Assessing Sharia Monetary Instruments Against Country Economic Growth

Arfian Nur Wahid, Surono bin Jamel, Heni Noviarita, Erike Anggraini

Abstract


This study aims to examine the effect of Islamic monetary instruments on Indonesia's economic growth. Statutory Reserves, Bank Indonesia Syariah Certificate (SBIS) and Outstanding Deposit Facility Syariah (FASBIS) are used as sharia monetr instrument variables in observations. this study is a quantitative study using monthly time series data obtained from the publication of Bank Indonesia and the Indonesian statistical agency in 2015-2019 using ARDL analysis. The results of this study indicate that both short-term and long-term modeling, instrument variables Islamic monetary does not have a significant relationship on economic growth. Although it has a very small effect, the Demand Deposits variable has an effect on the Indonesian economy, while the other variables observed have an inverse relationship with the variable of Indonesia's economic growth. the achievement of monetary stability through sharia monetary instruments can be optimized using policies on the minimum statutory reserves in banks that are useful for controlling the circulation of the amount of money in society so that it is more stable and the Indonesian economy can grow through the middle income trap.


Keywords


Sharia Monetary Instruments, Indonesian Economy, ARDL analysis

Full Text:

PDF

References


Bank Indonesia. (2019). Statistik Perbankan Syariah 2015-2019 [Internet]. Retrived from http://www.bi.gio.id

BPS. (2020). Statistik Pertumbuhan Perekonomian Indonesia. Retrived from https://www.bps.go.id/.

Bank Indonesia. (2020). Monetary Policy Objectives [Tujuan Kebijakan Moneter]

(Online). Retrived from www.bi.go.id/id/moneter/tujuan-kebijakan/contents/default.aspx.

Bayuni, E. M., & Srisusilawati, P. (2018). Contribution of Sharia Monetary Instruments to Controlling Inflation in Indonesia. Amwaluna : Jurnal Ekonomi dan Keuangan Syariah, 2(1), 19–33.

Bayuni, E. M., & Ascarya. (2010). Analysis of the Effect of Monetary Instruments on Monetary Value Stability in the Dual Monetary System in Indonesia. Tazkia Islamic Finance & Business Review, 1(23), 76–100.

Fadhilah, N. S. R. (2017). The Effect of Bank Indonesia Syariah Certificates (Sbis), Jakarta Islamic Index (Jii), Inflation Rate, and Composite Stock Price Index (Ihsg) on Exchange Rates: Autoregressive Distributed Lag (Ardl) Approach. Jurnal Ekonomi Syariah Teori dan Terapan, 4(10), 833–846.

Giles, D. (2015). Ardl Modeling In Eviews. Retrieved From http://davegiles.blogspot.co.id/2015/01%0a/ardl-modelling-in-eviews-9.html)

Ismal, R. (2011). Central Bank Islamic Monetary Instruments : A Theoretical Approach. Studies In Economics And Finance, 28(1), 51–67. Https://doi.org/10.1108/10867371111110552

Ismal, R. (2013). The Islamic Gracious Monetary Instruments : A Theoretical Approach. Journal of Economic and Administrative Sciences, 29(1), 63–80. https://doi.org/10.1108/10264111311319231

Kinanti, R. A., Sawarjuwono, T., Iswati, S., & Ratnasari, R. T. (2018). Analysis on The Relationship of Islamic Monetary Instrument With Total Financing of Islamic Banking In Indonesia. Advances In Social Science, Education And Humanities Research (Assehr), 98, 301-306.

Ramadhan, M. M. & Beik, I. S. (2013). Analysis of the effect of Islamic and conventional monetary instruments on the distribution of funds to the micro, small and medium enterprises sector in Indonesia [Analisis Pengaruh Instrumen Moneter Syariah dan Konvensional Terhadap Penyaluran Dana ke Sektor Usaha Mikro Kecil dan Menengah (Umkm) di Indonesia]. Jurnal Al-Muzara’ah, I(2), 175-190.

Romi, S., & Umiyati, E. (2018). The Effect of Economic Growth and Minimum Wages on Poverty in Jambi City [Pengaruh Pertumbuhan Ekonomi Dan Upah Minimum Terhadap Kemiskinan Di Kota Jambi]. E-Jurnal Perspektif Ekonomi Dan Pembangunan Daerah, 7(1), 1–7.

Septindo, D., Novianti, T., & Lubis, D. (2016). Analysis of the Effect of Sharia and Conventional Monetary Instruments on the Distribution of Funds to the Agricultural Sector in Indonesia [Analisis Pengaruh Instrumen Moneter Syariah Dan Konvensional Terhadap Penyaluran Dana ke Sektor Pertanian di Indonesia]. Jurnal Al-Muzara’ah, 4(1), 1–18.

Syahputra, R. (2017). Analysis of Factors Affecting Economic Growth in Indonesia [Analisis Faktor-Faktor Yang Mempengaruhi Pertumbuhan Ekonomi di Indonesia]. Jurnal Samudra Ekonomika, 1(2), 183-191.




DOI: https://doi.org/10.15294/jejak.v13i2.23754

Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.