The Islamic Banking and the Economic Integration in Asean

Abstract

The efficiency level of the banking industry is the most important indicator to identify the soundness of banking system. This paper use non parametric frontier approach, DEA, to analyze the Islamic bank efficiency in ASEAN. We use price of deposit from customers, deposits and placements of banks, labor, and others operational expenditures as control variabel, and using financing, deposits and placements on other insitution, securities, others investment as output variabel. We found that the mix bank is the most efficient group within the observation period. Furthermore, the average Islamic banking efficiency in Indonesia, on intermediation approach, is lower than the average of ASEAN, unless they can reduce the cost of labor and other operational expenses. This paper also examines the determinant of efficiency of the Islamic Banking in ASEAN. Internal factors are Total Aset, ROA, BOPO, and ETA, and external faktor are Market Power and Inflation. Using Tobit regression, the result shows the factors that most influence to the Islamic banking efficiency in Indoneisa is the total size of the bank or its assets, OPEX/OR, and Market Power.

Comparing the Intertemporal Efficiency of Islamic Banks in Indonesia and Malaysia

“…The study conducted by Solihin et al (2016) using DEA found that in the ASEAN area, competition between Islamic banks only appears in Indonesia and Malaysia and that Brunei, the Philippines, and Singapore have only one Islamic bank each. It was identified that Islamic banks in Indonesia would show lower efficiency than those in Malaysia unless they could reduce their costs of labour and other operational expenses.…”

“…The implementation of Islamic banking in many Muslim majority countries would strengthen banking market competition. The quality of management of Islamic banking would become a crucial factor which could affect the efficiency of operation of the Islamic banking sector, highlighting the importance of efficiency level measurement for all existing Islamic banks in ASEAN countries (Solihin, Achsani, & Saptono, 2016).…”

Analisis Tingkat Efisiensi Bank Umum Syariah di Indonesia pada Era Masyarakat Ekonomi Asean (MEA)

“…Perkembangan Kenerja Perbankan 2015(Statistik Perbankan Indonesia, 2015 Berbagai kondisi yang terjadi tersebut menjadi tantangan bagikbank syariah yang ada di Indonesia. Untuk dapat tetap bertahan dan bersaing maka diperlukan sebuah evaluasi terhadap kinerja, salah satunya dengan melihat efisiensi sehingga dapat menyusun strategi yang diperlukan untuk menghadapai segala tantangan yang ada (Solihin et al, 2016). Efisiensi merupakan suatu hal yang penting bagi dunia perbankan dalam melihatkkemampuan bank dalam menggunakan input yang ada untuk menghasil output yang maksimal agar dapat mampu bertahanhdan menghadapi persaingankdalam industri perbankan (Setyowati, 2019).…”

The sinking ship policy to the perpetrator of illegal, unregulated and unreported fishing in criminal law perspective

“…Current government policies that pay more attention to the development of maritime axis is also a driver for law enforcement in Indonesian sea. There are 3 (three) Fisheries Management Areas (FMA) that are often victims of illegal fishing practices: FMA of South China Sea, there is decrease in stock density and demersal fish species size; Arafura Sea FMA there is a decrease in stock and weight of shrimp; and FMA of the Indian Ocean, a decrease in the number of catch and weight of tuna [21]. IUU Fishing is a factor that causes Indonesia can not maximally utilize its marine wealth.…”

“…Supervision and Control of Marine and Fishery Resources (Pengawasan dan Pengendalian Sumber Daya Kelautan dan Perikanan/P2SDKP) discloses, some of the economic losses due to IUU fishing are (1) fishery levies paid by the tariff of Indonesian ship; (2) fuel subsidies enjoyed by unauthorized foreign ships; and (3) stolen fish production (volume and value). This loss is the impact of illegal fishing because of the direct loss of catch value that should be accepted by every coastal state [22,21,23,24].…”