Ecology, Environment and Conservation Paper

ANALYSIS OF ISLAMIC PERFORMANCE INDEX ON SHARIA BUSINESS UNIT IN INDONESIA TOWARDS SUSTAINABLE DEVELOPMENT

Hamdi Agustin, Sri Indrastuti, Amris Rusli Tanjung, Syahdanur, Pipin Kurnia, Sharifah Zarina Syed Zakaria, Nuriah Abd. Majid, Kadir Arifin, Zuliskandar Ramli, Emrizal and Muhammad Rizal Razman

Abstract

The purpose of this study is to assess the Sharia business unit by using the Islamic Performance Index method towards sustainable development. It is to be able to determine the development of Islamic Performance Index value and determine whether prioritize business or social goals. The population and sample in this study is 22 units of Sharia business during the period 2012-2016. Research variables are Profit Sharing Ratio, Zakat Performance Ratio, Equitable Distribution Ratio, Directors-Employee Welfare Ratio, and Islamic Income vs. Non-Islamic Income. The results of this study show that Islamic Performance Index average value tends to increase. This indicates show that Islamic Performance Index Sharia business unit well. The sharia business unit in Indonesia more prioritizes its business performance than its socials performance. This is reflected from the results of business performance calculations, especially on the profit sharing ratio that the Sharia business unit in Indonesia has applied for the results in accordance with Islamic principles and while the social performance is still less satisfactory in the expenditure of zakat and still high average comparison of the average director’s salary for the welfare of employees.