Adapting the Maqashid Syariah Index for Islamic Cooperatives: Evidence from KSPPS BTM West Sumatra
Abstract
Introduction/ Main Objectives: The performance measurement of Islamic financial institutions is not sufficient by only using financial indicators because it does not fully reflect the achievement of Sharia objectives. KSPPS, as a cooperative-based financial institution, has a different orientation through member welfare, distribution of economic benefits, and community empowerment. This study aims to analyse the performance of KSPPS using the Modified Maqashid Syariah Index (MSI) adjusted to the characteristics of sharia cooperatives. Novelty: This research develops the adaptation of MSI from the Islamic banking sector to the KSPPS context by adjusting indicators in the three dimensions of maqashid syariah, namely educating individuals, establishing justice, and public interest, using indicators such as member education, SHU distribution, member financing, and social contribution. Research Methods: The research uses a quantitative descriptive approach (index measurement without hypothesis testing) with the object of KSPPS BTM West Sumatra for the 2025 financial year. Data were obtained from the management accountability report, financial statements, and profit-sharing report. Finding/Results: The research results show a Modified MSI value of 42.76% with a sufficient category. The Educating Individuals dimension received a score of 51.25%, Establishing Justice 40%, and Public Interest 37.04%. These results indicate that KSPPS has performed the functions of educating members, distributing economic benefits, and financing members, but the social aspect still needs to be strengthened. Conclusion: Modified MSI can be an alternative measure of KSPPS performance because it can more comprehensively depict economic, social, and sharia aspects. This approach complements financial indicators with the perspective of achieving maqashid shariah goals in Islamic cooperatives.
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