Increasing Fund Sources of Indonesia Sharia
Commercial Banks through Public Stock Insurance
Ida Syafrida
1
, Indianik Aminah
2
, Herbirowo Nugroho
3
, Taufik Awaludin
4
{ida.syafrida@akuntansi.pnj.ac.id
1
, indianik.aminah@akuntansi.pnj.ac.id
2
,
herbirowo.nugroho@akuntansi.pnj.ac.id
3
, dosen01844@unpam.ac.id
4
}
Politeknik Negeri Jakarta, Indonesia
1,2,3
Universitas Pamulang, Indonesia
4
Abstract. The research problem is Islamic Commercial Banks (ICB) market share in
Indonesia still low (5.74% of national banks) in Dec 2017. This is due to the lack of
capital and industrial scale. For this reason, the ICB needs to increase external funding
sources through the issuance of public shares. From the 13 ICB in Indonesia at the
middle of 2018, 3 ICB issuing public shares (Bank Dubai Panin Syariah, Bank Rakyat
Indonesia Syariah, Bank Tabungan Pensiunan Nasional Syariah). This study aims to
formulate the Benefit, Opportunities, Cost, Risk (BOCR) aspects faced by Islamic
Commercial Banks in increasing funding sources through the issuance of public stock
securities. This study uses qualitative and quantative methods using primary data sourced
from indepth interviews to explore the knowledge and experience of the emiten from
Treassury Division and Corporate Planing expert practitioners. Secondary data was from
emission prospectus, several research journals and related books. Based on Analysis
Network Process (ANP) of BOCR aspects, the dominant aspect being the consideration
of ICB in issuing public shares is the Benefit and Opportunity. The dominant sub-aspects
of each aspect are increasing capital (Benefit aspects), broad investor base (Opportunity
aspects), underwriting costs (Cost aspects), demands for information disclosure (Risk
aspects).
Keywords: public shares, Islamic Commercial Banks, dominant aspects, BOCR, ANP
1. Introduction
The Islamic financial services industry in Indonesia experienced significant growth.
Indonesia is predicted to become one of the countries that become a global player in the
Islamic financial industry in the world. Indonesia ranks 10th after Qatar and Jordan in the
development of the world's halal industry which includes Islamic Finance [1]. In terms of
investment, Indonesia in the top three after Malaysia and the United Arab Emirates [2].
Indonesia's 6th position in the world Islamic finance industry after the United Arab Emirates
and Kuwait, up one rank compared to 2015[3]. Indonesia is also listed as the country's largest
sukuk issuer in the world 2016.
Since December 2017 there are 13 Islamic Commercial Bank, 21 Sharia Unit Network,
and 167 Sharia Rural Bank in Indonesia. Data on Islamic Banking during the period 2013-
2017, total assets increased by an average of 17.02% per year, financing disbursed per year on
average rose 11.03%, and third party funds experienced an average increase of 16.47% per
year. Likewise, the role of Islamic banking intermediation is empirically better, with the
average Financing to Deposit Ratio (FDR) for the 2013-2017 period of 91.86% compared to
conventional banking Loan to Deposit Ratio (LDR) (90.39%). The role of intermediation is
ICTES 2018, November 21-22, Bali, Indonesia
Copyright © 2019 EAI
DOI 10.4108/eai.21-11-2018.2282296