Sri Herianingrum

Islamic Financial Development as Efforts to Accelerate Economic Development and Poverty Alleviation

Economic development is one of the most important things in relation to the achievement of a successful economy in a country. One of the achievements of economic development is poverty alleviation. But, in the process of economic development, there are many imbalances. From the various types of inequality that occurred during the economic development process, it can be concluded that these imbalances occur because of the imbalance in the achievement of economic development, namely between the monetary and real sector. Nowadays, there are two concepts of economic development (capitalism and socialism economic). Since 1991, Islamic economy has been applied in Indonesia. It is not only about Islamic banking, but also Islamic finance, Islamic insurance, Islamic capital market, and Islamic development. The capitalism or socialism economy concept does not always offer the effective and efficient concept as expected in the development process. Then, what about an Islamic economy? Using an in-depth study literature method, it has been found that the Islamic financial system is able to answer the imbalance in the economic development process, particularly in terms of distribution that is comprehensive and consistent with the goals and objectives of the Millennium Development Goals (MDGs).

Dual Monetary System and Macroeconomic Performance in Indonesia

Received: September 5, 2015; Revised: December 2, 2015; Accepted: December 30, 2015 Airlangga University. Jl. Airlangga No. 4 – 6, Mulyorejo, Surabaya, East Java -60115 Email: sriheria@yahoo.co.id; imron.js@gmail.com DOI: 10.15408/aiq.v8i1.2509 Abstract. Dual Monetary System and Macroeconomic Performance in Indonesia. This research aims to evaluate the impact of dual monetary policy shock on macroeconomic indicators of Indonesia: growth and inflation. In addition, this study will also examine whether conventional monetary policy has a particular impact upon Islamic banking sector. This research apply VAR (vector auto regressive) method on monthly data from Bank Of Indonesia during the period of January 2010 to December 2013. The result of IRF explain that the interest rate channel find the hard way to accomplished the macroeconomic goals while the Islamic monetary instrument indicates the potential growth of output and hold the inflation low. The result of VDC describes that the Islamic instrument still affected by conventional monetary policy because of slow development in Islamic monetary system.