An Academic Exposure on Islamic

Methodology

Tranfsforming TSR concep1on to Real Sectors
Economic Measurement

Forum Discussion:
Establishing of Islamic Methodology
and Its Implementa1on in the real secort economic


Jadi Suriadi
Cecep Sudrajat
M. Zulhilmi

Objec1ve
q1. Premis 1# TSR : Complexity and Endogeneity (iden1fy and
analysis of social science variables, in nature rela1on)
q 2. Premis 2# TSR : Par1cipatory Among Agents ( ew paradigm of
mathema1cal formula in social science)
q 3. Premis 3# TSR : Social Wellbeing Func1on : (knowledge
induced-, general formula of social wellbeing model or
maslahah)
q 4. Measurement and Tools ( modied balance scorecard/MBSC
and discrete simula1on)
q 5. Research Reviewed

The journey of life

Wellbeing & IIE

Hisab Event (akhirah)

Ending Point (empirical)

t=tn

Knowledge induced-() Process

Xi + () Xi( )
(Xi ) + () ( , Xi())
General Wellbeing Func1on
W()= ((), X1(), X2(), X3(), X4(),.. Xn()

t=t3

General Formula in the Social Science

W()= k0(()+k1 X1()+k2 X2()+k3 X3()+... knXn()

t=t2

Interac1ve, Integra1ve, Evolu1onary (IIE)

Process

t=t1
t=t0

Variables involve in the system f (Xi())

(X1(), X2(), X3(), X4(), X5(), X6()........... Xn()

Star1ng Point

TSR Premise: #1: Complexity

and endogeneity

Premise #1 : Complexity and Endogeneity

Complexity is indeed an unshakable nature of all mul6dimensional rela6ons of
variables and systems dened by them. Yet the dynamic evolu6onary learning
nature of systemic interac6ons needs to chart the history of the future to
predict, guide and explain reconstruc6on and change. Such a?ributes reveal
inner consciousness that isembedded in historical change (choudhury, 2013)

Basic understading

System
(Xi)

1. It is a system with many variables inside.

All variables are in endogenous variables,
an organic inuence, no reducBon, no
subsBtuBons.
2. There is non linier dened (in formulaBon
of equaBon). No ceteris paribus
assumpBon, no opBmum calculaBon.
3. SimulaBon (discrete) is closed in reality
4. Every unit of variable is in dynamic
condiBon
5. Lets say there are 11 variable (sub-system)

1) The number of elements (variables, agents, sub-systems) are suciently large. Moreover, the variables
interact dynamically, and the interacBons can be physical or involve the exchange of informaBon.
2) Such interacBons are rich, i.e. any variables or sub-system in the system is aected by and aects
several other elements or sub-systems
3) The interacBons are non-linear. Small changes in inputs, physical interacBons or sBmuli can cause large
eects or very signicant changes in outputs
4) Any interacBons can feed back into itself directly or aVer a number of intervening stages. Such feedback
can vary in quality.
5) Such systems may be open and it may be dicult or impossible to dene system boundaries
6) Complex systems operate under far from equilibrium condiBons
7) Complex systems have a history. They evolve and their past is co-responsible for their present behavior.
8) There are many equaBons generated as simultaneously.
(David Orrell, 2012)

Interpresta1on:
1) Under simultaneous equaBons, the system enterpretate as below:

X1 = 1+ 1.1.X2 + 1.2.X3+1.3.X4 + 1.4.X5+ ................+ 1 .....(eq.1)

X2 = 2+ 2.1.X1 + 2.2.X3+2.3.X4 + 2.4.X5+ ...................+ 2............(eq.2)
X3 = 3 + 3.1.X1+ 3.2.X2+3.3.X4 + 3.4.X5+ .................+ 3 ..............(eq.3)

And so on

X11 = 11+ 11.1.X1+ 11.2.X2+11.3.X4 + 11.4.X5+ ..... + 3 .........(eq.11)

We did those equaBon to nd out researh problems in academic thesis.
Masive on mathemaBcal operaBon.
In the same manner to charge 1 variable as intervenning variabel, then to
run equaBons under structural equaBon model (SEM)

Resume:
1) Simultaneous equaBons and SEM are valid mathemaBcal operaBon. Very
good for staBsBcal purpose. But it congure secondary (historical) data
only.
2) Basic calculaBon sBll on linier (or event transforming to log or natural log
already). It simplify the nature of system under complexity and
endogeneity.

TSR Premise: #2 :
Par1cipatory Among Agents

Basic understanding :
1) MathemaBcal in social science, is too complicated to gure out under
saBsed mathemaBc formula. Many cases of the formula is very good
but wrong in the asumpBon of variable. (David orrell, 2012)
2) MathemaBcal in social science, must congure the essence of
parBcipatory among agents in the dened system (Prof. Masdul).
3) MathemaBcal in social scince, must congure the essence of pairness or
complementary relaBon of the components (Prof. Sofyan SH).
4) MathemaBcal in social science must be simple and easy to operate/run
in the reality. Can operate by using kalkulator tukang sayur (jadi/
cecep/zulhilmi).
5) In reality variables of social science is very complex e.g. crisis 2008 in
USA is reex that the behaviour of market/individu is not or can not
well dened in the economic variables (David).
6) OVen, secondary data will not provide a complete soluBon to a research
problems (Robert Lomas, 2011).
7) So, how to construct mathemaBcal gure in social science ?

TSR Premise: #2 :
Par1cipatory Among Agents

MathemaBcal construcBon in social science

1) The rst step is that all conguraBon must be refer to econometric and
staBsBcal science
2) Since all variables in social science is very dinamic so then recomended
that the secondary data (if any) is Bme series data.
3) The outcome of calculaBon method is beier under staBsBcal instead
rigid mathemaBcal formula.
4) The staBsBcal method to run Bme series data, in a-theory menu
instead many others. Vector Authoregression (VAR) or Vector error
correcBon model (VECM), to get the basic model.
5) UBlize the model to measure in primary data

TSR Premise: #2 :
Par1cipatory Among Agents

v In a system which contains many var

v All variables congure a complement each other ( as like pairing with many members)
v Every variable has same possibility to being dependent variable (focus consideraBon in
measurement)
v Simplest model of basic equaBon or formulaBon is gure out as below:

X1 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X2 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X3 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X4 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X5 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X6 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X7 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X8 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X9 =k1 .X1+k 2.X2+ k 3.X3 + k 4.X4 +k5 X5+ k 6.X6+ k 7.X7+ k 8.X8 + k9 .X9 +k10X10+k 11 .X11
X10=k 1.X1 +k2 .X2 + k3 .X3+ k4 .X4+k 5X5 + k6 .X6 + k7 .X 7+ k8 .X8+ k 9.X9+k10 X10 +k11 .X11
X11=k 1.X1 +k2 .X2 + k3 .X3+ k4 .X4+k 5X5 + k6 .X6 + k7 .X 7+ k8 .X8+ k 9.X9+k10 X10 +k11 .X11
v The model comply to econometric method under VECM (vector error correcBon
model) and module FEVD (forecast error variance decomposiBon)

TSR Premise: #2 :
Par1cipatory Among Agents
Figure out the out come :

Variance Decomposition
Percent LNW v ariance due to LNIP

Percent LNW v ariance due to LNW

Percent LNW v ariance due to LNCS

100

100

100

80

80

80

60

60

60

40

40

40

20

20

20

0
5

10

15

20

25

30

35

10

15

20

25

30

35

10

15

20

25

30

35

Percent LNW v ariance due to LNSV

100

Percent LNW v ariance due to LNEL

80
60
40
20
0
5

10

15

20

25

30

Percent LNW v ariance due to LNER

100

100

80

80

60

60

40

40

20

20

35
0
5

10

15

20

25

30

35

0
5

10

15

20

25

30

35

Variables idenBcaBon in the system

S
S
Xi

Xi

Xi

Xi

Xi
Xi

Xi

Lacking Overlapping perfect

complementary
The behavior of economy is determined by computer simula6ons that track the interac6ons

betwwen economic agent as they buy, sell and trade the goods and services. The model
economy therefor emerge from the ac6ons of the individual agent, just as it does in real life. The
aim is not to make abstract mathema6cal proofs of stability of other proper6es, as with the
Arrow-Debreu model, but instead to use the model as kind of experimental laboratoey for trying
out ideas.
There is plenty of empirical evidence to show that simple model make be?er predic6on than
complicated model.

(Orriel, D ., 2012)

TSR Premise: #3 :
Wellbeing Func1on

Basic understanding :
1) Premise 1# TSR complexity and endogeneity and premise 2#
parBcipatory among agents are sBll fully adopt empirical system or
human raBonality valued.
2) There is no embedded by knowledge induce- in every variable or a
system. So the model must be embedded by -valued
3) How to do?

TSR
Premise: #3 TSR

Premise #3 : Wellbeing Func1on

v The principle of knowledge induced- is ilustrated by Prof. Choudhury as below:

(,S) {} {x()}



(,x()) simulate W(x()) recalling (,S)
v NotaBon



Subject to circular





causaBon between
evoluBon of new



the variables
knowledge-owconBnuity


NotaBon
as cardinal of knowledge (perfect and complete), own by Allah
S as acertain condiBon named shuraBc process
X as Variable, agent, sub-system or CSF
X() as variable X which is knowledge induced- already
W () as a wellbeing funcBon, contains variable X which is knowledge induced- already

v The process of knowledge induced (), therefor are as below:
Xi + () Xi()
(Xi) + () (, Xi())
(X1, X2, X3, .... Xn,) + () (X1(), X2(), X3(), X4, ........X5(),())

How to establish social wellbeing model in system?

1) Upon the system had embedded by -valued, so then all variables are
also embedded, plus addiBonal 1 new variable, is it self.
(Xi(),) = (X1(), (X2(), (X3(), (X4(), (X5(),........ (X11(),)
2) Return back to premise 1# TSR complexiB and endogeneity. The new
system (all veriables are embedded -value and plus it self) must
follow the premis.
3) Follow, Premise 2# TSR : ParBcipatory among agents, there are many
equaBons.
4) Chohe as dependent variable, since as dened previously , knowledge
stock dan content, more coverage/wider/larger then the other variables.
5) as dependent variable, dene as wellbeing and called W() or
wellbeing . See the model

X1() = ( X2(), X3(), X4(), . . . . . . . .X11(),())

X2() = (X1(), X3(), X4(), . . . . . . . . X11(),())
X3() = (X1(), X2(), X4(), . . . . . . . . . X11(),())
X4() = (X1(), X2(), X3(), .. . . . . . . . . X11(),())
And so on, up to
X11() = (X1(), X2(), X3(), X4(),. . . . . . . X11. ())
() = (X1(), X2(), X3(), X4(), X5()......X11(),)

The simplest mathemaBcal model of PAA of the eqiuaBons are:

X1() = k1X1() + k2X2() +k3X3() + k4X4() + k5X5() + .......... k11 X11() +k0()
X2() = k1X1() + k2X2() +k3X3() + k4X4() + k5X5() + .......... k11 X11() +k0()
X3() = k1X1() + k2X2() +k3X3() + k4X4() + k5X5() + .......... k11 X11() +k0()
X4() = k1X1() + k2X2() +k3X3() + k4X4() + k5X5() + .......... k11 X11() +k0()
and so on up to
X11() = k1X1() + k2X2() +k3X3() + k4X4() + k5X5()+.......... k11 X11() +k0()
() = k1X1() + k2X2() +k3X3() + k4X4() + k5X5() + .......... k11 X11() +k0()....
W() = k1X1() + k2X2() +k3X3() + k4X4() +.... knXn() + k0()
W() is always as Dependent Variable or focus of considera1on (measurement)
W() as gure of Social Wellbeing Measurement Model

TSR Premise: #3 :
Wellbeing Func1on

InterpretaBon
1) Look at carefully, when a system had embedded or induced by -valued,
the variable inside system to be 1 more variable than th e original one. It
is because, -valued it self entries to the system.
2) All variables in the system had been embedded by -valued
3) What is meaning -value in variable Xi()..?

Mainstream Methodology

TSR Methodology

1.

Intangible value in measurement model

kiXi
materialism measurement only
Usualy concerned is financial aspek
Good in implemention in separated
purposed (CSR) under dichotomous scheme
Welfare conception

1.

Tangible Intangible value in measurement model

kiXi()
Materialism and embbeded by value
Concerned on social wellbeing a s holistic
manner
Inside/embbeded non dichotomous
Wellbeing conception

2.

Measurement purpose
To measure material value only

2.

3.

General perspective
capitalism
free market

Measurement purpose
To measure in kaffah dimension.
Put on inside value
General issue
social wellbeing (maslahah)
islamic community

TSR Premise: #3 :
Wellbeing Func1on
Mainstream Methodology

TSR Methodology

1.

Econometric Model
Usualy
under linier equation

Y = + 1.X1 + 2.X2+3.X3 + 4.X4+
Identification of significancy by coeficient
Complicated calculation and massive in
mathematical formula of statistic
Good in implementation in theoritical,
mathematical and statistical purposes

1.

Econometric model
figure out participatory among agents (PAA)
W()= k1X1() + k2X2() +k3X3() + k4X4()
+ k5X5() + k0()
Significancy by participatory level (ki)
Simplest mathematical model, easier to
understand
Suitable to implemented in social science

2.

Measurement purpose
Focus of consideration, selected one
variable as dependent variable.
By calculation of mathematical and
ststistical method.
Considering on optimalization or
maximalization
Possible to do substitution and ceteris
paribus

2.

3.

General perspective
Focus on spesific issue (financial only)
Strengh in calculation
Optimation or maximation

Measurement purpose
Setup wellbeing index W(), and put it always
as dependent vaiable
Possible to calculate only for limited part (i.e.
for (k) only)
Considering sinergy and complementarity
beyond variables. No optimation, no
maximalization calculation, but simulation by
discrete simulation.
All variable are endogenous, no substitution, no
ceteris paribus.
General issue
Focus on holistic and comprehensive issue
Strengh in measurement (especially in social
science)
Sinergy and complementarity beyond variables

The ConstrucBon Model of Social Wellbeing to be measured as below:

W() = k1X1() + k2X2() +k3X3() + .... + k11X11() + k0()

W() is essence of goodness from all variables in the system, it is called
as wellbeing of system or wellbeing index (WI). WI must be in posiBon as
dependent variable (to be focus consideraBon in measurement)
(ki) is parBcipaBon/contribuBon level which it is usualy decided by policy
(Xi) is achievement of material/numerik level, scoring by certain method
& procedures.
() is essence of syariah which is embedded to each variable. The main
contents are morality, ethic and social value. Acceptance level of
stakeholders.
k0(), is part of the truth which is not coverage by the exisBng variable
(empty space of empirical knowledge)

The model is under kaah perspecBve

The structure is similar will empirical system, with each variable has
been knowledge induced-()
Each variable has unied of 3 dimensions ( kiXi()): contribuBon level,
achievement level, accpetance level.
Measurement of () in morality, ethic and social value in each variable
by stakeholders as Knowledge induced- () of human raBonality on
empirical and quanBtaBve gure. By likert scale (5).

Resume:

1) The step to establish social wellbeing model:

1)
2)
3)
4)
5)
6)
7)
8)

Dene and sevng up the system with many variables (sub-sistem)

Follow premise 1# TSR
Folow premis 2# TSR
Follow primise3# TSR
Doing knowledge induce- and get the new system which is embedded by
-value.
Set up, Social Wellbeing funcBon W(), as dependent variable.
Terurn back to premise 1# TSR then premis 2# TSR
Establish new formula as Social wellbeing model

2) Do measurement

4. Measurement and Tools

How to measure Sosial Wellbeing Model (SWM) as a system.?
W() = k1X1() + k2X2() +k3X3() + .... + k11X11()
Prof Sofyan Safri H

1) Memahami secara mendalam, apa loso, paradigma, sistem, metodologi dan teknik
yang dipakai dalam sistem sekuler yang berkuasa saat ini.
2) Mempelajari secara mendalam kekuatan, kelemahan dan kesalahannya.
3) Mempelajari nilai nilai islam secara komprehensif dan secara khusus, yang relevan
dengan metodologi ilmiah.
4) Memakai metodologi dan teknik yang sesuai dan membuang yang 6dak sesuai dengan
nilai nilai islam.
5) Menyusun dan memformulasikan metodologi dan teknik sesuai dengan perspek8f
islam.
6) Melakukan evaluasi secara terus menerus dan dinamis formula yang dirumuskan tadi
dan melakukan penyempurnaan disana-sini.

Prof Moeheriono (2012) :

bial nada mampu mengukur sesuatu, maka anda akan mudah untuk memahaminya.
Bila mudah memahaminya maka mudah mengelolanya. Bila mudah mengelolanya
maka akan mudah untuk mencapai tujuannya.

Measurement is cri1cal part of knowledge aquisi1on.

Modied Balance Scorecard (MBSC)

How to measure SWM by modied balance scorecard ? :

What kind of unity or dimension to be measured in SWM ?:

Amount of (ki), as parBcipatory level or contribuBon of each variable
Xi, as performance achievement of each variable
-valued dimension of each variable which is in the embedded form
How to star1ng?
dened the system rst, select how many variables (CSF, agent, sub-system) inside in the
system
seSng up a standart form (BSC which is modied as required)
Draw down each variable to key performance indicators ( KPI)
Sevng important informaBon in the form : weighted, unit of measured, freq. Monitoring,
target, achievement and monitoring review for kiXi()
How to measure in common scoring ?
ki is usualy to be decided by policy maker, but possible to be reviewed by majority of
stake holders (by open quesion of quesioner).
Xi, to be measured by certain technical and procedures, compare achievement Vs target
sevng
-valued is intangible dimension of each variable to be measured by majority
stakeholders (in focus of morality, ethical and social value) in planning, execuring and its
outcome
.What is the nal gure of SWM?
As like an index, named as Social Wellbeing Index
As standard reference of measurement (in raBng cases) for similar insBtuBon
Final gure should be = kiXi()

Design Form of Measurement

Social Wellbeing Model Construction
Measurement
Category

Key Performance Indicators Freq.

Weight Historical (Xi)
Monitori Unit
(KPI
ed
t-1 t-2 t-3
ng

I. CSF/Variable X1
1
KPI 1.1
2
KPI 1.2
KPI 1.3
3
II. CSF/Variable X2
4
5
6

KPI 2.1
KPI 2.2
KPI 2.3

X1%

m/q/ann
m/q/ann
m/q/ann
m/q/ann
m/q/ann
m/q/ann

m/q/ann
m/q/ann

m/q/ann
m/q/ann
m/q/ann
m/q/ann

m/q/ann
m/q/ann
m/q/ann
TOTAL
BOBOT:

III. CSF/Variable X3

Social Wellbeing
Model
IV. CSF/Variable X4
Construction
9
KPI 4.1
7
8

KPI 3.1
KPI 3.2

KPI 4.2
KPI 4.3
KPI 4.4
V. CSF/Variable X5
13
KPI 5.1
14
KPI5.2
15
KPI 5.3
10
11
12

Min.Requirement
(Government
compliannce)
Mandatory
(shariah
compliance)

I. Government Compliance
16
Regulation 6.1
17
Regulation 6.2
18
Regulation 6.3
18
Regulation 6.4
I. Shariah Compliance
19
Mandatory 7.1
20
Mandatory 7.2
21
Mandatory 7.3

Target/Goal Achievemen
Scoring
t
t-3 Xi
targe target

t

Historical ()
t-1

t-2

X2%

X3%

X5%

100%

Preference for target decision

A= by Regulation
B=Average Industry
C=Company decision
D= best last 3 years

X4%

Notes

k.Xi.

Key Performance Indicators (KPI)

1
2
3
4
5
6

Rasio

2012

2013

2014

CAR (capital adequacy ratio)

ROA (return on asset)
ROE (return on equity)
NPF (non performing fund)
FDR (fund to deposit ratio)
BOPO (biaya operasi per
pendapatan operasi)

14,13%
2,14%
24,06%
2,22%
100,00%
74,97%

14,42%
2,00%
17,24%
2,62%
100,32%
78,21%

16,10%
0,80%
5,85%
4,33%
91,50%
79,28%

Key Performance Indicators (KPI

I. Capital Aspect
1 Capital adequacy ration (CAR)
2 Growth of core capital
II. Asset Quality Aspect
3
4

Tabel 38. Rasio Keuangan Bank Umum Syariah dan Unit Usaha
Syariah
(Financial Ratios of Islamic Commercial Bank and Islamic

NPF (Non Performing Financing)

Growth of Financing

Unit of
Weighted
measured

ROA (return on Asset)

ROE (return on equity)
Growth of profit

IV. Liquidity Aspect

8 FDR (fund to deposit ration)
9 Growth of 3rd party fund (DPK)
V. Efficiency Aspect
10 BO/PO (operation cost/op.rev)
11 Net core operational margin

Islamic banks

Mainstream (conventional)
Banks
2012
2013
2014

2010

2011

2012

2013

2014

16,25%
168.46%

16.63%
14.6%

14.13%
- 6.60%

14.42%
44.96%

16.10%
19.32%

17.43%

19.45%
26.23%

19.57%
20.30%

3.02%
45.42%

2.52%
50.56%

2.22%
43.69%

2.62%
24.82%

4.33%
8.26%

5.66%

5.18%
21.60%

5.70%
11.66%

1.67%
17.58%
56.42%

1.79%
15.73%
na

2.14%
24.04%
na

2.00%
17.24%
27.16%

0.80%
5.85%
- 52.70%

3.11%
15.60%

3.08%
16.36%
14.89%

2.85%
18.11%
6.09%

89.70%
45.46%

88.94%
51.79%

100.00%
27,81%

100.32%
24,42%

91.50%
18,70%

83.85%
15.80%

89.70%
13.60%

89.42%
12.29%

80.54%
33.68%

78.41%
na

74.97%
na

78.21%
30.98%

79.28%
-69.92

74.10%
5.49%

74.08%
4.89%

76.29%
4.23%

20%
%
%

%
%

III. Rentability aspect

5
6
7

What is done by
mainstream
methodology

15%
5%
20%

15%
5%
20%

%
%
%

7.5%
7.5%
5%
20%

%
%

15%
5%
20%

%
%

10%
10%
100%

BPRS Muamalat Harkat

Form Standar Pengukuran Kinerja
Measurement Category

Key Performance Indicators (KPI

I. Business Profitibility
1
ROA
2
Profit Growth
3
BOPO

Business
Performance

II. Clients Satisfaction

4
Lender Satisfaction
5
Borrower satisfaction
6
Cliennts growth
III. Employee Engagement & Commitment
7
Employee Satisfactionn & Commitment
8
Employee Training and Education
IV. Business Continuity
9
NPF
10 Liquidity
11 CAR
12 Promotion Budget
V Community Envolvement
13 Zakah for Institution/CSR
14 Dakwah to community
15 Employee Zakah

Freq.
Monitoring

Unit

Mandatory (shariah
compliance)

I. Government Compliance
16 Tax regulation
17 Business Regulation
... (others)
I. Shariah Compliance
18 product compliance
19 Services
.... (others)

Target/Goal
Goal

35%
Quarterly
Quarterly
Quarterly

%
%
%

annual
annual
annual

Likert
Likert
%

15%
10%
10%
5%
5%
5%

Likert
hours

10%
10%

%
%
%
Rp, mil
Rp, mil
hourS
Rp, mil

%
%
%
satuan
%
skala likert

3.5

C
A
D

5%
B
A
5%
A
5%
C
4%
4%
2%
100%

10%
annual
annual
annual

Achievement

C
C
B

20%
Quarterly
Quarterly
Quarterly
annual

Realization

B
B
B

20%
annual
annual

15%

TOTAL BOBOT:

Min.Requirement
(Government
compliannce)

Weighed
(%)

A
C
C

ki.

ki.

Notes
Score
Preference for target decision
A= by Regulation (BI/OJK)
B=Average Industry
C=Company decision
D= by Stake Holder Perception

5. Research Reviewed

Transforming Social Wellbeing Model to the Real Sectors Economic Ac1vi1es

1. Is it possible to transform all economic ac1vity as a system to Sosial Wellbeing

Model (SWM) measurement?

W() = k1X1() + k2X2() +k3X3() + .... + k11X11()
authors haqul yakin it was possible
It is very good starBng to expose Islam is rahmatanlilalamin, bring the morality,

ethical and social valued to be embedded in all kinds of economic measurement.
To build a new paradigm of methodology, and challenge mainstream methodology
(exisBng), which is ignoring wellbeing. Mainstream concern in welfare
Islamic Methodology concern in social wellbeing model.

2. Is it proven by academic thesis?

1)
2)
3)

2 thesis (S-2 Unv. Azzahra) had passed examinaBon

1 thesis, had presented in internaBonal conference
Many others on going researched

3. Lets see (the 1tles) as an examples

a.

b.
c.

Pengukuran social wellbeing model sebagai Kinerja BPRS Muamalat Harkat,

Bengkulu (studi kasus berdasarkan perspekBf TSR)
IdenBkasi dan Analisis Intangible Value BPRS, perspekBf TSR
Mengukur Tingkat Kemaslahatan Alokasi Belanja Pemerintah Daerah
Kabupaten/Kota, perspekBf TSR

5. Research Reviewed

Transforming Social Wellbeing Model to the Real Sectors Economic Ac1vi1es

3. Lets see (the 1tles) as an examples
d.
e.
f.
g.

IdenBkasi dan analisis pengukuran kemaslahatan project nancing berbasis

sumberdaya alam, berdasarkan perspekBf TSR
IdenBkasi dan analisis pengukuran kemaslahatan usaha sektor riil berdasarkan
perspekBf TSR (studi kasus : usaha jual beli mobil bekas)
IdenBkasi dan analisis Islamic methodology Vs Mainstream methodology (studi
kasus kinerja perbankan syariah 2014).
IdenBkasi dan analisis pengukuran kemaslahatan dana zakat (studi kasus LAZ...)

And so on..!

An example of case study

Resume Alokasi Pos Belanja APDB 2013 Se-Indonesia

1 Belanja Pegawai (langsung+tak langsung)
2 Belanja Barang modal
3 Belanja Barng & Jasa
4 Belanja lain lain (Bantuan, Hibah, Subsidi dan lain lain)
Total

49,0965%
25,3064%
18,5488%
7,0483%
100,0000%

5 Linkert Scale, to measure -Value

Overhead cost
Investment
maintenance
Orhers

1
2
3
4

-reviewed
2,467
2,801
2.573
2,366

Open Questions to measure ki (allocation)

1
2
3
4

Overhead cost
Investment
maintenance
Orhers

No. Category of Budgetary Spending LG 2013

2
3
4

Overhead cost
Investment
maintenance
Orhers
Total

27,67%
18,45%
9,47%
44,42%
100,00%

Total

ki-reviewed

Reviewed

ki

ki-rev

Xi-rev

-rev

49,1

27,67%

na

2,467

25,31

18,45%

na

2,801

18,55

9,47%

na

2.573

7,04

44,42%
100,00%

na

2,366

100

 Conclusion and recommenda1on.

Based on the case study budgetary spending on LG in Indonesia 2013 and its empirical work
above, there are several issues to be discussed:
1. Social Wellbeing measurement model is implemented in public organizaBon under Tawhid
String RelaBon (TSR) Methodology, which is the main focus on islamic epistemology. TSR
Methodology is based on revelaBon (Al-Quran and Hadist), instead of mainstream which is
lay on human raBonality. TRS Methodolohy has 3 main premises, complexity and
endogeneity, parBcipatory among agents (PAA) and wellbeing funcBon. There are principles
of framework:
In a system, there are a lot of variables. Each variable is endogenous variable. Among
the variables is in very complex relaBon. There is no precise formulaBon to esBmate the
future. There is a part of Allah secret (takdir).
PAA is a simplest mathemaBcal gure to measure dependent variable (variance
decomposiBon) in parBcipatory form.
Each variable must be embedded by knowledge induced-. Always sevng up -valued
as dependent variable, mean that to be focus of consideraBon in measurement. That is
named as Social Wellbeing Measurement Model, which is -valued measurement as
criBcal issued. In general formulaBon is wriien down as eq.(2.5)

2. EquaBon 2.5 above is to be measured by modied balance scorecard form in

the public organizaBon in case study of budgetary spending on LG in
Indonesia 2013. The transformaBon from equaBon to measurement form is
very important step to measure everything under approaching TSR
Methodology.
TSR methodology (which is Islamic methodology) has a very good chance
to be model of general understanding in social science, especially in
economic and nance sectors.
Each variable is measured in both part quanBtaBve and qualitaBve
dimension (performance achievement and -valued dimension).
It is a part of Islam rahmatan lil alamin, when TSR methodology is
transform to social science, called it as measurement of social wellbeing
index for ummah.
3. ImplementaBon of Social Wellbeing in budgetary spending on LG is very good
case to see usefulness TSR methodology. It is a Bme to involve -valued
dimension in every counBng or valuaBon of variables of human being
acBviBes. It is a social wellbeing maier. It used the essense of revelaBon and
-valued dimension to compare againt mainstream.

4 Social Wellbeing is general and comprehensive model to gure out

performance measurement an organizaBon or system in quanBtaBve gure
and qualitaBve dimension, as -valued dimension purposed. It is possible to
implement to many others measurement, parBcularly in public organizaBon
under islamic methodology. The main and criBcal part of social wellbeing is
to involve -valued dimension (morality, ethical and social value)
measurement in each variable which those are involved as criBcal success
factors (CSF) in the system.
5. Forward, the concept of social wellbeing hopefully will be accepted by many
public and business insBtuBons, then the social wellbeing measurement can
be as Social Wellbeing Index of Public Sectors OrganizaBon.
6. Quesioner data result indicate that overall the -valued dimension for all
variable is low. It was a bad indicaBon in morality, ethical and social value of
the LG ocers in term of planning and execuBng program or KPI of budgetary
spending on 2013. It is recomended to do some improvement eort.
7. Authors recomended for all public sector organizaBon should to do
mesurement Social Wellbeing Index, by approaching TSR methodology.

Wahullahualam bisawab
Thanks you..!