Financing for Sustainable Business in Islamic Banks

Abstract

This study aims to explore financing to sustainable business as support for Islamic Banks for sustainable growth through the distribution of customer financing that supports sustainable activities. This research uses descriptive qualitative methods to explore the performance of sustainable financing at Islamic Banks in Indonesia. This research identifies the composition, percentage of sustainable financing and sustainable financing programs. The results of this research indicate bank has different policies regarding sustainable financing programs and composition. Based on nominal value, the largest amount of sustainable financing during the research period was Bank Syariah Indonesia, Bank Tabungan Pensiunan Nasional Syariah and BCA Syariah. Meanwhile, the largest percentage of sustainable financing compared to total financing is Bank Tabungan Pensiunan Nasional Syariah, which is more than 90 percent. In the sustainable financing program, Islamic Bank is based on OJK Regulation Number 51/POJK.03/2017, which distributes sustainable financing to customers' businesses in the category of sustainable business activities.