Proceedings of the 2nd Ibn Khaldun International Conference on Applied and Social Sciences (IICASS 2024)

<Previous Article In Volume
Next Article In Volume>

Modeling the Comparative Advantage of Sharia Financing to Support Indonesia’s Sustainable Business Sector

Authors
Budi Susetyo1, *, Surachman Hidayat1, Qurroh Ayuniyyah1, Najamudin1, Suzan Nur Wahyuniwati1
1Universitas Ibn Khaldun Bogor, Bogor, Indonesia
*Corresponding author. Email: budi.susetyo@uika-bogor.ac.id
Corresponding Author
Budi Susetyo
Available Online 5 November 2024.
DOI
10.2991/978-2-38476-299-6_20How to use a DOI?
Keywords
Islamic rural bank; Islamic economics; Regional comparative advantage analysis
Abstract

This paper investigates the comparative advantage of Sharia financing in fostering the sustainable business sector in Indonesia. The study explores the economic potential that can be harnessed through Sharia financing, identifying the most promising business sectors for regional development. The research lays a foundation for the strategic expansion of Sharia services in Indonesia by modelling the allocation of Sharia financing across various regions and sectors. The analysis identifies key sectors with the highest potential for Sharia financing, emphasizing their comparative advantage in driving long-term sustainable growth. The findings reveal a concentration of funding of in specific sectors, with the Agriculture, Hunting, and Forestry sectors being particularly prominent in West Kalimantan Province, followed by Bangka Belitung, Central Kalimantan, Papua, Riau, Bengkulu, and East Kalimantan. According to the Localization Index (LI), all sectors have relatively equal development opportunities, especially the Mining and Quarrying and Electricity, Gas, and Water sectors. The Specialization Index (SI) analysis indicates that no single sector is consistently dominant across Indonesia’s provinces. These insights offer valuable guidance for policymakers, financial institutions, and businesses seeking to integrate Sharia principles into sustainable economic practices.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 2nd Ibn Khaldun International Conference on Applied and Social Sciences (IICASS 2024)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
5 November 2024
ISBN
978-2-38476-299
ISSN
2352-5398
DOI
10.2991/978-2-38476-299-6_20How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Budi Susetyo
AU  - Surachman Hidayat
AU  - Qurroh Ayuniyyah
AU  - Najamudin
AU  - Suzan Nur Wahyuniwati
PY  - 2024
DA  - 2024/11/05
TI  - Modeling the Comparative Advantage of Sharia Financing to Support Indonesia’s Sustainable Business Sector
BT  - Proceedings of the 2nd Ibn Khaldun International Conference on Applied and Social Sciences (IICASS 2024)
PB  - Atlantis Press
SP  - 264
EP  - 284
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-299-6_20
DO  - 10.2991/978-2-38476-299-6_20
ID  - Susetyo2024
ER  -