; With this in mind, the Islamic banking services industry is saved from litigation domination that always comes with negative stereotypes about unnecessary payments.

Dispute Resolution in Indonesian Islamic Banking: Previous Trends and Future Perspectives

Dispute Resolution in Indonesian Islamic Banking: Previous Trends and Future Perspectives

Pengaruh Likuiditas Terhadap Dana Pihak Ketiga Pada Bank Umum Syariah Di Indonesia Periode (2019-2021)

This research aims to analyze the effect of the equivalent rate, inflation, and liquidity on third-party funds in Islamic banking in Indonesia for the 2019-2021 period. The research population is Islamic banking financial statements with a monthly period from 2019-2021. With the saturated sampling technique, the number of samples is 36 months. The data collection technique used is a documentation study, namely the financial statements of Islamic banking in Indonesia published by the Financial Services Authority and Bank Indonesia. Data processing is done by multiple regression analysis with the help of the SPSS application. Research findings that the equivalent rate affects third party funds, inflation does not affect third party funds and liquidity affects third party funds.

Analysis of the Effect of Macroprudential and Macroprudential Indicators on the Stock Price Index of Islamic Banks in Indonesia Using the Error Correction Model

The experience of various crises that have occurred, including the impact of the Covid-19 pandemic, presents a challenge to implement macroprudential policies to ensure the financial system survives and continues to carry out its function in driving the economy. The existing microprudential policies tend to be individual and focus on prudent banking and other financial institutions. Economic fluctuations that occur on the macro side will greatly impact, either directly or indirectly, on the stock price index, as well as the company's internal indicators which are considered to have a major influence on the decisions of investors and potential investors to take action on the stock exchange. The type of research used in this research is quantitative research. The nature of this research is descriptive with a quantitative approach. The data collection technique in this research is Literature Study. The test carried out in this study is the multiple linear regression analysis test (multiple linear regression method), this study uses the ECM model to obtain the best model which includes the classical assumption test. The results of this study based on the partial short-term relationship test, it can be concluded that the Exchange Rate, Inflation and TPF in the short term have no significant effect on the PNBS Stock Price Index. Meanwhile, short-term CAR has a significant positive effect on the PNBS Stock Price Index. Based on the results of the partial long-term relationship test, it can be concluded that in the long term the Exchange Rate has a significant negative effect and TPF and CAR have a significant positive effect on the PNBS Stock Price Index while Inflation has no significant effect on the PNBS Stock Price Index. Based on the output results of the simultaneous short-term and long-term F test, it shows that all independent variables simultaneously have a significant effect on the PNBS Stock Price Index in the short term. Based on the provisions of the MUI DSN through the issued fatwas related to the sharia capital market and sharia shares, it is explained that sharia stock investment with the aim of investing according to the perspective of sharia economic law is allowed

Analysis of Customer Satisfaction Factors on Social Media Instagram Bank Syariah Indonesia

Introduction: Bank Syariah Indonesia, through the official Instagram account @banksyariahindonesia always provides information regarding messages, advertisements, promotions, and services, but according to some customers, this is inaccurate and less effective. Therefore this study aims to analyze the influence of customer satisfaction factors on Instagram social media of Indonesian Islamic banks. Research Methods: This research method uses quantitative research methods. The population in this study were followers of Bank Syariah Indonesia's Instagram. The sample size was 100 respondents with a purposive sampling method. The data collection method used a questionnaire. The data was analyzed using SPSS 22 software. Results: The results showed that the quality of information, complaint handling, and promotion through social media Instagram affected customer satisfaction of Bank Syariah Bank Indonesia both partially and simultaneously. Conclusion: This study concludes that for the quality of information, complaint handling, and promotion if it increases, it will also increase the satisfaction of Bank Syariah Indonesia customers.

Mujiatun, S., Badawi, A. (2023) Root Cause Analysis Factors Against Islamic Banking Financial Inclusion

Purpose: The aim of this study is to analyze the achievement of Islamic financial inclusion targets through increasing the digitization of Islamic banking in Indonesia using the Islamic financial inclusion index. Theoretical framework: The theoretical framework shows that financial inclusion is the biggest challenge in improving Islamic finance, this is in line with the targets from the road map from regulators and previous research, one of which is in 2020. So that if financial inclusion does not increase, it can hamper the development of Islamic finance in a comprehensive and sustainable. Design/methodology/approach: The Method using the root cause analysis method of the inhibiting factors for Islamic banking financial inclusion and a literature study that examines the financial inclusion index and the results of Islamic financial inclusion research. Findings: From the research that has been done, it containing that the level in Islamic financial inclusion from 2019 to 2021 is 76.91% even though the 2024 financial inclusion target by the regulator is 90%. For this reason, a strategy for achieving Islamic financial inclusion through digitalization is needed, including opportunities from the post-covid-19 era that support sustainable digitalization. Research, Practical & Social implications: The research results imply that the regulators and Islamic banking must induce the financial inclusion index achievement towards the 2024 target. Originality/value: This article is an academic contribution that allow an understanding about research Root cause analysis factors against islamic banking financial inclusion.

Effects of Internal Finance, Islamic Governance and Islamic Corporate Responsibility on Profitability: Evidence of Islamic Banking in Indonesia

Purpose: The objective of this study was analyze the interrelationships of internal financial factors, which include financing risk and capital adequacy, ICG and ICSR as determinants of ROA in Islamic banking in Indonesia. Theoretical framework: Previous studies have provided mixed results regarding the application of ICG to profitability. Therefore, it is necessary to re-examine the implementation of ICG on the profitability of Islamic banks. Design/methodology/approach: The research sample consist of 14 sharia commercial banks in Indonesia in the study period 2012 to 2021 with a total of 130 observations. This study used multiple regression analysis. Findings: The results showed a negative effect of NPF on ROA financial performance. Furthermore, there was a positive effect of CAR and ICG disclosure on ROA financial performance. Meanwhile, disclosure of ICSR had no significant effect on ROA financial performance. Age control variables and Islamic bank size were found to have no effect on ROA. Research, Practical & Social implications: The government can make a regulation requiring Islamic banks in Indonesia to carry out ICSR because it is more suitable with business forms that use Islamic concepts. Originality/value: This study offers an examination of the factors affecting financial performance of financial and non-financial factors. Financial factors are seen in terms of financing risk and capital adequacy while non-financial factors are represented by sharia governance and sharia social responsibility in sharia commercial banks in Indonesia.

THE EFFECT OF GDP, EXCHANGE RATE, AND INTEREST RATE ON PROFIT SHARING INCOME OF MUDHARABAH FINANCING AT ISLAMIC BANKS

This study aims to explain the influence of macroeconomic factors such as gross domestic product (GDP), exchange rates, and interest rates (BI Rate) on revenue sharing from mudharabah financing at Islamic Banks in Indonesia for 2016-2020. The sample selection in this study used purposive sampling with 9 selected samples from the total population of 14 Islamic Banks in Indonesia. The data used in this study are secondary data obtained from annual reports published by each Islamic Bank in the 2016-2020 period. The analytical method used in this research is panel data regression using EVIEWS 10 software and obtained the fixed effect model as the best estimation model. Based on the study's results, partially gross domestic product (GDP) and interest rates (BI Rate) have no significant effect on revenue sharing for mudharabah financing. In contrast, the exchange rate negatively and significantly impacts revenue sharing for mudharabah financing. In addition, simultaneously, the results of gross domestic product (GDP), exchange rates, and interest rates (BI Rate) significantly affect revenue sharing for mudharabah financing.

IT investment and Islamic banking performance in Indonesia: Do Sukuk issuance and Sariah governance matter?

IT investment and financial performance are crucial issues for the Islamic banking industry. An Islamic banking (IB) that is established in a technologically advanced setting, employs mostly young and tech-savvy employees, and adheres to Islamic principles in all aspects of its activities, needs to invest in IT. This investment in information technology is essential if they are to remain competitive and achieve solid financial performance. This study aims to investigate the effect of IT investment on Islamic banking performance in Indonesia. The study used data of 14 Islamic banks in Indonesia, from 2012 to 2021. By employing panel regression analysis, the study revealed that IT investment has a significant impact on Islamic banking performance, indicated by ATM and Expenses for Human Resources (BG), which has the coefficient 1.75e-07 (Alpha 0.060) and 4.73e-14 (Alpha 1%), respectively. The study also documented a significant relationship between IT investment and IB performance, caused by Sukuk issuance and the Shariah supervisory board. Sukuk issuance has a negative impact on banking performance in relation to IT investment, while shariah governance (board of directors and shariah supervisory board) has a positive impact. Hence, it is also important for an Islamic banking to minimize the use of Sukuk, which until now was still categorized as debt, and to maximize the role of good governance to back up IT spending.

Hijrah Intention and Customer Decisions to Use Islamic Banks: Development of Theory of Planned Behavior

This study aims to analyze the determinants of hijrah intention and customers' decisions to use Islamic banks. This study carries out the development of a theory of planned behavior which consists of attitude factors, subjective norms and behavior control. The development that is done is to modify the intention in the theory of planned behavior to become hijrah intention. Another development is adding the factor of Islamic branding to analyze its effect on hijrah intention and customer decisions. The next development is to link the influence of hijrah intention on customer decisions. Other developments also add a moderating construct, namely Islamic financial literacy with the aim of Islamic financial literacy can be a determinant of strengthening or weakening the variable of hijrah intention towards customer decisions. This study is a study with a quantitative approach. The population in this study are all customers of Islamic banks in Indonesia. The sample of this research is 275 respondents from 34 provinces in Indonesia. Data analysis used SEM with the SmartPLS 3 application. The results in this study indicate that the theory of planned behavior which consists of attitude variables, subjective norms and behavioral control and Islamic branding variables has a significant positive effect on hijrah intention. Islamic branding also has a significant influence on customer decisions. Hijrah intention has no significant effect on customer decisions. Islamic financial literacy weakens the effect of hijrah intention on customer decisions.

Pengaruh Faktor Internal dan Faktor Eksternal terhadap Stabilitas Bank Syariah Indonesia

This research is a quantitative study that analyzes the influence of internal factors (total bank assets, income diversification, and capital buffers) and external factors (gross domestic gross and inflation) on the stability of Islamic banks. This research uses panel data, namely Bank Syariah Indonesia in the 2017-2021 period. The method for explaining this research is panel data regression analysis with Eviews version 9. The results of this study prove that starting from the factors of total assets, income diversification, capital buffers, gross domestic income, and inflation significantly affect the stability of Bank Syariah Indonesia. These results also prove that the independent variables consist of internal factors (bank total assets, income diversification, and capital buffers) and external factors (gross domestic product and inflation) simultaneously influencing the stability of Indonesian Islamic banks. In addition, this study also supports the charter value theory but rejects the too-big-to-fail theory.
 Keywords: Stability, Total Bank Assets, Income Diversification, Capital Buffer, Gross Domestic Product, Inflation.

Pengaruh Inflasi dan Nilai Tukar (Kurs) Terhadap Pembiayaan Mudharabah Pada Perbankan Syariah di Indonesia

Over time, Islamic banking is growing more rapidly, this phenomenon also affects the economic system in Indonesia. This study aims to determine the effect of inflation and exchange rates on mudharabah financing in Islamic banking in Indonesia. This research is a quantitative study using time series data. The data used is secondary data obtained from the official website of Bank Indonesia (BI) and the Central Bureau of Statistics (BPS). The samples used in this study are inflation, exchange rates and mudharabah which are annual historical data starting from 2013-2021. The data analysis technique is using multiple regression analysis with the Ordinary Least Square (OLS) method. This study shows the results that inflation has a significant negative effect on mudharabah financing. Meanwhile, the exchange rate does not have a significant effect on mudharabah financing.

Pengaruh Sharia Compliance dan Islamic Corporate Governance terhadap Kinerja Keuangan Perbankan Syariah

The purpose of this study was to determine the effect of sharia compliance and Islamic corporate governance rate on financial performance in Islamic banks in Indonesia in 2017-2021 and the sample in this study is 6 banks with a 5 years research period so that the total sample used in this study amounted 30. The sample in this study was obtained by using purposive sampling method. The research method uses an associative approach quantitative and SmartPLS software is used for data processing. This study found that there was a significant effect between sharia compliance on green banking disclosure practices in Islamic banks in Indonesia and did not find any influence between Islamic corporate governance on financial performance in Islamic banks in Indonesia. Recommendations for further research are to using proxies or other independent variables that have a stronger influence on Islamic banking financial performance, Develop or increase Islamic corporate governance indicators, Extending the reporting period for research samples.

Analisis Pengaruh Pembiayaan Murabahah dan Musyarakah Terhadap Profitabilitas Bank Syariah Di Indonesia Periode 2019-2021

Banking is one of the Islamic financial instruments that plays an important role in developing the people's economy through various types of financing based on sharia principles. Murabaha and musyarakah financing are types of financing in Islamic banks which are a favorite among the public. The author wants to reveal how big the contribution made by the two financing is to the profitability of Islamic banks in Indonesia. The purpose of this research is to determine the significant effect of murabaha and musyarakah financing, both partially and simultaneously on the profitability of Islamic banks in Indonesia in the 2019-2021 period. The methodology used is a descriptive quantitative approach with data analysis techniques using multiple linear regression. The data collection technique uses documentation techniques where the data is oriented to secondary data which will then be processed with SPSS 25 software. The results of this study found that: the significance level test was 0.000 and the ttest result was 4.450. So the significance level is 0.000 <0.05 and the tcount > ttable (4.450 > 2.035) means that Ha is accepted and Ho is rejected. The results of the multiple linear regression test show a number of 0.228 (positive value) for the Murabahah variable so that it can be said that Murabahah financing is positively related to profitability, the test results at a significance level of 0.000 and the t-test results are 4.568. Then the significance level is 0.000 <0.05 and the tcount > ttable (4.568 > 2.035) means that Ha is accepted and Ho is rejected and the results of the multiple linear regression test show the number 0.228 (positive value) for the Murabahah variable so that it can be said that Murabahah financing is positively related with profitability. The results of the significance level test were 0.000 and the t-count test results were 10.591. So the significance level is 0.000 <0.05 and the tcount > ttable (10.591 > 3.275) means that Ha is accepted and Ho is rejected. This states that murabaha and musyarakah financing have a significant effect on profitability.

Analysis of The Influence of Financing, Inflation, and The Amount of Money Supply on The Profitability of Syariah Bank in Indonesia

Profitability can show good company performance. Was conducted The research to determine the effect of financing, inflation, and the money supply on the profitability of Islamic banks in Indonesia. This study uses quantitative methods using secondary data. The sampling technique used in this study uses specific criteria, with the final sample result being 8 Islamic Banks registered with the Financial Services Authority in 2012-2021. The data analysis method in this study uses SPSS-25, with multiple linear regression testing tools, classical assumption testing, hypothesis testing, and determining coefficient tests. The study results show that financing variables partially do not affect the ROA profitability of Islamic banks in Indonesia. The inflation variable partly does not affect the ROA profitability of Islamic banks in Indonesia. The money supply variable also has no partial impact on the ROA profitability of Islamic banks in Indonesia. However, the financing variables, inflation, and the money supply can all affect the ROA profitability of Islamic banks in Indonesia. The effect is 31.0%, where the variables with financing, inflation, and the money supply simultaneously affect the ROA profitability of Islamic banks in Indonesia, and other variables influence the rest.

Government policy response to COVID-19 and bank performance: a comparison between Islamic and conventional banks

PurposeThis study aims to examine the joint impact of the COVID-19 pandemic and the government response on the performance of Islamic and conventional banks.Design/methodology/approachData were collected from a sample of 94 conventional and 14 Islamic banks in Indonesia from March 2020 to September 2021. The system generalized methods of moments estimation is used to analyze the data.FindingsThis study finds robust results regarding the negative impact of the COVID-19 pandemic and the positive effects of government responses to COVID-19 pandemic on bank performance in Indonesian banking. Moreover, in line with the rise in confirmed COVID-19 cases, a higher government policy responses index improves bank performance, both in conventional and Islamic banks.Practical implicationsThis paper highlights the importance of the government policy responses index to absorb the negative impact of the COVID-19 outbreak on banking performance.Originality/valueThis paper provides novel insights into the joint impact of the COVID-19 pandemic and government responses to COVID-19 pandemic on bank performance between conventional and Islamic banks.

Board characteristics and dividend payout decisions: evidence from Indonesian conventional and Islamic bank

PurposeThis study attempts to examine the relationship between board characteristics and dividend payout decisions of conventional and Islamic banks.Design/methodology/approachThis study employed unbalanced panel data of both Indonesian conventional and Islamic banks over the period 2008–2021, estimated using tobit and logit models. Dividend payout decisions were measured using the dividend payout ratio and probability to pay dividends. Meanwhile, board characteristics were represented by board size, board independence, board gender diversity, board meeting, board chairman tenure and board chairman tenure.FindingsThe results show that, in the context of conventional banks, board meetings, board chairman tenure and board chairman tenure are correlated with higher dividend payout decisions, while board gender diversity indicates lower dividend payout decisions. On the other hand, in the context of Islamic banks, board size and board meetings are associated with higher dividend payout decisions, while board independence and board chairman tenure are related to lower dividend payout decisions.Research limitations/implicationsThis study fills the gaps in the literature on bank dividend policy. It also provides additional insights regarding the relationship between board characteristics and dividend payout decisions in the context of conventional and Islamic banks. In addition, this study gives essential contributions to regulators and investors of both banks, especially in a developing country, Indonesia.Originality/valueThis study is one of the first to provide empirical results regarding the relationship between board characteristics and dividend payout decisions of conventional and Islamic banks. Board characteristics are indicated as one of the fundamental factors that determine dividend payout decisions of both conventional and Islamic banks in Indonesia.

Keputusan Menjadi Nasabah Bank Syariah: Peran Literasi Keuangan Syariah, Kepercayaan, dan Citra Bank Syariah

Islamic banks in Indonesia have existed in Indonesia for three decades. However, until now the development is not very significant. Even though Muslims are the majority population in Indonesia. The purpose of this study was to investigate how three factors - Islamic financial literacy, trust in Islamic banks, and the image of Islamic banks - impact the decision to become a customer of Islamic banks. The research employed a quantitative approach and explanatory research to collect primary data from 200 respondents with diverse backgrounds through questionnaires. The study found that a higher level of Islamic financial literacy can motivate individuals to choose Islamic banks as customers. This finding highlights the importance of enhancing public awareness and understanding of Islamic finance. Additionally, the trust and image of Islamic banks were identified as critical factors affecting customers' decisions. Therefore, it is vital for Islamic banks to maintain high levels of professionalism to sustain customer trust and present a positive image.