The Influence of the Maqashid Syariah Index Based on the Thought of Asy-Syatibi on the Market Share of Islamic Commercial Banks in Indonesia

fatih zaidan; Shaifurrokhman Mahfudz

doi:10.30829/ajei.v0i1.28736

The Influence of the Maqashid Syariah Index Based on the Thought of Asy-Syatibi on the Market Share of Islamic Commercial Banks in Indonesia

fatih zaidan, Shaifurrokhman Mahfudz

Abstract

This study examines whether the implementation of Maqashid al-Shariah—grounded in al-Shatibi’s higher objectives framework and operationalized through the Maqashid Shariah Index (MSI)—contributes to increasing the market share of Islamic commercial banks (Bank Umum Syariah) in Indonesia. Using an explanatory quantitative approach, the research employs secondary data from annual reports and OJK Islamic banking statistics for the 2016–2023 period. The MSI is measured through three dimensions: tahdzib al-fard (human development), iqamah al-‘adl (justice), and jalb al-maslahah (public welfare), with total assets, capital adequacy ratio (CAR), and number of branches considered as control variables. Panel data estimation indicates that the fixed effects model is the most appropriate specification. The results show that, partially, only tahdzib al-fard is statistically significant, yet its negative coefficient should be interpreted cautiously due to extremely low variation in the data. Meanwhile, iqamah al-‘adl and jalb al-maslahah are not statistically significant on an individual basis. Simultaneously, the MSI dimensions jointly affect market share, although bank-specific characteristics remain more dominant in explaining market share differences across banks. These findings imply that maqashid-based performance may function more as a long-term, reputational and legitimacy mechanism rather than an immediate driver of market share expansion.

Keywords

Maqashid Shariah Index; market share; Islamic commercial banks; Indonesian Islamic banking; panel data regression; fixed effects model; maqashid performance

Full Text:

PDF

References

Abd Wahab, N., & Abdul Rahman, A. R. (2011). A framework to analyse the efficiency and governance of zakat institutions. Journal of Islamic Accounting and Business Research, 2(1), 43–62. https://doi.org/10.1108/17590811111129508

Ahmad, A., & Jaya, R. (2021). Statistik deskriptif: Teori dan aplikasi dalam penelitian sosial. Penerbit Nusantara.

Al-Baihaqi. Sunan al-Kubra.

Al-Ghazali, A. H. M. (2004). Ihya Ulumuddin (Vol. 2). Beirut: Dar al-Kutub al-‘Ilmiyyah.

Al-Qaradawi, Y. (2001). Fiqh al-Zakah (Vols. 1–2). Jeddah: Muassasah al-Risalah.

Al-Qur’an al-Karim.

Al-Raysuni, A. (1992). Imam al-Shatibi’s theory of the higher objectives and intents of Islamic law. International Institute of Islamic Thought.

Ali, M. M., Devi, A., Furqani, H., & Hamzah, H. (2020). Islamic financial inclusion determinants in Indonesia: An ANP approach. International Journal of Islamic and Middle Eastern Finance and Management, 13(4), 727–747. https://doi.org/10.1108/IMEFM-01-2019-0007

Ardila, I., Fadhila, N., Astuti, R., & Purnama, N. I. (2019). The performance of Islamic Banking with Maqashid Index. In Proceedings of the 1st International Conference on Economics, Management, Accounting and Business (ICEMAB 2018). https://doi.org/10.4108/eai.8-10-2018.2288737

Arif, M. N. R., & Rahmawati, Y. (2018). Determinant factors of market share: Evidence from the Indonesian Islamic Banking industry. Problems and Perspectives in Management, 16(1), 392–398. https://doi.org/10.21511/ppm.16(1).2018.37

Arikunto, S. (2013). Prosedur penelitian: Suatu pendekatan praktik. Rineka Cipta.

Asmar, M. D. A., Andriansyah, Y., & Masuwd, M. (2023). Performance measurement analysis of Sharia commercial banks in Indonesia with Maqashid Index and Sharia Conformity and Profitability (SCnP). Journal of Islamic Economics Lariba, 9(2). https://doi.org/10.20885/jielariba.vol9.iss2.art13

Auda, J. (2008). Maqasid al Shari’ah: A beginner’s guide. International Institute of Islamic Thought. https://doi.org/10.4236/jss.2022.107030

Baltagi, B. H. (2008). Econometric analysis of panel data (4th ed.). John Wiley & Sons.

Chapra, M. U. (2008). The Islamic vision of development in the light of Maqasid al-Shariah. International Institute of Islamic Thought.

Deegan, C. (2002). The legitimising effect of social and environmental disclosures – a theoretical foundation. Accounting, Auditing & Accountability Journal, 15(3), 282–311. https://doi.org/10.1108/09513570210435852

Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65–91. https://doi.org/10.5465/amr.1995.9503271992

Dusuki, A. W., & Abdullah, N. I. (2007). Maqasid al Shari’ah, Maslahah, and Corporate Social Responsibility. American Journal of Islamic Social Sciences, 24(1), 25–45.

Dusuki, A. W., & Bouheraoua, S. (2011). The framework of Maqasid al-Shari'ah and its implication for Islamic finance. ISRA Research Paper (No. 22). https://doi.org/10.2139/ssrn.1717684

Duli, H. A. (2019). Uji multikolinearitas dalam regresi [Makalah tidak diterbitkan].

Fathony, A. (2018). Maqashid al-syariah sebagai konsep dasar dalam teori pembentukan hukum Islam di Indonesia. Jurnal Islam Nusantara, 2(2). https://doi.org/10.33852/jurnalin.v2i2.103

Firdaus, A. (2021). Determination of organisational essential needs as the basis for developing a maṣlaḥah-based performance measurement. ISRA International Journal of Islamic Finance, 13(2), 229–250. https://doi.org/10.1108/IJIF-11-2017-0041

Fitriansyah, R., & Hannase, M. (2023). Performance analysis of Bank Syariah Indonesia and Bank Muamalat Indonesia during the COVID-19 pandemic reviewed from Maqashid Syariah. Al Iqtishod, 11(2). https://doi.org/10.37812/aliqtishod.v11i2.768

Freeman, R. E. (1984). Strategic management: A Stakeholder approach. Pitman Publishing.

Ghazali, I., & Ratmono, D. (2017). Analisis multivariat dan ekonometrika: Teori, konsep, dan aplikasi dengan EViews 10. BP Undip.

Ghodang, H., & Hantono, B. (2020). Autokorelasi dan Durbin–Watson dalam model regresi time series. Jurnal Ekonometrika, 8(2), 115–130.

Hanafi, S. M. (2021). Determinant of market share in the Indonesian Islamic Banking industry. Muqtasid: Jurnal Ekonomi dan Perbankan Syariah, 12(1), 1–16. https://doi.org/10.18326/muqtasid.v12i1.1-16

Hartono, H., & Sobari, M. A. (2017). Sharia maqashid index as a measuring performance of sharia bank. Jurnal Ekonomi dan Perbankan Syariah, 5(1), 29–42. https://doi.org/10.18860/ua.v5i1.4491

Hasan, Z. (2019). Market share Islamic Banking in Indonesia. IQTISHADUNA, 8(1). https://doi.org/10.46367/IQTISHADUNA.V8I1.157

Hassan, M. K., Aliyu, S., Paltrinieri, A., & Khan, A. (2018). A comparative study of Islamic and conventional banks: A sustainability perspective. Sustainability, 10(12), 4325.

Jaya, R. (2020). Uji heteroskedastisitas menggunakan uji Glejser [Makalah tidak diterbitkan].

Kartika, T., Firdaus, A., & Najib, M. (2020). Contrasting the drivers of customer loyalty: Financing and depositor customer, single and dual customer, in Indonesian Islamic bank. Journal of Islamic Marketing, 11(4), 933–959. https://doi.org/10.1108/JIMA-04-2017-0040

King, M. (2017). Risk-based financial performance in GCC: Saudi Arabia, Kuwait, Qatar, UAE, Bahrain, Oman. Journal of Global Responsibility, 14(2, Supplement), [halaman].

KNEKS. (2019). Masterplan Ekonomi Syariah Indonesia 2019–2024.

Khalil, N., et al. (2022). Qualitative needs for Maqasid al Shariah in Islamic Banking model. Journal of Economic Impact, 4(2), 83–90.

Lindblom, C. K. (1994). The implications of organizational Legitimacy for corporate social performance and disclosure. Critical Perspectives on Accounting Conference.

Mala, C. M. F., Hosen, M. N., & Al Arif, M. N. R. (2023). An analysis of market power and efficiency of Islamic Banking in Indonesia and Malaysia. Jurnal Ekonomi & Keuangan Islam, 9(1). https://doi.org/10.20885/jeki.vol9.iss1.art1

Maudhunati, S., & Muhajirin, M. (2022). Gagasan Maqashid Syari’ah menurut Muhammad Thahir bin al-‘Ashur. Jurnal Hukum Ekonomi Syariah, 6(2). https://doi.org/10.26618/j-hes.v6i02.9315

Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of Stakeholder identification and salience. Academy of Management Review, 22(4), 853–886. https://doi.org/10.5465/amr.1997.9711022105

Mohammed, M. O., Razak, D. A., & Taib, F. M. (2008). The performance measures of Islamic Banking based on the Maqasid framework. IIUM International Accounting Conference. https://doi.org/10.13140/RG.2.1.5115.6880

Mohammed, M. O., & Taib, F. M. (2015). Developing Islamic Banking Performance Measures based on Maqasid al-Shari’ah Framework: Case of 24 Selected Banks. Humanomics, 31(4), 354–371.

Nasution, S. (2017). Statistik deskriptif dalam penelitian sosial: Prinsip dan praktik. Penerbit Ilmu Press.

Neuman, W. L. (2014). Social research methods: Qualitative and quantitative approaches (7th ed.). Pearson Education.

Nugraha, E., Nugroho, L., Lindra, C. N., & Sukiati, W. (2020). Maqashid Sharia implementation in Indonesia and Bahrain. Etikonomi, 19(1), 155–168. https://doi.org/10.15408/etk.v19i1.14655

OJK. (2023). Statistik Perbankan Syariah Indonesia.

Perbawa, G. A., & Sunitiyoso, Y. (2023). Scenario planning of Islamic Banking industry development in Indonesia. European Journal of Business and Management Research, 8(4). https://doi.org/10.24018/ejbmr.2023.8.4.2008

Pranata, M. W., & Laela, S. F. (2020). Board characteristics, good corporate governance and maqashid performance in Islamic banking. Journal of Islamic Monetary Economics and Finance, 6(2), 463–486. https://doi.org/10.21098/jimf.v6i1.1089

Pratiwi, W. F., Farhan, M., & Aminah, S. (2023). Assessing sharia banking commitment through the shariah maqashid index. Jurnal Ekonomi dan Keuangan Islam, 9(1), 1–12. https://doi.org/10.20885/jeki.vol9.iss1.art1

Puspita, A., & Saryadi, S. (2023). Measuring Islamic Banking performance using Maqasid Shariah Index and RGEC. Dialektika, 8(2).

Qotadah, H. A. (2020). Komparasi metodologi hukum aliran maqasidi dan aliran syakli. Asy-Syari’ah, 22(1). https://doi.org/10.15575/as.v22i1.7700

Rahman, A. A. (2020). The impact of value-based intermediation on Stakeholders and financial stability. ISRA International Journal of Islamic Finance, 12(1), 1–18.

Rahmawan, L. H. (2025). Rekonstruksi Maqashid Syariah sebagai kerangka kebijakan ekonomi pembangunan. Jurnal Akademik Ekonomi dan Manajemen, 2(2). https://doi.org/10.61722/jaem.v2i2.4861

Riyanto, A., & Hatmawan, K. (2020). Metode regresi dan asumsi klasik dalam penelitian kuantitatif. Jurnal Metodologi, 3(1), 45–60.

Sayuti, K., Osman, M. D. H. B., & Khalilurrahman. (2022). Maqashid Al Shariah in economic development. Millah, 21(2), 583–612. https://doi.org/10.20885/millah.vol21.iss2.art10

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). John Wiley & Sons.

Shaikh, S. A. (2023). Market development of Islamic Banking in Pakistan and its economic impact. Journal of Islamic Accounting and Business Research, 16(1). https://doi.org/10.1108/JIABR-02-2022-0028

State Bank of Pakistan (SBP). (2024). Quarterly Islamic Banking Bulletin [PDF]. Retrieved from SBP website.

Suchman, M. C. (1995). Managing Legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610. https://doi.org/10.5465/amr.1995.9508080331

Sukmana, R., & Kuswanto, H. (2015). Assessment on the Islamic Banking market share projection. Journal of Islamic Monetary Economics and Finance, 1(1), 107–133. https://doi.org/10.21098/JIMF.V1I1.485

Suliyono, J., & Risfandy, T. (2021). Islamic Banking market discipline in Indonesia. Journal of Islamic Monetary Economics and Finance, 7(3). https://doi.org/10.21098/jimf.v7i3.1376

Suprayitno, E., & Haq, M. Z. (2022). Performance analysis of Sharia banking in Indonesia using the Maqashid sharia index. Jurnal Ilmiah Ekonomi Islam, 8(1), 18–29. https://doi.org/10.29040/jiei.v8i1.3273

Syarvina, W., & Sugianto, S. (2023). Determinants of Sharia banking market share in Indonesia. International Journal of Islamic Business Ethics, 8(1), 54–68. https://doi.org/10.30659/ijibe.8.1.54-68

Yusup, M., & Nasution, D. S. (2020). Implementation of the Maqashid shariah index approach on the performance of Sharia Regional Development Banks in Indonesia. Journal of Finance and Islamic Banking, 3(1). https://doi.org/10.22515/jfib.v3i1.1952

Yusuf, A. M. (2017). Teknik pengolahan dan analisis data penelitian sosial. Jurnal Penelitian, 12(1), 1–20.

Zainal, V. R. (2020). Pengelolaan dan pengembangan wakaf produktif. Al-Awqaf: Jurnal Wakaf dan Ekonomi Islam, 9(1), 1–16. https://doi.org/10.47411/al-awqaf.v9i1.32

Zulfa, A., Ruhadi, R., & Kristianingsih, K. (2022). Performance assessment of Sharia commercial banks in Indonesia. Journal of Applied Islamic Economics and Finance, 3(1). https://doi.org/10.35313/jaief.v3i1.3850

DOI: http://dx.doi.org/10.30829/ajei.v0i1.28736