TITLE:
Strategy for Non-Performing Financing Management in Sharia Banks Based on Economic Sector of Financing
AUTHORS:
Moch Hadi Santoso, Hermanto Siregar, Dedi Budiman Hakim, Mulya E. Siregar
KEYWORDS:
Analytical Hierarchy Process, Financing Contract, Non Performing Financing, Sharia Bank
JOURNAL NAME:
Open Journal of Business and Management,
Vol.7 No.2,
February
13,
2019
ABSTRACT: This study aims to
determine the strategy for non-performing financing management on financing in
Islamic banks based on the economic sector of financing. This study was
specifically carried out at the BRI Syariah Bank in the period 2010 to 2017, using the
Analytical Hierarchy Process (AHP) in determining its handling strategy with
the involvement of nine experts as respondents with the background of three
people from Islamic bank practitioners, three people from the profession
academics or lecturer staff, and three people from the sharia banking authority
or regulator. In the formulation of strategies for handling non-performing
financing in financing, it is divided into five levels, namely level 1) goal, level 2) economic sector, level 3) factor, level 4) actor, level 5) program. The results
showed that the economic sector that needs attention with a high level of
importance is the trade, restaurant and hotel sector with a weight of 0.197,
followed by the construction sector with a weight of 0.189 and the industrial
sector with a weight of 0.168. An important factor that needs attention
regarding non-performing financing is the handling of NPF with a weight of
0.243, followed by bank rating of the bank—a risk profile with a weight of
0.217 and Indonesia’s economic growth with a weight of 0.148. The actors who
play an important role in handling non-performing financing are directors with
a weight of 0.300 followed by work units with a weight of 0.178 and economic
conditions with a weight of 0.144. The most important non-performing financing
management program is intensive collection with a weight of 0.340, then the
restructuring with a weight of 0.312 and collateral sales with a weight of
0.151.