Non Performing Financing (NPF) And Bank Indonesia Sharia
Certificate (SBIS) Towards Sharia Financing In The Sector Of Micro,
Small, And Medium Enterprise (MSME) In Indonesia 2012-2016
Period
Mochamad Iqbal Wahyudin, Suryana Suryana and Neni Sri Wulandari
Economics and Islamic Finance Department, Universitas Pendidikan Indonesia, Jl. Dr. Setiabudhi, Bandung, Indonesia
Keyword: MSME Financing, NPF, SBIS.
Abstract: MSME is one of the pillars of the rise of the Indonesian state following the monetary crisis in 1998, and the
main obstacle in the movement of MSME is insufficient capital. The solution of the lack of capital is to
receive funding in the form of financing from Bank Syariah, but in 2014, sharia financing in the MSME
sector declined. One measure of the health of a Sharia Bank is to see how much NPF is happening. As a
country that has a monetary dualism, Bank Indonesia also publishes Bank Indonesia Sharia Certificate
(SBIS) as one of the instruments of controlling monetary conditions in the community. This study aims to
analyze the effect of Non Performing Financing (NPF) and Bank Indonesia Sharia Certificates (SBIS) to
Sharia financing in the sector of MSMEs. The data used in this study comes from the Statistics of Islamic
Banking issued every month by the Financial Services Authority (OJK) from January 2012 to December
2016. Data analysis using the method of Multiple Linear Regression. The results of the analysis show that
NPF and SBIS have a significant influence on MSME financing
1 INTRODUCTION
Micro, small and medium enterprises (UMKM) have
been recognized around the world that its presence is
a very vital role in development and economic
growth, not enclosed also in developed countries. In
addition to low interest still saving in Islamic banks
(Abdallah and Lubis, 2014), thereby potentially lose
financing due to the lack of third-party Funds
collected by the Islamic Bank
As one sector that plays an important role in the
economy of this country, then it is not surprising that
99.9% of the total existing entrepreneurs in
Indonesia in the field of small medium enterprises
(BPS, 2013). Small medium enterprises able to
absorb labor 97.3% throughout Indonesia, and more
than half or 56.5% of GDP Indonesia donated
through this sector.
Development of small medium enterprises sector
itself is getting digencarkan by either the
Government or by the other party, given that by the
year 2015 it yesterday already officially began a free
trade market in ASEAN or ASEAN economic
community known as (MEA). Some programs that
are intended to develop small medium enterprises
sector refers to ASEAN Policy Blue Print for SME
Development (APBSD) 2004-2014, among other
things, an increase in entrepreneurship development
program marketing capabilities, access to finance,
access to to technology, and policies that are
conducive.
Until recently Islamic banking is still one of the
financial institutions that give pebiayaan to small
medium enterprises sector. However, the number of
issued during the last three years has always
experienced a decline. Inversely proportional to the
small medium enterprises financing non thus
continuously increasing in number. The following
data on Sharia financing sector of small medium
enterprises and non small medium enterprises.
Wahyudin, M., Suryana, S. and Wulandari, N.
Non Performing Financing (NPF) And Bank Indonesia Sharia Certificate (SBIS) Towards Sharia Financing In The Sector Of Micro, Small, And Medium Enterprise (MSME) In Indonesia
2012-2016 Period.
In Proceedings of the 1st International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP 2017) - Transforming Islamic Economy and Societies, pages 777-781
ISBN: 978-989-758-315-5
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
777

Figure 1: Financing of Small Medium Enterprises and Non
Small Medium Enterprises (Islamic Banking Statistics
OJK, 2016).
As the institution of intermediation then Islamic
bank shall perform tasks in the channelling of funds,
one of which is the Small Medium Enterprises
sector. In accordance with the Regulation of Bank
Indonesia No. 3/2/PBI/2001, conventional banking
as well as Islamic banking financing sector makes
the SMEC recommended as a priority and continues
to be committed to facilitate the access of Small
Medium Enterprises toward banking.
Figure 2: share of Financing Small Medium Enterprises
and non Small Medium Enterprises (Islamic Banking
Statistics OJK, 2016).
Financing of problematic or Non Performing
Financing (NPF) is one of the dreaded Specter of its
presence by Islamic banks. The higher the NPF who
experienced the bad health of Islamic banks.
Therefore, for the sake of safeguarding Sharia bank
health on a healthy level, then the bank will
tightening Sharia channeling financing so as not be
NPF. The high cost incurred to monitor Small
Medium Enterprises and does not provide a credible
result made financial institutions reluctant to channel
pembiayaannya to Small Medium Enterprises sector
(Yoshino et al., 2015).
The distribution of Small Medium Enterprises
sector financing through Islamic banking is
determined by several factors, both internal factors
or external factors. One internal factor is the NPF,
and one of the external factors are the SBIS. This is
one reason that the research on the influence of NPF
and SBIS against financing of Small Medium
Enterprises is important to do because it will affect
the actions of Islamic banks in channeling funds to
Small Medium Enterprises sector. This research
aims to identify the influence of Non Performing
Financing and Bank Indonesia Certificates against
Sharia financing Small Medium Enterprises of
Islamic banking in Indonesia.
2 LITERATUR REVIEW
Financing or financing, i.e. funding provided given
by one party to the other party to support the
planned investment, well done alone as well as
institutions. In other words, financing is funding
issued to support the planned investment
(Muhammad, 2005).
According to Muhammad (2005) Non
Performing Financing (NPF) is an accepted risk
financing bank and is one of the bank's business risk,
resulting from not dilunasinya back the loan
provided or investments that are being made by the
bank. Mulyono (2000) explains that Non Performing
Financing ratio is used to measure the ability of bank
management in managing the troubled financing can
be met by earning assets owned by a bank.
According to Wiraatmadja in Nurjaya (2011)
which is said to be the NPF was not potentially
financing to restore financing under the terms that
have been approved and set out together in a
suddenly without showing signs of a troubled first.
While according to Siamat (2005) troubled financing
are loans are having trouble paying off due to
deliberate action and factors or due to external
factors beyond the control of the customer's ability
or the borrower.
The ratio of Non-Performing Financing Islamic
financing is calculated by the formula:
Total Financing Problems
Total Syariah Finance
X100%
(1)
Certificate of Bank Indonesia Sharia is the
instrument of monetary policy that aims to overcome
excess liquidity at banks that operate with Sharia
principles (Wirdyaningsih, 2006:149). DSN-MUI
fatwa No. 63/DSN-MUI/XII/2007 Bank Indonesia
Certificates mentioning that Sharia is securities
denominated in rupiah which was published by Bank
Indonesia short timed based on sharia principles.
Certificate of Bank Indonesia Sharia made by Bank
Indonesia in order to improve the effectiveness of
90860
110086
59806
50291
54351
56645
74034
139524
162705
193476
0
100000
200000
300000
2012 2013 2014 2015 2016
UMKM Non UMKM
62%
60%
30%
24%
23%
38%
40%
70%
76%
77%
0%
50%
100%
2012 2013 2014 2015 2016
UMKM Non UMKM
ICIEBP 2017 - 1st International Conference on Islamic Economics, Business and Philanthropy
778

monetary mechanism with Sharia principles. Before
the year 2008, certificate of Bank Indonesia Sharia
Wadiah Bank Indonesia Certificate named (SWBI)
and was later changed to certificates of Bank
Indonesia Sharia. Certificate of Bank Indonesia
Sharia published using the Akkadian ju'alah, in
contrast to conventional published through SBI
auction with discount rate based on the interest
(interest).
3 METHODOLOGY
Types of data used are secondary data in the form of
a monthly time series from January 2012 up to
December 2016. This research is quantitative
research because the data shape numbers and
descriptive analysis of shape because it is done with
the aim to know and be able to explain the
characteristics of variables caused by attachment to a
State (Sekaran and Bougie, 2010). The research of
using Multiple Linear Regression method to find out
the influence of SBIS and NPF against financing of
Small Medium Enterprises. Regression equation
used is as follows:
Y = β
o
+ β
1
X
1
+ β
2
X
2
+ ε
(2)
Explanation:
Y = FinancingUMKM
β
o
= Konstanta/Intercept
β
1
, β
2
= Koefisien
X
1
= Non Performing Financing
X
2
= Certificate of Bank Indonesia Sharia
4 RESULTS
The results of the regression analysis conducted
aiming to find out the influence of variables that can
be measured in Small Medium Enterprises
financing.
Table 1: The Influence of The Variables The Dependent of
Variable Independent.
Variable
Influence
Significance
C
Positif (+)
Significance
NPF
Negatif (-)
Significance
SBIS
Negatif (-)
Significance
Source: Research Result (2017).
Based on the research results obtained from a
linear regression of multiple. Note that the value of
R2 is 0.904421 which means on this independent
variable regression model can explain the financing
of SMALL MEDIUM ENTERPRISES as the
dependent variable and Public Islamic Bank Syariah
Business Unit in Indonesia amounted to 90.4%.
The t-value count (17.14) greater than t table
(1.67) which means to reject Ho and receiving Ha.
Then with the level of probability of 0.000 smaller
than α = 0.05 so that it can be concluded that Non-
Performing Financing influential and significantly to
the financing of Small Medium Enterprises with
negative relationships. Non Performing Financing is
not terbayarnya risk financing channelled by banks.
The higher Non-Performing Financing resulted in
the bank's difficulties to reassemble a financing
channelled.
Previous research linking between Non
Performing Financing with the financing gave rise to
mixed results, such as research conducted by
Wardiantika and Kusumaningtias (2014) stating that
Non-Performing Financing has a negative influence,
it is in line with the research conducted by Maesun
and Purwaji (2016) stating that Non Performing
Financing has a negative and significant effect
against the total financing for the results.
Maesun and Purwaji (2016) stating that Non
Performing Financing has a negative and significant
effect against financing. Other results obtained from
the research study conducted by the Sacred
Purwidianti and Hidayah (2014) that says that Non
Performing Financing thus has no influence
negatively to financing. But according to Wahab
(2014) that the NPF Variable does not have a
positive influence on the mudharabah financing
significantly to. An increasing number of NPF will
increase the number of PPAP which needs to be
established by the bank.
Meanwhile according to Pratin (2005) that the
variables have a positive relationship in the NPL
against financing, however insignificant. This means
that the increase or decrease of the NPL does not
affect significantly to the amount of financing will
be channeled by the bank. Non Performing
Financing, according to Agista (2015) NPF has no
effect against the financing on Islamic banks. In
contrast to the study Hadiyati (2013) stating that the
NPF effect negatively to financing on Islamic banks.
The t-value count (3.099) greater than t table
(1.67) which means to reject Ho and receiving Ha.
Then with probability rate of 0.003 smaller than α =
0.05 so that it can be inferred that the Certificate of
Bank Indonesia Sharia influential and significantly
to the financing of Small Medium Enterprises with
negative relationships.
Non Performing Financing (NPF) And Bank Indonesia Sharia Certificate (SBIS) Towards Sharia Financing In The Sector Of Micro, Small,
And Medium Enterprise (MSME) In Indonesia 2012-2016 Period
779

While the results of research that discusses the
influence of Bank Indonesia Certificates against
Sharia financing showed the same results, as well as
research conducted by Masyitha Pearls of Ramadan
and Beik (2013) which States that Bank Indonesia
Sharia Certificate effect negatively to financing
Small Medium Enterprises. However, research
conducted by Ambarwati (2008) shows a different
thing, that the certificate of Bank Indonesia Sharia
thus has a positive influence towards the financing
of Islamic banks.
According to Ramadan and Beik (2013) bonus
from Bank Indonesia Sharia Certificates have a
relationship that is negative towards financing Small
Medium Enterprises. That is because in the event of
a rise in Bank Indonesia Certificate bonus then
Sharia Islamic banking will divert their funds to put
preferences by purchasing certificates of Bank
Indonesia Sharia because it gives a better return
higher and lower risk compared with funneling
pembiayaannya to Small Medium Enterprises sector.
In contrast with research conducted by Hafly
(2014), thinks the Bank Indonesia Certificate bonus
though Shariah provided is quite high, but the
demand for Community financing will also remain.
The growth of the national economy are pretty well
indicates adannya activity of the economy, hence
SBIS have no effect against financing. Islamic banks
for liquidity is still in a condition that is safe and
stable, so that Islamic banking is not a dependency
with a certificate of Bank Indonesia Sharia although
bonuses obtained is extremely high.
5 CONCLUSIONS
Non Performing Financing (NPF) affect the
financing of Small Medium Enterprises with
negative relationships. The troubled financing is a
serious problem for Islamic banks, therefore the
bank will tighten the distribution of Small Medium
Enterprises financing so that is not the case of the
financing problematic on pembiyaaan Small
Medium Enterprises. Bank Indonesia certificates
(SBIS) influence the Sharia financing Small
Medium Enterprises with negative relationships.
This shows that the yield given in the placement of
SBIS more interest Islamic banks than on Small
Medium Enterprises in finance, because the yield of
SBIS offer lower risk compared to the profits
obtained from the distribution of financing.
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And Medium Enterprise (MSME) In Indonesia 2012-2016 Period
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