The Variables Effects of Murābaḥah in Islamic Commercial Banks International Journal of Nusantara Islam, Vol.04 No.02 – 2016; (1-16) DOI: https://doi.org/10.15575/ijni.v4i2.1446 1 The Variables Effects of Murābaḥah in Islamic Commercial Banks Uus Ahmad Husaeni 1 1 Faculty of Economy and Islamic Bussiness, Suryakancana Universiti, CIanjur, Indonesia Email: uusahmad1@gmail.com Abstract: Murā baḥa financing is a type of financing that dominates the financing contract on Islamic banking in Indonesia. This shows that financing on the basis of sale ( murā baḥa) has a greater contribution than the financing of the basis for the profit and loss sharing (muḍā raba and muṣā raka). The purpose of this study is to determine the factors that affect the financing of murā baḥa in the Islamic Commercial Banking in Indonesia by using variables Third Party Fund (DPK), Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Non-Performing Financing (NPF) and Return on Assets (ROA). The population in this study is the performance of Islamic Commercial Banks in Indonesia in the period of January 2014 to June 2016. The data used in this research is secondary data and sample selection by using purposive sampling method. The analytical tool used in this research is multiple linear regression analysis at significantly the rate of 5%. The results of this study indicate that the variable DPK, CAR, FDR, NPF, and ROA simultaneously have an influence on Murā baḥa. Coefficient determination test results show that the five independent variables affect the dependent variable amounted to 87.6% and the remaining 12.4% is influenced by other variables. Partially DPK, CAR, FDR, and ROA have a positive and significant effect on the financing Murā baḥa. While the NPF has no influence on Murā baḥa financing. Keywords: Islamic Economic, Murā baḥah financing, Deposit Ratio, Capital Ratio. A. INTRODUCTION The economy of a country is built on two sectors, namely real and monetary sectors. The real sector is the economic sector that relies on manufacturing and services sectors. While the monetary sector relies on the banking sector (Adeusi and Aluko, 2015). The banking system in Indonesia is divided into two systems (Lindsey, 2012). First, the conventional banking system oriented interest or usury system that is in addition to the value of the loan principal. The second is the Islamic banking system that operates based on Islamic principles of Islam based on the Qur'an and Hadith are identical to the profit and loss sharing (Agustin, Rus, and Mohd, 2013; Cf., Medyawati, and Yunanto, 2011; Rafay and Sadiq, 2015). Islamic banking is essentially a development of the concept of Islamic economics, especially in the financial sector that was developed as a response to the Muslim economists and banking practitioners who seek to accommodate pressure from various parties who want the financial transaction services are executed with moral values and principled sharia (Islam and