Muhammad Said

The purpose of this research is to analyze the influence of Capital Adequacy Ratio (CAR) Third Party Funds (TPF), Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Operation Cost Operating Income (OCOI), Net Operating Margin (NOM), Gross Domestic Product (GDP), inflation and Return on Asset (ROA) as a proxy of Islamic bank’s profitability in Indonesia during 2011-2014 periods. The population of study was Sharia banking (BS) in Indonesia. Time series data from Indonesian Banking Statistics 2011-2014 were used as the primary data. Multiple linear regression was applied as method of analysis. The result shows that CAR, NPF, FDR and NOM did not affect profitability, while TPF, OCOI had negative effect on profitability. Meanwhile, GDP and inflation variable had significant effect with positive direction.

Keywords: Sharia bank, ROA, TPF, NPF and inflation.
JEL Classification: G21, E31

This study aims to examine the effect of Employment Development Index (EDI) on economic growth, and the effect of EDI on poverty level and the effect of economic growth on poverty level in Indonesia. This study used descriptive and exploratory analysis with secondary data source, that is, EDI, economic growth, and poverty level in 33 provinces of Indonesia during the period 2012–2013. Linear regression analysis was used to determine the form of force conditions between these three variables. The findings revealed that the effect of EDI on economic growth is insignificant, it was caused by the GDP unable to drive the economic growth and the EDI affects significantly on the poverty level in Indonesia. Then, the effect of economic growth on poverty level is insignificant, which means the economic growth is unable to be the basis for alleviating poverty in Indonesia.

The purpose of this study is to evaluate the performance of banks in Indonesia. Specifically, this study has examined the static effect of ownership structure on bank performance in Indonesia over the period 1995–2006. The sample consists of 74 banks, namely 56 private banks, 15 community development banks (BPD), and three federal banks from 1995 to 2006. The data was analyzed using least-squares regression method, the general least squares method, and the method of random effects. The findings of this study show that the BPD performed better compared to private banks. This indicates that BPDs have better performance rather than private banks which is due to the fact that customers can be able to pay loans, they have special knowledge on that area and the performance of BPD is supervised by local government. In addition, the amount of equity, economic growth, financial crisis, and the financial ratios affect the performance of the bank. However, bank status has no effect on bank performance.