Measuring the Performance of Islamic Banking in Indonesia with Maqashid Sharia Index: Pre-Merger and Post-Merger Period

Abstract

This study examines the performance of Islamic Commercial Banks in Indonesia in the pre and post-merger periods based on the combination of the Maqashid Syariah Index of Ibnu Ashur and Abu Zahrah. With three main indicators, namely tahdzib al fard (individual education), iqamah al adl ( justice), and maslahah (welfare). A comparative quantitative method using simple additive weighting (SAW) to measure the weight and performance rating of Islamic banking was used in this study. The results of the study indicated that the Islamic performance of Islamic Commercial Banks in Indonesia was below average. However, the merger has a positive impact on improving the performance of Islamic Commercial Banks in Indonesia in the post-merger period. Keywords: Islamic performance, Maqashid Sharia Index, merger