Sharia Compliance and Effectiveness in Resolving NPF: Evidence from BMT Baytul Ikhtiar and KSPPS HSI Abdullah Roy Bogor

Bogor في KSPPS HIS Abdullah Roy و BMT Baytul Ikhtiar Bogor دراسات حالة من :NPF الالتزام بالشريعة الإسلامية وفعاليتها في تسوية

Abstract

This study aims to analyse the models for resolving Non-Performing Financing (NPF) at KSPPS Baytul Ikhtiar and KSPPS HSI Abdullah Roy by assessing their compliance with Sharia principles and their focus on institutional effectiveness. This study employs a qualitative research design using a comparative case study approach. Data collection was carried out through in-depth interviews with management and the Sharia Supervisory Board (DPS), followed by thematic-comparative analysis using source triangulation and classification based on the stages of NPF management, including identification, handling, monitoring, resolution and evaluation. The research findings conclude that both BMT prioritise the actual repayment capacity of borrowers as the primary consideration in resolving NPFs. BMT Baytul Ikhtiar implements rescheduling without adding a margin, the waiver of the margin following repayment of the principal, a reassessment of income and basic needs, and consultation with the Sharia Supervisory Board (DPS). BMT KSPPS HSI Abdullah Roy utilises reconditioning in the form of partial margin write-offs and a reassessment of the borrower’s capacity through the 5C framework. Both approaches demonstrate Sharia compliance as they avoid penalties and prioritise resolution based on the borrower’s financial capacity. The theoretical contribution of this study reinforces the construction of NPF resolution based on the borrower’s capacity as a mechanism linking Sharia compliance with financing management. The practical contribution is an adaptive resolution model oriented towards payment capacity. The limitation of this study is that the data are not sufficient to prove that the model effectively supports the sustainability of BMT/KSPPS, thus requiring further testing.