4th INTEFFECTIVENESS OF MONETARY POLICY TRANSMISSION OF FUNDING OF ISLAMIC ECONOMIC SECTOR IN ISLAMIC BANKING IN INDONESIA 2011M01-2014M02
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Bank Indonesia has made Bank Indonesia Certificates Sharia (SBIS) as one of the Islamic monetary policy instrument in addition to Bank Indonesia Certificates (SBI), which became conventional monetary instruments. Both of these instruments have a role in transmitting monetary policy to the real sector. Monetary transmission can occur through a line of credit, namely by channeling funds from banks including through credit and financing the economic sector. This study aimed to analyze the influence of Islamic monetary instrument to the channeling of funds to sectors of the economy (agriculture, trade and industry). The data used in this study comes from the Financial Services Authority (FSA) and the CPM of the year 2011: 01 to 2014: 12. Analysis of data using Vector Auto Regression models. R-squared results showed that 96 percent of SBIS variables affect the economic sector financing while 4 percent are affected by variables outside the model.