Analysis of sharia and conventional monetary policy transmission in the SBY-Jokowi era

Maulida, Nabila Adenina Zidni, Slamet, Slamet ORCID: https://orcid.org/0000-0001-5583-5425 and Suprayitno, Eko ORCID: https://orcid.org/0000-0002-5289-3918 (2026) Analysis of sharia and conventional monetary policy transmission in the SBY-Jokowi era. https://ejournal.upnvj.ac.id/JIEFeS/article/view/12660, 6 (2). pp. 450-479. ISSN 2723 - 6730

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Abstract

This research is motivated by the role of monetary policy in the sustainability of a country's financial system, which is carried out through the transmission of monetary policy in order to achieve an output of economic stability. In Indonesia, the monetary policy transmission system is more complex due to the implementation of a dual financial system, consisting of conventional and sharia systems. In this study, the focus of the study is directed at the path of asset prices as a link between monetary policy, economic growth, and inflation. The main purpose of this study is to examine the short-term and long-term relationship between conventional monetary instruments (BI7DRR) and sharia (SukBI) on asset prices (JCI, SUN, JII, SBSN) as well as macroeconomic output by comparing the government systems of President Susilo Bambang Yudhoyono (2004–2014) and President Joko Widodo (2014–2024). The method used is causal-comparative design with a quantitative approach through the Vector Error Correction Model (VECM) model and the Chow test to determine the structural differences between the two governments. The results showed that there was a long-term cointegration relationship in the two systems, but the transmission patterns differed structurally between periods. The conventional system affects inflation faster, while the Islamic system shows a long-term influence on economic growth. These findings confirm the need to optimize sharia instruments in maintaining national macroeconomic stability.

Item Type:	Journal Article
Keywords:	monetary policy; asset price path; monetary transmission; dual financial system; vecm
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation
Divisions:	Graduate Schools > Magister Programme > Graduate School of Islamic Economics
Depositing User:	Slamet Slamet
Date Deposited:	26 Jun 2026 09:44

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