THE EFFECT OF MURABAHAH AND ISTISHNA FINANCING ON NET PROFIT WITH TPF AS A MODERATING VARIABLE IN ISLAMIC COMMERCIAL BANKS FOR THE 2018-2020 PERIOD

This study aims to examine and analyze the effect of murabahah and istishna financing on net income with third party funds as a moderating variable. The population of this study is Islamic commercial banks registered with the Financial Services Authority (OJK) in 2018-2020. The sampling method used was purposive sampling and obtained 3 companies in this sample consisting of Bukopin Syariah Bank, Jabar Banten Syariah Bank, and Muamalat Indonesia Bank. Data analysis in this study used panel data regression analysis using the Eviews 10 software. The results showed that murabahah financing had a positive effect on net income, while istishna financing had no effect on net income. The use of moderating variables of third party funds is able to moderate by weakening the effect of istishna financing on net income while murabahah financing cannot be moderated by third party funds. Simultaneously, murabahah and istishna financing have a positive and significant effect on net income. In this study, the independent variable can affect 40.9316% of net income while 59.0684% is influenced by variations of other variables that are not included in this study.


INTRODUCTION
Banks are simply financial institutions whose function is to collect money from the public, return it to the public, and provide additional banking services. According to Law No. 21 of 2008 concerning Sharia Banking, Islamic Banks or Sharia Banks are banks that conduct their business activities in accordance with sharia principles. Sharia Commercial Banks and Sharia People's Financing Banks are the two types of Sharia Banks. Islamic banking has a number of tasks and functions, including supporting the implementation of national development, performing social functions in the form of baitul mal institutions, and collecting social funds originating from waqf (nazhir) in accordance with the wishes of the waqf donor (wakif) (Indonesian Bankers Association, 2014:2 -3).
Profit is the increase in economic value received by an investor as a result of the distribution of dividends (Wibisana, 2014). Net income measures the value that the entity provides to investors in the form of dividends so long as the entity maintains its initial wealth (Rispayanto, 2013).  (2022) From the table above, it can be concluded that Islamic Commercial Banks' profits in 2018 totaled IDR 2,806 billion and continued to rise until 2019, when they reached IDR 4,195 billion, an increase of approximately 49 percent. In contrast, it decreased by 9 percent, or IDR 413 billion in 2020.
According to Yanti (2020), the product of fund-raising (funding), financing (landing), and service is an effort by Islamic banks to provide community services. As a result of the depreciating rupiahs, many people are in need of additional income; one way to achieve this is by engaging in business activities at the bank, specifically selecting the appropriate financing, as financing is one of the effects of fluctuations in the company's net profit. According to El Adawiya (2020), that a bank's net income is the most important factor in the development of Islamic banking, since a high net income will affect the amount of Islamic banking assets. Comparing murabahah financing to istishna financing and third-party funds (TPF), Table 2 reveals that murabahah financing is the most popular form of financing for Islamic commercial bank. Evidently, murabahah financing has increased by 6% between 2018 and 2019. Meanwhile, it decreased by 1 percent from 2019 to 2020. The decline in Istishna financing data for 2018-2020 continues at a rate of 50% per year. TPF activities have consistently increased between 2018 and 2020, by 12 and 11 percent, respectively. Therefore, overall TPF activities decreased by 25%.
According to Febriyanti (2019), the limited purpose of istishna financing has a negative and negligible impact on profits. Meanwhile, Rahmatika & Dailibas (2021) further said that murabahah financing has an effect on net income because the profit margin from murabahah financing affects the level of net income. Moreover, Jamhuriah & Nurhayat (2021) highlight that Third Party Funds (TPF) have a significant impact on net income, indicating that the more customer deposits a bank collect, the more its business activities can be expanded to maximize net income. Based on the background described above and the results of the research that has been done, the researchers are interested in conducting different research by adding Third Party Funds (TPF) as a moderating variable so that it is expected to strengthen the theory, namely about "The Effect of Murabahah and Istishna Financing on Net Profit with Third Party Funds as Moderating Variables in Islamic Commercial Banks".

THEORETICAL BASIS 2.1. Financing
Financing is funding provided by parties to other parties to support investments planned by individuals or organizations (Febriyanti, 2019). From a financing perspective, Islamic banks can channel financing based on murabahah, mudharabah, musyarakah, salam, istishna, qardh, and other contracts (Azka & Zamzami, 2022).
There are several financing objectives including: (Febriyanti, 2019) 1) Profitability is to obtain financing results in the form of dividend profits from jointly managed companies. 2) Safety, namely the security of the services or equipment provided, must be ensured so that profitability goals can be achieved without any obstacles.
The function of financing is to increase usability, circulation, and as money traffic, to increase investment activities and income distribution, and as the bank's largest asset, to generate the most revenue (S. P. Sari, 2018).
The types of financing are divided into two categories. First, financing by purpose, specifically financing for working capital and investment financing. Second, financing based on a period of time, including short-term financing, which is conducted for a period of one to twelve months, medium-term financing, where the calculation period is one to five years, and long-term financing, which is conducted for more than five years (Fionda, 2021). As in Article 1320 of the Civil Code stipulates that a contract is valid if it satisfies four conditions: the agreement of those who bind themselves (Shigat Al-Aqd), the capacity to enter into an agreement, a specific subject matter (Mahal Al-Aqd/Al-Ma'qud Alaih), and a lawful cause (Maudhu 'Al-Aqd) (Z., 2012).

Murabahah Financing
Murabahah is buying and selling at the basic price with additional profits based on the maturity of the transaction (Afrida, 2016). The aim of murabahah financing is to generate income in the form of a margin and acquire specific goods via bank financing (Z., 2012). The benefit of murabahah financing is that customers can purchase products in accordance with their preferences and financial means (Hardianti, 2022); murabahah financing is also conducted in installments so that it does not become a burden for the customer (Prabowo, 2009).
In murabahah financing, the pillars that must be met are that the seller and buyer must be reasonable and different individuals, that there must be harmony between the acceptance and the consent, that the object of sale and purchase must exist and be owned by the seller, and that the exchange rate, type, and amount must be specified. In addition to pillars, murabahah financing has special conditions, such as the seller notifying the buyer of the initial price of the goods sold, the buyer's knowledge of the profit, accurately measured capital, not using assets that increase in value as a medium of exchange, and the legitimacy of the first sale and purchase contract (Imama, 2014).
This murabahah financing scheme is the first time that Islamic banks and clients have negotiated the sale and purchase transaction that will be executed. Then, Islamic banks purchase goods from vendors in response to customer orders. The customer is the buyer and the Islamic bank is the seller in a sale and purchase agreement between customers and Islamic banks. The supplier will then ship the ordered goods to the customer per Islamic bank instructions. If the client has received the goods and ownership papers, the client must pay in installments (dan Gozhali, 2018).

Istishna Financing
Istishna is a contract for the sale and purchase of goods between two parties based on orders from third parties, in which the ordered goods are produced according to agreed specifications and sold at an agreed price and method of payment (D. W. Sari & Anshori, 2017a). (I. Ahmad, 2015) explains that the purpose of istishna is for banks to facilitate the fulfillment of producers' capital/financing needs by placing purchase orders with staged advance payments.
There are three methods of financing an istishna: payment in advance, payment at the time of delivery, and deferred payment (D. W. Sari & Anshori, 2017a). In istishna financing, certain conditions must be met, including a reasonable party where the perpetrator knows the law and has the authority to make a sale and purchase, is pleased with both parties and does not break a promise, states the ability to procure or make goods, the object of the order has clear criteria, and the sold goods are not prohibited by syara' (Candera & Hustia, 2019). The various pillars of istishna financing are the producer, the buyer's satisfaction, the ordered goods or services, the price, and qabul approval (I. Ahmad, 2015).
There are two schemes in istishna financing: first, if the producer is selected by the Islamic bank, the customer orders the goods to the seller's bank, where the specifications of the goods are explained, then the Islamic bank buys or orders the goods from the producer, the producer makes the goods according to the bank's specifications, and the bank sells the goods to the customer. Second, if the customer selects the producer, the Islamic bank will act on the customer's behalf to purchase or order goods from the producer in accordance with what has been mutually agreed upon (Ismail, 2011).

Third Party Funds (TPF)
Third Party Funds (TPF) consist of demand deposits, savings and time deposits, certificates of deposit, and other immediate obligations from the general public or business customers (Fitri, 2016). According to Syarvina (2018), it is vitally important to maintain the growth of third-party funds in order to strengthen banks' financing interests. Islamic banks 119 will be able to channel financing if more third-party funds are collected (Elvitasari & Dalimunthe, 2019).
The types of public funds deposited in banks are as follows: demand deposits, or deposits based on wadiah contracts, from which withdrawals can be made at any time; deposits, or investment funds based on mudharabah contracts, from which withdrawals can only be made at a specific time; and savings, or deposits. Wadiah contract or investment based on a mudharabah contract whose withdrawal is subject to specific conditions (Islamiyah, 2016). The wadiah and mudharabah operational principles are utilized by Islamic banking to collect funds from the general public (Luciana, 2013).
An increase in conventional banking will decrease TPF for Islamic banking; if the equivalent rate of profit sharing increases, TPF for Islamic banks will also increase; an increase in economic growth will decrease TPF; and an increase in outlets will also increase TPF (Prasetya et al., 2015).

Net profit
Net Profit is the difference between all income and profit after deducting all expenses and losses (Djamalu, 2013). A profit exists if the result of the difference is positive. Profit is proportional to revenue. There are two purposes for calculating profit: internal, where the size of the profit obtained is the basis for the quality of company management, and external, as material for shareholder accountability and calculation, taxes, issuance of shares on the stock exchange, and consideration of credit applications by other banks (Fionda, 2021). The benefits of profit for banks are survival, expansion or development, and social responsibility (Febriyanti, 2019).
There are two factors that influence the level of net income: those that can be controlled, such as market segmentation, revenue control, and cost control, and those that cannot be controlled, such as those that impact bank performance, such as general economic conditions and the competitive environment in the area of operation (Febriyanti, 2019).

RESEARCH METHOD
The research employed is quantitative. This study utilizes secondary data in the form of panel data for the period 2018-2020; the data is not collected directly but rather by utilizing data generated by third parties. This study's population consists of the quarterly financial statements of Islamic Commercial Banks registered with the Financial Services Authority (henceforth referred to as OJK) that were retrieved from the website www.ojk.go.id. With purposeful sampling as the sampling technique. There are three banks included in the research criteria, for a total sample size of 36. The following diagram illustrates the relationship between the independent variable, the dependent variable, and the moderating variable.

RESULT AND DISCUSSION 4.1. Research result Table 3 Descriptive Statistical Analysis
Source: Processed with Eviews 10, 2022 From table 3 above, there are 36 samples, and it can be seen descriptive statistical analysis of net income, murabaha, istishna, and third party funds. Based on the table above, the average value of net income is 14309,31, the minimum value is 133,0000 and the maximum value is 111792,0. For murabahah financing, the average value is 9200058, the minimum value is 1187415 and the maximum value is 27546982. For istishna financing, the average value is 5979,861, the minimum value is 1283,000 and the maximum value is 24761,000. For third party funds, the average value is 17598691, the minimum value is 2080391 and the maximum value is 47160434.  The Chow test value above has a Chi-square cross-section value of 0,6079 so 0,6079 > 0,05, it can be concluded that the model used is the Common Effect model.

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In table 9 above the Breusch-pagan value is 0,2046 > 0,05. Hence, we used the Common Effect as the model estimation.
Based on the Chow test, Hausman test, and the LM test, the common effect is preferred. Thus, the method used in this study is the common effect panel data regression method for further use. Based on the figure above, it can be seen that the results of the normality test above show that the Jarque-Bera probability value is 0,826105 > 0,05, so it can be concluded that the data from the variables in this study were normally distributed. After making improvements to the multicollinearity test, it can be seen that the value of each independent variable is smaller than 0,9. Therefore, it can be concluded that the variable data in this study does not have symptoms of multicollinearity.  It can be seen that the prob value (F-statistic) is 0,604757 > 0,05. Hence, it can be concluded that the data has no symptoms of heteroscedasticity.

4) Autocorrelation Test
Table 12 Autocorrelation Test Source: Processed with Eviews 10, 2022 From the test results above, it can be seen that the DW value is 1,259661 with a significant value of 0,05. The number of samples used in this study were 36 samples. The number of independent variables was 3. The results indicated dW < dU < (4-dL). So, it can be concluded that there are no symptoms of autocorrelation in the research data.

6) Determination Test (R²)
Based on the results of the analysis in the table, the coefficient of determination for the regression model on the Adjusted R-squared is 0,409316. This shows that the variation of the independent variable can affect 40,9316% of net income, while the remaining 59,0684% is influenced by variations of other variables such as mudharabah and musyarakah financing which are not included in this study. Based on the explanation of the F test, the researcher has a coefficient value of 13,12667 and prob. 0,000064 < 0.05. These results indicate that the independent variables (Murabahah and Istishna) simultaneously have a positive and significant effect on net income. From the results of the MRA test, the regression model is as follows.

TPF Moderates Istishna Financing on Net Profit
The istishna financing variable moderated by TPF shows a probability of 0.0243 <0.05. The coefficient value is -3.60-12. It means that every increase in istishna financing is moderated by third party funds by 1%, then the net profit variable will decrease by 3.60E-12. This relationship shows that the higher TPF will be followed by a weakening of the effect of istishna financing in increasing net income. This is because istishna financing is carried out in the form of channeling funds to a company that is experiencing difficulties where the guarantees provided to Islamic banks may not necessarily cover the istishna financing distributed to the company.

CONCLUSION
Based on research that has been carried out to determine the effect of murabahah and istishna financing on net income with TPF as a moderating variable in Islamic commercial banks for the 2018-2020 period. Hence, the following conclusions can be drawn. 1) Murabahah financing has a positive and significant effect on net income. 2) Istishna financing has a negative and insignificant effect on net income. 3) Murabahah and istishna financing together have a positive and significant effect on net income. 4) Third Party Funds (TPF) are not able to moderate the effect of murabaha financing on net income. 5) Third Party Funds (TPF) are able to moderate the effect of istishna financing on net income by weakening it.