Six Years in Achievieng Maqasid Ash Shariah: the Case of Islamic Commercial Banks in Indonesia

Wardiwiyono, Sartini Six Years in Achievieng Maqasid Ash Shariah: the Case of Islamic Commercial Banks in Indonesia. [Artikel Dosen]

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Abstract

As an Islamic system of values, ethics, and
principles, shariah has an ultimate objective that is to promote
the well-being of mankind in the world and the hereafter. AbuZahrah further identified the objective of shariah (maqasid alshariah) into educating people, upholding justice and
promoting social welfare. As a group of individuals, Islamic
business institutions, including Islamic banks, should be
operated in any way that is in line with those objectives. The
aim of this study is to investigate the practice of Islamic
commercial banks in Indonesia in educating people, upholding
justice and promoting social welfare as described by Abu
Zahrah in his concept of maqasid ash-shariah. Panel data
related to financial ratios based on the operationalization of
Abu Zahrah’s maqasid ash-shariah concept developed by
Mohammed et al. were obtained from the annual reports of 11
Islamic commercial banks in Indonesia. The reports were
published in six years’ time starting from 2011 to 2016. The
data were further calculated to come out with maqasid alshariah index to represent the overall performance of the
banks in achieving maqasid al-shariah. To summarize the
results, descriptive statistics were finally applied. This study
reveals that the thirteen Islamic commercial banks in
Indonesia have carried out the necessary activities to achieve
the three objectives of shariah. The main focus carried out by
the banks is to uphold justice followed by maintaining social
welfare. The least priority was given in educating people.
During the past seven years, the maqasid al-shariah indexes
were fluctuated. The index touched the lowest point in 2014.
On average, the maqasid al-shariah index was quite low,
opening a room for the banks to improve their activities to be
more ethical and social.

Item Type:	Artikel Dosen
Subjects:	H Social Sciences > HG Finance
Divisi / Prodi:	Faculty of Economics (Fakultas Ekonomi) > S1-Accounting (S1 Akuntansi)
Depositing User:	Sartini Wardiwiyono SE, MSACC, PhD, Ak, CA
Date Deposited:	23 Feb 2022 02:34
Last Modified:	23 Feb 2022 02:34
URI:	http://eprints.uad.ac.id/id/eprint/32869

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