Main Article Content
Abstract
Purpose – This research aims to investigate the main factors of Islamic banks’ profitability before and after the pandemic COVID-19 in Indonesia.
Methodology – The sample of this study is ten Islamic commercial banks that have complete data and are registered with Bank Indonesia. The data was analyzed by using a data panel regression estimation model based on the best estimation model which is the random effect model or REM.
Findings – Based on the result of the REM model, the study finds that both Islamic banks' internal variables such as NPF and OEF except CAR and FDR, and Islamic bank’s external variables such as the Covid-19 crisis variables are significant in determining Islamic banking profitability In Indonesia.
Implications – The present research has implications for Islamic bank management and policy-makers as well as researchers.
Originality – This study will become one of the pioneers to examine empirically determining the main factors of Islamic banks' profitability before and post-Covid-19 in Indonesia. The findings will contribute to minimizing the negative impact of economic crises like the Covid-19 outbreak in Indonesia.
Keywords
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Copyright (c) 2022 Ahmad Munawar, Sulaeman
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References
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- Anggraini, D., Aryani, D., & Prasetyo, I. B. (2020). Analisis implementasi green banking dan kinerja keuangan terhadap profitabilitas bank di Indonesia (2016-2019). Jurnal Bisnis, Manajemen dan Informatika), 17(2), 141–161. https://doi.org/10.26487/jbmi.v17i2.11264
- Anggraini, S., Fasa, M. I., Suharto, & Fachri, A. (2022). Analisis pengaruh green banking terhadap profitabilitas bank umum syariah Indonesia. Journal of Business Management and Islamic Banking, 1(1), 73–88. https://doi.org/10.14421/jbmib.2022.%25x
- Angraini, D. P., Sudarsono, H., & Anindita, S. F. (2020). The influence of financial performance and macroeconomic on financing risk in Islamic banks. Asian Journal of Islamic Management, 2(2), 138–152. https://doi.org/10.1108/AJIM.vol2.iss2.art6
- Anisa, S. T., & Anwar, S. (2021). Determinan profitabilitas bank umum syariah di Indonesia dengan tingkat likuiditas sebagai variabel intervening. Jurnal Perbankan Syariah, 2(2), 131–149. https://doi.org/10.46367/jps.v2i2.346
- Ascarya. (2020). The role of Islamic social finance in times of Covid-19 Outbreak. https://pebs-febui.org/en/download/materi-monthly-seminar-the-role-of-islamic-social-finance-in-times-of-covid-19-outbreak-4-april-2020/
- Ascarya, & Yumanita, D. (2011). Determinan dan persistensi margin perbankan konvensional dan syariah di Indonesia. Jurnal Ekonomi dan Bisnis Islami, 1(1), 1-34. https://www.researchgate.net/publication/316595441_determinan_dan_persistensi_margin_perbankan_konvensional_dan_Syariah_di_indonesia
- Dongoran, F. H. (2022). Determinan profitabilitas pada bank umum syariah (BUS) di Indonesia. (Thesis Fakultas Ekonomi dan Bisnis Islam, Institut Agama Islam Negeri Padangsidimpuan). http://etd.iain-padangsidimpuan.ac.id/7711/
- Gujarati, D. N., & Porter, D. C. (2012). Buku 1 dasar-dasar ekonometrika (5th ed.). Jakarta: Salemba Empat.
- Hasanah, N., & Hariyono, S. (2022). Analisis implementasi green financing dan kinerja keuangan terhadap profitabilitas perbankan umum di Indonesia. Jurnal Ekobis: Ekonomi, Bisnis, & Manajemen, 12(1), 149–157. https://doi.org/10.37932/j.e.v12i1.444
- Iman, N. F., & Umiyati. (2022). Analisis determinan atas profitabilitas bank Syariah di Indonesia. Jurnal Akuntansi dan Keuangan Islam, 10(April), 31–54. https://doi.org/10.35836/jakis.v10i1.280
- Imsar, & Harahap, M. I. (2022). Analisis determinan profitabilitas bank BUMN Syariah di Indonesia. JIBF Madina: Jurnal Islamic Banking and Finance, 2(I), 42–55. https://jurnal.stain-madina.ac.id/index.php/jibf/article/view/675/659
- Isayas, Y. N. (2022). Determinants of banks’ profitability: Empirical evidence from banks in Ethiopia. Cogent Economics & Finance, 10(2031433), 1–15. . https://doi.org/10.1080/23322039.2022.2031433
- Ken, G., & Santioso, L. (2022). Determinan profitabilitas perbankan yang terdaftar di BEI periode 2018-2020. Jurnal Ekonomi, 27(3), 358–378. https://doi.org/10.24912/je.v27i03.881
- Laili, Y., & Bawono, A. (2022). Determinan profitabilitas dengan pembiayaan bagi hasil sebagai variabel intervening pada bank umum syariah. Mandiri: Jurnal Akuntansi dan Keuangan, 1(2), 19–29. https://jurnal.risetilmiah.ac.id/index.php/jak/article/view/40
- Mondol, D. K., & Wadud, A. (2022). Determinants of profitability of commercial banking in Bangladesh: A panel analysis. International Journal of Statistical Sciences, 22(1), 115–143. https://scholar.google.com/citations?view_op=view_citation&hl=en&user=o1eVolsAAAAJ&cstart=20&pagesize=80&citation_for_view=o1eVolsAAAAJ:k8Z6L05lTy4C
- Pamuncak, M. B., & Wijaya, A. P. (2022). Investigating the determinants of shariah-compliant firms profitability in Indonesia: Does Covid-19 play an essential role ? AL-Muzara'ah, Special Issue, 31–41. https://doi.org/10.29244/jam.specialissue2022.31-41
- Pindyck, R. S., & Rubinfield, D. L. (1998). Econometric models and economic forecast (4th ed.). New York: McGraw Hill.
- Riani, R., & Ikhwan, I. (2022). The impact of Covid-19 on the banking industry efficiency: Comparison between Indonesia and Malaysian banks. Asian Journal of Islamic Management, 4(1), 43–58. https://doi.org/10.20885/ajim.vol4.iss1.art4
- Ristanto, S. (2021). Pengaruh pandemi Covid-19 terhadap kinerja bank Indonesia : Studi pada bank yang terdaftar di bursa efek Indonesia (Universitas Islam Indonesia). https://dspace.uii.ac.id/bitstream/handle/123456789/31448/18911116 Slamet Ristanto.pdf?sequence=1
- Sahli, P., & Kartika, A. D. (2022). Determinan profitabilitas pada bank umum konvensional. Jakarta Pusat. http://repository.stie-yai.ac.id/1116/1/Penelitian%20Purnawan%20Final.pdf
- Shinozaki, S. (2021). Covid-19 impact on micro , small , and medium- sized enterprises and post – crisis actions one-year after the outbreak in Indonesia Profile of MSMEs Surveyed. https://www.adb.org/sites/default/files/publication/677321/adbi-wp1216.pdf
- Sulaeman. (2021). Factors determining behavioral intentions to use Islamic crowdfunding platform in times of Covid-19 in Indonesia: Evidence from TAM approach. Jurnal Ekonomi & Keuangan Islam, 7(1), 31–44. https://doi.org/https://dx.doi.org/10.20885/JEKI. vol7.iss1.art3
- Sulaeman, S. (2020). A conceptual and empirical study on the development of the Islamic donation-based crowdfunding platform model for micro small and medium-sized enterprises (MSMEs) in times of Covid-19 pandemic in Indonesia. Asian Journal of Islamic Management (AJIM), 2(2), 107–122. https://doi.org/10.20885/ajim.vol2.iss2.art4
- Sullivan, V. S., & Widoatmodjo, S. (2021). Kinerja keuangan bank sebelum dan selama pandemi (Covid-19). Jurnal Manajerial dan Kewirausahaan, 3(1), 257. https://doi.org/10.24912/jmk.v3i1.11319
- Sutrisno. (2003). Manajemen keuangan. Teori konsep dan aplikasi. Yogyakarta: Ekonisia.
- Syahri, N. A., & Harjito, D. A. (2020). The effect of financing using the principle of profit-loss sharing on profitability level of commercial Islamic bank registered in Bank Indonesia. Asian Journal of Islamic Management (AJIM), 2(1), 46–58. https://doi.org/10.1108/AJIM.vol2.iss1.art5
- Syamsuddin, L. (2000). Manajemen keuangan perusahaan: Konsep aplikasi dalam perencanaan, pengawasan, dan pengambilan keputusan. Jakarta: PT Raja Grafindo Perkasa.
- Tiara, C., & Jayanti, D. (2022). Pengaruh green banking, firm age dan firm size terhadap nilai perusahaan. Jurnal Pendidikan Akuntansi dan Keuangan, 10(2), 230–239. https://doi.org/10.17509/jpak.v10i2.44526
- Tumewang, Y. K., Isnaini, R. N., & Musta’in, J. L. (2019). The impact of macro economy toward profitability of Islamic bank. Asian Journal of Islamic Management, 1(2), 101–108. https://doi.org/10.1108/AJIM.vol1.iss2.art4
- Wooldridge, J. M. (2001). Econometric analysis of cross section and panel data (2nd ed.). London: MIT Press.
- Wuryandani, D. (2020). Dampak pandemi Covid-19 terhadap pertumbuhan ekonomi Indonesia 2020 dan solusinya. Pusat Penelitian Badan Keahlian DPR RI, Bidang Ekonomi dan Kebijakan Publik, 12, 19-24. https://berkas.dpr.go.id/puslit/files/info_singkat/Info%20Singkat-XII-15-I-P3DI-Agustus-2020-206.pdf.
References
Al-akhiri, Y. (2021). Pengaruh green bond dan green sukuk terhdap profitabilitas di kaji dalam perspektif Islam (Survey pada perusahaan yang terdaftar di bursa efek Indonesia tahun 2018-2019). (Thesis, UIN Raden Intan Lampung). http://repository.radenintan.ac.id/18275/1/PUSAT%20BAB%201%20DAN%202.pdf
Anggraini, D., Aryani, D., & Prasetyo, I. B. (2020). Analisis implementasi green banking dan kinerja keuangan terhadap profitabilitas bank di Indonesia (2016-2019). Jurnal Bisnis, Manajemen dan Informatika), 17(2), 141–161. https://doi.org/10.26487/jbmi.v17i2.11264
Anggraini, S., Fasa, M. I., Suharto, & Fachri, A. (2022). Analisis pengaruh green banking terhadap profitabilitas bank umum syariah Indonesia. Journal of Business Management and Islamic Banking, 1(1), 73–88. https://doi.org/10.14421/jbmib.2022.%25x
Angraini, D. P., Sudarsono, H., & Anindita, S. F. (2020). The influence of financial performance and macroeconomic on financing risk in Islamic banks. Asian Journal of Islamic Management, 2(2), 138–152. https://doi.org/10.1108/AJIM.vol2.iss2.art6
Anisa, S. T., & Anwar, S. (2021). Determinan profitabilitas bank umum syariah di Indonesia dengan tingkat likuiditas sebagai variabel intervening. Jurnal Perbankan Syariah, 2(2), 131–149. https://doi.org/10.46367/jps.v2i2.346
Ascarya. (2020). The role of Islamic social finance in times of Covid-19 Outbreak. https://pebs-febui.org/en/download/materi-monthly-seminar-the-role-of-islamic-social-finance-in-times-of-covid-19-outbreak-4-april-2020/
Ascarya, & Yumanita, D. (2011). Determinan dan persistensi margin perbankan konvensional dan syariah di Indonesia. Jurnal Ekonomi dan Bisnis Islami, 1(1), 1-34. https://www.researchgate.net/publication/316595441_determinan_dan_persistensi_margin_perbankan_konvensional_dan_Syariah_di_indonesia
Dongoran, F. H. (2022). Determinan profitabilitas pada bank umum syariah (BUS) di Indonesia. (Thesis Fakultas Ekonomi dan Bisnis Islam, Institut Agama Islam Negeri Padangsidimpuan). http://etd.iain-padangsidimpuan.ac.id/7711/
Gujarati, D. N., & Porter, D. C. (2012). Buku 1 dasar-dasar ekonometrika (5th ed.). Jakarta: Salemba Empat.
Hasanah, N., & Hariyono, S. (2022). Analisis implementasi green financing dan kinerja keuangan terhadap profitabilitas perbankan umum di Indonesia. Jurnal Ekobis: Ekonomi, Bisnis, & Manajemen, 12(1), 149–157. https://doi.org/10.37932/j.e.v12i1.444
Iman, N. F., & Umiyati. (2022). Analisis determinan atas profitabilitas bank Syariah di Indonesia. Jurnal Akuntansi dan Keuangan Islam, 10(April), 31–54. https://doi.org/10.35836/jakis.v10i1.280
Imsar, & Harahap, M. I. (2022). Analisis determinan profitabilitas bank BUMN Syariah di Indonesia. JIBF Madina: Jurnal Islamic Banking and Finance, 2(I), 42–55. https://jurnal.stain-madina.ac.id/index.php/jibf/article/view/675/659
Isayas, Y. N. (2022). Determinants of banks’ profitability: Empirical evidence from banks in Ethiopia. Cogent Economics & Finance, 10(2031433), 1–15. . https://doi.org/10.1080/23322039.2022.2031433
Ken, G., & Santioso, L. (2022). Determinan profitabilitas perbankan yang terdaftar di BEI periode 2018-2020. Jurnal Ekonomi, 27(3), 358–378. https://doi.org/10.24912/je.v27i03.881
Laili, Y., & Bawono, A. (2022). Determinan profitabilitas dengan pembiayaan bagi hasil sebagai variabel intervening pada bank umum syariah. Mandiri: Jurnal Akuntansi dan Keuangan, 1(2), 19–29. https://jurnal.risetilmiah.ac.id/index.php/jak/article/view/40
Mondol, D. K., & Wadud, A. (2022). Determinants of profitability of commercial banking in Bangladesh: A panel analysis. International Journal of Statistical Sciences, 22(1), 115–143. https://scholar.google.com/citations?view_op=view_citation&hl=en&user=o1eVolsAAAAJ&cstart=20&pagesize=80&citation_for_view=o1eVolsAAAAJ:k8Z6L05lTy4C
Pamuncak, M. B., & Wijaya, A. P. (2022). Investigating the determinants of shariah-compliant firms profitability in Indonesia: Does Covid-19 play an essential role ? AL-Muzara'ah, Special Issue, 31–41. https://doi.org/10.29244/jam.specialissue2022.31-41
Pindyck, R. S., & Rubinfield, D. L. (1998). Econometric models and economic forecast (4th ed.). New York: McGraw Hill.
Riani, R., & Ikhwan, I. (2022). The impact of Covid-19 on the banking industry efficiency: Comparison between Indonesia and Malaysian banks. Asian Journal of Islamic Management, 4(1), 43–58. https://doi.org/10.20885/ajim.vol4.iss1.art4
Ristanto, S. (2021). Pengaruh pandemi Covid-19 terhadap kinerja bank Indonesia : Studi pada bank yang terdaftar di bursa efek Indonesia (Universitas Islam Indonesia). https://dspace.uii.ac.id/bitstream/handle/123456789/31448/18911116 Slamet Ristanto.pdf?sequence=1
Sahli, P., & Kartika, A. D. (2022). Determinan profitabilitas pada bank umum konvensional. Jakarta Pusat. http://repository.stie-yai.ac.id/1116/1/Penelitian%20Purnawan%20Final.pdf
Shinozaki, S. (2021). Covid-19 impact on micro , small , and medium- sized enterprises and post – crisis actions one-year after the outbreak in Indonesia Profile of MSMEs Surveyed. https://www.adb.org/sites/default/files/publication/677321/adbi-wp1216.pdf
Sulaeman. (2021). Factors determining behavioral intentions to use Islamic crowdfunding platform in times of Covid-19 in Indonesia: Evidence from TAM approach. Jurnal Ekonomi & Keuangan Islam, 7(1), 31–44. https://doi.org/https://dx.doi.org/10.20885/JEKI. vol7.iss1.art3
Sulaeman, S. (2020). A conceptual and empirical study on the development of the Islamic donation-based crowdfunding platform model for micro small and medium-sized enterprises (MSMEs) in times of Covid-19 pandemic in Indonesia. Asian Journal of Islamic Management (AJIM), 2(2), 107–122. https://doi.org/10.20885/ajim.vol2.iss2.art4
Sullivan, V. S., & Widoatmodjo, S. (2021). Kinerja keuangan bank sebelum dan selama pandemi (Covid-19). Jurnal Manajerial dan Kewirausahaan, 3(1), 257. https://doi.org/10.24912/jmk.v3i1.11319
Sutrisno. (2003). Manajemen keuangan. Teori konsep dan aplikasi. Yogyakarta: Ekonisia.
Syahri, N. A., & Harjito, D. A. (2020). The effect of financing using the principle of profit-loss sharing on profitability level of commercial Islamic bank registered in Bank Indonesia. Asian Journal of Islamic Management (AJIM), 2(1), 46–58. https://doi.org/10.1108/AJIM.vol2.iss1.art5
Syamsuddin, L. (2000). Manajemen keuangan perusahaan: Konsep aplikasi dalam perencanaan, pengawasan, dan pengambilan keputusan. Jakarta: PT Raja Grafindo Perkasa.
Tiara, C., & Jayanti, D. (2022). Pengaruh green banking, firm age dan firm size terhadap nilai perusahaan. Jurnal Pendidikan Akuntansi dan Keuangan, 10(2), 230–239. https://doi.org/10.17509/jpak.v10i2.44526
Tumewang, Y. K., Isnaini, R. N., & Musta’in, J. L. (2019). The impact of macro economy toward profitability of Islamic bank. Asian Journal of Islamic Management, 1(2), 101–108. https://doi.org/10.1108/AJIM.vol1.iss2.art4
Wooldridge, J. M. (2001). Econometric analysis of cross section and panel data (2nd ed.). London: MIT Press.
Wuryandani, D. (2020). Dampak pandemi Covid-19 terhadap pertumbuhan ekonomi Indonesia 2020 dan solusinya. Pusat Penelitian Badan Keahlian DPR RI, Bidang Ekonomi dan Kebijakan Publik, 12, 19-24. https://berkas.dpr.go.id/puslit/files/info_singkat/Info%20Singkat-XII-15-I-P3DI-Agustus-2020-206.pdf.