Dr Yulizar D. Sanrego, M.Ec & Team Institute for Research & Community Enpowerment (LPPM)

Dr Yulizar D. Sanrego, M.Ec & Team Institute for Research & Community Enpowerment (LPPM)www.tazkia.ac.id

1) Overview Bank & Non-Bank Institution2) Research Objective3) Research Methodology4) Problem Decomposition /Model

Construction5) Finding & Discussion 6) Recommendation

PRESENTATION AGENDA

BANKBANK VS

MFI/IMFIMFI/IMFI

The Most Regulated Institution

Uncompleted Prerequisite

DIFFERENT: Standard/Regulation, GCG, HR Standard

DIVERGENCE

SHARIA BANKING & MICRO COVERAGE

3(Purwandono, 2011 – modified)

Direktorat Pasar Modal Syariah 4

THE COVERAGE OF SHARIA FINANCIAL INDUSTRY

Sharia Financial Industry

Sharia Financial Industry

Finance Service

Authority

Finance Service

Authority

Cental Bank of Indonesia

Cental Bank of Indonesia

Ministry of Cooperative

& SMEs

Ministry of Cooperative

& SMEs

Ministry of Finance

Ministry of Finance

DSN - MUIDSN - MUI

Fatwa

Macro Policy

Cooperative & Baitul Maal

wa Tamwil (BMT)

Sovereign Sukuk Negara & Tax

1. Islamic Capital Market;2. Sharia Insurance;3. Sharia Multifinace;4. Sharia Pawnshop.5. Islamic Microfinance

1. Islamic Capital Market;2. Sharia Insurance;3. Sharia Multifinace;4. Sharia Pawnshop.5. Islamic Microfinance

Act No. 1 - 2013

Act No. 17 - 2012

RESE

ARCH

OBJ

ECTI

VES

This research is using Analytic Network Process (ANP).

ANP is a new qualitative method approach, which is non-parametric and non-Bayesian, to a decision-making process that provides a general framework in treating decisions without making assumptions about the independence of the elements at a higher level than the elements on the lower level and on the independence of the elements in a level.

RESEARCH METHODOLOGY

1. Priority Scale (PS)PS is a scale that shows how important an issue compared to other issues. The higher the priority number, the higher important problem needs to be solved.

2. Rater Agreement (RA)RA is the level of agreement value among respondents in assessing the problem.

Priority Scale and Rater Agreement

RESE

ARCH

PH

ASE

Decomposition Problem FigureDEVELOPMENT POLICY OF IMFS

SOLUTIONSOLUTION

Establishment of Competition Restriction Regulation

Establishment of Supporting Entity Regulation

Establishment of Operational Standard

Operational Assistance

Financing Analisys and Risk Management Risk

Customer Companion and Capacity Building

Sharia Compliance StandardSharia Compliance Standard

ProblemProblem

Regulation of Competition RestrictionRegulation of Competition Restriction Supporting Entity RegulationSupporting Entity Regulation

Operational Standard Operational Standard Operational AssistanceOperational Assistance

Deposit Guarantee

Credit Guarantee

IMFS Healthy Rating

Financing CeilingFinancing Ceiling

Customers’ TurnoverCustomers’ Turnover

Service CoverageService Coverage

Financial Assistance

IT Development Assistance

Management Capacity Building & HR Development

PROBLEM

Bantuanop = Operational Assistance: Operational support that alignments of government through government programs that are allocated for development IMFS.

Rpenunjang = Supporting Regulation: Supporting regulation is a regulation relating to the establishment and regulation of supporting institutions that are needed to help IMFS to be more established, effective & efficient in their activities.

Rpersaingan = Regulation of Competition Restriction: It is legislation governing competition between IMFS with other financial institutions, especially commercial banks and other large financial institutions.

Standarop = Operational Standard: It is a wide range of technical and operational standards that are being made to maintain service quality of IMFS.

IMFS Development Policy (Practitioners)

Omset = Customers’ Restriction : means that there should be clear limits on competition among financial institutions regulated through the turnover of customers who obtain financing from Financial Institutions.

Plafon =Ceiling Financing : It means there should be clear limits on competition among financial institutions regulated through the amount of ceiling financing provided by Financial Institutions to customers.

S-coverage =It is the extent of coverage and the number of financial services institutions.

Regulation of Competition Restriction (Practitioners)

Kesehatan = IMFS Healthy : That is the agency that independently and continuously assess the health of IMFS.

Pkredit = Credit Guarantee Institution: Namely the existence of institutions that guarantee loans granted by IMFS to customers.

Psimpanan = Deposit Guarantee Institution: namely the existence of deposit insurance agency that guarantees deposits of IMFS customers.

Supporting Regulation (Practitioners)

Standarapmr = Financing Analysis Standard & Risk Manajement: required by IMFS because of the general analysis of financing and risk management among a IMFS with other IMFS are still different; some are already have the standards and some are not.

Standarks = Sharia Compliance Standard: which is a standard that can measure and evaluate sharia compliance of IMFS in its operations.

Standarppn = Customer Companion and Capacity Building Standard: Mentoring and coaching customers is one of the hallmarks of IMFS. The existence of mentoring and coaching clients become more strategic value. However, there is no standard mentoring and coaching for the clients among IMFS.

Operational Standard (Practitioners)

IT = IT Development Assistance: The use of IT in the majority of IMFS still limited. This leads to cost and inefficient management both in terms of time, effort and cost.

Permodalan = Financial Assistance: In this case IMFS not have a lender of last resort like banking industry.

Sdm = Management Capacity Building & HR Development: HR of LKMS require multi skills, in addition to skills in terms of collecting and distributing funds. Sharia knowledge and skills on coaching clients is also required. If all are covered by IMFS, it will be very expensive. For IMFS which do not have sufficient funds, automatically it will employ HR with modest quality.

Operasional Assistance (Practitioners)

Pembentukanrp = The establishment of Supporting Regulation

Pembentukanrpp = The establishment of Regulation of Competition Restriction inter financial institutions.

Pembentukanso = The establishment of Operasional standard.

Pembentukanbo = The establishment of Operational Assistance.

The Solution of IMFS Development (Practitioners)

Bantuanop = Operational Assistance : Operational support that alignments of government through government programs that are allocated for development IMFS.

Rpenunjang = Supporting Regulations: Supporting regulation is a regulation relating to the establishment and regulation of supporting institutions that are needed to help IMFS more established in their activities. .

Rpersaingan = Regulation of Competition Restriction: It is legislation governing competition between IMFS with other financial institutions, especially commercial banks and other large financial institutions.

Standarop = Operational Standard: It is a wide range of technical and operational standards are being made to maintain the quality of service of IMFS.

IMFS Development Policy (Academicians)

Omset = Customers’ Turn-over: means that there should be clear limits on competition among financial institutions regulated through the turnover of customers who obtain financing from Financial Institutions.

Plafon =Ceiling Financing : It means there should be clear limits on competition among financial institutions regulated through the amount of ceiling financing provided by Financial Institutions to customers.

S-coverage =It is the extent of coverage and the number of financial services institutions.

Regulation of Competition Restriction (Practitioners)

Kesehatan = IMFS Healthy : That is the agency that independently and continuously assess the health of IMFS.

Pkredit = Credit Guarantee Institution: Namely the existence of institutions that guarantee loans granted by IMFS to customers.

Psimpanan = Deposit Guarantee Institution: namely the existence of deposit insurance agency that guarantees deposits of IMFS customers.

Supporting Regulation (Academicians)

Standarapmr = Financing Analysis Standard & Risk Manajement: required by IMFS because of the general analysis of financing and risk management among a IMFS with other IMFS are still different; some are already have the standards and some are not.

Standarks = Sharia Compliance Standard: which is a standard that can measure and evaluate sharia compliance of IMFS in its operations.

Standarppn = Customer Companion and Capacity Building Standard: Mentoring and coaching customers is one of the hallmarks of IMFS. The existence of mentoring and coaching clients become more strategic value. However, there is no standard mentoring and coaching for the clients among IMFS.

Operational Standard (Academicians)

IT = Bantuan Pengembangan IT : Penggunaan IT pada mayoritas LKMS masih terbatas. Hal ini menyebabkan biaya dan pengelolaan yang tidak efisien baik dari segi waktu, tenaga dan biaya.

Permodalan = Bantuan Permodalan : Dalam hal ini LKMS tidak memiliki lender of the last resort layaknya perbankan umum.

Sdm = Pembinaan Managerial dan Pengembangan SdM : SdM dari LKMS memerlukan multi skill, selain skill dalam hal menghimpun dan menyalurkan dana, skill tentang pengetahuan syariah dan pmbinaan nasabah juga diperlukan. Jika semua itu dibebankan pada LKMS maka akan memakan biaya yang tidak sedikit, sedangkan bagi LKMS yang tidak mempunyai cukup dana maka akan mempekerjakan SdM dengan kualitas sekedarnya.

Operational Assistance (Academicians)

Pembentukanrp = The establishment of Supporting Regulation

Pembentukanrpp = The establishment of Regulation of Competition Restriction inter financial institutions.

Pembentukanso = The establishment of Operasional standard.

Pembentukanbo = The establishment of Operational Assistance.

The Solution of IMFS Development(Academicians)

Priority Values & Rater Agreement Analysis

Priority & Rater Agreement Value Analysis (IMFS Development Policy Problem)

Supporting Institution Regulation (Rater Agreement)

ITEMS PRACTITIONERS ACADEMICIANS TOTAL

AV R AV R AV R

ASPECT

Health Assessor 0,39 1 0,5 1 0,45 1

Credit Guarantee 0,29 3 0,23 3 0,26 3

Deposit Guarantee 0,32 2 0,27 2 0,29 2

Rater agreement 0,25 0,31 0,12

Regulation of Competition Restriction (Rater Agreement)


AV R AV R AV R

ASPECT

Customers’ Turn-over 0,28 3 0,47 1 0,37 2

Financing Ceiling 0,38 1 0,39 2 0,39 1

Service-coverage 0,34 2 0,14 3 0,24 3


Operational Standard (Rater Agreement)


AV R AV R AV R

ASPECT

Financing Analysis & Risk Management Standard

0,33 2 0,36 2 0,35 2

Sharia Compliance Standard 0,41 1 0,37 1 0,39 1

Mentoring & Coaching Standard 0,26 3 0,27 3 0,26 3


Operational Assistance (RA)


AV R AV R AV R

ASPECT

Management Capacity Building & HR Development

0,46 1 0,46 1 0,46 1

IT Development Assistance 0,32 2 0,22 3 0,27 2

Financial Assistance 0,22 3 0,32 2 0,27 3


Problem Solutions Analysis….


AV R AV R AV R

ASPECT

Operational Assistance 0,23 3 0,21 3 0,22 4

Establishment of Supporting Regulation 0,22 4 0,24 2 0,23 3

Establishment of Competition Restriction Regulation

0,27 2 0,20 4 0,24 2

Establishment of Operational Standard 0,28 1 0,35 1 0,31 1


Problem decomposition shows that the problem of IMFS Development from regulation and institution perspective are consist of four main clusters: No Regulation of Competition Restriction among financial institutions, No Regulation on Supporting Institution, No Operational standard & lack Operasional Assistance.

The PROBLEM of No Regulation on Supporting Institution becomes the main problem with its priority value 0,31, followed by No Operational standard (0,28), No Regulation of Competition Restriction among financial institutions (0,27) and last but not least lack Operasional Assistance(0,14)

In the cluster of No Regulation of Competition Restriction among financial institutions, competition restriction through financing ceiling is the main priority with its priority value 0,39, followed by the restriction through the turn-over with 0,37 and finally service coverage with 0,24.

CONCLUDING REMARKS

In the cluster whereby supporting regulation is absence, Supporting regulation in the form of health assessments become the top priority with its priority value 0.45. The second one in this cluster with considerable difference is deposit guarantee regulations with 0.29 and finally is credit guarantee regulation with its priority value 0.26.

In the cluster whereby operation standard is absence, the absence of sharia compliance standard issue is at the top priority with its priority value of 0.39. The second priority with slightly difference is the absence of financial analysis and risk management with 0.35 and finally is credit guarantee regulation with 0.26.

In the cluster whereby operation assistance is minimum, minimum assistance for human resources empowerment is at the top priority with its priority value 0.39. In the second and third priority level with a slightly different, that is sequence minimum assistance of IT with its priority value 0.27 and limited funding assistance with 0.27.

Continue…..

The research results in the solution cluster suggests that the formation of operational standards become the first priority with its priority value 0.31, followed by the establishment of competition regulation with 0.24, supporting regulation with 0.23 and finally providing operational assistance. In general, it can be seen that the average priority values are slightly different which indicates that the all mentioned solutions have relatively the similar priority value to be further executed.

THE SOLUTION….

◦ The government should immediately establish operational standards (particularly sharia compliance issue) since it is urgent to be implemented as a reference for IMFS. Both respondent practitioners and academicians are agreed upon that the establishment of operational standards is the first priority followed by other solutions that have been mentioned above.

RECO

MM

END

ATIO

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بالصواب أعلم واللهإهتمامكم علىحسن الله جزاكم

Documents

Dr Yulizar D. Sanrego, M.Ec & Team Institute for Research & Community Enpowerment (LPPM)