Spin-Off to Increase Islamic Banking Growth in Indonesia Cita Sary Dja^akum (a*), Sri Herianingrum (b), Marwini (b)
a) Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Jalan Airlangg 4-6, Surabaya, Indonesia AND Faculty of Islamic Economics and Business, Walisongo State Islamic University Semarang, Jalan Prof. Hamka, Semarang, Indonesia
b) Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Jalan Airlangg 4-6, Surabaya, Indonesia
c) Department of Islamic Economics, Faculty of Economics and Business, Diponegoro University, Jalan Prof. Moeljono S. Trastotenojo, Semarang, Indonesia,
Abstract
The rapid development of Islamic banking in Indonesia was triggered by the birth of Law No.10 of 1998 concerning Banking, which allows running a dual banking system. This development can be seen yearly when there is an increase in assets, Third Party Funds, and financing disbursements at Islamic banks. Support from the Government is increasingly felt with the passing of Law No. 21 of 2008 concerning Sharia Banking. In Article 68, paragraph 1, it is affirmed that if a conventional commercial bank has a UUS whose asset value has reached at least 50% of the total asset value of its parent bank or 15 years since the enactment of Law No. 21 of 2008, the conventional commercial bank is required to separate the UUS into a Sharia Commercial Bank. This research is qualitative. Documentation methods and literature studies carry out the data collection process. The research objects used were 20 Sharia Business Units consisting of 1 UUS State Savings Bank (Persero) is a State-Owned Enterprise (BUMN), 13 UUS is a Regional Owned Enterprise (BUMD), and 6 UUS is owned by a Private Bank. Of the 20 existing UUS, as many as 50% are not ready to separate themselves from their parent regarding assets, capital, and health levels. UUS Banking has not prepared the capital that must be paid, infrastructure, and the availability of Human Resources.
Keywords: Spin Off, Islamic Banking, Financial Performance, Operations, Human Resources.
