The Role of Islamic Banks in Indonesia: A Systematic Literature Review

This study aims to determine the extent to which the role of Islamic banks in the economy in Indonesia. The method used in this research is a systematic literature review which begins with data collection using the Publish or Perish search engine, the assessment is carried out through the websites https://sinta.kemdikbud.go.id/ and https://garuda.kemdikbud.go .id/, to presentation using content analysis techniques, mapping with Vosviewer, and ending with analysis using Biddle's Role Theory. Based on a systematic literature review conducted on 22 Sinta-indexed national journals for the 2017-2022 period, it was found that Islamic banks have an important role in Indonesia, namely as; driving economic growth, assisting the development of MSMEs, assisting the development of the halal industry, helping to tackle


INTRODUCTION
The establishment of Islamic banks is motivated by the religious needs of Muslims for a banking institution that aligns with Islamic law (Mergaliyev et al., 2021, p. 797). Historically, the efforts to establish Islamic banks began in the 1950s and 1960s in Islamic countries such as Egypt, Pakistan, and Malaysia (Gulzar et al., 2021, p. 3). These efforts eventually bore fruit with the establishment of the first Islamic bank in Egypt in 1963, named Mit Ghamr Bank, followed by the Islamic Development Bank in 1975, which aimed to assist in the establishment of Islamic banks in Islamic countries (Hassan & Aliyu, 2018, p. 14). Since then, the Islamic financial industry, particularly Islamic banking, has grown rapidly within the global financial industry (Aslam & Haron, 2020, p. 1073Rizaldy & Ahmed, 2019, p. 1). Even during the global financial crisis, Islamic banks were relatively unaffected and demonstrated their ability to maintain stability (Bilgin et al., 2021, p. 1;Hussien et al., 2019, p. 419;Ibrahim & Rizvi, 2018, p. 31;Ousama et al., 2019, p. 77). As a result, Islamic banking has gained popularity not only in Islamic countries but also in non-Muslim countries. Currently, there are at least 300 Islamic banks in 75 countries worldwide (Smaoui et al., 2020).
A similar situation is observed in Indonesia, which has the largest Muslim population in the world (Abduh & Sholihin, 2022;Effendi et al., 2021, p. 951). This condition necessitates the existence of a banking institution that complies with Sharia principles (Setyowati, 2019, p. 1). After undergoing various processes, the need for a banking system that aligns with Sharia principles was released in 1992 with the establishment of Bank Muamalat Indonesia as the first Islamic bank in Indonesia (Wu et al., 2019, p. 595). Since then, the development of Islamic banking in Indonesia has been rapid and continuous (Nasution & Rafiki, 2019, p. 196;Ridwan & Mayapada, 2022, p. 3).
Based on the above description, it is evident that the presence of Islamic banks, both globally and in Indonesia, is inseparable from religious considerations (Caporale & Helmi, 2018, p. 2;Parsa, 2022, p. 3;Setyowati, 2019, p. 1;Usman et al., 2022Usman et al., , p. 1089. Islamic banks are believed to be a tangible representation of Islamic law through financial institutions that are free from interest (riba), uncertainty (gharar), gambling (maysir), and other prohibited elements (Harun et al., 2020, p. 608). However, regardless of its religious aspects, Islamic banking remains an integral part of a country's economic system (Rashid et al., 2020). It is the primary function of a bank to bridge the gap between surplus and deficit units to promote economic development and enhance social welfare (Khasanah & Wicaksono, 2021, p. 104). Without the intermediating role of the banking sector, economic progress would be challenging to achieve (Yusuf et al., 2023, p. 355). Furthermore, considering that economic development aligns with Islamic teachings, it is reasonable to expect that Islamic banks, believed to be more socially oriented compared to conventional banks, can play a significant role in promoting the economy and social well-being (Hamidi & Worthington, 2021, p. 51). Therefore, this research aims to investigate the actual role of Islamic banks in advancing the economy in Indonesia. By utilizing a systematic literature review method, we hope to contribute theoretically by assessing the extent of the role of Islamic banks in advancing the Indonesian economy. Additionally, we provide future research suggestions to inspire further studies on the role of Islamic banks in Indonesia. .

THEORETICAL FOUNDATION Theory of Roles
The term "role" is essentially a sociological concept that was first used in the 1930s (Prayudi et al., 2019, p. 452). In general, role theory assumes that individuals are integral parts of specific social positions that hold expectations for their own behavior and the behavior of others around them. Conceptually, role theory has systematically aided scientists in organizing their assumptions about how individual roles within a group are assumed and developed (Georgakakis et al., 2022, p. 3).
According to Biddle, there are three streams in role theory: 1) based on their function in the social system (functionalism), 2) based on the interactive relationships among social members (social interactionism), and 3) the structural differences and power among individuals that determine the roles of members in the social system (structuralism) (Georgakakis et al., 2022, p. 3).The term "role" or "role" is basically a sociological concept that was first used in the 1930s. (Prayudi et al., 2019, p. 452).. In general, role theory has an initial assumption that people are an integral part of certain social positions that hold expectations for their own behaviors and for the behaviors of others around them. Conceptually, role theory has systematically assisted scholars in organizing their assumptions regarding how individual roles in groups are assumed and evolve. (Georgakakis et al., 2022, p. 3)..
Historically, the development of Islamic banking in Indonesia began with the establishment of Bank Muamalat as the first Islamic bank in the country. The birth of the first Islamic bank in Indonesia was supported by the enactment of Law No. 7 of 1992, which inspired the creation of a dual banking system (conventional and Islamic). In this law, Islamic banks were defined as banks with a profit-sharing system. Indonesia officially adopted the dual banking system with the issuance of Law No. 10 of 1998, which provided detailed regulations on the legal basis and types of business that Islamic banks could undertake. Subsequently, Law No. 21 of 2008 was enacted, which was one of the most important legal elements for the development of the Islamic banking industry in Indonesia. With this law, the Islamic banking industry in Indonesia became more stable and its role in the national economy became more apparent (Yusuf et al., 2023, p. 357). In terms of form, Islamic banks in Indonesia can be distinguished into Islamic Commercial Banks (BUS) and Islamic People's Financing Banks (BPRS) (Widarjono et al., 2020, pp. 305-306).
Furthermore, if the existence of Islamic banks in Indonesia is linked to the previously mentioned role theory, the role of Islamic banks in Indonesia can be viewed from three perspectives: 1) the role or function adopted by Islamic banks, 2) the relationship between Islamic banks and economic actors, and 3) the role of Islamic banks based on their existence as financial institutions.

RESEARCH METHODS
The method used in this research is the systematic literature review method, which is a research method carried out by collecting, evaluating, integrating, and presenting findings from various studies related to a particular topic. (Pati & Lorusso, 2018, p. 1).. With the systematic literature review method, mapping can be done as well as important findings from previous studies on a particular topic or problem. Therefore, this method is very relevant to map the extent of the role of Islamic banks in Indonesia.
This research consists of three stages, namely collection, assessment, and presentation.The collection stage is carried out by using the Publish or Perish search engine with the Google Scholar database to find studies related to the role of Islamic banks in Indonesia.The keywords used are the role of Islamic banks and the role of Islamic Banks in Indonesia with a time span of 2017-2022. This time span was chosen to ensure the novelty of the study material used in this research.
The next stage is the assessment stage. This stage is carried out to select which study materials are qualified and suitable for use in this research and which are not. In this case, we only used study materials in the form of quality national journals. National quality journals here mean journals indexed by Sinta. Sinta (Science and Technology Index) is a journal index managed by the Ministry of Education, Culture, Research and Technology of the Republic of Indonesia which contains all journals in Indonesia. (Ahmadi, 2019, p. 918;Rahardja et al., 2019, p. 683).. Therefore, Sinta is very relevant to be used as an indicator in assessing studies that are "Indonesian" in nature, including the role of Islamic banks in Indonesia. The assessment process itself was carried out through the websites https://sinta.kemdikbud.go.id/ and https://garuda.kemdikbud.go.id/ to ensure that the journals collected were indeed indexed by Sinta (starting from Sinta 1 to Sinta 6) at the time of publication related to the role of Islamic banks in Indonesia.
The presentation stage begins by providing an overview of the journals that have been previously selected. Next, content analysis is carried out one by one on the selected journals to find 3 objectivities which include research objectives/background, methods, and findings related to the role of Islamic banks in Indonesia. This was followed by mapping using Vosviewer software to generalize themes related to the role of Islamic banks in Indonesia. These themes are then discussed and analyzed using role theory. Finally, we also provide future research suggestions that are expected to inspire further researchers related to the role of Islamic banks in Indonesia.
In simple terms, the stages of this research can be illustrated as follows: Figure  Analysis using role theory

RESULTS AND DISCUSSION
As stated in the method section, this research begins with a collection using the Publish or Perish search engine with details; Google Scholar database, keywords role of Islamic banks and role of Islamic Banks in Indonesia 1 , and the time range 2017-2022. From the search results, we found hundreds of studies related to the role of Islamic banks in Indonesia in the form of journals, theses, theses, and other scientific writings. We then conducted a selection and assessment with the help of the websites https://sinta.kemdikbud.go.id/ and https://garuda.kemdikbud.go.id/ to find relevant study materials to be used in this research. In this case, we limited it to reputable national journals indexed by Sinta, ranging from Sinta 1 to Sinta 6. It should be underlined that as a form of objectivity, the Sinta we used was Sinta at the time the journal concerned published related to the role of Islamic banks in Indonesia, not the current Sinta of the journal concerned.
After selection and assessment, we selected 22 relevant Sinta-indexed journals to be used as study materials in this research. Based on the year of publication and Sinta accreditation, the journals can be illustrated as follows. In more detail, studies related to the role of Islamic banks in Indonesia and their objectivity can be seen in the following table.
1 Used in addition as there may be journals written in English.  Based on the description and illustration above, it appears that of the 22 Sinta-indexed journals used in this study, the majority use qualitative methods. In total, 16 journals used qualitative methods while only 6 journals used quantitative methods.
Then, to facilitate discussion of the objectives and findings related to the role of Islamic banks in Indonesia, we used Vosviewer software to generalize the themes and produce the following mapping.

Figure IV: Mapping the Role of Islamic Banks in Indonesia
Although the above mapping is not entirely accurate, if it is linked to Table I, it will obtain an overview of the role of Islamic banks in Indonesia as follows.

The Role of Islamic Banks in Indonesia in Promoting Economic Growth
The first role of Islamic banks in Indonesia is as a driver for Indonesia's economic growth, both at the regional and national levels. (Setiawan, 2020;Syathiri & Adhitama, 2022).. Where Islamic banks perform this role through the collection of third party fund investment and the distribution of financing provided. (Irawan et al., 2021). Especially for Islamic bank financing, several studies have proven that Islamic bank financing has a positive effect on community economic empowerment, fostering awareness of Islamic economics, and reducing social inequality or poverty. (Fauzi, 2019;Hamid & Aris, 2017).. In this case, according to Masrizal & Trianto (2022) Islamic bank financing based on Profit and Loss Sharing (PLS) has a greater impact on supporting real sector growth in Indonesia than Non-PLS. Therefore, Islamic banks should maximize PLS-based financing. Finally, although Islamic banks have an important role in encouraging economic growth in Indonesia, in reality the role of conventional banks is still greater than Islamic banks. (Setiawan, 2020).

The Role of Islamic Banks in Indonesia in the Development of MSMEs
Islamic banks in Indonesia also play a role in assisting the development of Micro, Small and Medium Enterprises (MSMEs). In this case, even though Islamic bank financing can help procure working capital for MSMEs. (Suratno, 2017)However, in reality, Islamic bank financing has no effect on employment in MSMEs. (Nurreza & Cahyono, 2019).. In other words, the role of Islamic banks here is still not optimal. This is due to the lack of public access and literacy to Islamic banking (Nugroho & Tamala, 2018). (Nugroho & Tamala, 2018). In addition, the majority of financing provided by Islamic banks prioritizes consumptive financing so that it is not effective for the development of MSMEs. (Cahyono et al., 2021;Trimulato et al., 2020)..
Especially for employment, although Islamic bank financing has no effect on employment in MSMEs (Nurreza & Cahyono, 2019) However, according to Setiawan (2019) in general, Islamic bank financing plays a role in increasing economic activity and employment. Although the contribution is not too large and is still inferior to conventional bank credit. From here it appears that there is a research gap, therefore we suggest that future researchers might be able to examine the role of Islamic bank financing in labor absorption in Indonesia, both in the MSME and non-MSME sectors.

Role of Islamic Banks in the Halal Industry
The role of Islamic banks in supporting the halal industry in Indonesia can be through the financing provided and through the supporting facilities provided. (Harisah & Rohmaniyah, 2022;Ismanto et al., 2022).. However, unfortunately this role is also still ineffective due to the lack of socialization, promotion, and access that is still difficult to reach. (Sidharta, 2017). As a solution to this problem, Islamic banks need to carry out institutional synergies with the government, halal industry players, and educational institutions. (Husain, 2021).

The Role of Islamic Banks During the Covid 19 Pandemic
Islamic banks in Indonesia also played an active role during the Covid 19 pandemic. This role can be seen from the digitalisation of Islamic banking, services that implement health protocols, assistance in procuring Personal Protective Equipment (PPE), assistance in distributing KUR, providing relief for customers affected by the pandemic, to maximizing CSR programs. (Amelia & Yusof, 2020;Hafizd, 2020;Muttaqin et al., 2020;Ritonga & Sinaga, 2021).

Other Roles of Islamic Banks in Indonesia
Islamic banks in Indonesia also play an active role in increasing Islamic economic literacy in the community, namely through socialization and public education about the benefits of Islamic banking products and services. (Hidayah & Kartini, 2017). Another role of Islamic banks in Indonesia is a social role, which so far has not been very effective. (Sari et al., 2020).
Finally, if the results of this mapping and generalization are linked to Biddle's role theory, then the role of Islamic banks in Indonesia is; 1. From a structural perspective, Islamic banks in Indonesia have played their role as financial institutions through the collection of third-party fund investments and the distribution of financing, 2. From a functional perspective, the role of Islamic banks in Indonesia functions as a driver of national and regional economic growth, a provider of capital for MSMEs, a provider of financing and a supporting facilitator for the halal industry, to help tackle Covid 19 through digitalisation of Islamic banking, services that implement health protocols, assistance in the procurement of Personal Protective Equipment (PPE), assistance in distributing KUR, providing relief for customers affected by the pandemic, and maximising CSR programs, From an interactional perspective, the role of Islamic banks in Indonesia has not been very effective due to interaction problems in the form of lack of socialisation, promotion, public literacy, and access to Islamic banks that are still relatively difficult to reach.

CLOSING
Based on a systematic literature review conducted in 22 national journals indexed by Sinta for the 2017-2018 period, it was found that Islamic banks have an important role in Indonesia, namely as; drivers of economic growth, helping the development of MSMEs, helping the development of the halal industry, helping to overcome the Covid 19 pandemic, and several other roles. Viewed from Biddle's Role Theory; 1) Structurally, Islamic banks in Indonesia have played their role as financial institutions through collecting third party fund investments and channeling financing, 2) Functionally, Islamic banks in Indonesia function as drivers of national and regional economic growth, capital providers for MSMEs, financing providers and supporting facilitators for the halal industry, to help tackle Covid 19 through digitalisation of Islamic banking, services that implement health protocols, assistance in the procurement of Personal Protective Equipment (PPE), assistance in distributing KUR, providing relief for customers affected by the pandemic, and maximizing CSR programs, 3) Interactionally, the role of Islamic banks in Indonesia has not been very effective due to interaction problems in the form of lack of socialization, promotion, public literacy, and access to Islamic banks which are still relatively difficult to reach.
As a suggestion for future researchers, it may be possible to examine the role of Islamic bank financing in labor absorption in Indonesia, both in the MSME and non-MSME sectors.