The impact of the Islamic finance sector and Covid-19 pandemic on Indonesian economic growth period 2004Q1-2021Q3

Safira Aulia Cahyaningrum (Department of Islamic Economics UIN Sunan Kalijaga Yogyakarta)
Muhammad Ghafur Wibowo (Department of Islamic Economics UIN Sunan Kalijaga Yogyakarta)

Journal of Islamic Economics, Management, and Business (JIEMB)
Vol 4, No 1 (2022)

AbstractPurpose – The impact of Islamic financial sector and COVID-19 pandemic breakout on economic growth from 2004Q1 to 2021Q3 is examined in this paper.Method – A quantitative method employing Autoregressive Distributed Lag (ARDL) analysis was employed in this study.Result – The findings demonstrate that only the JII variable has a statistically meaningful impact on economic growth. Economic growth is influenced by the variables total assets, FDR, PYD, and COVID-19.Implication – This can happen if Islamic financial institutions or Indonesian stock markets are not performing well and don’t have a large enough market share. The notion of finance-led growth, which states that the financial sector can act as a stimulant for economic expansion, is supported by this research.Originality –  This study's research data was gathered from reliable sources such as Islamic Banking Statistics of OJK, the Central Bureau of Statistics (BPS), and Yahoo Finance, ensuring their authenticity.Keywords: Islamic Finance, COVID-19, Economic Growth