Open Journal Systems

What Strategies are Employed in the Implementation of Sharia Bank Green Banking?

Wahyu Syarvina, Azhari Akmal Tarigan, Marliyah Marliyah

Abstract

Green banking is an approach that aims to mitigate market competition and preserve the environment since the banking sector is reliant on a healthy environment for its sustainability. If the banking sector does not implement this, it will increase legal risks, financing risks, and the bank's reputation. This research aims to find out the green banking development strategy of Sharia banks in Indonesia, along with the problems and potential solutions for its implementation. This research employs the Analytic Network Process (ANP) method and is processed using the SuperDecision software. The findings of this study reveal that Islamic banking in Indonesia has three distinct problems: The primary focus is on regulatory issues, followed by human resources problems, and subsequently, governance matters. Respondents have a rater agreement of W = 0.10345. The best solution to overcome the problem of developing green banking for Islamic banks in Indonesia is a human resources solution, followed by a regulatory solution and a governance solution. The level of respondent agreement or rater agreement W = 0.05461. Strategies for developing green banking for Sharia banks in Indonesia include improving the quality of human resources, implementing government support initiatives, and strengthening governance systems. Respondents have a rater agreement of W = 0.04598. Strategies for developing green banking for Sharia banks in Indonesia include strategies for improving the quality of human resources through employee green training and capabilities, strategies for implementing government support initiatives through the establishment of policies that facilitate the enactment of green banking in Sharia banks, and strategies for strengthening governance system by complying with the precautionary principle for an excellent image of Sharia banks.

Keywords

Analytic Network Process; Green Banking; Sharia Bank; Regulation

References

Agus Salim, M. (2018). Kesiapan Pemerintah Menerapkan Green Banking Melalui Pojk Dalam Mewujudkan Pembangunan Berkelanjutan Berdasarkan Hukum Positif Di Indonesia. Yustitia, 4(2), 119–141. https://doi.org/10.31943/yustitia.v4i2.40

Akter, N., Siddik, A. B., & Mondal, M. S. Al. (2017). Sustainability Reporting on Green Financing : A Study of Listed Private Sustainability. Journal of Business and Technology, XII(July-December), 14–27.

Andrianto, & A, F. M. (2019). Manajemen Bank Syariah (Implementasi Teori dan Praktek). CV. Penerbit Qiara Media.

Anggraini, T. (2015). Lembaga Keuangan Syariah dan Dinamika Sosial. Febi UINSU Press.

Apridawati, N. D., & Hermanto, S. B. (2020). Pengaruh Corporate Social Responsibility, Profitabilitas, Leverage dan Ukuran Perusahaan terhadap Nilai Perusahaan. Jurnal Ilmu Dan Riset Akuntansi, 9(11), 1–23.

Ascarya. (2005). Analytic Network Process (ANP): Pendekatan Baru Studi Kualitatif. Seminar Intern Program Magister Akuntansi Fakultas Ekonomi Di Universitas Trisakti.

Asiyanbi, A. P. (2018). Financialisation in the green economy: Material connections, markets in the making and Foucauldian organising actions. Environment and Planning A: Economy and Space, 50(3), 531–548.

Azmir Hossain, Rahman, M. M., Hossain, M. S., & Karim, M. R. (2020). The Effects of Green Banking Practices on Financial Performance of Listed Banking Companies in Bangladesh. Canadian Journal of Business and Information Studies, 120–128. https://doi.org/10.34104/cjbis.020.01200128

Bag, S., Wood, L. C., Mangla, S. K., & Luthra, S. (2020). Procurement 4.0 and its implications on business process performance in a circular economy. Resources, Conservation and Recycling, 152, 104502. https://doi.org/10.1016/j.resconrec.2019.104502

Bose, S., Khan, H. Z., Rashid, A., & Islam, S. (2018). What drives green banking disclosure? An institutional and corporate governance perspective. Asia Pacific Journal of Management, 35(2), 501–527. https://doi.org/10.1007/s10490-017-9528-x

Budiantoro, S. (2014). Mengawal Green Banking Indonesia Dalam Kerangka Pembangunan Berkelanjutan. Prakarsa.

Bukhari, S. A. A., Hashim, F., Amran, A. Bin, & Hyder, K. (2019). Green Banking and Islam: two sides of the same coin. Journal of Islamic Marketing, 11(4), 977–1000. https://doi.org/10.1108/JIMA-09-2018-0154

Choubey, A., & Sharma, M. (2022). Green banking: the case of the commercial banking sector in Delhi NCR. Journal of Environmental Planning and Management, 65(11), 1975–1998. https://doi.org/10.1080/09640568.2021.1955336

Fad, M. F. (2021). Revitalization of Fiqh Al-Bi’ah in the Implementation of Green Banking for Islamic Bank. Journal of Islamic Economics Lariba, 11–24. https://doi.org/10.20885/jielariba.vol7.iss1.art2

Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.

Freeman, R. E. E., & McVea, J. (2001). A Stakeholder Approach to Strategic Management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263511

Ghozali, I., & Chariri, A. (2007). Teori Akuntansi. Badan Penerbit Universitas Diponegoro.

Handajani, L., Rifai, A., & Husnan, L. H. (2019). Study of The Initiation of Green Banking Practices at State-owned Bank. Jurnal Economia, 15(1), 1–16. https://doi.org/10.21831/economia.v15i1.21954

Hidup, D. S. D. A. dan L. (2019). Green Economy: Prakarsa Strategis Pengembangan Konsep Green Economy. Bappenas.

Hoque, N., Mowla, M. M., Uddin, M. S., Mamun, A., & Uddin, M. R. (2019). Green Banking Practices in Bangladesh: A Critical Investigation. International Journal of Economics and Finance, 11(3), 58. https://doi.org/10.5539/ijef.v11n3p58

Iqbal, M., Suviitawat, A., Nisha, N., & Rifat, A. (2016). The role of commercial banks in green banking adoption: a Bangladesh perspective. International Journal of Green Economics, 10(3/4), 226. https://doi.org/10.1504/IJGE.2016.10002862

Islam, M. J. (2020). Sustainability Reporting of Banking Companies in Bangladesh: A Study on Environmental Aspect. Canadian Journal of Business and Information Studies, 35–44. https://doi.org/10.34104/cjbis.020.035044

Islam, M. J., Roy, S. K., Miah, M., & Das, S. K. (2020). A Review on Corporate Environmental Reporting (CER): An Emerging Issue in the Corporate World. Canadian Journal of Business and Information Studies, 45–53. https://doi.org/10.34104/cjbis.020.045053

Julia, T., & Kassim, S. (2020). Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework. Journal of Islamic Marketing, 11(3), 729–744. https://doi.org/10.1108/JIMA-10-2017-0105

Kala, K. N., Vidyakala, K., & S, J. (2020). A Study on The Impact of Green Banking Practices on Bank’s Environmental Performance With Special Reference To Coimbatore City. African Journal of Business and Economic Research, 15(3), 1–6.

Kalbarini, R. Y., & Suprayogi, N. (2015). Implementasi Akuntabilitas Dalam Konsep Metafora Amanah di Lembaga Bisnis Syariah (Studi Kasus : Swalayan Pamella Yogyakarta). Jurnal Ekonomi Syariah Teori Dan Terapan, 1(7), 506. https://doi.org/10.20473/vol1iss20147pp506-517

Khairunnessa, F., Vazquez-Brust, D. A., & Yakovleva, N. (2021). A Review of the Recent Developments of Green Banking in Bangladesh. Sustainability, 13(4), 1904. https://doi.org/10.3390/su13041904

Khan, N., Sarwar, A., & Tan, B. C. (2021). Determinants of purchase intention of halal cosmetic products among Generation Y consumers. Journal of Islamic Marketing, 12(8), 1461–1476. https://doi.org/10.1108/JIMA-11-2019-0248

Makarim, A. F. (2021). Pengaruh Praktik Green Human Resource Management (GRHM) Terhadap Turnover Intentions Dimensi Lingkungan Kerja. 1–118.

Masukujjaman, M., & Aktar, S. (2014). Green Banking in Bangladesh: A Commitment towards the Global Initiatives. Journal of Business and Technology (Dhaka), 8(1–2), 17–40. https://doi.org/10.3329/jbt.v8i1-2.18284

Mihajat, M. I. S. (2021). Oman’s Islamic Banking Performance amidst Covid-19 Outbreak: Prospects and Challenges. Shirkah: Journal of Economics and Business, 6(1). https://doi.org/10.22515/shirkah.v6i1.374

Mozib Lalon, R. (2015). Green Banking: Going Green. International Journal of Economics, Finance and Management Sciences, 3(1), 34. https://doi.org/10.11648/j.ijefm.20150301.15

Muhammad Hussain Qureshi, & Talat Hussain. (2020). Green Banking Products: Challenges and Issues in Islamic and Traditional Banks of Pakistan. Journal of Accounting and Finance in Emerging Economies, 6(3), 703–712. https://doi.org/10.26710/jafee.v6i3.1177

Nasution, R. (2018). Sinergi Dan Optimalisasi Green Banking Perbankan Syariah Dalam Mewujudkan Suistainable Finance. EKONOMIKAWAN: Jurnal Ilmu Ekonomi Dan Studi Pembangunan, 18(1), 34–52. https://doi.org/10.30596/ekonomikawan.v18i1.2151

Nasution, Y. W., Marliyah, M., & Tambunan, K. (2022). Dana Sukuk sebagai Alternative Sumber Dana Pembiayaan pada Bank Syariah. Economic Reviews Journal, 2(1), 55–67. https://doi.org/10.56709/mrj.v2i1.41

NURAENI, A., & RINI, R. (2019). Faktor-Faktor Yang Mempengaruhi Pengungkapan Islamic Social Reporting. JEBI (Jurnal Ekonomi Dan Bisnis Islam), 4(1), 77. https://doi.org/10.15548/jebi.v4i1.220

OJK, T. S. F. D. I. dan T. L. S. S. F. (2021). Roadmap Keuangan Berkelanjutan Tahap II (2021–2025). Otoritas Jasa Keuangan. https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/Roadmap-Keuangan-Berkelanjutan-Tahap-II-%282021-2025%29/Roadmap Keuangan Berkelanjutan Tahap II %282021-2025%29.pdf

Panjaitan, L. T. (2015). Bank Ramah Lingkungan: Panduan Keberlanjutan (Sustainability). Penebar Plus.

Park, H., & Kim, J. D. (2020). Transition towards green banking: role of financial regulators and financial institutions. Asian Journal of Sustainability and Social Responsibility, 5(1), 5. https://doi.org/10.1186/s41180-020-00034-3

Rahmayati, R., Mujiatun, S., & Sari, M. (2022). Islamic Green Banking At Bank Pembangunan Daerah In Indonesia. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 5(1), 74–93. https://doi.org/10.31538/iijse.v5i1.1850

Razzaq, A., Wang, Y., Chupradit, S., Suksatan, W., & Shahzad, F. (2021). Asymmetric inter-linkages between green technology innovation and consumption-based carbon emissions in BRICS countries using quantile-on-quantile framework. Technology in Society, 66, 101656. https://doi.org/10.1016/j.techsoc.2021.101656

Rehman, A., Ullah, I., Afridi, F.-A., Ullah, Z., Zeeshan, M., Hussain, A., & Rahman, H. U. (2021). Adoption of green banking practices and environmental performance in Pakistan: a demonstration of structural equation modelling. Environment, Development and Sustainability, 23(9), 13200–13220. https://doi.org/10.1007/s10668-020-01206-x

Reverte, C. (2009). Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms. Journal of Business Ethics, 88(2), 351–366. https://doi.org/10.1007/s10551-008-9968-9

Risal, N., & Joshi, S. K. (2018). Measuring Green Banking Practices on Bank’s Environmental Performance: Empirical Evidence from Kathmandu valley. Journal of Business and Social Sciences, 2(1), 44–56. https://doi.org/10.3126/jbss.v2i1.22827

Rukmana, U. N. A., Akram, & Pituringsih, E. (2020). Prediktor Pengungkapan Corporate Social Responsibility Dan Pengaruhnya Terhadap Nilai Perusahaan Predictors of Corporate Social Responsibility Disclousure and Its Effect on Firm Value. Jurnal EMBA : Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 8(4), 156–167.

Santia, T. (2020). Berapa Jumlah UMKM di Indonesia? Ini Hitungannya. Liputan6.Com. https://www.liputan6.com/bisnis/read/4346352/berapa-jumlah-umkm-di-indonesia-ini-hitungannya

Sarma, P., & Roy, A. (2021). A Scientometric analysis of literature on Green Banking (1995-March 2019). Journal of Sustainable Finance & Investment, 11(2), 143–162. https://doi.org/10.1080/20430795.2020.1711500

Senja Setyoko, S., & Wijayanti, R. (2022). Green Banking dan Kinerja Bank: Mekanisme Corporate Governance. Jurnal Ekonomi Dan Bisnis, 10(1), 502–512.

Setiawan, A. (2021). Membenahi Tata Kelola Sampah Nasional. Portal Informasi Indonesia. https://indonesia.go.id/kategori/indonesia-dalam-angka/2533/membenahi-tata-kelola-sampah-nasional

Shahzad, M., Qu, Y., Zafar, A. U., & Appolloni, A. (2021). Does the interaction between the knowledge management process and sustainable development practices boost corporate green innovation? Business Strategy and the Environment, 30(8), 4206–4222. https://doi.org/10.1002/bse.2865

Shakil, M. H., Azam, M. K. G., Tasnia, M., & Munim, Z. H. (2014). An Evaluation of Green Banking Practices in Bangladesh. IOSR Journal of Business and Management, 16(11), 67–73. https://doi.org/10.9790/487x-161146773

Sharma, M., & Choubey, A. (2022). Green banking initiatives: a qualitative study on Indian banking sector. Environment, Development and Sustainability, 24(1), 293–319. https://doi.org/10.1007/s10668-021-01426-9

Sharmeen, K., Hasan, R., & Miah, M. D. (2019). Underpinning the benefits of green banking: A comparative study between Islamic and conventional banks in Bangladesh. Thunderbird International Business Review, 61(5), 735–744. https://doi.org/10.1002/tie.22031

Shaumya, S., & Arulrajah, A. (2017). The Impact of Green Banking Practices on Bank�s Environmental Performance: Evidence from Sri Lanka. Journal of Finance and Bank Management. https://doi.org/10.15640/jfbm.v5n1a7

SIPSN. (2023). Capaian Kinerja Pengelolaan Sampah. Kementerian Lingkungan Hidup Dan Kehutanan. https://sipsn.menlhk.go.id/sipsn/

Sudiarti, S., Syarvina, W., & Pohan, I. E. P. (2023). Pengaruh Dana Pihak Ketiga Dan Rasio Keuangan Terhadap Bagi Hasil Mudharabah Dengan Return On Asset Sebagai Variabel Moderating Pada Bank Umum Syariah Periode (2017-2021). JURNAL MANAJEMEN AKUNTANSI (JUMSI), 3(3), 1417–1437.

Syarvina, W. (2020). Manajemen Aset dan Liabilitas Bank Syariah. Febi UINSU Press.

TU, T. T. T., & DUNG, N. T. P. (2017). Factors affecting green banking practices: Exploratory factor analysis on Vietnamese banks. Journal of Economics Development, 24(2), 04–30. https://doi.org/10.24311/jed/2017.24.2.05

Uddin, M. N., & Ahmmed, M. (2018). Islamic Banking and Green Banking for Sustainable Development: Evidence from Bangladesh. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 10(1). https://doi.org/10.15408/aiq.v10i1.4563

Yafiz, M., Harahap, I., . M., & Batubara, C. (2019). Customers’ Perception of the Use of Arabic Terminology in Sharia Banking Products. KnE Social Sciences. https://doi.org/10.18502/kss.v3i19.4881

Yanuar Puspitaningrum, H., & Indriani, A. (2021). Pengaruh Tanggung Jawab Sosial Perusahaan dan Good Corporate Governance Terhadap Profitabilitas Perusahaan Dengan Ukuran Perusahaan dan Leverage Sebagai Variabel Kontrol. Diponegoro Journal Of Management , 10(3), 1–15.

Zhang, X., Wang, Z., Zhong, X., Yang, S., & Siddik, A. B. (2022). Do Green Banking Activities Improve the Banks’ Environmental Performance? The Mediating Effect of Green Financing. Sustainability, 14(2), 989. https://doi.org/10.3390/su14020989

Zhixia, C., Hossen, M. M., Muzafary, S. S., & Begum, M. (2018). Green Banking for Environmental Sustainability-Present Status and Future Agenda: Experience from Bangladesh. Asian Economic and Financial Review, 8(5), 571–585. https://doi.org/10.18488/journal.aefr.2018.85.571.585

Zulfikar, R., Mayvita, P. A., & Purboyo. (2019). Pengantar Green Economy. DeePublish.

Full Text: PDF

DOI: 10.21043/equilibrium.v11i2.23004