Abstract
At present there are still many Sharia Bank companies in Indonesia that measure their performance based only on a financial perspective. In fact, to deal with the increasingly complex business environment as it is today, performance measurement based only on a financial perspective is no longer sufficient because it has several weaknesses. Therefore Sharia Bank needs to implement the concept of comprehensive performance measurement, namely the Balanced Scorecard, which consists of four perspectives; financial, consumer, internal business processes, as well as learning and growth. The purpose of this study is to evaluate the performance of Bank Muamalat Indonesia by using the Balanced Scorecard. This research was conducted in 2019 by conducting interviews and distributing questionnaires to customers of Bank Muamalat Indonesia operating in East Jakarta, Jakarta Province, Indonesia. The bank's performance is measured based on financial perspectives (four indicators), consumers (six indicators), internal business processes (three indicators), and learning and growth (three indicators). The results of the analysis showed that the company's performance from a financial perspective gained an achievement level of 90%. This achievement can be said to be very good, because the company's performance is nearing the set target. Furthermore, this study found that achieving company performance in the customer's perspective was 97%; achievement of company performance in the perspective of internal business processes is 72%; and the achievement of company performance from a learning and growth perspective is 99%. The results of the study have implications that Bank Muamalat Indonesia needs to make various efforts to improve company performance, especially in the perspective of internal business processes to balance financial and non-financial performance in order to realize its mission and vision. Keywords: performance measurement, Indonesian sharia bank, balanced scorecard DOI: 10.7176/EJBM/12-17-01 Publication date: June 30th 2020
Highlights
Sharia banks are banks that carry out business activities based on Sharia principles, namely the rules of agreement based on Islamic law between banks and other parties for depositing funds and/or financing business activities, or other activities that are declared in accordance with Sharia
If conventional banks operate based on interest, Islamic banks operate based on profit sharing, plus buying and selling and leasing
Based on the vision and mission applied, it can be reduced to strategic objectives in four BSC perspectives, namely financial, customer, internal business process and learning and growth perspectives
Summary
Sharia banks are banks that carry out business activities based on Sharia principles, namely the rules of agreement based on Islamic law between banks and other parties for depositing funds and/or financing business activities, or other activities that are declared in accordance with Sharia. If conventional banks operate based on interest, Islamic banks operate based on profit sharing, plus buying and selling and leasing. This is based on the belief that interest contains elements of usury that are prohibited by Islam (Aslam et al, 2016). The profit sharing system used by Islamic banks is a system where borrowers and lenders share risks and benefits in accordance with the agreement. In this case no party is harmed by another party. When viewed from an economic perspective, Islamic banks can be defined as an intermediary institution that streams public investment optimally (with the obligation of zakat and prohibition of usury) that is productive (with a ban on gambling), and is carried out according to values, ethics, morals, and Islamic principles (Sari et al, 2016)
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