REVITALIZING INDONESIAN ISLAMIC BANKING PERFORMANCE: A STAKEHOLDER ANALYSIS

Abstract

This paper examines views of Islamic banks’ stakeholders, which can be used as bases for measuring and improving bank performance.  Taking Indonesia as a case study, we compile information and data from  both internal and external stakeholders through in-depth interview and FGD, code them  using N-Vivo, and finally apply the stakeholder management framework for data analysis. The results we obtain suggest that the Internal stakeholder's view on IIB performance is relatively positive.  Meanwhile, the external stakeholders tend to have varied views on Islamic banking  performance. This research finds that the religious values ​​promoted by Islamic banks can increase the company's value but at the same time it can also reduce the interest in Islamic banking.  Based on these findings, it is necessary to investigate further how to strategize the religious values for the promotion of Islamic banking.