TY - JOUR AU - Wicaksono, Satrio Arif AU - Fitriyani, Yeny PY - 2020/12/23 Y2 - 2024/03/29 TI - Analysis of factor affecting Islamic commercial bank financing for the agricultural sector in Indonesia JF - Asian Journal of Islamic Management (AJIM) JA - Asian. J. Islam. Manag. VL - 2 IS - 2 SE - Articles DO - 10.20885/ajim.vol2.iss2.art5 UR - https://journal.uii.ac.id/AJIM/article/view/17725 SP - 123-137 AB - <p class="Default"><strong>Purpose: </strong>This study aims to analyse the factors that influence Islamic commercial bank financing for the agricultural sector in Indonesia from January 2015 to April 2019.</p><p class="Default"><strong>Methodology: </strong>Variables used in this study are Agricultural Financing, DPK, NPF, Inflation, Exchange Rates, SBIS, and IPI. The method used in this research is the VAR/VECM method with Impulse Response Function (IRF) analysis and Forecast Error Variance Decomposition (FEVD).</p><p class="Default"><strong>Findings: </strong>The results show that the variables that significantly influence agricultural financing in the long-term are DPK, Exchange Rate, and IPI. Taking a closer detail, IPI variable has a positive effect, while the DPK and Exchange Rate have a negative effect on agricultural financing. Then NPF, inflation, and SBIS have no effect on agricultural financing in the short and long-term. Based on the results of FEVD, the variable that has the greatest contribution to agricultural financing is DPK compared to Exchange Rate and IPI.</p><p class="Default"><strong>Practical applications: </strong>Islamic bank directors prioritize efforts to increase funding in order to encourage an increase in the portion of financing in the agricultural sector.</p><p class="Default"><strong>Originality: </strong>This study examines the effect of financial and macroeconomic performance on <em>mudharabah</em> financing in the short and long term in Indonesia.</p> ER -