Performance Evaluation of Islamic Rural Banks for Supporting SDGs 16: A POJK 3/2022 Perspective

This study aims to evaluate the performance of Islamic Rural Banks (IRB) in Central Java and the Special Region of Yogyakarta for supporting SDGs 16 based on POJK Number 3 of 2022. The analysis involved 36 IRB during the 2022-2023 period, focusing on quantitative performance encompassing profitabili...

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Main Authors: Putri Salsabila, Pambuko Zulfikar Bagus, Medias Fahmi, Pratiwi Eko Kurniasih, Janah Nasitotul, Triyanto Andi, Miswanto Agus, Usman Nurodin
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:E3S Web of Conferences
Online Access:https://www.e3s-conferences.org/articles/e3sconf/pdf/2025/22/e3sconf_interconnects2025_04011.pdf
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author Putri Salsabila
Pambuko Zulfikar Bagus
Medias Fahmi
Pratiwi Eko Kurniasih
Janah Nasitotul
Triyanto Andi
Miswanto Agus
Usman Nurodin
author_facet Putri Salsabila
Pambuko Zulfikar Bagus
Medias Fahmi
Pratiwi Eko Kurniasih
Janah Nasitotul
Triyanto Andi
Miswanto Agus
Usman Nurodin
author_sort Putri Salsabila
collection DOAJ
description This study aims to evaluate the performance of Islamic Rural Banks (IRB) in Central Java and the Special Region of Yogyakarta for supporting SDGs 16 based on POJK Number 3 of 2022. The analysis involved 36 IRB during the 2022-2023 period, focusing on quantitative performance encompassing profitability aspects (ROA, OER, NI) and capital adequacy (KPMM and MIAPB). The descriptive analysis results indicate that the performance of IRB in Central Java tends to be more varied compared to Yogyakarta. A decline in ROA, KPMM, and MIAPB, alongside an increase in OER, highlights operational and efficiency challenges, particularly in Central Java. Conversely, Yogyakarta demonstrated better stability despite experiencing a decline in several indicators. Based on difference tests, only NI showed a significant improvement between 2022 and 2023, reflecting better management of productive assets, while other indicators did not show significant changes. This study emphasizes the need for strategies to enhance operational efficiency and asset management to strengthen profitability and maintain capital stability. These findings are expected to provide valuable insights for IRB managers and regulators to improve competitiveness and ensure the sustainability of the IRB industry.
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issn 2267-1242
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publishDate 2025-01-01
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spelling doaj-art-b584276ca9e24e8cb2bfb1bca09db8fc2025-08-20T02:16:49ZengEDP SciencesE3S Web of Conferences2267-12422025-01-016220401110.1051/e3sconf/202562204011e3sconf_interconnects2025_04011Performance Evaluation of Islamic Rural Banks for Supporting SDGs 16: A POJK 3/2022 PerspectivePutri Salsabila0Pambuko Zulfikar Bagus1Medias Fahmi2Pratiwi Eko Kurniasih3Janah Nasitotul4Triyanto Andi5Miswanto Agus6Usman Nurodin7Universitas Muhammadiyah MagelangUniversitas Muhammadiyah MagelangUniversitas Muhammadiyah MagelangUniversitas Muhammadiyah MagelangUniversitas Muhammadiyah MagelangUniversitas Muhammadiyah MagelangUniversitas Muhammadiyah MagelangUniversitas Muhammadiyah MagelangThis study aims to evaluate the performance of Islamic Rural Banks (IRB) in Central Java and the Special Region of Yogyakarta for supporting SDGs 16 based on POJK Number 3 of 2022. The analysis involved 36 IRB during the 2022-2023 period, focusing on quantitative performance encompassing profitability aspects (ROA, OER, NI) and capital adequacy (KPMM and MIAPB). The descriptive analysis results indicate that the performance of IRB in Central Java tends to be more varied compared to Yogyakarta. A decline in ROA, KPMM, and MIAPB, alongside an increase in OER, highlights operational and efficiency challenges, particularly in Central Java. Conversely, Yogyakarta demonstrated better stability despite experiencing a decline in several indicators. Based on difference tests, only NI showed a significant improvement between 2022 and 2023, reflecting better management of productive assets, while other indicators did not show significant changes. This study emphasizes the need for strategies to enhance operational efficiency and asset management to strengthen profitability and maintain capital stability. These findings are expected to provide valuable insights for IRB managers and regulators to improve competitiveness and ensure the sustainability of the IRB industry.https://www.e3s-conferences.org/articles/e3sconf/pdf/2025/22/e3sconf_interconnects2025_04011.pdf
spellingShingle Putri Salsabila
Pambuko Zulfikar Bagus
Medias Fahmi
Pratiwi Eko Kurniasih
Janah Nasitotul
Triyanto Andi
Miswanto Agus
Usman Nurodin
Performance Evaluation of Islamic Rural Banks for Supporting SDGs 16: A POJK 3/2022 Perspective
E3S Web of Conferences
title Performance Evaluation of Islamic Rural Banks for Supporting SDGs 16: A POJK 3/2022 Perspective
title_full Performance Evaluation of Islamic Rural Banks for Supporting SDGs 16: A POJK 3/2022 Perspective
title_fullStr Performance Evaluation of Islamic Rural Banks for Supporting SDGs 16: A POJK 3/2022 Perspective
title_full_unstemmed Performance Evaluation of Islamic Rural Banks for Supporting SDGs 16: A POJK 3/2022 Perspective
title_short Performance Evaluation of Islamic Rural Banks for Supporting SDGs 16: A POJK 3/2022 Perspective
title_sort performance evaluation of islamic rural banks for supporting sdgs 16 a pojk 3 2022 perspective
url https://www.e3s-conferences.org/articles/e3sconf/pdf/2025/22/e3sconf_interconnects2025_04011.pdf
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