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How Islamic is Islamic Banking in Indonesia? مدى "إسلامية" البنوك الإسلامية في إندونيسيا؟

Author

Listed:
  • Aslam Mei Nur Widigdo

    (Bogor Agricultural University, Indonesia)

  • Marimin

    (Bogor Agricultural University, Indonesia)

  • Idqan Fahmi

    (Bogor Agricultural University, Indonesia)

  • Irfan Syauqi Beik

    (Bogor Agricultural University, Indonesia)

Abstract

The purpose of this paper is to analyze the implementation of Sharīʿah values in Islamic banks operating in Indonesia. The research uses survey data taken from 240 respondents from types of Islamic banks operating in Indonesia. These consist of three full-fledged Islamic banks namely, subsidiaries of state-owned and private conventional banks and the Islamic business unit of a conventional bank. Each Islamic banks survey respondents represented 30 employees and 30 customers. The results of the study show that in general there are differences in the implementation of Sharīʿah values among Islamic banks. Our findings also show different perceptions between Islamic bank employees and customers in terms of Sharīʿah value implementation in the respective banks. From the four Sharīʿah principles measured, justice was found to have the lowest score compared to other principles such as brotherhood, benefit and balance. الغرض من هذه الورقة هو تحليل ومقارنة تنفيذ القيم الشرعية في البنوك الإسلامية العاملة في إندونيسيا. استخدم البحث البيانات الأساسية المأخوذة من 240 مجيبين من أربعة أنواع البنوك الإسلامية العاملة في إندونيسيا، التي تتكون من ثلاث بنوك إسلامية بالكامل (منذ تأسيسها، شركة تابعة لبنك تقليدي للدولة، شركة تابعة لبنك تقليدي خاص) ووحدة الأعمال الإسلامية لبنك تقليدي. كل بنك إسلامي ممثل بعدد 30 موظفا و 30 عميلا. وقد أظهرت نتائج الدراسة أنه - من حيث العموم - هناك اختلافات في تنفيذ القيم الشرعية بين البنوك الإسلامية. كما تشير أيضا إلى وجود تصور مختلف بين موظفي البنوك الإسلامية وعملائه من حيث تنفيذ البنك الإسلامي للقيم الشرعية في ممارساته. من المبادئ الشرعية الأربعة التي تمت قياسها، وجد أن العدالة حصلت على الدرجة الأدنى مقارنة بغيرها من المبادئ وهي الأخوة والمنفعة والتوازن.

Suggested Citation

  • Aslam Mei Nur Widigdo & Marimin & Idqan Fahmi & Irfan Syauqi Beik, 2016. "How Islamic is Islamic Banking in Indonesia? مدى "إسلامية" البنوك الإسلامية في إندونيسيا؟," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 29(2), pages 153-165, July.
    • Handle: RePEc:abd:kauiea:v:29:y:2016:i:2:no:13:p:153-165
    DOI: 10.4197/Islec.29-2.13
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    References listed on IDEAS

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    1. Patrick A. Imam & Mr. Kangni R Kpodar, 2010. "Islamic Banking: How Has it Diffused?," IMF Working Papers 2010/195, International Monetary Fund.
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    Cited by:

    1. ALJARHI, Shadia, 2020. "Reforming Islamic Finance," MPRA Paper 103393, University Library of Munich, Germany.
    2. Mabid Ali Al-Jarhi, 2020. "Reforming Islamic Finance إصلاح المالية الإسلامية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(2), pages 101-107, July.
    3. Al-Jarhi, Mabid, 2017. "Islamic Finance at Crossroads," MPRA Paper 88555, University Library of Munich, Germany, revised Aug 2018.

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    More about this item

    Keywords

    Islamic bank; Sharīʿah values; Measurement of Sharīʿah principles.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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