Discourses of sustainable finance implementation in Islamic bank (Cases studies in Bank Mandiri Syariah 2018)

Abstract

The execution of sustainable finance (SF) in Islamic Bank (Sharia B ank) should be fused with financial products and services due to the compatibility of SF programs with Sharia rules. This article points to define the progress of SF implementation in the Bank Mandiri Syariah before the mandatory to implement regulation fr om financial Services Authority No. 1/POJK. 3/2017. The method used is qualitative and confined with the following research question (1) What is the precedence of the Government in implementing sustainable finance by regulation No. 51/POJK. 03/2017? (2) Ho w is the progress of sustainable financial implementation on sharia banks during the period of 2018? According to the results of the study through secondary data from financial statements, annual reports, and the company's internal data. The Bank Mandiri Syariah has implemented SF during 2018 with the well presented portion of SF financing ratio fr om total financing amounting to 29.56%. Beside of that Bank Mandiri Syariah also already established the sustainable finance plan for five years (2019 2014). Nevertheless, to increase the community trust in Sharia banks regarding the suitable implement of SF in the future. The Islamic Bank need to ensure the commit from all stakeholders to make sharia products and services that implant in the SF program.