Economic

If the question "Is there a difference between Islamic banks with conventional banks" submitted to the Muslims, the dominant response that was met was "no different from the same alias. This occurs because the activity or practice in the field mostly run by Islamic banks tend to match and direct it toward an answer. This paper tries to describe the analysis of issues related to sharia compliant Islamic Banking has swept over this.

Can not be denied that the Islamic Bank itself is a profit-oriented businesses, but in accordance with the principles of Islamic economy that a business must be in accordance with Islamic guidelines and consider the life of the world and the hereafter in a balanced way. Need to be reminded of one of the main differences between the Islamic Economic system with the conventional economic system is replaced with a system of instruments for interest rate and loss results (profit and loss sharing). This has of course also characterizes the differences with other Islamic Bank.

Things that make incessant accusations that the Islamic Banking Islamic labeled it only while it is like a big proportion of conventional financing or bai bitsaman murabaha based ajil fixed margin, and deviations made in implementing Bank Syariah selling this covenant. Data so far indicate that the proportion of murabaha akad approximately 60-70% over the amount of financing provided by Bank Syariah (Islamic Banking and both BMT). This situation is not only plagued the Islamic Banking in Indonesia but also in Malaysia and the countries of the Middle East.

In fiqh, there is no rule against murabaha if done in accordance with the terms and rukunnya. However, in practice in some Islamic Banking irregularities committed. The first example, the determination of margin / mark-up entirely conducted by the Bank Syariah. Unilateral determination is not allowed because the akadnya must have transparency and fairness between the seller (Bank Syariah) and buyers (customers). Islamic Banking is the fair should be informed about the cost of goods and variables that determine the profit margin for later offered to customers. The process of openness and bargaining is what eventually led to his willingness to both parties that it is different from conventional loans.

Usually customers are going to compare with the equivalent level of margin percent interest rate on the loan. Here, the Bank of Sharia should be careful in explaining this important issue, do not directly mention the equivalent rate, but the process must be explained first. Once again the process of determining margin above can help, because the margins on offer Islamic Banking from the real costs and should not be above the interest rate determined immediately (not real) by a conventional bank. Customers will certainly understand and recognize the difference between the covenant and the covenant syar'i syar'i not.

Second, most Islamic Banking does not give the goods to the customers, but giving money to customers as a representative to purchase the required goods. This certainly deviate from the rules of fiqh, because there are two transactions in one covenant that is wakalah and murabaha. In addition, with such transactions may be customers do fraud with funds provided by the Bank Syariah. To overcome this, Islamic Banking is expected to have a special network of distributors of goods the customer needs or even have their own sort of effort that provides goods for akad murabaha.

This process had to be a bit forced because as a medium of education and socialization. Sharia Bank employees should have the competence and patience in carrying out aspects of sharia compliance. Role of Sharia Supervisory Board (SSB) is also very necessary to control the Islamic bank's performance, especially related to sharia compílance. During this DPS problem lies in the professionalism, so expect management board or the Islamic Banking can provide incentives in the form of salary or a reasonable fee to DPS to work professionally and optimized.

Regarding the dominance of murabaha financing must also be addressed by the Bank Syariah. In accordance with the principles of Islamic economy is based on the results of the system is supposed Islamic Banking products are berakad more Mudaraba or Musharaka. Bank Syariah chose murabaha more because the stakes are small and provide certain benefits (fixed return) Mudharabah Akad which heralded by the Bank Syariah rarely done in the financing transaction. Besides having a high risk and cost of agency costs due to the emergence of Asymetric Information, the Islamic Bank also argued that customers do not want to and not ready to use the system for the results.

There are several things to note about this Mudharabah akad. First, if we look mudaraba practices in the field, then the covenant will not be seen purely as a akadnya mudaraba is a modified mudaraba musharaka for capital comes from two sides, Islamic Banking and customers. Although in terms of management, Bank Syariah not interfere. This happens because the Bank Syariah just want to give financing to businesses that have been running for a certain period of time.

Second, the financing division of the return was not based on profit-sharing system and the loss (profit and loss sharing) but using the system for revenue (revenue sharing). This system was chosen because Sharia Banks dare not fully share the risk or loss (loss / risk sharing) capital in full. Finally, the benefits to be provided by the customer turned out to have been estimated (defined in advance) by Bank Syariah because customers are not able to make financial reports to calculate the loss labaatau business.

Departure from the reality of the above, then the Bank should put more emphasis on Islamic Musharaka financing because it is more in accordance with Indonesia's economic situation today. Musharaka do require that the Islamic Bank for the costs involved in the management of projects dibiayainya, but it is more realistic and would be more beneficial to the system for long-term results both from the profit and Islamic aspects. For the division of return, it was time for Islamic Banking is not only safe course, the principle of sharing should be applied fairly. This could begin with a community assistance with joint responsibility that has been done on community mores Indonesia.

Islamic Banking program may be modeled after the Grameen Bank in Bangladesh that has been successfully running this system. Fellow members of the finance group can help each other and to bear when one of its members having business difficulties. In this way, the system can result in a genuine and do not need to specify in advance the estimated profit, because there is mutual trust between the Bank Syariah with customers and between members of the group itself. What needs to be addressed is the problem of moral disease which during the public descend through increased spiritual aspect and a good example. One reason why the proportion of customer financing is dominated is to know the characters from the customer before the akad financed with revenue sharing. The reason this is logical, but if used too long it will be a boomerang for the Bank Syariah. In fact after a long operation, the portion of murabaha financing does not decline significantly.

From the results of several studies indicate that the system for optimum results applied in developed countries and not optimally applied in developing countries. But Sharia Bank should conduct a breakthrough and breakthrough innovations to argue that research results. Although sharia compliant Islamic Banking in Malaysia and the Middle East - which first experienced a resurgence of Islamic Economics - no better than Islamic Bank in Indonesia, but Islamic Banking in Indonesia as the largest Muslim country in the world to provide differentiation and repositioning as do a fair Financial Institutions and economic empowerment of the people. If not immediately fix the aspect of compliance syariahnya, it is not wrong if there are allegations that the Islamic Banking and Islamic guise only selling a mere religion. Such situation will lead to mission efforts in this economic impasse and the loss was a matter of time. Bisshawaab Allaah knows best.

Observing the reality of the development of sharia banks in Indonesia today, the increasing competitiveness of Islamic banks is very urgent to be implemented. Secara objektif harus diakui bahwa bank syariah masih kalah bersaing dibandingkan dengan bank konvensional, sehingga diperlukan strategi bersaing yang tepat untuk meraih keunggulan kompetitif dalam industri perbankan nasional. In this case, the strength of competitiveness is crucial for the success or failure of a company in a particular industry. Rather than supporting the economic development of nations, if it continues to operate with low competitiveness of the existence of Islamic banks will be threatened by the map of banking competition is getting tighter. The development and current competitive conditions suggests the need for an accelerated program for Islamic banks are able to catch up on the conventional banks. There are three fundamental factors of the most influential in terms of infrastructure that must be addressed, namely:

First, limited office network that blocks access to Islamic banking clients. Service network owned Islamic banking system is still limited, the lack of coverage of these operations in turn will become a significant obstacle for the users of Islamic banking services and reduce the level of comfort and satisfaction of using Islamic banking services.

Office network expansion should be done in order to reach all layers of society, so the reason for the territory dhorurot no syariahnya banks can be minimized. Especially when the main focus is the distribution of Islamic banking capital to the SME sector that in fact require broad access to reach them. Islamic banking network expansion is not necessarily with offices opening a new branch, because it requires huge capital. Sharia banks have to be creative and innovative in making new breakthroughs in order to reach the wider community services to remote-corners. Options ways used by Islamic banks to extend their networks depends on the needs and abilities of the bank itself.

Several alternative strategies that could be considered Islamic banks such as: optimization of application services Office Channeling, with examples of a wide range of BNI, BRI Units or spread to rural areas; synergy among Islamic banks through savings and ATM products with special sharia banks; strategic alliances with other companies, such as mortgage insurance, as well as by BMI (Shar-e card) with PT. Pos Indonesia; symbiotic mutualism with other agencies, for example by hand or PTAIN Indonesia PTAIS a KTM in the making and opened outlets in college; considering a merger or acquisition policy between banks as one of efficiency and effectiveness of strategies to expand sharia banking network.

Second, Insani Resources. Recommendations based on data from DSN-MUI has found hundreds of financial institutions and businesses with thousands of Islamic sharia service office in Indonesia. Become common knowledge, however, that the rate of growth does not follow sharia business with the provision of adequate human resources. The situation is not balanced it would make sharia banks are having difficulty in doing professionalism in serving customers. Based on recent data, the characteristics of scholarly resources sharia banks dominated conventional science from ex-employees of conventional banks. This makes conventional strong tendency in the development of sharia banks.

To overcome this gap, it should be stressed to the Islamic banks to build a serious commitment to human resource issues. Recruitment or human resources management at the Syariah Business Unit is often hampered by the parent bank's policy, where implementation of the recruitment or human resource management is done by the parent bank centralization, especially many events at which banks make dual banking from conventional HR rotation to sharia. Rotation is carried out by the bank management is not accompanied by adequate debriefing, which led to the impression of sharia banks were no different from conventional banks. Islamic banking as a principal, has the responsibility of the bankers in developing Islamic banking system that really fit with the concept of sharia muamalah. Human Resources Development in the Islamic banking sector is very urgent because of the success of the development of sharia banks at the micro level is determined by the quality of management and the level of knowledge and skills of bank managers.

Bank Syariah must meet human resources that have extensive knowledge in the field of banking, understanding the implementation of sharia principles in banking practices, and has a strong commitment to implement it. Existing obstacles must be eliminated through the recruitment and selection of appropriate human resources competence requirements of sharia banks, by the way: Training and Human Resource Development needs to adjust to the ideal fulfillment of human resources for Islamic Banking; Evaluation and Job Design; Compensation, Senior Career, Succession Planning, etc. . Ideally, HR Profile Sharia Banking may be exemplified as follows: The formal education S1 or S2 of Islamic finance and economics university in the country or abroad; Mastering the soft and hard competency Islamic Banker; Paradigm Sharia. This qualification is very important because with a clear input of competence is professionalism Sharia bank office services will be improved and not with half-hearted and not just a 'cosmetic' alone.

To further facilitate efforts to improve human resource competency standards, Islamic banks can establish cooperation with the college education of Islamic Economics. This synergy and also to provide solutions that curriculum constraints and implementation challenges and match academic links to the Islamic banking industry. Furthermore, the BI and the DSN-MUI as the supreme authority can work together to establish human resource certification sharia banks. Standardization is very important to avoid differences in services, while increasing the asset so that it can compete with conventional banking resources. One also added Special Training for Accounts Officer (Finance) and Customer Service Officer to achieve service excellence.

Third, support of adequate information technology is absolutely required by Islamic banks to serve and provide convenience for customers. Without the help of IT (Information Technology) is a sophisticated, Islamic banks will be left behind the times and customers. Tendency bank customers today are choosing a bank that is already online and have extensive ATM network and the complete features. In this era of sophisticated telecommunications, IT controlled banks will win the competition in capturing customers. Therefore, the necessary IT systems are up to date in accordance with the will of the customer and the characteristics of Islamic banks.

The problem, however, banking technology is very complex, expensive and almost all affected parties outside the bank, including from overseas vendors. It was very burdensome Islamic banks which have relatively low IT spending. Ends with this condition, Islamic banking services will become expensive and the customers who will receive the effects. Therefore, BI is expected to endorse the proposal from the National Bank team (Perbanas) which has developed a scheme called Indonesian Banking Architecture Technology (ATPI). ATPI is considered to improve the bargaining position of the vendor because the bank allows banks to share technological resources. In ATPI, banks can collaborate using information technology resources to achieve compliance requirements (compliance). At the same time, they still compete through a variety of products and services.

One implication of this is the formation of ATPI cooperation model with the pattern of "shared-services" in which a few large banks can share technological resources it has to go serve the needs of other banks. Thus, a bank, including BPR can provide a service of technology based banking services to their customers by using resources from other banks or vendors of information technology solutions provider. Working together to share ATM networks such as ATM BCA, ATM or any ATM Prima Joint can be an example.

Islamic banks should also take advantage of the convenience provided by the ATPI is willing to share with conventional banks which are relatively more advanced technology or to unite all Islamic banks for later 'joint venture' to use IT services together. IT is used by Islamic banks themselves must meet the criteria of standardized, compatible and in accordance with bank products sharia (free of interest calculation) and in accordance with the regulations of Bank Indonesia and the MUI.

If the three fundamental factors that most influence on the development of sharia banking infrastructure has been fulfilled and done optimally, it is expected that Islamic banks can assist in the intermediation function.

If traced in depth, proved the existence of SMEs supported by the flexibility of their respective fields of business, whether starting from a small capital, simplicity of technology, limited human resources in quality and quantity, as well as the limited market. Such characteristics are also supported with a high morale to maintain self-esteem.

Most businesses SMEs in Indonesia that have shaped its own characteristics in accordance with the reality of the Indonesian economy. They run businesses can stand on their own feet and be independent without having a group or under other corporate groups. Most production is not a service but the goods using relatively low technology. The orientation focused on the local market so that any location in rural or suburban. Their capital is also limited, and that certainly was a very difficult business to get loans or financing from banks, in other words unbankable category.

While occupying the foundations of economic structures and Indonesia became the driving force of economic development, but received capital support MSMEs are still minimal. In such circumstances, financial assistance, technology, and management for the development of their institutional capacity is needed. One unique thing that currently found in the MSMEs is their commitment and concern for morality. At the time of the big businessmen and tycoons busy-busy doing all kinds of business crimes that violate the law, people working in the field of MSME clung to business ethics and morality. By looking at the contribution of SMEs and the urgency of the nation's economic development, so it's natural to sharia banking industry reorientation to focus on the real sector by empowering the SME entrepreneurs.

The role of Islamic banking in the real sector development can be seen from the scheme developed in the Islamic bank financing, but in the real contributions donated by Islamic banks through his duties as a financial intermediary institutions. Viewed from the financing scheme that was developed, only Islamic banks to channel funding to the real sector. Business dynamics that occur in the real sector will be reflected directly in Islamic banking activities. In channeling financing, Islamic banks use the akad-akad which is always associated with the real sector and financial sector growth simply follow the growth of real sector.

Financing with akad murabaha, greetings, and can only be channeled ijara if there is a good or service (real sector) that are funded. Even with the covenant Musharaka financing / mudaraba, not only channeled to finance the real sector, but also made perfect correlation between the cost of capital with return on capital. This is obviously very different from a lot of conventional banks are not disbursing credit to the real sector, namely to speculation in financial markets. Islamic banks are not based banking financial sector as conventional banks. Instead, Islamic banks are based banking real sector.

Most conventional bank funds are not having an impact on the growth of real sector since bought SBI (Bank Indonesia Certificate) to obtain revenue without the risk of interest rates. What's worse, a large number of conventional bank loans used for speculation in financial markets, or at least can be said, are not used to encourage the growth of real sector.

Islamic Banking Services for SMEs
Some things that can be provided by Islamic Bank for SMEs, to do with the achievement of targets and the vision above, among others: First, extensive alternative products with the result as the main product. Products with a system of profit and loss sharing partnership is appropriate paradigmatic to empower MSMEs. Second, business management based on moral and transactions in accordance with Islamic principles. This Keungggulan matched to the characteristics of people engaged in the MSMEs, who want to stick firmly to business ethics and morality. Third, manage and have access to funds in the voluntary sector. This is in accordance with the commitment of Islamic Banking concerned with the development of SMEs as part of poverty alleviation through economic instruments of Islam (Zakat, infak, Sadaqah, Endowments).

Is applicable, the concept of the above services can be implemented by the Bank Syariah through strategic programs as follows: First, Islamic banks to give top priority to serve the financing of SMEs. Financing SME segment itself can be executed directly by the branch offices of banks or do Channeling sharia or joint financing with the BPRS and BMT through linkage programs. But according to World Bank findings, the most appropriate approach for SMEs is that Microfinance Institutions here Sharia bank linkage programs with LKMS be optimized to reach SMEs.

Islamic Bank Linkage Program with BMT. This partnership program is the most important step because the condition of SMEs (small-scale, limited collateral, no legal status, remote location, and the administration is weak) is very difficult to reach by the Bank Syariah (high costs, high risks, legal requirements, difficult to reach, and the difficulties business rate). Existence LKMS as BMT is indispensable as a mediation between the SME sector with the Bank Syariah. This is because the characteristics of the BMT is matched with the needs of SMEs, which provide savings services, financing, payments, deposits; focus to serve SMEs; using the procedures and mechanisms for contextual and flexible; and was in the midst of a small or rural communities. BMT as a representative of the Islamic Bank to channel financing has been mandated to him so that his own Islamic Bank need not fear taking a huge risk.

The second program, the pilot project as well as the development of SMEs empowerment scheme or sharia investment models for SMEs. With this pilot project, will appear a good example and proves that the Islamic financing scheme is very beneficial and equitable. Islamic Banking can also jump directly handle mudaraba and musharaka financing with joint responsibility. As a first step of the pilot project, Bank Syariah can work with BMT to declare the agenda of "one SME, one superior product". This can improve the competitiveness of SMEs and encourage them to continue to innovate. The project was conducted by mentoring and education, especially in the management aspects of shari'a schemes and paradigms for the system.

Furthermore, the Third, the Islamic Banking Program Human Care and Development Sector Voluntary Blueprint Sharia. Through the ability to access and manage the social funds, Bank Syariah should make the stages and strategic steps to optimize the potential of social funds and more capable memproduktifkannya. To raise funds, for example, Bank Syariah can mewacanakan issues of social philanthropy to its customers or perhaps even implement CSR (Corporate Social Responsibility). Through the development of products qardhul hasan, Bank Syariah can reduce the difficulties experienced by SMEs that experienced natural disasters or natural disaster. Grants, gifts, or free assistance in the form of equipment or business can be conducted insfratruktur as a manifestation of concern to the people of Islamic Banking.

Fourth, improving SMEs capacity building by providing technical assistance in the form of management assistance, SOP standardization, the use of IT systems, and marketing products. This increased effort may involve relevant departments of the cooperatives and SMEs, industry and trade, as well as PNM SOEs or even NGOs in their respective fields.

Closing
Poverty alleviation programs through the empowerment of SMEs who became one of the mission of Islamic banks today will not by itself make the community prosper, as long as there has been no effort to remove barriers simultaneously the source of problems in the development of small and micro businesses. Barriers should be eliminated in pelaksanakan efficiency, increase output quality, reduction of unemployment, increasing rural incomes, and reduce the gap between the rich and the poor. For that, the Government must be able to make policies that do not harm the perpetrator parties small and micro businesses in the attempt. Unfair regulation will cause reduced output, increased reliance on imports, reduction in export competitiveness, and pressing the lower income communities both rural and urban, so the development of small and micro businesses and social welfare in the area are difficult to materialize.

This classic is always questioned why the perpetrators of micro and small businesses can not grow is not the availability of funding sources (financial) as capital to run its business. Actually it is not enough funding to develop a business. If we look at periods of the previous government, how much funding assistance programs (financial) loans are disbursed in the form of government to develop a variety of businesses that do not bring results, but instead make efforts have run into bankruptcy because it is unable to compete in developing a business that is not can repay their loans. The main cause of the failure of these programs, is not running an equal partnership between the stakeholders involved in the program, in addition to other reasons.

Therefore, Bank Syariah should take lessons from programs that have been made in the past. Programs that have succeeded, can be taken advantage by the Bank of sharia by reducing the weaknesses that caused the end of the program. All stakeholders need to be aware of development, that is currently developing an economic system based on the values of the Islamic Sharia as an alternative to the system running right now. Prevailing economic system currently can not solve the perceived problems of distribution are not well balanced and widen the gap between the rich and the poor. Thus, in a development program for the public welfare, have also examined the concepts of Islamic economy as an alternative solution of the prevailing economic system so far.

However, the most important of all the above programs is the lack of awareness of Islamic Banking own party to be a friendly bank to MSMEs. For that to be realized in concrete terms, the commitment of sharia banking in microfinance development, particularly by ensuring the allocation of significant funds in the banking business-plan is for the micro entrepreneurs. Thus, can actually channeled through Islamic microfinance institutions have proven integrity and capability.

In 1998, Islamic banks proved able to survive when the economy was rocked by the financial crisis Indonesia. Now, the ability of Islamic banks survive re-tested it. Therefore, the Islamic banking industry players must implement a strategy to focus on maintaining the existence of order and can increase its position in the market situation is erratic.

Survive
Adopt survival strategies is a must for the management of Islamic banks in order to remain able to perform the intermediation function in time of crisis. This strategy includes the first, Consolidation Strategy. This strategy is applied through the protection and strengthening the competitive position of Islamic banks in the market. This does not mean only the silent witness management market dynamics and invasion of competitors. Management should focus on core competence, especially Islamic banks commitment to the implementation of sharia principles, the strength of capital structure, and the availability of third party funds. Awareness to meet the competencies will help to increase resources that provide competitive position better than the competition.

Second, cost advantages. Achievement rates of return for shareholders and depositors are higher than usual will make it easier to apply Sharia bank consolidation strategy above. The best way is to cut operational costs (service cost) incurred. Indeed Islamic bank's capital structure contains no debt so there is no fixed interest payments to depositors or other maal Shahibul. This gives a competitive advantage for Islamic banks compared to conventional banks because of pressures related to the management of risk taking and investment decisions will be slightly relaxed. Therefore, the managerial costs are relatively more manageable than the interest cost.

Third, mergers and acquisitions. Based on the experience of financial institutions and non-financial, this strategy is the most common strategy recommended. The merger will have a positive impact on economies of scale, the ability to compete and synergy Islamic banks. But there are few records that need to be considered, namely the merger of two weak banks that sharia will only result in an Islamic bank is not strong enough. Differences nature (source and use of funds, cost structure) between Islamic banks and conventional banks also have to be really considered if applied to two different types of banks.

Striking out
This strategy can be used by Islamic banks to take initiatives to maximize opportunities and minimize threats. First, market expansion. The global financial crisis will provide opportunities sharia bank is open enough to enter this market for less untouched. This market provides new customers from sectors such as SME financing, empowerment of women, and the funding needs for the local government budget. This will provide a golden opportunity for Islamic banks to win new sectors. Islamic banks can expand and diversify its financing activities through the establishment of funding a new branch offices or affiliated with a bank in that market segment has not been touched by this.

Second, Diversification Strategy. Islamic banks can issue new products or innovations to existing products, with the approval of Shariah Supervisory Board. This can be done simultaneously with the introduction of a new market segment. This strategy involves the movement of Islamic banks to the market by offering new products. Islamic banks can be penetrated the market by bringing new products to the financial industry, such as the establishment of and investment in Islamic insurance, Islamic mutual funds and other Islamic financial institutions. In addition, Islamic banks may be diversifying its investments outside the financial sector through direct investment into the real sector such as manufacturing plants, hospitals, and other industrial companies.

Third, Dynamic Leadership. The crisis also forced the bank's sharia automatically change the target depth and structural. Therefore, the leadership of Islamic banks are required to take actions that are responsive, intelligent, and quite flexible. Unique character and leadership will be strong determinants of success or failure of implementation strategies that have been prepared. The top managers should be able to control the operational activities of Islamic banks are stable through the storm crisis. Managers of Islamic banks today challenged to be more willing to take strategic decisions as a form of response to urgent situations. The young managers also may be given the opportunity to escort the Islamic banks and try to do a variety of new and innovative breakthroughs.

The combination of business on the orientation is expected to create a national Islamic banking industry into compliance with the crisis phenomenon. An integrated manner is a major issue of these strategies. Cooperation among Islamic banks would have a significant role in reducing the ill effects of the global financial crisis. This strategy is also meant to build awareness to help one another in goodness (ta'awanu 'ala al-Birri) and strengthen brotherhood among Muslims (Ukhuwah Islamiyah). A comprehensive strategy to unify our Islamic banking industry in the vanguard.