THE EFFECT OF MULIA, AR-RUM, SHARIA-COMPLIANT BANK OF INDONESIA’S CERTIFICATE, INFLATION AND BI RATE ON SHARIA PAWNSHOP’S INCOME IN INDONESIA

This research aimed to analyze the effect of Mulia, Ar-Rum, Shariacompliant Bank of Indonesia (sharia-compliant Bank of Indonesia)’s Certificate, Inflation and BI Rate on sharia pawnshop’s income in Indonesia during 20152017. Case study being the object of research was PT. Pegadaian (Persero). Secondary data derived from annual report published by Pegadaian (thereafter called Pawnshop). This study employed a multiple regression analysis method. The result of research showed that (1) Mulia financing affected significantly the income of Sharia pawnshop (thereafter, called Sharia pawnshop), (2) Ar-Rum Financing did not affect significantly the income of Sharia Pawnshop, (3) Shariacompliant Bank of Indonesia’s Certificate did not affect significantly the income of Sharia pawnshop, and (4) inflation affected significantly the income of Sharia pawnshop and BI Rate affected Sharia pawnshop’s income significantly.


INTRODUCTION
The development of sharia-based products is getting more prevalent in Indonesia, so is fiduciary product (Rahn). Irianto, operating manager of Sharia pawnshop says that Sharia pawnshop has 500 outlets and contributes to 63% of sale volume growth until October 2010. Sharia-compliant fiduciary business also increases to 158% in the end of 2010.1 Pegadian's first-semester financial statement, Pawnshop has 4.390-unit outlets, 8 million customers, and sale volume of 60 trillion throughout Indonesia per June 2017.
Pawnshop is an alternative to get fund and financing needs. In addition to providing fiduciary, electricity and telephone billing, and motor-vehicle and precious metal ownership services, Pawnshop also provides financing for business such as inflation rate and gold price. Inflation and income of Pawnshop are indictors to analyze the development of sharia-compliant pawning loan distribution with fluctuating inflation rate impacting on the increase in the basic price of productive and consumptive needs.
In addition, high inflation rate will result in unstable economy, slow economic growth, and increased unemployment rate. Then, high volume of money circulating can result in lowered money value, so that Bank of Indonesia (BI) rate will increase. This increase can impact on the increase in Pawnshop's financing rate, thereby lowering the public or particularly the upper-middle customers' interest in choosing Pawnshop's financing distribution in certain period, as they have no urgent fund need.2 BI rate serves as the standard for loan and saving rate for banks or financial institutions throughout Indonesia. Market mechanism serves as interest rate based on auction system. Bank of Indonesia Certificate (Indonesian: Sertifikat Bank Indonesia or SBI) is published by BI as an instrument of open market 2 Titi Widiarti, Sinarti, Pengaruh Pendapatan, Jumlah Nasabah, Dan Tingkat Inflasi Terhadap Penyaluran Kredit Pada Perum Pegadaian Cabang Batam Periode 2008-2012, (2013, hal…

Sharia-Compliant Pawning
Sharia-compliant pawning is to retain one of customers' properties (rahin) as collateral (marhun) over loan or credit (marhun bih) they have received. Thus, the one retaining or receiving pawn (murtahin) gets collateral to retake entire or some of his/her receivables.3 Linguistically, pawn (al-Rahn) means al-tsubut and al-habs or pledge and guaranty.4 Others explained that rahn is being reduced or entrapped. In syara' it means covenant the object of which restrains price over some right from which a perfect payment is likely obtained. Generally, pawn is defined as an activity of guaranteeing valuables guaranteed to be redeemed according to the agreement between customers and pawning shop (institution).5 Pawn, according to Muhammad (2003), is some right obtained by moneylender over a moving object. The moving object is given by the borrower or others on his/her name to moneylender. The borrower will authorize the Pawn is some right obtained by moneylender over a moving object given to him/her by another individual or other on behalf of his/her name, and then authorizing the moneylender with cost exception to secure the object pawned (Pandia, 2005

METHOD
This research employed quantitative method, the one based on positivism philosophy. The research was used in studying research sample and population; the sampling technique employed was random sampling one. Meanwhile, data collection was carried out by using research instrument and data analysis was carried out qualitative or by testing the hypothesis specified before.
Operational data used in this research was secondary one, time series data.

1) Normality Test
The first statistic analysis used in analyzing data is normality test. This test is intended to see whether or not independent and dependent variables have normal distribution. The way of detecting normality is to use data (point) on diagonal axis and graphic. The rationale of decision making is that when the data is distributed around diagonal line, regression model fulfils normality assumption and vice versa.8 Normality test is conducted using statistic analysis with graphic analysis and Kolmogorov-Smirnov (K-S) non-parametric statistical tests with SPSS 20 help.
The result of normality test is illustrated in figure below.    The result of P-plot graph in figure 4.2 above shows that the data (points) is distributed around diagonal line and the distribution follows the direction of diagonal line. Thus, it can be concluded that from P-plot graphic analysis, it can be seen that standardized residual value has normal distribution, or in other words, fulfils normality assumption.

2) Multicollinearity Test
Furthermore, a multiple-regression model assumption to be considered is to find out whether or not there is a multicollinearity phenomenon in the table, meaning there is a perfect or nearly perfect relationship between independent variables. To examine whether or not there is a relationship between independent variables, Variance Inflation Factor (VIF) and Tolerance are used. The criterion used to make decision concerning whether or not there is multicollinearity is that VIF value ranges between 1 and 10 and tolerance value is more than 0.10 and close to 1. The result of multicollinearity test is presented in Table below. (2.076<10) for inflation, and 6.076 (6.076<10).
In conclusion, the result of tolerance is not less than 0.10 and variance inflation factor (VIF) value is not more than 10, indicating that Mulia, Ar-Rum, SBIS, Inflation and BI Rate variables do not show multicollinearity symptoms.

3) Heteroscedasticity Test
Heteroscedasticity test aims to examine whether or not in regression model

Figure 4.4 Heteroscedasticity Test Using Scatterplot
The output of Heteroscedasticity in table 4.4 above, it can be seen that data distribution is around zero point and spreads randomly or does not create a clear certain pattern. Thus, it can be concluded that heteroscedasticity occurs in regression pattern, so that regression model is feasible to use.

4) Autocorrelation Test
Autocorrelation test aims to find out whether or not there is a correlation between the members of time series or cross section. Classical assumption autocorrelation test is conducted using Durbin-Watson.

5) Partial (t)Test
This t-statistic test aims to reveal the extent to which independent variables of Mulia, Ar-Rum, SBIS, Inflation and BI Rate partially explain independent variable of Sharia Pawnshop's income, tested at significant level less than 0.05 (Ghozali, 2013). To find out it, t-test is conducted by comparing t statistic with t  b) The effect of t-statistic for Ar-Rum on Sharia Pawnshop's income.

7) Coefficient of Determinacy Test (R2)
Coefficient of Determinacy essentially measures the contribution of independent variable to dependent one. The higher the coefficient of determinacy, the higher is the ability of independent variables (Xs), in this case Mulia, Ar-Rum, The coefficient of determinacy (R2) value is 0<R2<1; thus the more the R2 value, the closer is the relationship between independent and dependent variables.
In other words, the model is considered as good. R2 value is close to 1, meaning that the ability of independent variable in explaining dependent variable is stronger. Otherwise, the closer is the R2 value to 0, the weak is the ability of independent variable in explaining the fluctuation of dependent variable (Ghozali 2012

8) Multiple Linear Regression Analysis
A multiple-linear regression is used to find out the direction of relationship between independent and dependent variables.