Effect Of Financing For Islamic Banking On TheProfitability In Indonesia

The purpose of this research is to prove the performance of Financing for Islamic banking in Indonesia. Based on most types of financing that are already operating, this study will prove is financing profitable for Indonesian Islamic Banking? And which financing is most profitable in Indonesian Islamic banking,? The research method used is desciptive research with quantitative approaches and empirical studies on Islamic Commercial Banks registered at Bank Indonesia during 2013-2017. This study uses secondary data through the official website of the Islamic Commercial Bank. With purposive sampling there are 43 data and tested using multiple linear regression analysis. Result of the analysis proved that Murabahah, Mudharabah, Musyarakah and Ijarah Financing are profitable. The most profitable is mudharabah, while the lowest contributing to profit is Ijarah financing. These finding can be used as a reference for banking institutions to take strategic decisions related to the development of Islamic banking in Indonesia.