Sharia Business Unit Research Articles

Tinjaun Yuridis Terhadap Kesiapan Kewajiban Spin Off Bagi Unit UsahaSyariah (UUS) Menjadi Bank Umum Syariah (BUS)

Law Number 21 of 2008 concerning Sharia Banking in Article 68 paragraph 1 and Article 40 Article 40PBI No. 11/10/PBI/2009 mandates that every Sharia Business Unit (UUS) which is a sharia unit in aConventional Commercial Bank (BUK) to separate itself (spin-off). and it is explained that UUS is obligedto separate into BUS if the value of UUS assets has reached 50% (fifty percent) of the total asset value ofits parent BUK. The spin-off time is no later than 15 (fifteen) years from the enactment of the law, namely2023. The aim of this writing is to determine the impact of the spin-off on UUS by analyzing the solutionsthat can be offered. The research results show that it is necessary to review Law Number 21 of 2008concerning Sharia Banking by considering the financial condition of UUS. Apart from that, UUS whichhas carried out a spin-off by becoming a new BUS can optimize the use of Third Party Funds in the formof financing and other services. In order to encourage BUS growth, support from the government isneeded, such as providing tax incentives and simplifying regulations on capital participation. Apart fromthat, the new BUS needs to carry out various innovations by adding financing products and developingexisting products. This research aims to determine the readiness of the Spin Off obligation for UUS tobecome a BUS and the issue of readiness to fulfill the obligations of UUS to become a BUS in July 2023.Keywords: Spin-off Obligations, Sharia Business Units (UUS), Sharia Commercial Banks (BUS)

Employee Readiness for Change and Organizational Support as Keys to Successful Banking Transformation

The digital era brings a wave of change that requires banks to be able to quickly adapt and transform. New technologies, new business models and evolving customer expectations provide the foundation for banking to remain competitive and relevant now and in the future. Human resource factors are one of the keys to success in facing change, organizational effectiveness and optimization are needed to maintain and increase work engagement and employee readiness in facing change. This research aims to test and analyze the influence of employee readiness to change on organizational transformation through organizational support as a moderating variable. The population in the study were permanent employees in the Sharia Business Unit of PT. North Sumatra Bank. The research method used is quantitative descriptive. Primary data was collected through a survey of 131 permanent employees in the Sharia Business Unit of PT. Bank Sumut, uses proportional random sampling technique. The collected data was analyzed using descriptive statistical analysis and Moderated Regression Analysis (MRA). The research results show that employee readiness to change has a positive and significant influence on organizational transformation. This indicates that increasing employee readiness in making changes will have a positive impact on the effectiveness and success of the transformation process in the Sharia Business Unit. However, this research also proves that organizational support is unable to moderate the relationship between employee readiness and organizational transformation. These findings indicate that organizational support felt by employees is not strong enough to strengthen the influence of employee readiness on organizational transformation.

Pengaruh Human Resource Management dan Leadership terhadap Kinerja Bisnis Bank Syariah (Unit Usaha Syariah)

The research aims to find out how the dependent variables human resources management and leadership relate to the performance of sharia banks (sharia business units). The research method uses a census by sending 20 questionnaires to Islamic banks (Sharia business units) which were carried out in the period July to September 2021. The results of data collection were processed using SPSS version 22 statistics. The research results showed that the dependent variables were human resources management and leadership partially and jointly influences the dependent variable of sharia bank business performance (sharia business unit) which is 82.7%. The implication of the research is that the concept of sharia finance is not only to maximize welfare and consumption through achieving sharia bank business performance but also to maintain a balance between material and spiritual satisfaction (maqashid sharia).

Kedudukan Peranan Notaris dalam Akad Murabahah di Bank Syariah

Basically, the existence of guarantees in sharia banking is a form of bank confidence in the ability of prospective customers who receive facilities to pay off and return the facilities they receive. The aim of this research is: To analyze legal certainty in the financing philosophy of Murabahah contracts in Sharia Banking. And to analyze the role of notaries in murabahah contracts in Sharia banks. Types of legal research are divided into 2 (two) types, namely Normative Legal research and Empirical Legal research. The type of research used by researchers in this research is researchBased on the results of the discussion, the position of Murabahah financing in Sharia Banks is the most popular among the public. Murabahah financing is a product that does not recognize usury or the interest system and murabahah products really help people to make their wishes come true. And the function of a notary is very important in the field of sharia banking, especially in making contracts to channel funds through financing to customers, specifically to create legal certainty in the legal relationship between sharia banks or sharia business units and their customers, namely by making contracts. The financing is in the form of an authentic deed based on the principles of freedom of contract and sharia principles.

Pengaruh Risk Profile, Good Corporate Governance, Earnings, dan Capital Terhadap Financial Distress pada Unit Usaha Syariah Periode 2018-2022

This research aims to analyze the influence of RGEC (Risk Profile, Good Corporate Governance, Earning and Capital) on the financial distress of Sharia Business Units in Indonesia for the 2018-2022 period. The dependent variable in this research is financial distress and the independent variable is the ratios in the RGEC health assessment including NPF, FDR, GCG, BOPO, ROA, NIM, and CAR. The results of this research show that NPF, FDR, GCG, BOPO, ROA, NIM, and CAR. has a significant effect on the occurrence of financial distress in Indonesian Sharia Business Units for the 2018-2022 period.

Comparative Analysis of Performance between Sharia Commercial Banks and Sharia Business Units using the Eagles Method for the 2021-2023 Period

Comparative Analysis of Performance between Sharia Commercial Banks and Sharia Business Units using the Eagles Method for the 2021-2023 Period

Job satisfaction as a mediation between motivation and employee performance in Bank Jatim

This research is purpose to analyze the influence of transformational leadership and work environment on employee performance, the impact of motivation on job satisfaction, job satisfaction on employee performance, and motivation on employee performance with job satisfaction as a mediating variable. The study focuses on the Unit of Sharia Business in Bank Jatim, with a population of 224 employees. The result are transformational leadership, Work Environment and Job Satisfaction has a significant positive impact on employee performance. Job Satisfaction mediates the relationship between Motivation and Employee Performance, showing partial mediation. This suggests that work motivation enhances employee performance in the Sharia Business Unit of Bank Jatim, with or without direct involvement of job satisfaction. The findings provide valuable insights for improving management practices and fostering employee engagement at Unit of Sharia Business in Bank Jatim.

Comparison of Sharia Governance Between Bank Muamalat and Bank BTN Syariah

Every business has a management strategy to maintain and develop its business, including Sharia financial institutions. The large potential of the Islamic finance industry has a positive impact on national economic growth, therefore it is important to maintain this stability. Good governance is one of the things that must be paid attention to, as well as the governance of Sharia financial institutions must comply with Sharia principles, to maintain the trust of stakeholders in the Sharia banking and finance industry. Moreover, there are rumors that two large sharia financial institutions will merge . This research aims to compare Sharia governance between Bank Muamalat and BTN Syariah, which have significant differences in background. This research uses qualitative methods with a library study approach, and analyzes and selects relevant library sources. Research result comparison of two Sharia banks that are planned to merge into a larger Sharia bank , although both banks follow Sharia governance principles, they both have different approaches due to different focuses and backgrounds. Bank Muamalat, as a pure sharia bank, has a more comprehensive sharia implementation and structure. Meanwhile, BTN Syariah as a sharia business unit of a conventional bank, focuses more on implementing sharia principles in housing products. Both banks demonstrate a strong commitment to Sharia principles and comply with supervision, the Sharia Supervisory Board (DPS), and applicable laws.

Potensi Perbankan Syariah di Indonesia Dalam Pola Dasar Manajemen dan Dana Pihak Ketiga

This article aims to examine the potential of sharia banking in Indonesia in terms of basic management patterns and third party funds. The method used in this research is the library research. The research results explain that sharia bank management is reflected in the annual financial report published by the OJK and contains the Third Party Funds of the sharia bank concerned. The potential for sharia banking in Indonesia shows a positive value, this is reflected in the total assets as of January 2023 owned by Sharia Commercial Banks and Sharia Business Units reaching IDR 765.36 trillion. This is also supported by an increase in Third Party Funds by 12% which is able to make BSI one of the largest sharia banks in Indonesia in the position of the sixth largest bank in Indonesia and the fourteenth position of the largest sharia bank in the world with Third Party Funds of 261. 49 Trillion

Sharia Banking Internal Auditors' Perceptions Regarding the Influence of Auditors' Sharia Knowledge Education on the Effectiveness of Sharia Compliance Inspections

Islamic banks need to ensure that their operations comply with sharia principles to increase loyalty and satisfaction of sharia bank customers. Internal audit has one of the functions of ensuring sharia compliance has been fulfilled in sharia banking by carrying out sharia compliance checks. One of the challenges in internal audit in carrying out its function is the lack of qualified sharia auditors who have adequate sharia knowledge. In this context, education in sharia science for auditors becomes very relevant. This research aims to identify the influence of formal and non-formal sharia education for auditors on increasing the effectiveness of auditing compliance with sharia principles in sharia banking according to the perception of internal auditors. The method used is a quantitative method by distributing questionnaires to internal auditors in conventional commercial banks that have Sharia Business Units. Based on the results of this research, the variable perception of formal sharia science education does not have a significant effect on the effectiveness of sharia compliance checks, the perception of non-formal sharia science education has a significant effect on the effectiveness of sharia compliance checks. Furthermore, simultaneously the variables of perception of formal sharia education and non-formal sharia science education have a significant effect on the effectiveness of sharia compliance.

Readiness to change in Islamic banking: the significance of adaptability and Islamic work ethics

Purpose This paper aims to investigate Islamic work ethics and adaptability towards change readiness of Islamic Bank employees in Indonesia with commitment as a mediating variable. This study focuses on the Sharia banking industry, which is facing transformation from Sharia business units to Sharia commercial banks by preparing its human resources, thus minimizing resistance. Design/methodology/approach This study is based on a survey of 135 Bank Syariah Indonesia employees via an online questionnaire. PLS-SEM is used to analyze data and test hypotheses using SMART-PLS. Findings The results of the study show that adaptability does not have a positive and significant effect on readiness for change in Indonesian Sharia banks and organizational commitment. Meanwhile, Islamic work ethics have a positive and significant effect on the change readiness of Islamic bank employees in Indonesia as well as organizational commitment. This study also found that organizational commitment mediates the impact of Islamic work ethics on the change readiness of Islamic bank employees in Indonesia. Research limitations/implications This research uses a sample of employees at Sharia commercial banks (BUS) in Indonesia, so it is still limited to certain types of banks. Future research needs to test the model in different contexts, such as banks that still have Sharia business unit (UUS) status. In addition, further research needs to use other variables such as leader support for transformational change readiness. Future research also needs to control more variables and use a more complex scale than a binary scale (e.g. percentage of share ownership or area within a province or district/city). This study recommends that employee change readiness is very necessary to avoid resistance and resistance to the transformation and acceleration of Sharia banking in Indonesia. Originality/value This research looks at employee readiness for change in Indonesian Sharia banks through the lens of adaptability Islamic work ethics and organizational commitment.

Analysis of Macroeconomic Factors and Financial Performance on the Phenomenon of Sharia Bank Market Share Stagnancy

The Sharia banking market share is still stuck at the level of 7% of total national banking assets until the February 2024 period. Several strategic policies have been implemented by both regulators and Sharia banking players, but this has not yet increased the Sharia banking market share. Several other relevant studies inform that internal factors in the form of financial performance and macroeconomic conditions are one of the causes of the stagnant increase in the market share of sharia banking in Indonesia, so it is necessary to re-examine/analyze these factors. Furthermore, this research aims to analyze the influence of macroeconomic conditions as proxied by the inflation rate and BI rate as well as the financial performance of Sharia banks as proxied by the CAR and FDR ratios on the Market Share of Sharia Banks in Indonesia. The sample in this study was a total of sharia commercial banks and sharia business units with data regression analysis using the help of the Eviews version 12 program. The results of this research show that simultaneously the independent variables (inflation, BI rate, CAR and FDR) in this research have a significant influence on Market Share with a significance level of 5%. Overall, the results obtained show that the variables inflation, BI rate, CAR and FDR influence the Sharia banking Market Share with a significance level of 5%. Partially, inflation and FDR have no effect on the market share of sharia banking, but the BI rate and CAR have a significant effect on sharia banking in Indonesia.

Spin-Off Appropriateness Assessment: Propriety Test of Sharia Business Unit Spin-Off to Increase Return on Assets

The obligation to transform a sharia business unit into a sharia commercial bank through a spin-off from its parent bank, a conventional commercial bank, must be balanced with a strategy to increase the return on assets (ROA) of Islamic Business Entities (BUS). A higher ROA ratio correlates with increased profitability. The regulatory provision mandating spin-offs, however, tends to weaken the BUS, making it difficult to compete in the national Islamic banking industry. This is because the spin-off obligation for the UUS can actually diminish its profitability performance. As Watchell has noted, while spin-offs can create differentiation from investment targets in each business, they can also lead subsidiary companies to become more focused in determining their corporate strategy and operations. This focus, however, often results in new operational strategies that increase the subsidiary's operational burden and potentially reduce profitability. Empirically, several sharia commercial banks in Indonesia have experienced a decline in the profitability of their sharia business units after spinning off into independent sharia commercial banks. This research employs normative or doctrinal juridical methods, utilizing both a statute approach and a conceptual approach. As an innovative contribution, the author proposes the Spin-Off Appropriateness Assessment as a model for evaluating the implementation of spin-offs in sharia business units. This assessment aims to increase the ROA ratio and create an investment climate that is environmentally sound. It comprises three main components: fixed capital, non-performing loan identification, and capital sources mapping.

Analisis Manajemen Risiko Produk Pembiayaan Multijasa Pada PT. Bank Tabungan Negara Syariah

This research discusses the risk management analysis carried out by PT. Sharia State Savings Bank towards multi-service financing products. The method used in this study is descriptive qualitative, the data collected in this study is in the form of words, sentences or images that describe the actual situation. The author collects data through observation, interviews, and documentation to facilitate the research process. The results showed that the risks faced by PT. Sharia State Savings Bank towards multi-service financing, namely financing risks and operational risks. The application of risk management carried out by PT. Sharia State Savings Bank is by conducting an identification process by looking at 5C (Character, Capacity, Capital, Collateral, Condition Of Economy), measuring by looking at the NPF value every month, monitoring by providing daily report updates, as well as controlling with several collection processes, visits, saving financing using Reconditioning and Rescheduling, as well as conducting collateral auctions. Pt. Sharia State Savings Bank has carried out risk management of multi-service financing properly and in accordance with PBI No. 13/23/PBI/2011 concerning the Application of Risk Management for Sharia Commercial Banks and Sharia Business Units, namely a series of procedures and methodologies used to identify, measure, monitor, and control risks that arise.

Factors Affecting Profitability in Sharia Business Unit Banks in Indonesia for the 2018-2022 Period

Factors Affecting Profitability in Sharia Business Unit Banks in Indonesia for the 2018-2022 Period

Efficiency of Bank Aceh Syariah and Bank NTB Syariah After Conversion

This study aims to compare the efficiency levels of Islamic commercial banks using the Data Envelopment Analysis (DEA) and Hahslm Reflexivity Dynamics (HEFDYN) methods before and after the spin-off period from 2008 to 2021. The implementation of Law (UU) No. 21 of 2008 concerning Sharia banking requires conventional commercial banks (BUK) to separate their Sharia business units (UUS) and establish Sharia commercial banks (BUS) when the assets of the UUS reach at least 50% of the total assets of the parent bank or after 15 years from the enactment of the Law. This research adopts a quantitative approach and focuses on a case study of two converted banks, namely Bank Aceh Syariah and NTB Syariah. The research methodology involves employing the data envelopment analysis with the VRS approach and the Hahslm Reflexivity Dynamics (HEFDYN) method. Based on the results of the DEA analysis, Bank Aceh Syariah successfully achieved a perfect efficiency value after undergoing conversion, demonstrating effective resource utilization and optimal operational performance. Conversely, Bank NTB Syariah experienced a slight decline in efficiency values, primarily attributable to decreased income variables and financing output in 2019. The HEFDYN analysis also revealed that although Bank Aceh Syariah attained perfect efficiency post-conversion, there is still potential for improvement, particularly in terms of financing growth. Similarly, Bank NTB Syariah, despite the decrease in efficiency values, has the opportunity to enhance its financial performance through targeted improvement efforts. Keywords: efficiency, conversion, DEA, HEFDYN

Sharia Financing Marketing Strategy in The Framework Of Spin-Off Preparations at Bank “P”

This research is expected to be able to see and analyze the types of strategies currently being implemented by the Sharia Business Unit of Bank "P" in preparation for the spin-off in accordance with applicable regulations. This research used a mixed methods approach, complemented by descriptive analysis. The method chosen is a SWOT analysis to determine internal and external factors and their importance by determining the IE Matrix test. By examining the position in the IE and SWOT matrix quadrants, the following are identified: (1) the company's position and its ability to compete, (2) strength, (3) weakness, (4) opportunity, and (5) threats. As a result, several alternative strategies were obtained that could be implemented by UUS (Sharia business unit) Bank "P", namely (1) establishing cooperation and partnerships with other Sharia financial institutions or non-bank financial institutions; (2) creating a diversified sharia product portfolio; (3) expand its customer base by introducing products and services; (4) improving the quality of human resources; (5) Investment in technology infrastructure.

RESOLVING FINANCING PROBLEMS WITH RESTRUCTURING OF MURABAHAH FINANCING DURING THE COVID-19 PANDEMIC AT PT. SUMUT BANK (SHARIAH BUSINESS UNIT)

This research aims to analyze howresolving problematic financing by restructuring murabahah financing during the Covid-19 pandemic at PT. Bank Sumut (Sharia Business Unit).This research uses a qualitative type of research with a case study approach using data collection techniques through observation and interviews with related parties from Bank Sumut. The results of the research show that the practice of restructuring murabahah financing at Bank Sumut is carried out as an effort to rescue problematic financing. When viewed from POJK, especially POJK 48, the implementation of restructuring shows several important points that banks must pay attention to. Bank Sumut has guidelines for determining debtors affected by COVID-19. Apart from that, the restructuring implementation takes into account the MUI DSN Fatwa No. 47,48,49, regarding the resolution of problematic murabahah financing, the absence of additional costs and contract conversion
 Keywords: Problematic Financing, Restructuring, Murabahah Financing, Covid 19

Estimating the Synergy Value of Merger Valuation between Bank Syariah Indonesia (BSI) and Sharia Business Unit of (SBU) Bank Tabungan Negara (BTN)

The merger and acquisition of banking industry are a very important issue in Indonesia. Similar to other banking mergers, the mergers will benefit Bank Syariah Indonesia (BSI), Sharia Business Unit of Bank Tabungan Negara (BTN), and all company stakeholders. This study assessing Bank Syariah Indonesia’s current business environment, determine company’s valuation. This study analyses the environmental aspects of Bank Syariah Indonesia (BSI), both external and internal. Research methodology using quantitative and case study design. This study collects secondary data through various sources. This study computes valuation using Free Cash Flow to Firm (FCFF) and the Discounted Cash Flow (DCF) method. The result show that the synergy value of merger valuation between Bank Syariah Indonesia (BSI) and Sharia Business Unit of Bank Tabungan Negara (BTN) is Rp.98,333,621.89. By calculating the synergy value of Bank Syariah Indonesia (BSI) and Sharia Business Unit of Bank Tabungan Negara (BTN) merger, management could get additional data from preparation of merger and acquisition process.

Restructuring Strategy: A Performance Review of Spin-off Islamic Banks in Indonesia

The deadline of 2023 has almost passed for the obligation to conduct a spin-off for sharia business units in Indonesia to become a fully-fledged Islamic bank. However, a number of empirical findings highlight the urgency of evaluating this policy. Furthermore, many sharia business units are unable to meet the minimal standards. The paper aims to review prior studies on how spin-off decisions affect the financial performance of spin-off Islamic banks in Indonesia. Information was gathered from the Google Scholar and Mendeley databases using a literature review methodology. This study reveals that 18 publications have tracked 10 Islamic spin-off banks and 18 financial performance indicators. Following the spin-off, six Islamic banks, including BNI Syariah, BRI Syariah, BJB Syariah, Bank KB Bukopin Syariah, BTPN Syariah, Bank Aceh Syariah, BCA Syariah, Bank Syariah Mandiri, and Panin Dubai Syariah Bank, experienced an improvement in their financial performance. Assets, third party funds, financing, market share, CAR, NPF, ROA, z-score, and Maqasid Sharia Index were the main performance indicators that experienced a significant improvement after the spin-off.