This study discusses to analyze the influence of non performing financing (NPF) from financing for the results seen from Mudaraba and Musharaka contracts to the level of profitability of Islamic banks in Indonesia. The results of this study indicate inconsistency with the theory that profitability is influenced by non performing financing (NPF). This study shows the opposite result of non-performing financing (NPF) as measured from Mudaraba contract and Musharaka contract no significant effect on profitability level of Islamic Banks in Indonesia. Simultaneous tests also show results that have no significant effect. The results of this study indicate that Non Performing Financing does not always have an effect on profitability because the value of financing problem is relatively small.

This study intends to provide an overview of the consistency of research results with theoretical and empirical points of view, it is done because many research results are inconsistent with the theory. Quantitative research methods are used to make generalizations using a sample of 14 Islamic Commercial Banks in Indonesia with time series data collection techniques for 5 years. The data analysis technique used is multivariate analysis using the Warp PLS structural equation model. The results showed that the level of profitability of Islamic banks is always overshadowed by the occurrence of credit risk that causes non-performing financing from financing of the type of natural uncertainty contracts because it is type of financing is a financing that does not provide certainty of results. The results of this study are consistent with agency theory that explains the existence of information asymmetry, and consistent with the theory of mixing that by providing opportunities to manage business to business managers (mudharib/mustyarik) without interference from the owner of the fund (shaibul maal) can lead to the risk of default and thus affect the ability of Islamic banks to obtain profitability.

ABSTRACT

The purpose of this study is to find the design of Micro, Small, and Medium Enterprises (MSMEs) development through profit-sharing schemes seen from the perspective of MSMEs actors in East Java - Indonesia. This research was conducted in East Java, Indonesia, selecting research locations carried out randomly and then determining the respondents proportionally. Respondents in this study were 220 MSMEs actors using the proportional random sampling technique. The data analysis technique used is warped partial least square to look for the design partially and through intervening. This study uses mudarabah financing and musharakah financing as exogenous variables, principles of profit-sharing distribution as intervening variables, and development of MSMEs as endogenous variables. The findings in this study are the contribution of profit-sharing distribution as an intervening variable in the development of MSMEs through the mudarabah financing scheme and the musharakah financing with the dominance of the musharakah financing. The ideal design of the development of MSMEs is the use of mudarabah financing and musharakah financing by applying the profit-sharing distribution principle following the principles of Islamic Sharia.

The purpose of this research is to know the influence of sharia financing by the real sector through micro, small and medium enterprises (SMEs) and the influence of capital adequacy of Islamic Banking in Indonesia in order to earn profit by using managed assets. This study uses a quantitative approach that analyzes secondary data from financial statements Islamic Banking in Indonesia period 2012-2015. Sampling technique using purposive sampling with the ratio of each variable as a unit of analysis. The analysis used multiple linear regression with t test partially. The results showed that the influence of Islamic financing of micro, small and medium enterprises (SMEs) on the ability to get a very significant profit partially by 0.708 or 70.8%, while the influence of capital adequacy as measured by Capital Adequacy Ratio (CAR) -0.519 or -51.9%. The Effect of micro, small and medium enterprises (SMEs) financing and Capital Adequacy of Islamic Banking in obtaining profit amounts to 55.7%. This research shows that the financing of UMKM given by Islamic Banking gives an important role for entrepreneurs to develop his business with sharia scheme.