Measuring and Evaluating Sharia Business Unit Spin-Off in Indonesia Using RBBR Model

This study seeks to assess the viability of Sharia business units (UUS) in Indonesia amidst the impending spin-off phase set to conclude by the end of 2023. UUS aspiring to become Sharia Commercial Banks have two options: either merging or spinning off. However, UUS failing to meet adequacy ratio requirements risks having their operational licenses revoked. Using a quantitative approach and secondary data from OJK reports on UUS financial ratios, this research examines asset criteria, spin-off-related data, and financial performance indicators such as non-performing financing (NPF), financing-to-deposit ratio (FDR), and return on assets (ROA). Employing the RGEC framework and RBBR method stipulated in OJK regulation No. 08/POJK.03/2014, the study identifies 12 UUS with favorable financial performance and profitability, while 8 others fall short in meeting criteria. High asset thresholds prescribed by Bank Indonesia impede UUS from registering spin-offs as indicated in 2022 UJK publication data. The findings are expected to inform spin-off policies, prompting deliberation on operational permission withdrawal versus the necessity of revised asset criteria under PBI regulation