The Potential of Islamic Finance Stocks to Encourage Economic Sustainability

Indonesia's large Muslim population leads to an increasing public preference for Islamic banking. This is according to the ranking of Indonesia, which ranks first in the "Islamic Finance Country Index" which released in Global Islamic Finance Report. Sharia stocks in Indonesia have continued to rise over the past five years, but Indonesian public interest in Islamic stocks is still low. In this study, the authors use a fundamental stock analysis approach and statistics to recommend the best Islamic stock investment. The three stocks selected on PBV, EPS and P/E values are forecast using the ARIMA method and double exponential smoothing to determine the potential of the stocks over the next three years. The two forecasting methods are compared to determine which way is better based on the MAPE value. The results showed that the three stocks perform better with the ARIMA method than with the double exponential smoothing method because the MAPE value is smaller. The BRIS share price forecast shows a price increase over the next three years, while the estimates for BTPS and PNBS shares show a decline over this period. From this, it can be concluded that Islamic financial stocks have no potential for the next three years. However, stocks for Islamic banking have excellent prospects.