scholarly journals IMPLEMENTATION OF ECONOMIC DEMOCRACY PRINCIPLE IN ISLAMIC BANKING POLICIES THROUGH FINANCIAL SERVICES AUTHORITY (FSA) IN INDONESIA

At-Taradhi ◽  
2018 ◽  
Vol 8 (2) ◽  
pp. 78 ◽  
Author(s):  
Yusup Hidayat ◽  
Fokky Fuad ◽  
Maslihati Nurhidayati
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Primary Source ◽  
Local Economy ◽  
Islamic Banking ◽  
Economic Democracy ◽  
Regulation And Supervision ◽  
Wide Range ◽  
Banking Institutions ◽  
Banking Institution

Abstract: The enactment of Law No. 21 Year 2011 on the Financial Services Authority (FSA) made the regulation and supervision of financial institutions both banks and nonbank be integrated, including the regulation and supervision of sharia financial institutions in which there is sharia Islamic Banking. One of the principles of Islamic banking, as stated in Law No. 21 of 2008 concerning Islamic Banking is the Principle of Economic Democracy. In the implementation of the principle of economic democracy that the FSA has a significant role in pushing the Islamic banking institution to utilize its resources to promote the local economy, especially groups of people whose economic access is still minimal. In 2014, the FSA issued Regulation No. 19 in relation to inclusive finance. In these regulations, the FSA encourages banking institutions to provide banking services to people who have been marginalized through the branchless bank program. This POJK  applies to both conventional banking and Islamic banking. Some conventional banks have been undertaking this program with a wide range of dynamics. Some Islamic banks have been also undertaking it, while others are still at the preparation stage. This paper will analyze the regulations issued by the FSA in order to encourage Islamic banking institutions in actualizing the principle of economic democracy, especially in relation to inclusive finance program. The research method used in this article is normative juridical with the support of primary source through the FSA.Abstrak: Berlakunya Undang-Undang Nomor 21 Tahun 2011 tentang Otoritas Jasa Keuangan (OJK) menjadikan pengaturan dan pengawasan Lembaga Keuangan baik Bank maupun Nonbank menjadi terintegrasi, termasuk pengaturan dan pengawasan Lembaga keuangan syariah yang di dalamnya terdapat Perbankan Syariah.  Salah satu asas Perbankan syariah sebagaimana tertuang dalam Undang-Undang No. 21 tahun 2008 tentang Perbankan Syariah adalah Asas Demokrasi Ekonomi. Dalam implementasi asas demokrasi ekonomi tersebut OJK memiliki peran signifikan dalam mendorong lembaga perbankan syariah untuk mendayagunakan sumber daya yang dimiliki untuk memajukan ekonomi masyarakat terutama kelompok masyarakat yang secara akses ekonomi masih minim.  Pada tahun 2014 OJK mengeluarkan Peraturan OJK No 19 terkait dengan keuangan Inkusif. Dalam peraturan tersebut OJK mendorong lembaga perbankan untuk memberikan layanan jasa perbankan kepada masyarakat yang selama ini termarginalkan melalui program Laku Pandai. POJK ini berlaku baik untuk perbankan konvensional maupun perbankan syariah. Beberapa bank konvensional sudah meakukan program ini dengan berbagai macam dinamikanya. Sementara itu bank syariah juga sebagian ada yang sudah menjalankan sementara yang lain masih pada tahap persiapan. Tulisan ini akan menganalisis peraturan-peraturan yang dikeluarkan OJK dalam mendorong lembaga perbankan syariah dalam mewujudkan asas demokrasi ekonomi terutama terkait dengan program keuangan inklusif. Metode penelitian pada penelitian adalah yuridis normatif dengan dukungan data-data primer melalui pihak OJK.Keywords: Banking service, economic, financial, democracy.

Issues and Challenges Facing Islamic Banks and MSME in Financial Inclusion in Indonesia

2021 ◽  
pp. 308-325
Author(s):  
Adi Saifurrahman ◽  
Salina Kassim
Keyword(s):  
Financial Services ◽  
Developing Nations ◽  
Primary Objective ◽  
Financial Inclusion ◽  
Islamic Banking ◽  
Critical Issues ◽  
Banking Institutions ◽  
Banking Institution

Financial inclusion has become an important policy for many countries, including the developed and developing nations. Financial inclusion realisation is promoted by the easy and convenient access to financial services, quality of financial services, and efficient and effective utilisation by all segment of society, delivered with fairness and zero discrimination. The achievement of financial inclusion is supported by essential pillars that are interconnected with each other and form a composite economy ecosystem to ensure stability and sustainable development. One of these critical pillars is micro, small, and medium-sized enterprises (MSMEs); the development of MSMEs pillar is deemed crucial due to its capability in absorbing more considerable workforce compared to larger enterprises and contributes significantly to the gross domestic product (GDP). Therefore, the growth of MSMEs pillar will surely reduce poverty, lessen the unemployment, and lower the income disparity. In this respect, since Islamic banking represents the core of the Islamic financial system that encourages entrepreneurship, the institution is expected to take the lead in serving the needs of MSMEs sector and assisting them from all types of financial constraints. The primary objective of this chapter is to explore and investigate the critical issues and challenges of MSMEs financial inclusion achievement through the role of Islamic banking institutions, particularly in Indonesia. The chapter suggests several problems that hamper the role of the Indonesian Islamic banking institution in serving the needs of MSMEs and numerous issues and challenges in achieving MSMEs financial inclusion.

scholarly journals PERLINDUNGAN "HAK SPIRITUAL" DALAM PENYELESAIAN SENGKETA PERBANKAN SYARIAH: PRAKTIK DI MALAYSIA DAN INDONESIA

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Rof'ah Setyowati
Keyword(s):  
Financial Services ◽  
Comparative Approach ◽  
Islamic Banking ◽  
Constitutional Court ◽  
Legal Research ◽  
Joint Research ◽  
Banking Institutions ◽  
Banking Institution ◽  
The Right ◽  
Settlement Of Disputes

"Spiritual right" is the right in the spiritual aspect that is owned by any person. The Spirituality of Muslim customers is influenced by sharia principles in various aspects of their lives. The protection against "spiritual right" is also required in the settlement of disputes between customers and Islamic banking institution. Indonesian regulation has provided the foundation for the protection of the spiritual rights. The issuing of the MK (Constitutional Court)'s verdict Number 93/PUU-X/2012, can also lead to that purpose. However, there is still a "spiritual right" post the verdict. This study utilizes two types of joint research method called socio-legal research. It employs several approaches, namely philosophical, historical, critical, analytical, comparative, and so on. However, the most prominently used is the comparative approach as it is associated with the purpose of this study in digging Malaysian experiences with its longer period of having various legal problems. It is hoped that these experiences can be referred to as a pattern for more effective "spiritual right". The analysis shows that the effectiveness of the "spiritual right" protection in settling the dispute of Islamic banking institutions is dominantly influenced by the policy of financial services authority, which in Malaysia is Bank Negara Malaysia (BNM) and Otoritas Jasa Keuangan (OJK) in Indonesia. ========================================================================================================"Hak spiritual" merupakan hak dalam aspek spiritual yang dimiliki oleh setiap orang. Spiritulitas konsumen Muslim dipengaruhi oleh prinsip-prinsip syariah dalam berbagai aspek kehidupannya. Perlindungan terhadap "hak spiritual" juga dibutuhkan dalam penyelesaian sengketa antara nasabah dengan institusi perbankan syariah. Melalui peraturan perundangan, telah diberikan landasan bagi perlindungan "hak spiritual". Munculnya Putusan MK Nomor 93/PUU-X/2012, hakekatnya juga mengarah pada maksud tersebut. Namun permasalahannya, pasca putusan MK tersebut, masih terdapat "hak spiritual". Kajian ini menggunakan dua jenis penelitian gabungan, yang disebut dengan socio-legal research. Beberapa metode pendekatan dilakukan, antara lain: filosofis, historis, analitis kritis, dan komparatif. Namun yang paling menonjol digunakan ialah metode komparatif. Penggunaan metode ini dikaitkan dengan tujuan kajian ini untuk mengambil pengalaman dari Malaysia yang lebih lama dengan berbagai problematika hukum yang ada, untuk manjadi acuan guna mendapatkan pola perlindungan "hak spiritual" yang lebih efektif. Hasil analisis ini menujukkan bahwa efektifitas perlindungan "hak spiritual" dalam penyelesaian sengketa perbankan syariah sangat dipengaruhi oleh kebijakan lembaga pemegang otoritas pembinaan, pengawasan dan pengaturan perbankan syariah. Dalam konteks ini, di Malaysia ialah BNM, sementara di Indonesia ialah OJK.

Design Analysis of CIMB Bank’s Website

2013 ◽  
Vol 66 (1) ◽  
Author(s):  
Muhammad Ridhwan Ab. Aziz ◽  
Mohammad Mahbub Alam Noorizzuddin Nooh
Keyword(s):  
Design Analysis ◽  
Islamic Banking ◽  
Website Design ◽  
Islamic Banks ◽  
Future Researcher ◽  
Market Shares ◽  
The World ◽  
Banking Institutions ◽  
Banking Institution ◽  
Conventional And Islamic Banks

Islamic banking has emerged in recent decades as one of the most important trends in the financial world, side by side with conventional banking. Website design has become a very powerful tool in disseminating information of a particular banking institution and this phenomenon has been fully utilized by both conventional and Islamic banks throughout the world. The purpose of this article is to analyze website design of CIMB Bank that offers both conventional and Islamic financing facilities. The methodology employed in this article is qualitative in nature through examining the websites of CIMB Bank. The finding shows that CIMB Bank needs to improve their both website designs in order to attract more customers to their websites and give true information with regard of their products and services. It is further suggested that future researcher tries to explore more in-depth website designs in terms of products and services provided by the conventional and Islamic banking institutions in order to increase their market shares. 

scholarly journals Towards New Sharia Governance for Islamic Financial Institutions

2021 ◽  
Vol 18 (1) ◽  
pp. 39-58
Author(s):  
Abdulazeem Abozaid
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Institution ◽  
Islamic Banking ◽  
Banking And Finance ◽  
Finance Industry ◽  
Regulatory Authorities ◽  
Governance Model ◽  
Islamic Financial Institutions ◽  
Shariah Governance

Since its inception a few decades ago, the industry of Islamic banking and finance has been regulating itself in terms of Sharia governance. Although some regulatory authorities from within the industry, such as Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB), the Islamic banking and finance industry remains to a great extent self-regulated. This is because none of the resolutions or the regulatory authorities' standards are binding on the Islamic financial institution except when the institution itself willingly chooses to bind itself by them. Few countries have enforced some Sharia-governance-related regulations on their Islamic banks. However, in most cases, these regulations do not go beyond the requirement to formulate some Sharia controlling bodies, which are practically left to the same operating banks. Furthermore, some of the few existing regulatory authorities' standards and resolutions are conflicted with other resolutions issued by Fiqh academies. The paper addresses those issues by highlighting the shortcomings and then proposing the necessary reforms to help reach effective Shariah governance that would protect the industry from within and help it achieve its goals. The paper concludes by proposing a Shariah governance model that should overcome the challenges addressed in the study.Pada awal berdiri, Lembaga Keuangan Syariah merupakan lembaga keuangan yang menerapkan Hukum Syariah secara mandiri dalam sistem operasionalnya. Ia tidak tunduk pada peraturan lembaga keuangan konvensional, sehingga dapat terus berkomiten dalam menerapkan Hukum Syariah secara benar. Selanjutnya, muncullah beberapa otoritas peraturan yang berasal dari pengembangan Lembaga Keuangan Syariah. Diantaranya adalah Islamic Financial Services Board (IFSB) dan Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Hal ini tidak menyimpang dari kerangka peraturan Hukum Syariah, sebab standar peraturan dan keputusan yang dikeluarkan ditujukan khusus untuk Lembaga Keuangan Syariah saja. Beberapa Negara telah menerapkan peraturan tata kelola Hukum Syariah pada Bank Syariah mereka. Namun dalam banyak kasus, peraturan yang diterapkan tidak mampu mengontrol Lembaga Keuangan Syariah tersebut secara penuh. Sehingga, secara praktis proses pengawasan diserahkan kepada lembaga keuangan yang beroperasi. Akan tetapi, beberapa standar dan keputusan yang dikeluarkan oleh sebagian pemangku kebijakan bertentangan dengan keputusan yang dikeluarkan oleh beberapa akademi Fiqh. Artikel ini ditulis untuk menyoroti permasalahan yang timbul pada tata kelola Lembaga Keuangan Syariah, khususnya kekurangan yang tampak pada sistem tata kelola. Kemudian, penulis akan mengajukan usulan tentang efektifitas tata kelola Lembaga Keuangan Syariah yang bebas dari permasalahan.

scholarly journals The Transformation of Ijârah: from Fiqh to Syariah Banking Products

2019 ◽  
Vol 14 (1) ◽  
pp. 72-98
Author(s):  
Hasanudin Hasanudin ◽  
Ainul Yaqin
Keyword(s):  
Financial Institutions ◽  
Islamic Banking ◽  
Wide Range ◽  
Islamic Financial Institutions

Ijârah begins from the concept of classical fiqh as a transaction that sustains the development of Islamic banking. The wide range of banking products produced from the concept of ijarah is the basis for developing the concept of jurisprudence from classical fiqh contact to banking products in the form of financing. These developments can be seen from a large number of banking products that use ijârah contracts, especially those related to services. This development lies in the merger of ijârah contracts with several other contracts such as wakalah. Another development that exists in the path to ijarah financing is seen from the foundation. In classical fiqh concept, ijârah is a product of fiqh ijtihad which is ẓanni or not binding. Every Muslim may practice the concept of jurisprudence from many scholars as ijtihad. However, in the financing of the surcharge, it is a combination of several contracts and is based on the DSN-MUI fatwa which is more binding for Islamic financial institutions on the recommendation of the Islamic banking law. (Ijârah yang berawal dari konsep fikih klasik merupakan salah satu transaksi yang menopang perkembangan perbankan syariah. Luasnya cakupan produk perbankan yang dihasilkan dari konsep ijarah menjadi dasar bagi pengembagan konsep ijârah dari kontak fikih klasik menuju produk perbankan dalam bentuk pembiayaan. Perkembangan tersebut dapat dilihat dari banyaknya produk perbankan yang menggunkaan akad ijârah terutama yang berkaitan dengan jasa. Perkembangan tersebut terletak dari penggabungan kontrak ijârah dengan beberapa kontrak yang lain seperti wakalah. Perkembangan lain yang ada pada ijârah ke pembiayaan ijarah adalah dilihat dari dasar pijakan. Dalam kensep fikih klasik, ijârah merupakan produk ijtihad fikih yang bersifat dzanni tidak mengikat. Setiap orang Islam boleh mengamalkan konsep ijârah dari ulama manapun yang bersifat ijtihad. Namun dalam pembiayaan ijârah selaian merupakan gabungan dari beberapa akad dan berpijak pada fatwa DSN-MUI yang lebih mengikat bagi lembaga keuangan syariah atas anjuran dari undang-undang perbankan syariah.

scholarly journals Islamic banking

2021 ◽  
pp. 275-287
Author(s):  
Christian Castro
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Islamic Law ◽  
Islamic Banking ◽  
Investment Funds ◽  
Banking And Finance ◽  
Financial Products ◽  
The World ◽  
Globalized World ◽  
The U.S

In recent years the rise of Islamic banking has been one of the most important trends in the economic sphere, with an estimated 1.5 billion Muslims in the world, this arena has plenty of room for expansion. Conforming to Shariah (Islamic Law) puts a huge demand among Muslims looking for financial products and services that adhere to their beliefs. If it weren’t for the creation of such alter-natives to conventional banking and finance, Muslims would find it hard to participate in our globalized world without violating their religious principles. There are currently over 300 financial Institutions across the global sphere providing some type of Islamic financial product. According to some experts, the assets that are currently being managed under Shariah law, which range from investment to commercial banks and investment funds, are estimated to be no less than 300 billion. Other experts in the industry estimate the assets under mana-gement to be much larger. The FSA (Financial Services Authority), a regulator for financial services based out of London, estimates the total amount associated with Shariah banking to be as much as 500 billion. Even the U.S rating agency, S & P, estimates the sukuk (deed) market has reached over 75 billion and will likely be over 150 billion by the end of the decade. It used to be that Islamic fi-nancial products were more of a niche market but over time they are now considered mainstream, with many well-known interna-tional financial institutions battling to get a little piece of the pie.

scholarly journals Faktor-faktor yang mempengaruhi volume pembiayaan berbasis bagi hasil dan rasio bopo pada perbankan syariah

2018 ◽  
Vol 19 (1) ◽  
pp. 1-12
Author(s):  
WIRMAN WIRMAN
Keyword(s):  
Regression Analysis ◽  
Interest Rate ◽  
Multiple Regression Analysis ◽  
Cost Sharing ◽  
Revenue Sharing ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Factors Affecting ◽  
Banking Institutions ◽  
Banking Institution

The objective of the study is to obtain empirical evidence of factors affecting the volume of financing based on cost sharing and the ratio of BOPO to Sharia Banking. The number of population in this study is the number of units analyzed consisting of all Islamic banks in Indonesia either BUS, UUS or BPRS. The method of selecting the sample used is purposive sampling. Testing using multiple regression analysis. The result of the research shows that there is influence of DPK to funding based on the result of mudharabah and musyarakah in both syariah banking institution in Indonesia. There is an effect of earnings on financing based on the sharing of mudharabah and musharaka in both Islamic banking institutions in Indonesia. There is no effect of NPF/non-performing financing on Mudharabah-based finance sharing in BUS in Indonesia. However, the NPF has a significant effect on mudharabah-based revenue sharing at the SRB. There is no effect of NPF / non-performing financing on the musharaka-based financing of the BUS in Indonesia. However, the NPF has a significant effect on the musharaka-based sharing financing in the SRB. There is no effect of interest rate on cost sharing based on mudharabah and musyarakah result in sharia banking in Indonesia. There is a funding effect based on the results of mudharabah and musyarakah on the ratio of BOPO in both Islamic banking institutions in Indonesia.  

scholarly journals role of technology in improving the financial inclusivity of banking institution: literature research with Indonesian case

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
I Gst Ngr. Alit Asmara Jaya ◽  
Ida Bagus Putu Purbadharmaja
Keyword(s):  
Financial Services ◽  
Financial Institution ◽  
Qualitative Description ◽  
Improve Performance ◽  
Role Of Government ◽  
Banking Institutions ◽  
The Government ◽  
Banking Institution ◽  
Role Of The Government

This article was written to see how technology plays a role in improving the financial inclusiveness of banking institutions and the role of government and regulator as well. Technology that has grown rapidly in recent decades has been able to make rapid progress in the industry and change people's behavior. Technology is becoming an inevitability that encourages progress in the economy. Banking as one of the supporting sectors of the financial institution industry, need to do efforts continuously to develop through innovation in fulfilling the needs of financial services, in order to improve performance with the application of technology. Using the approach of literature review and former empirical study, the author tries to perform qualitative description analysis of technological role in increasing financial inclusiveness of banking institution and role of the government and regulator as well. The results show that technology has an important role in boosting strategy to increase financial inclusiveness through improving financial performance. Regardless of the role of government and regulator to create condusiveness of the such technological role.

Islamic Finance Fundamentals With Applications in Malaysia

2016 ◽  
Author(s):  
Shahriza Osman ◽  
Zahiruddin Ghazali ◽  
Syed Mohd Na’im Syed Salim
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Banking System ◽  
Basic Knowledge ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Risk And Uncertainty ◽  
Financial Systems ◽  
Political Economic ◽  
Financial Issues

Islam postulates a unique link of contracts among the creator, man and society on the basis of Syariah law that directly affects the workings of the various social, political, economic, and financial systems. Therefore, to understand the way in which economic affairs and financial institutions are organized in an Islamic system, it is first necessary to comprehend the nature of this relationship. Consequently, one cannot study a particular aspect or part of an Islamic system, economics, for example, in isolation, without having understanding of the basic knowledge of Islamic finance. Islamic finance products are contract-based. This book explains Islamic finance, which refers to the provision of financial services in accordance with Syariah law in chapter one. The Syariah law is the foundation for the establishment of an Islamic banking system. Chapter two illustrates the differences between the principles of Syariah and Tabii. Chapter three explains the Islamic theory of profit. Chapter four is about risk and uncertainty, which is known as gharar in Islamic finance. Chapter five discusses interest/riba, which is the most significance principle of Islamic banking. Chapter six explains some of the financial issues related to Islamic banking.

ANALISIS PROFITABILITAS TERHADAP BEBAN RISIKO OPERASIONAL PERBANKAN SYARIAH DI PANDEMI COVID-19

2021 ◽  
Vol 10 (2) ◽  
pp. 118-131
Author(s):  
Muhlis ◽  
Izzatun Maghfirah ◽  
Dewi Puspita Sari
Keyword(s):  
Regression Analysis ◽  
Financial Services ◽  
Commercial Banks ◽  
Secondary Data ◽  
Operational Risk ◽  
Islamic Banking ◽  
Economic Sector ◽  
Business Units ◽  
Banking Institutions ◽  
Independent Variable

The Covid-19 pandemic that happened in Indonesia certainly affected many aspects of life, including the economic sector. Furthermore, in Islamic banking institutions, this institution serves as an intermediary between the collection and distribution of funds to customers. So that the pandemic can affect this sector in financial performance, especially in the profitability of institutions. In this study, profitability uses the ROA ratio in both Islamic Commercial Banks and Sharia Business Units, as well as operational risk burden as an independent variable. The data used in this study is secondary data from the official website of the Financial Services Authority which was analyzed using multiple regression analysis, classical assumption test, and determinant coefficients in SPSS. The results showed that the ROA BUS and UUS variables did not have a significant effect on the operational risk burden, while the determinant coefficient showed 44.9%.

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