Impact of Macroeconomic Conditions on the Share of Sharia Bank Financing in Indonesia in 2020 – 2022

This study aims to determine the macroeconomic impact such as inflation, BI rate, exchange rate, and Money Supply (JUB) on the share of financing, namely profit-sharing investment of Islamic banks in Indonesia which includes all Sharia Commercial Banks (BUS) and Sharia Business Units (UUS) in Indonesia. The analysis used is multiple linear regression with the Ordinary Last Square (OLS) method to identify the impact of the independent variable on the dependent variable. During the monthly period 2020-2022, secondary data was collected from the Sharia Banking Statistics (SPS) of OJK, Central Statistics Agency (BPS), and Bank Indonesia (BI). Partial data shows that only the Money Supply (JUB) has an influence on the share of Islamic bank financing in Indonesia, while three other factors, such as inflation, BI rate, and interest rates, have no effect. However, simultaneously, macroeconomic conditions have a significant impact of 27.4% on the share of Islamic bank financing in Indonesia.