Maslahah Of Islamic Banking Merger Discourses (Indonesia Case)

Abstract

The Indonesian government has merged Islamic banks in Indonesia, namely Bank Syariah Mandiri (BSM), Bank Rakyat Indonesia Syariah (BRIS), and Bank Negara Indonesia Syariah (BNIS) into Bank Syariah Indonesia (BSI) to strengthen the competitiveness of Islamic banks. Therefore, the purpose of this study is to analyze the impact of mergers of Islamic banks in Indonesia which were carried out in such a short period based on factors of employee age, employee experience, and employee productivity. The method used in this study is a quantitative method sourced from secondary data, namely the annual report. Furthermore, the formulation of the problems in this study includes: (i) Is there a gap in the age and experience of employees of each ex-legacy bank?; (ii) What were each ex-legacy bank's performance and productivity conditions before the merger?; (iii) How is the productivity of the merged bank when compared to the productivity of the ex-legacy bank?. The results of this study state that there is a potential for internal conflicts related to the staffing aspect and a decrease in productivity both in terms of profit and assets from ex-legacy banks with enormous profits and assets. Therefore, the implication of this study is to provide information to government stakeholders to take follow-up actions against the merged Islamic bank to mitigate conflicts and provide benefits or maslahah for both external and internal parties. The originality of this study is to discuss mergers of Islamic banks that are associated with staffing factors and employee productivity.