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Journal : Jurnal International Economic Sharia

Examining the Impact of Islamic Banking on Indonesia Economic Growth: Short- and Long-term Analysis Ayu Lestari, Mey
Journal International Economic Sharia Vol. 1 No. 2 (2024): September
Publisher : Inovasi Analisis Data

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69725/jies.v1i2.138

Abstract

Objective; This study examines the relationship between Islamic financial development and economic growth in Indonesia, with a focus on the short-term and long-term impacts. The research aims to understand the role of Islamic banking in driving the country's economic performance.Methods; A quantitative approach was used, employing time series data from 1992 to 2024. Multiple regression analysis was applied to assess the relationship between Islamic banking indicators, such as total assets, financing, and non-performing financing (NPF), and economic growth, measured by GDP growth.Results; The findings indicate that Islamic financial development significantly contributes to Indonesia's economic growth, with both short-term and long-term effects. Non-performing financing (NPF) was found to be inversely related to growth, while total assets and financing had positive effects.Novelty; This study fills a gap in the literature by exploring the specific role of Islamic financial institutions in an emerging market context, particularly in Indonesia, where Islamic banking is growing rapidly. Research Implications; The results suggest that policy-makers should enhance Islamic financial sector development and address NPF to support sustainable economic growth. Future studies could investigate the impact of different financial instruments within the Islamic banking sector.
Islamic Intellectual Capital: Unveiling its Impact on Maqashid Shariah Performance under Corporate Governance Moderation Qurrota A'yun, Annisa; Mohammed Sultan Saif, Gehad; Andriansa, Rama; Nur Rahman, Arif; Danang Saputra, Aditya; Ayu Lestari, Mey
Journal International Economic Sharia Vol. 1 No. 1 (2024): June
Publisher : Inovasi Analisis Data

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69725/jies.v1i1.39

Abstract

This study investigates the performance of Islamic banking in Indonesia by analyzing the impact of Islamic Intellectual Capital (iB-VAIC) on Maqashid Shariah performance, with corporate governance as a moderating variable. Data from annual reports of Sharia-compliant banks listed on the Indonesia Stock Exchange over the period 2019-2023 were analyzed using multiple regression analysis in SPSS. The results reveal a negative direct effect of Islamic intellectual capital and board meetings on Maqashid Shariah performance. However, the interaction between Islamic intellectual capital and board meetings positively influences performance, suggesting a moderating role of corporate governance. These findings underscore the importance of effective management of intellectual capital and governance mechanisms to enhance performance aligned with Shariah principles in Islamic banking. Further research is recommended to deepen our understanding of these relationships and inform strategic decisions in the Islamic banking sector.