A Comparative Analysis of DSN-MUI Fatwas Regarding Murabahah Contract and the Real Context Application (A study at Islamic Banking in Aceh)

Ibrahim, Azharsyah; Salam, Abdul Jalil

doi:10.22373/sjhk.v5i1.8845

Cited by 7 publications

(8 citation statements)

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“…As a financial intermediary, an Islamic bank performs two main functions: funding and credit. The goal of credit or financing activity is to maximize bank performance (Daud et al, 2016;Ibrahim, & Salam, 2021). As a result, Islamic banks' primary concern as financial intermediaries is credit risk management (Abedifar, Molyneux, & Tarazi, 2013;Muarif, Ibrahim, & Amri, 2021).…”

Section: Introductionmentioning

confidence: 99%

Sectoral Financing Concentration and Profitability of Islamic Banking in Indonesia

Widarjono

Anto²,

Sidiq³

2022

SJEKI

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This paper investigates the extent to which sectoral financing concentration affects the Islamic banks' profitability in Indonesia. As additional control variables, we include bank-specific and macroeconomic conditions. This study utilizes the aggregated financial statements of Islamic banks in Indonesia from January 2010 through December 2019 and analyzed with the Autoregressive distributed lag (ARDL) model. The results confirm cointegration evidence, demonstrating the long-term relationship between the dependent and independent variables. The results clearly indicate that sectoral financing concentration increases the profitability of Islamic banks. Furthermore, excessive financing and high non-performing financing reduce the profitability of Islamic banks. As a financial sector, Islamic banks' performance is contingent on favorable economic and macroeconomic conditions, such as high economic growth and low inflation. These findings imply that Islamic banks must employ skilled workers who are experts in related economic sectors, which is one of the primary goals of Islamic bank financing.========================================================================================================== ABSTRAK – Konsentrasi Pembiayaan Sektoral dan Profitabilitas Bank Syariah di Indonesia. Tulisan ini mengkaji sejauh mana konsentrasi pembiayaan sektoral mempengaruhi profitabilitas bank syariah di Indonesia. Sebagai variabel kontrol tambahan, kami menyertakan kondisi spesifik bank dan variabel makroekonomi. Penelitian ini menggunakan agregat laporan keuangan bank syariah di Indonesia dari Januari 2010 sampai Desember 2019 dan dianalisis dengan model Autoregressive distributed lag (ARDL). Hasil kajian mengkonfirmasi bukti kointegrasi, yang menunjukkan hubungan jangka panjang antara variabel dependen dan independen. Hasil kajian memperjelas bahwa konsentrasi pembiayaan sektoral dapat meningkatkan profitabilitas bank syariah, sementara pembiayaan yang berlebihan dan pembiayaan bermasalah yang tinggi mengurangi profitabilitas bank syariah. Sebagai institusi yang bergerak di sektor keuangan, kinerja bank syariah sangat bergantung pada kondusifitas sistem ekonomi dan kondisi makroekonomi, seperti pertumbuhan ekonomi yang tinggi dan inflasi yang rendah. Temuan ini menyiratkan bahwa bank syariah harus mempekerjakan pekerja terampil yang ahli di sektor ekonomi terkait, yang merupakan salah satu tujuan utama pembiayaan bank syariah.

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Section: Introductionmentioning

confidence: 99%

Sectoral Financing Concentration and Profitability of Islamic Banking in Indonesia

Widarjono

Anto²,

Sidiq³

2022

SJEKI

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“…Making installment tables is carried out using the proportional method, annuity method and effective rate method, each calculation of which is presented in the tables below (Ibrahim & Salam, 2021;Zakhariah & Hesniati, 2022)…”

Section: [ ( )]mentioning

confidence: 99%

Table Installments Finance Sharia of Motor Vehicle Using Proportional, Annuity, and Effective Rate Method

Cahyandari,

Hasanah

2023

IJMSC

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One of the products offered by sharia banks is financing. In this financing, Islamic banks usually take profits in the form of margin or it can also be done by profit sharing. The base profit rate model was introduced to determine margins in Islamic bank financing. The margin generated using the base profit rate model is only in the form of a percentage. Therefore, follow-up was carried out by forming a sharia financing installment table to make it easier to see profits in nominal form. The methods used in making this installment table are the proportional method, annuity method and effective rate method. From research conducted in the case of sharia motor vehicle financing with a term of 1 year, a margin of 66.61785% was obtained and the profit based on the calculation results of the proportional method, annuity method and effective rate method was respectively IDR. 9,992,677.20,- , Rp. 5,945,097.50,-, and Rp. 5,412,700.31. So it can be concluded that the effective rate method takes the smallest profits, then followed by the annuity method and finally the proportional method which takes profits that tend to be larger.

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“…However, in current practice, Islamic banks seem to offer sharia financial products such murābaḥah, muḍārabah, and musyārakah contracts, but in fact, they offer conventional loan financing schemes (Miah & Suzuki, 2020). The consequence that occurs is not buying and selling financing based on a murābaḥah contract but buying and selling money wrapped in a murābaḥah contract (Ibrahim & Salam, 2021).…”

Section: Dsn-mui Half-hearted Authority In Formulating Islamic Princi...mentioning

confidence: 99%

“…12 of 2011 regarding the formulation of Legislation. The absence of such authority causes the DSN-MUI fatwas to have no binding legal implications (Ibrahim & Salam, 2021). This is found, for example, in the Indonesia Central Bank Regulation Number 10/16/ PBI/2008 concerning the Implementation of Islamic Principles in Fundraising and Funding Scheme as well as Sharia Bank Services.…”

Section: Dsn-mui Half-hearted Authority In Formulating Islamic Princi...mentioning

confidence: 99%

Sharia Financial Institutions Compliance Towards Islamic Principles in Performing Intermediation Functions

Usman

2022

Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah

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This study aims to determine the factors of non-compliance with Islamic principles in Islamic Financial Institutions (IFIs). This article argues that IFIs must comply with Islamic principles based on the DSN-MUI fatwa, even though in the Indonesian legal hierarchy, DSN-MUI fatwas are not binding. IFIs show ambiguity in complying with Islamic principles when carrying out their intermediation function. Several other factors also cause IFIs' lack of compliance with sharia principles. These include the lack of applicability of the DSN-MUI fatwas, the conflict of interest of the Sharia Supervisory Board (SSBs), and competency issues among SSBs members. To address these issues, it is necessary to strengthen the regulations that make DSN-MUI an authoritative institution in establishing the sharia principles and the fatwas methodology. Thus, the fatwas are more applicable and avoid ambiguity. Furthermore, SSBs need re-structurization to be independent internal supervisory agencies. AbstrakPenelitian bertujuan mengetahui faktor-faktor ketidakpatuhan lembaga keuangan syariah (LKS) pada prinsip-prinsip Islam. Artikel ini menyebutkan LKS harus mematuhi prinsip-prinsip Islam sesuai fatwa DSN-MUI, walaupun dalam hierarki hukum Indonesia, DSN-MUI bukanlah sebuah lembaga otoritatif yang menerbitkan hukum mengikat. LKS tampak ambigu dalam mematuhi prinsip-prinsip Islam saat menjalankan fungsi intermediasinya. Ketidakpatuhan LKS kepada prinsip-prinsip syariah juga disebabkan oleh beberapa faktor lain, seperti: tidak aplikatifnya fatwa DSN-MUI; munculnya konflik kepentingan DPS; dan masalah kompetensi anggota DPS. Untuk mengatasi masalah-masalah tersebut, perlu adanya perbaikan regulasi yang menjadikan DSN-MUI sebagai lembaga otoritatif, agar fatwa yang dikeluarkan lebih aplikatif dan tidak menimbulkan multi tafsir. Sementara dari sisi DPS, perlu adanya regulasi merestrukturisasi organisasi DPS dengan menepatkannya sebagai lembaga pengawas internal yang independen.

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A Comparative Analysis of DSN-MUI Fatwas Regarding Murabahah Contract and the Real Context Application (A study at Islamic Banking in Aceh)

Cited by 7 publications

References 1 publication

Sectoral Financing Concentration and Profitability of Islamic Banking in Indonesia

Sectoral Financing Concentration and Profitability of Islamic Banking in Indonesia

Table Installments Finance Sharia of Motor Vehicle Using Proportional, Annuity, and Effective Rate Method

Sharia Financial Institutions Compliance Towards Islamic Principles in Performing Intermediation Functions

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