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The Role of PLS Financing on Economic Growth: Indonesian Case

Journal of Islamic Monetary Economics and Finance · Vol. 8 No. 1 (2022) · pp. 49–64

DOI
10.21098/jimf.v8i1.1378
ISSN
2460-6618, 2460-6146
Published
2022-02-28
Publisher
Bank Indonesia
Language
eng

Abstract

This paper investigates the role of PLS financing and non-PLS financing of Islamic banks in supporting the real sector for the case of Indonesia using monthly data from January 2009 to December 2018. Applying the ARDL approach to model their long-run and short-run relations, we find positive contribution of the PLS financing scheme to Indonesia's economic growth. Comparing the PLS and non-PLS financing, we note that the PLS financing has a larger impact on growth, both in the long run and short run. Accordingly, for Islamic finance to have larger growth impact, concrete steps and initiatives must be put in place to increase Islamic financing based on PLS arrangements.

Keywords

Collaboration network of the authors

35 authors · 84 co-authorship links · 7 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Alifah Padang
  • Andalas University
  • Kementerian Kesehatan Republik Indonesia
  • Universitas Halu Oleo
  • University of Mataram
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Nurul HudaAffiliation unknown2
Tasiu Tijjani SabiuAffiliation unknown2
Arridha HarahapAffiliation unknown2
Sohel RanaAffiliation unknown1
Meyi YantiUniversitas Alifah Padang1
Erwani ErwaniKementerian Kesehatan Republik Indonesia1
Radian IlmaskalUniversitas Alifah Padang1
Yunita DiastantiAffiliation unknown1
Ratno WidoyoAffiliation unknown1
Rasyidah RasyidahAffiliation unknown1
Dwi DendiAffiliation unknown1
Husna AminAffiliation unknown1
Mustabsyirah HuseinAffiliation unknown1
Saifullah IdrisAffiliation unknown1
Mukhtaruddin MukhtaruddinAffiliation unknown1
Syukrinur SyukrinurAffiliation unknown1
Sulaiman SulaimanAffiliation unknown1
Hayati HayatiUniversitas Halu Oleo1
Nurdin ARAffiliation unknown1
Nurbayani NurbayaniAffiliation unknown1
Muhammad ARAffiliation unknown1
Sulaiman SulaimanAffiliation unknown1
Miftahurrahman MiftahurrahmanUniversity of Mataram1
Sri HerianingrumAffiliation unknown1
Yayan FirmansahAffiliation unknown1
Julina JulinaAffiliation unknown1
Nazruddin Safaat HarahapAffiliation unknown1
Qonitah Rifda ZahirahAffiliation unknown1
Mohammed Rizki MoiAffiliation unknown1
Hendri HendriAffiliation unknown1
Zaituni UdinAffiliation unknown1
Jaswandi JaswandiAffiliation unknown1
Syafri NandaAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) http://www.jimf-bi.org/index.php/JIMF/oai, first harvested 9 Nov 2026, last seen 9 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">The Role of PLS Financing on Economic Growth: Indonesian Case</dc:title>
	<dc:creator xml:lang="en">Masrizal, Masrizal</dc:creator>
	<dc:creator xml:lang="en">Trianto, Budi</dc:creator>
	<dc:subject xml:lang="en">Islamic banking, PLS financing, Non-PLS financing, Economic growth, ARDL.</dc:subject>
	<dc:description xml:lang="en">This paper investigates the role of PLS financing and non-PLS financing of Islamic banks in supporting the real sector for the case of Indonesia using monthly data from January 2009 to December 2018. Applying the ARDL approach to model their long-run and short-run relations, we find positive contribution of the PLS financing scheme to Indonesia's economic growth. Comparing the PLS and non-PLS financing, we note that the PLS financing has a larger impact on growth, both in the long run and short run. Accordingly, for Islamic finance to have larger growth impact, concrete steps and initiatives must be put in place to increase Islamic financing based on PLS arrangements.&amp;nbsp;</dc:description>
	<dc:publisher xml:lang="en">Bank Indonesia</dc:publisher>
	<dc:date>2022-02-28</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://jimf-bi.org/JIMF/article/view/1378</dc:identifier>
	<dc:identifier>10.21098/jimf.v8i1.1378</dc:identifier>
	<dc:source xml:lang="en">Journal of Islamic Monetary Economics and Finance; Vol. 8 No. 1 (2022); 49 - 64</dc:source>
	<dc:source>2460-6618</dc:source>
	<dc:source>2460-6146</dc:source>
	<dc:source>10.21098/jimf.v8i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://jimf-bi.org/JIMF/article/view/1378/886</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2022 Budi Trianto</dc:rights>
</oai_dc:dc>