MACROECONOMIC FACTORS INFLUENCE THE DISTRIBUTION OF MSME FINANCING IN INDONESIAN ISLAMIC BANKS
Downloads
This study examines macroeconomic factors affecting MSME financing in Indonesian Islamic banks from 2014 to 2021. These factors include inflation, BI rate and exchange rate. The methodology of this study is a quantitative method using the OLS approach. The data used in this study is monthly data from 2014 to 2021. Data was collected from Central Bank and OJK publications. This study found that macroeconomic conditions also affect how MSME financing is channeled in Islamic banks, so inflation and exchange rate partially, but BI Rate does not affect the distribution of MSME financing. This is because Islamic banks do not use an attractive interest rate system but a profit-sharing system. The findings of this study have significant consequences for decision makers, Islamic banks, and market participants. Islamic banks should work more to provide financing for MSMEs. Islamic banks should use innovation and creativity to develop and market new products in MSME financing. Due to its narrow focus on MSME financing in Islamic banks, this research has several limitations including that this research only focuses on macroeconomic factors, many other factors can affect MSME financing such as internal bank factors. Further research can examine the impact of Islamic banking financing on MSME development.
Abas, S. (2017). The Role Of Sharia Banking In Strengthening The Micro, Small, And Medium Enterprises In North Maluku, Indonesia. International Journal of Scientific & Technology Research, 6(10). www.ijstr.org
Ahmad, A. A., & Halim, M. A. A. (2014). The concept of hedging in Islamic financial transactions. Asian Social Science, 10(8), 42–49. https://doi.org/10.5539/ass.v10n8p42
Al Balushi, Y., Locke, S., & Boulanouar, Z. (2019). Determinants of the decision to adopt Islamic finance: evidence from Oman. ISRA International Journal of Islamic Finance, 11(1), 6–26. https://doi.org/10.1108/IJIF-02-2018-0020
Alexandri, M. B., & Santoso, T. I. (2015). Non Performing Loan: Impact of Internal and External Factor (Evidence in Indonesia). International Journal of Humanities and Social Science Invention, 4(1), 87–91.
Alharb, A. T. (2017). International Journal of Islamic and Middle Eastern Finance and Management Determinants of Islamic banks' profitability : international evidence. International Journal of Islamic and Middle Eastern Finance and Management. https://doi.org/10.1108/IMEFM-12-2015-0161
Ali, S. (2015). Importance and Implications of CPEC in South Asia: The Indian Factor. Journal of Indian Studies, 1(1), 16. http://pu.edu.pk/images/journal/indianStudies/PDF/2_v1_1_15.pdf
amarbank.co.id. (2022). No Title.
Amelia, E., & Hardini, E. F. (2017). Determinant of Mudharabah Financing: A Study at Indonesian Islamic Rural Banking. Etikonomi, 16(1), 43–52. https://doi.org/10.15408/etk.v16i1.4638
BPS. (2022). Badan Pusat Statistik. https://www.bps.go.id
Charmondusit, S., Bhaktikul, K., Arunlertaree, C., Wisawapipat, W., Rattanapan, C., & Charmondusit, K. (2012). Problem Based Training Program on Industrial Ecology and Environment for the Sustainability Management of Industry. Procedia - Social and Behavioral Sciences, 40, 31–36. https://doi.org/10.1016/j.sbspro.2012.03.157
Cohen, L. (2007). Research Methods in Education (6th Ed). Routledge.
Data.worldbank.org. (2022). Consumer Price Index. data.worldbank.org
Hesniati, Koo, F., Fernando, Winardy, J., & Chuandra, W. F. (2022). The Impact of BI Rate, Exchange Rate, and Inflation on Broad Money in Indonesia. ×”×רץ, 4(8.5.2017), 2003–2005.
Husaeni, U. A., Zakiah, S., & Faisal, F. (2021). Determinants of Micro and Small Business Financing In Sharia Commercial Banks In Indonesia. Journal Ilmiah Ekonomi Islam, 7(03), 1499–1504.
Ibrahim, M. H., & Sufian, F. (2014). A structural VAR analysis of Islamic financing in Malaysia. Studies in Economics and Finance, 31(4), 371–386. https://doi.org/10.1108/SEF-05-2012-0060
Ibrahim, M. H., & Sukmana, R. (2011). Dynamics of Islamic financing in Malaysia: Causality and innovation accounting. Journal of Asia-Pacific Business, 12(1), 4–19. https://doi.org/10.1080/10599231.2011.539446
Ibrahim, Z., Effendi, N., Budiono, B., & Kurniawan, R. (2021). Determinants of profit and loss sharing financing in Indonesia. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-01-2020-0015
Mankiw, M. G. (2018). Pengantar Ekonomi Makro (Ketujuh). Salemba Empat.
Meydianawathi, L. . (2007). The Analysis of Bank Credit Bergaining Behaviour on SME Sector in Indonesia. Economy Study Bulletin, 12.
Nahar, S. & Sarker, N. (2016). Are Macroeconomic Factors Substantially Influential for Islamic Bank Financing? Cross-Country Evidence. Journal of Business and Management, 18(6), 20–27.
Otoritas Jasa Keuangan. (2022). Statistik Perbankan Syariah. Ojk.Go.Id. www.ojk.go.id/
Putra, I. G., & Rustariyuni, S. D. (2015). Pengaruh DPK, BI Rate, Dan NPL Terhadap Penyaluran Kredit Modal Kerja Pada BPR Di Provinsi Bali Tahun 2009-2014. E-Jurnal Ekonomi Pembangunan Universitas Udayana.
Sari, G. N., Yang, F., Mempengaruhi, F. Y., Kredit, P., Umum, B., Ekonomi, F., & Pembangunan, J. E. (2012). Faktor-Faktor Yang Mempengaruhi Penyaluran Kredit Bank Umum Di Indonesia (PERIODE 2008.1 – 2012.2). Jurnal EMBA, 1(3), 931–941.
Sukmana, R., & Febriyati, N. A. (2016). Islamic banks vs conventional banks in Indonesia: An analysis on financial performances. Jurnal Pengurusan, 47, 81–90.
Tambunan, T. T. H. (2011). Development of Micro , Small and Medium Enterprises and Their Constraints : A Story from Indonesia. Gadjah Mada International Journal of Business, 13(1), 21–43.
Utami, U. R. (2018). The Effect of Bank's Internal Factors Towards Micro Financing in Islamic Commercial Bank at Indonesia. Journal of Islamic Economic Laws, 1(1), 78–98. https://doi.org/10.23917/jisel.v1i1.6327
www.bi.go.id. (2022). Bank Indonesia. www.bi.go.id
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
1. Copyright of this journal is possession of Editorial Board and Journal Manager, by the knowledge of author, whilst the moral right of the publication belongs to the author.
2. Legal formal aspect of journal publication accessibility refers to Creative Commons Atribusi-Non Commercial-No ShareAlike (CC BY-NC-SA),implies that publication can be used for non-commercial purposes in its original form (cannot be modified).
3. Every publications are open access for educational purposes, research, and library. Other that the aims mentioned above, editorial board is not responsible for copyright violation.
AJIM by Unair is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
