Research Article
The Impact of Maqashid Syariah Based Performance on Sustainable Finance Implementation of Indonesian Islamic Banks
@INPROCEEDINGS{10.4108/eai.3-8-2021.2315133, author={Deni Darmawati}, title={The Impact of Maqashid Syariah Based Performance on Sustainable Finance Implementation of Indonesian Islamic Banks}, proceedings={Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia}, publisher={EAI}, proceedings_a={LEPALISSHE}, year={2022}, month={1}, keywords={sustainable finance implementation-1; maqashid syariah-2 tahzib al-fard-3; iqamah al-adl-4; jalb al-maslaha-5}, doi={10.4108/eai.3-8-2021.2315133} }- Deni Darmawati
Year: 2022
The Impact of Maqashid Syariah Based Performance on Sustainable Finance Implementation of Indonesian Islamic Banks
LEPALISSHE
EAI
DOI: 10.4108/eai.3-8-2021.2315133
Abstract
This study aims to analyze the impact of Maqashid Sharia based performance as measured by the Tahzib Al-Fard, Iqamah Al-Adl and Jalb Al-Maslaha on the Implementation of Sustainable Finance. The data in this study used a sample of 12 (twelve) Islamic Commercial Banks taken from the Annual Report and/or Sustainability Report of companies in Indonesia using the observation period from 2014 to 2019. This study uses panel data regression analysis method in processing predetermined data. Jalb Al-Maslaha has not been able to influence sustainable finance implementation in Indonesia due to the fact that companies are more concerned with high profits than disclosure social responsibility. In addition, Islamic banking is more concerned with the interests of its shareholders than society. Jalb Al-Maslaha is measured using the profitability ratio ie return on assets and the weight of profitability in Jalb Al-Maslaha which is 33% while the weight used to calculate zakat receipts is only 30%. Future studies must improve Jalb Al-Maslaha measurement. The result indicate the significance of the Iqamah Al-Adl as one of Maqashid Sharia based performance that may increase the implementation of sustainable finance. Hence, from a policy point of view, institutions that regulate Islamic banking should consider ordering the disclosure of Maqashid Sharia based performance for Indonesian Islamic Banks.
