Islamic banks in Indonesia should focus on increasing DPK

Oct 13, 2025 by talynt.org 97 views

Analysis of Factors that Influence the Distribution of Islamic Banking Funds in Indonesia

Introduction

The rapid development of Islamic banking in Indonesia has been a significant phenomenon since the 1997 monetary crisis. The crisis led to the closure of many conventional banks, while Islamic banks experienced a surge in growth. Today, Islamic banks in Indonesia have become a vital part of the country's financial system, with a significant increase in the distribution of funds. However, the factors that influence the distribution of funds by Islamic banks in Indonesia are complex and multifaceted. This study aims to analyze the factors that affect the distribution of funds by Islamic banks in Indonesia, including third-party funds (DPK), Bonus of Bank Indonesia Wadiah Certificate (SWBI), and Non-Performing Financing (NPF).

Background

The 1997 monetary crisis had a profound impact on the Indonesian banking system. Many conventional banks were closed, and the number of Islamic banks increased significantly. At the beginning of the crisis, there was only one Sharia Commercial Bank (BUS) and nine Sharia People's Credit Banks (BPRS). However, in 2002, the number increased to two BUS, six Sharia Business Units (UUS), and 83 BPRS. The distribution of funds by Islamic banks continues to experience a significant increase, demonstrated by the Financing to Deposit Ratio (FDR) which reached 112.3, far higher than the Loan to Deposit Ratio (LDR) which was only 38.2 at conventional banks. This shows that the intermediation function of Islamic banks is greater than conventional banks.

Factors that Influence the Distribution of Funds

There are several factors that affect the distribution of funds by Islamic banks, including:

Third-Party Funds (DPK): DPK refers to the funds provided by third parties to Islamic banks. This can include deposits, investments, and other forms of funding.
Bonus of Bank Indonesia Wadiah Certificate (SWBI): SWBI is a type of certificate issued by Bank Indonesia, which provides a bonus to Islamic banks for holding the certificate.
Non-Performing Financing (NPF): NPF refers to financing that is not performing as expected, such as loans that are not being repaid.

Methodology

This study uses descriptive analysis to evaluate the factors that influence the distribution of funds by Islamic banks in Indonesia. The study also uses regression analysis to examine the relationship between the factors and the distribution of funds.

Results

The results of the regression analysis show that:

SWBI Bonus: The SWBI bonus variable has a positive but not significant influence on the distribution of funds. This means that even though there is an increase in SWBI bonuses, Islamic banks still prefer to distribute funds to the public rather than buy SWBI.
DPK: DPK shows a significant positive effect, meaning that the increase in DPK directly contributes to increasing the distribution of funds.
NPF: NPF was found to have a significant negative influence, which means that the NPF increase will reduce the amount of funds channeled by Islamic banks to the public.

Conclusion

The results of this study show that the factors that influence the distribution of funds by Islamic banks in Indonesia are complex and multifaceted. While DPK has a significant positive effect on the distribution of funds, NPF has a significant negative effect. The SWBI bonus variable has a positive but not significant influence on the distribution of funds. These findings have important implications for Islamic banks in Indonesia, which need to develop more effective strategies to increase the distribution of funds while maintaining sharia principles in every transaction.

Recommendations

Based on the findings of this study, the following recommendations are made:

Islamic banks in Indonesia should focus on increasing DPK: Islamic banks in Indonesia should focus on increasing DPK to increase the distribution of funds.
Islamic banks in Indonesia should develop strategies to reduce NPF: Islamic banks in Indonesia should develop strategies to reduce NPF to increase the distribution of funds.
Islamic banks in Indonesia should consider the role of SWBI: Islamic banks in Indonesia should consider the role of SWBI in their distribution of funds.

Limitations

This study has several limitations, including:

The study only examines the factors that influence the distribution of funds by Islamic banks in Indonesia: The study only examines the factors that influence the distribution of funds by Islamic banks in Indonesia and does not examine the factors that influence the distribution of funds by conventional banks.
The study uses descriptive analysis and regression analysis: The study uses descriptive analysis and regression analysis to examine the factors that influence the distribution of funds, but does not use other methods such as case studies or surveys.

Future Research Directions

Future research directions include:

Examining the factors that influence the distribution of funds by conventional banks: Future research should examine the factors that influence the distribution of funds by conventional banks in Indonesia.
Using other methods to examine the factors that influence the distribution of funds: Future research should use other methods such as case studies or surveys to examine the factors that influence the distribution of funds by Islamic banks in Indonesia.

Conclusion

In conclusion, this study has provided a comprehensive analysis of the factors that influence the distribution of funds by Islamic banks in Indonesia. The study has shown that DPK has a significant positive effect on the distribution of funds, while NPF has a significant negative effect. The SWBI bonus variable has a positive but not significant influence on the distribution of funds. These findings have important implications for Islamic banks in Indonesia, which need to develop more effective strategies to increase the distribution of funds while maintaining sharia principles in every transaction.
Frequently Asked Questions (FAQs) about the Analysis of Factors that Influence the Distribution of Islamic Banking Funds in Indonesia

Q: What is the main objective of this study? A: The main objective of this study is to analyze the factors that influence the distribution of funds by Islamic banks in Indonesia, including third-party funds (DPK), Bonus of Bank Indonesia Wadiah Certificate (SWBI), and Non-Performing Financing (NPF).

Q: What are the key findings of this study? A: The key findings of this study are that DPK has a significant positive effect on the distribution of funds, while NPF has a significant negative effect. The SWBI bonus variable has a positive but not significant influence on the distribution of funds.

Q: What are the implications of this study for Islamic banks in Indonesia? A: The implications of this study for Islamic banks in Indonesia are that they need to develop more effective strategies to increase the distribution of funds while maintaining sharia principles in every transaction. Islamic banks in Indonesia should focus on increasing DPK and developing strategies to reduce NPF.

Q: What are the limitations of this study? A: The limitations of this study are that it only examines the factors that influence the distribution of funds by Islamic banks in Indonesia and does not examine the factors that influence the distribution of funds by conventional banks. The study also uses descriptive analysis and regression analysis, but does not use other methods such as case studies or surveys.

Q: What are the future research directions for this study? A: The future research directions for this study are to examine the factors that influence the distribution of funds by conventional banks in Indonesia and to use other methods such as case studies or surveys to examine the factors that influence the distribution of funds by Islamic banks in Indonesia.

Q: What are the benefits of Islamic banking in Indonesia? A: The benefits of Islamic banking in Indonesia are that it provides a more ethical and transparent alternative to conventional banking. Islamic banking in Indonesia also provides a more stable and secure financial system, as it is based on sharia principles.

Q: What are the challenges facing Islamic banking in Indonesia? A: The challenges facing Islamic banking in Indonesia are that it is still a relatively new and developing industry in the country. Islamic banking in Indonesia also faces competition from conventional banks, which can make it difficult to attract customers.

Q: How can Islamic banks in Indonesia increase their distribution of funds? A: Islamic banks in Indonesia can increase their distribution of funds by focusing on increasing DPK and developing strategies to reduce NPF. They can also consider the role of SWBI in their distribution of funds.

Q: What is the role of SWBI in Islamic banking in Indonesia? A: The role of SWBI in Islamic banking in Indonesia is to provide a bonus to Islamic banks for holding the certificate. However, the study found that the SWBI bonus variable has a positive but not significant influence on the distribution of funds.

Q: What is the significance of this study for the Indonesian financial system? A: The significance of this study for the Indonesian financial system is that it provides a comprehensive analysis of the factors that influence the distribution of funds by Islamic banks in Indonesia. The study's findings have important implications for Islamic banks in Indonesia, which need to develop more effective strategies to increase the distribution of funds while maintaining sharia principles in every transaction.

Q: What are the future prospects for Islamic banking in Indonesia? A: The future prospects for Islamic banking in Indonesia are that it will continue to grow and develop as a major player in the country's financial system. Islamic banking in Indonesia will also continue to provide a more ethical and transparent alternative to conventional banking, which will benefit the country's economy and society.