SUKUK FUND ISSUANCE ON SHARIA BANKING PERFORMANCE IN INDONESIA

International Journal of Civil Engineering and Technology (IJCIET) Volume 9, Issue 9, September 2018, pp. 1531 1545, Article ID: IJCIET_09_09_149 Available online at http://www.iaeme.com/ijciet/issues.asp?jtype=ijciet&vtype=9&itype=9 ISSN Print: 0976-6308 and ISSN Online: 0976-6316 IAEME Publication Scopus Indexed SUKUK FUND ISSUANCE ON SHARIA BANKING PERFORMANCE IN INDONESIA A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita Department of Accounting, Universitas Pembangunan Panca Budi, Indonesia Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution Department of Management, Universitas Pembangunan Panca Budi, Indonesia ABSTRACT The purpose of this study is to examine how the effect of Sukuk (Islamic bonds) on the performance of Islamic Banks in Indonesia. The research is expected to explain that there is an increase in the performance of Islamic Banks in Indonesia, namely the ratio of liquidity, profitability and solvability with the existence of Sukuk funds. Action plan carried out on each evaluation strategy begins by defining a series of theoretical concepts, relevant levels of analysis, and measurable indicators. The dependent variable of this study is Return on Assets (ROA), Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR) and the independent variables of this study are Sukuk (Sharia Bonds). ROA is the ratio between profit before tax to the average assets owned by a bank in one period; CAR is the ratio of the obligation to fulfill the minimum capital that must be owned by the bank, FDR is the ratio between the total loan disbursed and the total third-party funds. The data analysis model uses multiple linear regression method. Data observation that has been used is the data of these variables in the last four years, in 2014-2017. Data has been collected from Bank Indonesia. Data processing is carried out using SPSS Software. The results of this study have proven that the Sukuk owned (SKD) and the Sukuk sold (SKT) do not have the significant effect on ROA, and its have proven that the Sukuk (SKD) and Sukuk sold (SKT) has the significant effect on CAR and FDR. Key words: Valuation, Sukuk owned, Sukuk sold, ROA, CAR, and FDR Cite this Article: A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita, Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution, Sukuk Fund Issuance on Sharia Banking Performance in Indonesia. International Journal of Civil Engineering and Technology, 9(9), 2018, pp. 1531-1545. http://www.iaeme.com/ijciet/issues.asp?jtype=ijciet&vtype=9&itype=9 http://www.iaeme.com/ijciet/index.asp 1531 editor@iaeme.com

Sukuk Fund Issuance on Sharia Banking Performance in Indonesia 1. INTRODUCTION Along with the recognition of the concept of sharia-based finance in the world such as one form of Islamic financial instruments that have been widely published by corporations and countries is Sukuk [1] [6]. Malaysia offered the first issuance Sukuk of $ 600 million in 2002. In this case was followed by the launch of a $ 400 million "Sukuk trust" from the Islamic Development Bank in September 2003 [7] The potential for domestic Sukuk in 2003-2007 continued to increase. In 2003 there were only six issuers with a nominal amount of Rp. 740 billion, then in 2007 the total issuers reached 21 issuers with a nominal value of Rp. 3.23 trillion so that the market share volume of Islamic bonds reaches 2.5%, among the 21 issuers there are three issuers from the banking sector, namely Bank Muamalat, Bank Syariah Mandiri and Bank Bukopin, among the three banks there are 2 Islamic banks namely Bank Muamalat and Banks Syariah Mandiri. In Islamic banks, capital is needed to see the bank's performance based on the capital adequacy ratio as well as conventional banks. Capital serves to maintain public trust, as a final buffer to protect banks from unexpected losses and maintain business continuity when the economy experiences difficulties [8] [10]. The efforts to encourage the bank's intermediary function in the form of credit expansion must balance with adequate additional capital [8] [12]. If the bank manager cannot provide adequate additional capital, then the decrease in capital adequacy cannot be avoided. Banks must provide a total capital of at least 8% of assets rather than risk [8].One alternative to increasing capital carried out by banks is to issue bonds [5], [13]. Bonds are a statement of debt from the bond issuer to the bondholders along with a promise to repay the principal and the coupon (bond) at the time the payment is due. Sharia bonds with a relatively long maturity period of 5 to 7 years [2], [4], [14]. The need for additional capital is also felt by Islamic banks to strengthen the capital structure [5]. One example of Islamic banks in Indonesia can be seen from the Bank Syariah Mandiri ratios before and after the issuance of Islamic bonds (Sukuk) [9], [15], [16]. Table 1 Ratios of Shariah Banking Before and After Issuance of Islamic Bonds (Sukuk) Des 00 Des 01 Des 02 Des 03 Des 04 Des 05 Des 06 Des 07 CAR 117,18% 63,18% 38,91% 20,87% 10,57% 11,88% 12,56% 12,44% ROA 2,60% 3,30% 3,51% 1,03% 2,86% 1,83% 1,10% 1,53% ROE 4,10% 4,43% 3,61% 3,61% 22,28% 23,39% 18,27% 32,22% Bank Syariah Mandiri issued Islamic bonds in October 2003 with a principal amount of Rp. 200 billion, with a term of 5 years. From the table above can be seen after Bank Mandiri issued Sukuk, the CAR ratio was relatively stable. For financial ratios, there was an increase in the ROE ratio even though there was a decline in 2006 but it increased dramatically in the following year, while ROA tended to be stable. This research is important to be carried out to find out how much influence Sukuk (Islamic bonds) on the performance of Islamic banking, namely ROA, CAR, and FDR. One of them is by looking at the bank's performance based on the capital adequacy ratio because of the increasing performance of Islamic banking. For example, strengthening the capital structure, Islamic banks protect themselves from decreasing the capital adequacy value, so that their capital adequacy ratio still meets the regulatory requirements so that it can survive and maintain continuity his business. Based on the description above, the author intends to investigate how the issuance of Sukuk Fund such as Sukuk owned, and Sukuk sold on ROA, CAR, and FDR on Islamic Banks in Indonesia? Therefore, the authors develop the hypotheses in this study as follows: http://www.iaeme.com/ijciet/index.asp 1532 editor@iaeme.com

A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita, Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution H1: There is a significant influence of the valuation of Sukuk owned and valuation of Sukuk sold on ROA in Islamic Banks in Indonesia. H2: There is a significant influence on the valuation of Sukuk owned and valuation of Sukuk sold on CAR in Islamic Banks in Indonesia. H3: There is a significant influence of the valuation of Sukuk owned and valuation of Sukuk sold on FDR on Islamic Banks in Indonesia. 2. LITERATURE REVIEW 2.1. Definition of Sukuk (Sharia Bonds) Sukuk was defined as a legal document that becomes proof of capital surrender to the ownership of a property that may be transferred and has an eternal or long-term nature [4]. Economic experts define Sukuk in different views. Therefore, it is necessary to be assertive that Sukuk is a sharia investment product that places the use of ownership rights in a tangible asset, usufructs, and services. Alternatively, the reasonableness of the project or a particular form of investment [5]. In general, the formation of Sukuk has at least three parties involved namely the originator or heir who acts as the legal owner of the asset. Then, a Special Purpose Vehicle (SPV) is a trusted body that acts to issue Sukuk certificates, and Sukuk holders or investors who invest in this product (Sukuk). A set of assets will be selected by the originator to be sold to SPV, with the understanding that this asset will be leased back by the originator (if Ijarah Sukuk is used), with the agreed rental value and the specified period will be purchased initially by the originator at the same price. Then the SPV secures its assets with "Sukuk Ijarah" to sell to investors so that the asset becomes the joint property of the investors who agree not to be distributed but entrusted to the SPV for rent and the rental proceeds will be shared with investors according to their respective capital investments. At the time the Sukuk has matured, the flow of rents is stopped and the joint assets owned by the investor, will be sold initially by SPV to the originator and the selling price will be paid initially to each investor according to the initial capital value. 2.2. Banking Performance Bank's Health level is the result of an assessment of the Bank's condition that is carried out on the Bank's risk and performance or in other terms the Bank's Health level is a reflection that a bank can perform its functions properly. [10] [9] define bank health as the ability of a bank to conduct banking operations normally and be able to fulfill all its obligations adequately in ways that are under applicable banking regulations. The definition of the health of the bank above is a comprehensive limitation because the health of the bank does cover the health of a bank to carry out all its banking business activities [8]. In other words, the soundness of the bank is also closely related to the fulfillment of banking regulations (compliance with Bank Indonesia). According to the Bank of Settlement, banks can be said to be healthy if the bank can carry out control over aspects of capital, assets, profitability, management and its liquidity aspects. Definition of bank health according to Bank Indonesia if the bank meets bank health requirements by taking into account Capital, Asset Quality, Management Quality, Rentability, Liquidity, Solvability, and other aspects related to the bank's business [8]. Banks need to identify problems that might arise from bank operations due to the increasing complexity and risk profile. For banks, the final result of the assessment of the bank condition can be used as a means of establishing a business strategy in the future while http://www.iaeme.com/ijciet/index.asp 1533 editor@iaeme.com

Sukuk Fund Issuance on Sharia Banking Performance in Indonesia for Bank Indonesia, it is used as a means of determining and implementing a bank supervision strategy by Bank Indonesia [8][9][17]. Bank Indonesia requires banks to submit periodic financial reports to the Central Bank and publish the report through print media: newspapers and magazines. The form and contents of the report are set uniformly. This financial report is used by the Central Bank and the public to assess the health of the bank concerned 2.3. Assessment Techniques with the CAMELS Method The following is an explanation of the CAMEL method: 1. Capital At this time, the requirement to establish a new bank requires paid up capital of Rp. 3 trillion. However, the bank's provisions are already in place, and the capital number may be less than that amount. The definition of capital adequacy is not only calculated from the nominal amount, but also from the capital adequacy ratio, or often referred to as the Capital Adequacy Ratio (CAR). This ratio is a comparison between the amount of capital and risk-weighted assets (RWA). At this time following the applicable provisions, the CAR of a bank is at least 8%. 2. Quality of Assets Although in real terms banks have substantial capital, if the quality of their productive assets is weak, the capital condition may be worse. This is partly related to various issues such as the formation of reserves, valuation of assets, provision of loans to related parties, and so on. 3. Management Assessment of management factors in assessing the soundness of commercial banks is carried out by evaluating the management of the bank concerned. The assessment is carried out using about one hundred questionnaires grouped into two major groups, namely the general management group and the risk management questionnaire. 4. Earning Assessment is based on the profitability or earning of a bank that is seeing the ability of a bank in creating profit. Assessment in this element based on two types, namely: Profit to Total Assets Ratio (ROA / Earning 1). Operating Expense Ratio to Operating Income (Earning 2). 5. Liquidity Liquidity is a ratio to assess bank liquidity. Assessment of bank liquidity is based on two type ratios, namely: The ratio of the net liabilities of call money to current assets. The ratio between credit to funds received by the bank The level of health of commercial banks can be seen from two sides, qualitative and quantitative. From a qualitative perspective, it is seen from the manager, the history, the owner. The quantitative side can be seen from the ratio of liquidity, solvency, profitability, capital adequacy ratio and Financing Deposit Ratio. 3. RESEARCH METHODOLOGY 3.1. Research Approaches and Materials http://www.iaeme.com/ijciet/index.asp 1534 editor@iaeme.com

A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita, Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution This research approach uses a quantitative approach which is dimensioned causal relationship, that is a study conducted on facts to prove empirically about the influence of a variable with other variables [18] [21]. The dependent variable (Y) is Return on Assets (ROA), Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR) and the independent variable (X) is the value of the Sukuk owned and the Sukuk sold. 3.2. Conceptual Framework In the picture below shows Sukuk (Sharia bonds) affect Return on Assets (ROA), Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR). Figure 1 Conceptual Framework 3.3. Parameters observed Variables Operational definitions used in this study are Return on Assets (ROA), Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Valuation of Sukuk owned and valuation of Sukuk sold. Table 2 Variable Operationalization No Variables Definitions Indicators Scale 1. Return On Ratio Asset (ROA) Ratio between profit before tax to average assets owned by a bank in one period. Profit Before Tax x 100 % ROA= Total Average asset 2 Capital Adequacy Ratio (CAR) The banks must have the minimum capital adequacy ratio. CAR = Capital x 100% Risk Weighted Assets Ratio 3 Financing to Deposit Ratio (FDR). Comparison between total loans disbursed and total third party funds. FDR = Financing x 100% Total Third Party Fund Ratio 4 Valuation of Sukuk owned 5 Valuation of Sukuk sold Sukuk Nominal Value owned by Islamic Banking. Sukuk Nominal Value sold by Islamic Banking Valuation of Sukuk owned Valuation of Sukuk sold Ratio Ratio 3.4. Types and Scope of Research http://www.iaeme.com/ijciet/index.asp 1535 editor@iaeme.com

Sukuk Fund Issuance on Sharia Banking Performance in Indonesia The data in this study is the annual data on Islamic Banking which is the source of Bank Indonesia financial statements. The observed data for this research variable is data for the last four years from 2014 to 2017. 3.5. Data Collection Techniques Data collection techniques in this study include documentation methods where data has been collected from data collection agencies, and it has been published to the public (Kuncoro, 2006). 3.6. Population and Samples The population of this study was all Islamic Banking in Indonesia which was recorded in the financial statements of the Financial Services Authority (OJK) from 2014-2017. 3.7. Data Analysis Techniques This study analyzes the data with multiple linear regression method that is run with SPSS Software. Y 1 = α + β 1 X 1 + β 2 X 2 + e Y 2 = α + β 1 X 1 + β 2 X 2 + e Y 3 = α + β 1 X 1 + β 2 X 2 + e Terms: Y 1 : ROA β 1 - β 2 : Regression Coefficient Y 2 : CAR α: Constant coefficient Y 3 : FDR e: Error term X 1 : Valuation of Sukuk owned X 2 : Valuation of Sukuk sold 4. RESULTS AND DISCUSSION 4.1. Descriptive Statistics Descriptive analysis is an analysis that concisely describes numerical data. This analysis aims to describe the effect of Sukuk Fund Issuance on Sharia Banking Performance based on time series sample data during 2014 until 2017. The following are the results of the descriptive statistics test from this study. Table 3 Descriptive statistics Descriptive Statistics N Minimum Maximum Mean Std. Deviation SKD 48 4606.84 35386.20 16792.76 8780.60 SKT 48 500.00 3150.00 1669.39 837.21 ROA 48.08 1.16 0.76 0.28 CAR 48 14.09 17.91 15.64 0.96 FDR 48 79.65 102.22 89.48 6.43 Valid N (listwise) 48 http://www.iaeme.com/ijciet/index.asp 1536 editor@iaeme.com

A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita, Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution The table above shows that the Sukuk Valuation Owned by Islamic Banking has an average value of 16792.76 billion, with a standard deviation of 8780.60 billion. This data also shows the lowest value is 4606.84 billion and the highest value is 35386.20 billion. The data also shows the data distribution is normal. The reason is the average value is higher than the standard deviation value reflects homogeneous data. The valuation of Sukuk sold by Islamic Banking has an average value of 1669.39 billion with a standard deviation of 837.21 billion. The data explains that the lowest value is 500 billion and the highest value is 3150 billion. Data distribution is normal, and the reason is the average value is higher than the standard deviation value reflects the data is homogeneous. ROA value in Islamic Banking has an average value of 0.76%, with a standard deviation of 0.28%. The lowest value is 0.8%, and the highest value is 1.16%. Data distribution is also normal. It is marked by an average value higher than the standard deviation value. It can also be stated the data is homogeneous. CAR value in Islamic Banking has an average value of 15.64% with a standard deviation of 0.96%. The lowest value is 14.09%, and the highest value is 17.91%. Data distribution is normal, and the reason is the average value is higher than the standard deviation value which can be stated the data is homogeneous. FDR value in Islamic Banking has an average value of 89.48% with a standard deviation value of 6.43%. The lowest value is 79.65%, and the highest value is 102.22%. Data distribution is normal, and the reason is the average value is higher than the standard deviation value. 4.2. Normality Test Table 4 Results of Normality Test One-Sample Kolmogorov-Smirnov Test Unstandardized Residual Unstandardize d Residual Unstandardized Residual N 48 48 48 Normal Mean.0000000.0000000.0000000 Parameters a Std. Deviation.27080750.84677774 2.59434367 Most Extreme Differences Absolute.103.114.069 Positive.064.107.056 Negative -.103 -.114 -.069 Kolmogorov-Smirnov Z.714.789.476 Asymp. Sig. (2-tailed).688.563.977 a. Test distribution is Normal. The above normality test table uses Kolmogorov-Smirnov where the values of k-s are 0.688, 0.563 and 0.977. The results explained that these values were higher than the significance level of 0.05. Thus the data has been normally distributed. http://www.iaeme.com/ijciet/index.asp 1537 editor@iaeme.com

Sukuk Fund Issuance on Sharia Banking Performance in Indonesia 4.3. Multicollinearity Test Table 5 Results of Multicollinearity Model 1 (Constant) Collinearity Statistics Tolerance VIF SKD 1.000 1.000 SKT 1.000 1.000 Based on the table from the results of the multicollinearity test above, explains that there are no variables that have a VIF value <10. The tolerance value of all variables is more than (>) 0.1. Thus it was concluded that the regression model for the first equation in this study was free from multicollinearity. 4.4. Heteroscedasticity Test The heteroscedasticity test aims to assess whether in the regression model there is residual variation inequality from other observations. If there is no clear pattern, and the points spread above and below the number 0 on the Y axis, it shows that there is no heteroscedasticity. Thus the regression model is feasible to predict decisions. 4.5. Autocorrelation Test Autocorrelation test aims to test whether in the linear regression model there is a correlation between the interfering error in period t with the error in the period t-1 or earlier. Autocorrelation problems occur in regression models with time series data. How to identify is to see the value of Durbin Watson (D-W): 1. If the D-W value is below -2, that means there is autocorrelation. 2. If the D-W value is between -2 to +2, that means there is no autocorrelation. 3. If the D-W value is above +2, that means there is a negative autocorrelation. Here are the results of the autocorrelation test shown below: Table 6 Results of Autocorrelation Test First Regression Equation Model R R Square Model Summary b Adjusted R Square Std. Error of the Estimate Durbin- Watson 1.223 a.050.008.27676 1.771 b. Dependent Variable: ROA From the table above shows the results of the first regression equation autocorrelation test which explains that the statistical value of Durbin-Watson was 1.771 or between 1.0 until 2.0. It indicated that there was no negative or positive autocorrelation. http://www.iaeme.com/ijciet/index.asp 1538 editor@iaeme.com

A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita, Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution Table 7 Results of Autocorrelation Test Second Regression Equation Model R R Square Model Summary b Adjusted R Square Std. Error of the Estimate Durbin- Watson 1.467 a.218.183.86539 1.435 b. Dependent Variable: CAR For the results of the second regression equation autocorrelation test that was found the statistical value of Durbin-Watson was 1.435 or between 1.0 until 2.0. It showed that there was no negative or positive autocorrelation. Table 8 Results of Autocorrelation Test Third Regression Equation Model R R Square Model Summary b Adjusted R Square Std. Error of the Estimate Durbin- Watson 1.915 a.837.830 2.65137 1.528 b. Dependent Variable: FDR For the results of the third regression equation autocorrelation test, it was found that the statistical value of Durbin-Watson was 1.528 or between 1.0 until 2.0. It showed that there was no negative or positive autocorrelation. 4.6. The Coefficient of Determination (R2) The coefficient of determination (R2) is to see how the variation in the value of the dependent variable is affected by the variation in the value of the independent variable. The coefficient of determination between zero and one, the value close to one will explain that the independent variables provide the information needed to predict the dependent variable. The following is the coefficient of determination from this study: Table 9 Coefficient of determination First Regression Equation Model R R Square Model Summary b Adjusted R Square Std. Error of the Estimate Durbin- Watson 1.223 a.050.008.27676 1.771 b. Dependent Variable: ROA From the table of the first regression equation above, the value of Adjusted R square is 0.008 which means that only 8% variation of ROA can be explained by the second variation of the variable Sukuk owned (SKD), and Sukuk sold (SKT), whereas 92 percent (100-8% = 92%) is explained by other reasons which are outside the regression model. Value of Std. Estimation Error (SEE) is 0.27676. These results explain the smaller SEE value makes the regression model more appropriate to predict the dependent variable. http://www.iaeme.com/ijciet/index.asp 1539 editor@iaeme.com

Sukuk Fund Issuance on Sharia Banking Performance in Indonesia Table 10 Coefficient of determination Second Regression Equation Model Summary b Adjusted R Std. Error of Durbin- Model R R Square Square the Estimate Watson 1.467 a.218.183.86539 1.435 b. Dependent Variable: CAR From the table of the second regression equation above, the value of Adjusted R square is 0.183 which means that only 18.3% variation of CAR can be explained by the second variation of the variable Sukuk owned (SKD), and Sukuk sold (SKT), whereas 81.7 percent (100-18.3% = 81.7%) is explained by other reasons which are outside the regression model. Value of Std. Estimation Error (SEE) is 0.86539. These results explain the smaller SEE value makes the regression model more appropriate to predict the dependent variable. Table 11 Coefficient of determination for the third regression equation Model R R Square Model Summary b Adjusted R Square Std. Error of the Estimate Durbin- Watson 1.915 a.837.830 2.65137 1.528 b. Dependent Variable: FDR From the table of the third regression equation above, the value of Adjusted R square is 0.830 which means 83% variation of FDR can be explained by the second variation of the variable Sukuk owned (SKD), and Sukuk sold (SKT), whereas 17 percent (100-83% = 17%) is explained by other reasons which are outside the regression model. Value of Std. Estimation Error (SEE) is 0.265137. These results explain the smaller SEE value makes the regression model more appropriate to predict the dependent variable. 4.7. F-Test Statistics Table 12 F-test for the first regression equation ANOVA b Sum of Model Squares df Mean Square F Sig. 1 Regression.181 2.090 1.181.316 a Residual 3.447 45.077 Total 3.628 47 b. Dependent Variable: ROA From the F-test for the first regression equation explains that F-count has a value of 1,181, while F-table (α = 0.05; df regression 2; df residual; 47) is equal to 2.87 with a significance level of 0.316. This result shows F-count <F-table or 1,181 <2.87. The significance level is higher than the probability of 0.05 (0.316> 0.05). Thus, these results indicate that the hypothesis (Ha) is rejected and the Sukuk variable owned (SKD), and Sukuk sold (SKT) simultaneously have an insignificant effect on the Return on Asset (ROA) variable. http://www.iaeme.com/ijciet/index.asp 1540 editor@iaeme.com

A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita, Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution Table 13 F-test for the second regression equation ANOVA b Sum of Model Squares df Mean Square F Sig. 1 Regression 9.377 2 4.688 6.260.004 a Residual 33.701 45.749 Total 43.078 47 b. Dependent Variable: CAR From the F-test for the second regression equation explains that F-count has a value of 6.260, while F-table (α = 0.05; df regression 2; df residual; 47) is equal to 2.87 with a significance level of 0.004. This result shows F-count > F-table or 6.260 > 2.87. The significance level is lower than the probability of 0.05 (0.004 < 0.05). Thus, these results indicate that the hypothesis (Ha) is accepted and the Sukuk variable owned (SKD), and Sukuk sold (SKT) simultaneously have the significant effect on Capital Adequacy Ratio (CAR). Table 14 F-test for the third regression equation ANOVA b Sum of Model Squares df Mean Square F Sig. 1 Regression 1625.152 2 812.576 115.591.000 a Residual 316.339 45 7.030 Total 1941.491 47 b. Dependent Variable: FDR From the F-test for the third regression equation explains that F-count has a value of 115.591, while F-table (α = 0.05; df regression 2; df residual; 47) is equal to 2.87 with a significance level of 0.000. This result shows F-count > F-table or 115.591 > 2.87. The significance level is lower than the probability of 0.05 (0.000 < 0.05). Thus, these results indicate that the hypothesis (Ha) is accepted and the Sukuk variable owned (SKD), and Sukuk sold (SKT) simultaneously have the significant effect on Financial Debt Ratio (FDR). 4.8. T-Test Table 15 Results of t-test For the First Regression Equation Coefficients a Unstandardized Coefficients Standardized Coefficients Model B Std. Error Beta t Sig. 1 (Constant).843.118 7.133.000 SKD 2.323E-6.000.073.505.616 SKT -7.016E-5.000 -.211-1.455.153 a. Dependent Variable: ROA http://www.iaeme.com/ijciet/index.asp 1541 editor@iaeme.com

Sukuk Fund Issuance on Sharia Banking Performance in Indonesia Based on the table above, t-test result shows the first regression equation as follows: Sukuk owned (SKD) has a significant value of 0.616, the value is higher than the degree of test 0.05 (0.616> 0.05), then the effect of Sukuk owned (SKD) on Return on Assets (ROA) is not significant at the degree of test 0.05. This result indicates that the Sukuk owned (SKD) partially has a positive but insignificant effect on Return on Assets (ROA). The Sukuk sold (SKT) has a significant value of 0.153, the value is higher than the degree of test 0.05 (0.153> 0.05), then the effect of Sukuk sold (SKT) on Return on Assets (ROA) is not significant at the degree of test 0.05. This result explains that the Sukuk sold (SKT) partially has a negative and insignificant effect on Return on Assets (ROA). Based on the data that has been displayed, the results of the t-test for the second regression equation are as follows: Table 16 Results of t-test For the second Regression Equation Unstandardized Coefficients Coefficients a Standardized Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 15.261.369 41.320.000 SKD 4.581E-5.000.420 3.186.003 SKT.000.000 -.206-1.561.126 a. Dependent Variable: CAR Based on the table above, t-test result shows the second regression equation as follows: Sukuk owned (SKD) has a significant value of 0.003, the value is lower than the degree of test 0.05 (0.003 < 0.05), then the effect of Sukuk owned (SKD) on Capital Adequacy Ratio (CAR) is significant at the degree of test 0.05. The result indicates that the Sukuk owned (SKD) partially has a positive and significant effect on Capital Adequacy Ratio (CAR). The Sukuk sold (SKT) has a significant value of 0.126, the value is higher than the 0.05 degree of test (0.126 > 0.05), then the effect of Sukuk sold (SKT) on Capital Adequacy Ratio (CAR) is insignificant at the degree of test 0.05. The result explains that the Sukuk sold (SKT) partially has a negative and insignificant effect on Capital Adequacy Ratio (CAR). Based on the data that has been displayed, the results of the t-test for the third regression equation are as follows: Model Table 17 Results of t-test For the Third Regression Equation Unstandardized Coefficients Coefficients a Standardized Coefficients B Std. Error Beta 1 (Constant) 100.628 1.132 88.927.000 t Sig. SKD.000.000 -.915-15.205.000 SKT 6.041E-5.000.008.131.897 a. Dependent Variable: FDR Based on the table above, t-test result shows the third regression equation as follows: http://www.iaeme.com/ijciet/index.asp 1542 editor@iaeme.com

A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita, Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution Sukuk owned (SKD) has a significant value of 0.003, the value is lower than the degree of test 0.05 (0.000 < 0.05), then the effect of Sukuk owned (SKD) on Financial Debt Ratio (FDR) is significant at the degree of test 0.05. The result indicates that the Sukuk owned (SKD) partially has a negative and significant effect on Financial Debt Ratio (FDR). The Sukuk sold (SKT) has a significant value of 0.897, the value is higher than the 0.05 degree of test (0.897 > 0.05), then the effect of Sukuk sold (SKT) on Financial Debt Ratio (FDR) is insignificant at the degree of test 0.05. The result explains that the Sukuk sold (SKT) partially has a positive and insignificant effect on Financial Debt Ratio (FDR). 5. CONCLUSIONS AND SUGGESTIONS 5.1. Conclusions Based on the results of the study the authors concluded as follows: 1. First Regression Analysis Simultaneously Sukuk owned (SKD) and Sukuk sold (SKT) does not have a significant effect on ROA. Partially the Sukuk (SKD) does not have a significant effect on ROA. Partially the Sukuk sold (SKT) does not have a significant effect on ROA. 2. Second Regression Analysis Simultaneously Sukuk owned (SKD) and Sukuk sold (SKT) have a significant effect on CAR. Partially the Sukuk owned (SKD) has a significant effect on CAR. Partially the Sukuk sold (SKT) does not have a significant effect on CAR. 3. Third Regression Analysis Simultaneously Sukuk owned (SKD) and Sukuk sold (SKT) have a significant effect on FDR. Partially the Sukuk owned (SKD) has a significant effect on FDR. Partially the Sukuk sold (SKT) does not have a significant effect on FDR. 5.2. Suggestions The authors propose the following suggestions: For Islamic Banking Islamic banks should determine the value of Sukuk in accordance with their capital requirements in order to maintain the CAR and FDR values. In this case, the influence of the Sukuk (SKD) influences the CAR and FDR. For Further Researchers The authors expect to test other variables such as EPS, ROE, to further expand the results of this study. It is recommended to use other models such as moderating regression and path analysis. REFERENCES [1] Al-Amine and M. Al-Bashir, Sukuk market: Innovations and challenges, 2008. [2] A. Jobst, P. Kunzel, P. Mills, and A. Sy, Islamic bond issuance: what sovereign debt managers need to know, Int. J. Islam. Middle East. Financ. Manag., vol. 1, no. 4, pp. 330 344, 2008. [3] A. W. Dusuki, Do equity-based Sukuk structures in Islamic capital markets manifest the objectives of Shariah, J. Financ. Serv. Mark., vol. 15, no. 3, pp. 203 214, 2010. http://www.iaeme.com/ijciet/index.asp 1543 editor@iaeme.com

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