Prastowo Prastowo
Department Of Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia

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Income Inequality and Regional Index of Financial Inclusion For Islamic Bank in Indonesia Prastowo Prastowo; Diyah Putriani
Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah Vol 11, No 1 (2019)
Publisher : Faculty of Shariah and Law, UIN Syarif Hidayatullah Jakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (888.557 KB) | DOI: 10.15408/aiq.v11i1.8380

Abstract

Abstract. This research is proposed to measure financial inclusion index in 2 dimensions (2D-FII) in Indonesia Islamic banks. This research contributes to the measurement 2D-FII at the regional level in Indonesia. The analysis of cross- section data from 33 provinces in Indonesia between 2014 and 2015 shows that the value of FII in Islamic banking in Indonesia is still low. Previous works show one of the determinants on increasing inequality in any country is limited access to the financial sector, especially for low-income household (Akimov, Wijeweera, and Dollery 2006; Kenourgios and Samitas 2007; Levine 2003; D. Park and Shin 2015). Thus, the low level of FII in Indonesia perhaps is caused by inequality of income. Therefore, this research recommends policymaker to have more concern on poverty alleviation program and open new Islamic banks branches at the regional level.Keywords: 2 Dimension – Financial Inclusion Index (2D-FII), Income Inequality, Poverty Alleviation, Islamic Banks Abstrak. Penelitian ini bertujuan untuk mengukur indeks inklusi keuangan pada 2 dimensi (2D-FII) pada bank-bank syariah di Indonesia. Secara umum, penelitian ini berkontribusi pada pengukuran 2D-FII di tingkat regional Indonesia. Analisis terhadap data dari 33 provinsi di Indonesia antara tahun 2014-2015 menunjukkan bahwa nilai FII pada perbankan syariah di Indonesia masih rendah. Kajian-kajian terdahulu menunjukkan bahwa salah satu penentu peningkatan ketimpangan di berbagai negara adalah akibat akses terhadap sector keuangan yang masih terbatas, khususnya pada rumah tangga dengan pendapatan rendah (Akimov, Wijeweera, and Dollery 2006; Kenourgios and Samitas 2007; Levine 2003; D. Park and Shin 2015). Dengan begitu, rendahnya tingkat FII di Indonesia bisa jadi disebabkan oleh ketimpangan pendapatan. Oleh karena itu, penelitian merekomendasikan pengambil kebijakan untuk lebih fokus pada program pengentasan kemiskinan dan pembukaan cabang-cabang bank syariah di tingkat regional.Kata kunci: 2 Dimension – Financial Inclusion Index (2D-FII), Ketimpangan Pendapatan, Pengentasan Kemiskinan, Bank Syariah
Analisis regional keuangan inklusi perbankan syariah terhadap ketimpangan pendapatan di Indonesia P Prastowo
Jurnal Ekonomi & Keuangan Islam Volume 4 No. 1, Januari 2018
Publisher : Faculty of Economics, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jeki.vol4.iss1.art6

Abstract

This research is aimed at observing the impact of financial inclusion sharia on income inequality in 33 provinces in Indonesia. This research employ FII sharia measure proposed by Sarma (2008, 2012) and panel EGLS which covers 2014 to 2016. There are four variable involved in the model, i.e. Gini index, FII, GRDP, and HDI. Based on the result, it can be shown that both FII sharia have significantly positive relationship with Gini index. This result can be interpreted that if there is an increase in FII , thus income inequality will also increase.
Financial inequality nexus and Islamic banking Diyah Putriani; Prastowo Prastowo
Jurnal Ekonomi & Keuangan Islam Volume 5 No. 2, July 2019
Publisher : Faculty of Economics, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jeki.vol5.iss2.art1

Abstract

This research aims to investigate the role of Islamic banking on income inequality reduction. The data of this research spans from 2010 to 2015 and investigate 49 Islamic banks from 13 selected countries. This study employs Panel data EGLS. To compare with other macroeconomic variable, this research involves GDP Per capita, and inflation as control variable. The estimation result shows that financial depth measured by total customer deposit to GDP ratio has negative relationship with income inequality. It perhaps occurs when there is an increase in income, customers prefer to save their additional income in Islamic banks. As customers increase their deposits, Islamic banks enlarge its financing on the prospect entrepreneurs. These entrepreneurs, afterwards, may expand their business and create new jobs. More new jobs offer means more people get stable income and as a result may reduce income inequality in the society.  
Spatial analysis on the impact of Islamic regional financial depth on income inequality in Indonesia Prastowo Prastowo; Diyah Putriani
Jurnal Ekonomi & Keuangan Islam Volume 8 No. 2, July 2022
Publisher : Faculty of Economics, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/JEKI.vol8.iss2.art1

Abstract

Purpose – This paper aims to analyze the effect of financial depth in Islamic banks on income inequality in 33 provinces in Indonesia. Methodology – We use data for the period 2010-2018 from 33 provinces in Indonesia which are estimated using panel data to develop spatial panel data model. The dependent variable is income inequality, while the variable independent are Islamic regional financial depth, economic growth, human capital, and government expenditure.Findings – This research finds that Islamic Regional Financial Depth (FDS) has a positive and statistically significant direct effect on income inequality represented by Gini index. It means that an increase in the FDS will also cause an increase in the level of Gini index. In addition, the indirect effect of FDS on income inequality is also positive and significant, indicating that the ratio of financing to GRDP has a spillover effect on connected regions. Implications – This research recommends policymaker to expand the business of Islamic banking by financing the small medium enterprises and concern on the promotion of Islamic banking in the regional level. Originality – This study is potentially to contribute and be the early work which employs spatial analysis in the area of Islamic economics and finance. In addition, this study examines the impact of financial depth in Islamic bank on income inequality which is rarely discussed. Hence, this study presents relatively new information for policy makers, practitioners and researchers.
The Relationship between Electricity Consumption, Oil Prices, and Economic Growth in Indonesia Prastowo Prastowo; Laillil Putri Damayanti
Journal of Asset Management and Public Economy (JAMPE) Vol. 1 No. 1 (2022)
Publisher : Universitas Ahmad Dahlan, Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (752.972 KB) | DOI: 10.12928/jampe.v1i1.4949

Abstract

This study aims to analyze the relationship between electricity consumption, oil prices and economic growth. The data used are from 1971 to 2014 using a case study of the country of Indonesia. This research model uses the Vector Error Correction Model (VECM) regression. The results show that there is a long-term balance in electricity consumption, oil prices and economic growth. However, there is no short-term relationship on electricity consumption, oil prices and economic growth. Therefore, it is recommended that the government maximize the investment sector in industrialization so that the level of electricity consumption in terms of industry increases and can increase economic growth. In addition, this policy can create job opportunities so that residents can have greater job opportunities.