Value Based Intermediation (VBI) as a Sharia Banking Strategy in Supporting Sustainable Development in Indonesia

The implementation of SDGs is in line with the principles of Islamic teachings that prohibit destruction on earth (ifsad fil-ardhi), both physical damage and non-physical damage. In addition, the principle of sustainability, in accordance with Maqashid Sharia by maintaining religion, preserving the soul, maintaining reason

backed up real sector.So that naturally Islamic finance will be a driving force in achieving SDGs targets in Indonesia.
The concrete form in encouraging SDGs in Indonesia is stated in the application of sustainable finance in OJK Regulation Number 51/POJK.03/2017concerning the Application of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies.The regulation regulates the steps that must be taken by financial institutions in Indonesia in implementing sustainable finance, so that it is expected that there will be a transformation of the financial system towards sustainable finance.That way it can make a significant contribution to the implementation of SDGs.In this POJK also regulates social development.Where the role of Islamic economy and finance in SDGs as poverty alleviation and income equality.Islamic economics and finance have instruments to alleviate poverty, reducing the gap between people's income levels.The instruments are zakat, infak, alms, and waqf.
In addition, another tangible form of encouragement is the roadmap or roadmap for sustainable finance in Indonesia.This roadmap has ended in 2019 and OJK is currently in the final stages of finalizing the roadmap for 2020-2024.In this sustainable finance roadmap, it has resulted in a lot of Islamic finance applications to support the SDGs, SDGs encourage all economic activities to pay attention to three things in a balanced manner, namely people, environment and profit.
The implementation of SDGs is in line with the principles of Islamic teachings that prohibit destruction on earth (ifsad fil-ardhi), both physical damage and non-physical damage.In addition, the principle of sustainability, in accordance with the maqashid sharia by maintaining religion, nurturing the soul, nurturing reason, or nurturing offspring, and maintaining property.The implementation of Islamic economy and finance is no different from SDGs.The role of Islamic economy and finance strengthens the target of SDGs.Now, Indonesian people also have an awareness of the importance of following Islamic law in all sectors of life, including the financial sector.With this awareness, Islamic finance is present, one of which is Islamic banking.
The journey of the Islamic banking industry in Indonesia has found a bright spot by increasing its market share market share as of September 2020 by 6.24% compared to 2015 of 4.87% (OJK, 2020).Even in the midst of the corona outbreak, Islamic banking is still showing its existence while the performance of companies engaged in property, manufacturing, automotive, finance to MSMEs is now in a declining graph (Caroko, 2020).
2021 is a very important year for the development of Islamic banking, as it is known that even in the midst of a pandemic, Islamic banking is still experiencing positive business growth.Based on the latest Sharia Banking Statistics data released by the Financial Services Authority (OJK) in January 2021, it shows that Islamic banking assets in the past year grew by around 14.2%.
Islamic economics is the philosophical foundation for Islamic banking which has the main purpose of falah.(Ghofur 2017) Falah is the achievement of the fulfillment of human life both in social and economic aspects, as well as the fulfillment of basic human needs or what is called maslahat.Furthermore, Islamic banking is expected to be able to provide financial services that contribute to the achievement of Sustainable Development Goals (SDGs).
Talking about maslahat and Sustainable Development Goals (SDGs), of course, these two things are inseparable from the maqasid al-shariaâah which consists of maintaining faith and piety (ad Din), offspring (an Nasab), soul and salvation (an Nafs), property (al Maal), and mind (al Aql).(Ghofur 2017) The five things contained in the sharia maqasid are certainly in line with the values in the SDGs.One of the values in the SDGs is socio-economic values which are now experiencing changes in the orientation of the business world from the previous Corporate Social Responsibility (CSR) to Crearting Shared Value (CSV).
CSV is a concept where companies must play a dual role to create economic value and social value simultaneously by providing solutions to economic, social, and environmental problems.
To realize the philosophical foundation of Islamic banking, Value Based Intermediation (VBI) is designed in accordance with the concept of value-based banking and should be adopted by Islamic banking in Indonesia.VBI was first initiated by the Malaysian state in 2017.With its presence, VBI opens a new dimension for Islamic financial institutions in providing services that are more impactful and beneficial to the wider community, so that the final results of VBI are expected to achieve Sharia goals holistically and support the SDGs.
Arsalaan Ahmed (HSBC Amanah-Malaysia), gave an overview of the role of the Malaysian government in impact investing, namely as a catalyst for the private sector to take part.Forms of government support include becoming investors, making attractive schemes, mobilizing social funds, providing tax incentives, and moving the capital market or banks.Especially for the Bank as one of the private sectors that plays a role in impact investing, Value Based Intermediation (VBI) is applied which is designed in accordance with the concept of value-based banking.The commitment of Islamic banks in Malaysia to adopt VBI is a significant step taken by the industry to clearly identify Islamic finance with sustainable practices.It has also set in motion initiatives that will raise barriers to processes, practices, offerings, and behaviors that promote sustainable Then identify the journal by classifying the research theme; research methods used; research results and also the scope of research (local, national or international).This method will later provide an overview of the dynamics of banking planning or strategy in supporting sustainable development which must be elaborated and or evaluated more deeply as a form of research questions for future research.Then explain the Islamic banking strategy to achieve the goals of the SDGs which are in line with the objectives of Islamic financial institutions.

RESULTS AND DISCUSSION
Grouping Related Article Trends Based on the above studies, it can be seen that Islamic banking strategies in supporting sustainable development can be explained from several aspects.Various countries that have begun to realize the values of SDGs in their economic activities have broadly started from Islamic financial institutions, especially Islamic banking.Furthermore, through this systematic literature review, research questions can be raised for the future that are relevant to Islamic banking strategies in supporting sustainable development.Next, we will explain the grouping of research results that are closely related to Islamic banking strategies in supporting Sustainable Development Goals.From the table above, it is known that of all the articles cited in this paper, the article (in the table) explains the most about the impact of these SDGs in the economy followed by strategies for various sectors and regulations related to them.So far, Islamic banking has only focused on products but forgot the main concept of Islamic financial institutions themselves, focusing on product, technical and Islamic banking activities.In fact, if you look again at the previous explanation, Islamic banking is tasked with prospering the community in order to achieve falah.However, the role of Islamic banking is still not perfectly felt by the community, because the basic concepts are starting to fade in order to pursue profit.This happens because, after all, Islamic banking is an institution that pursues profit for the sustainability of its company.So on this occasion, the author would like to introduce some concepts that should be brought back by Islamic financial institutions, especially Islamic banking.

VBI, SDGs and Maqashid Sharia
Value Based Intermediation (VBI) is designed according to the concept of value-based banking.,The commitment of Islamic banks in Malaysia to adopt VBI is a significant step towards clearly identifying Islamic finance with sustainable practices (BNM 2018) Value-based intermediation or VBI was first introduced in Malaysia in July 2017.This is done through the issuance of a strategy paper by the Central Bank of Malaysia entitled "Value-Based Intermediation: Strengthening the Role and Impact of Islamic Finance".The introduction of VBI received positive responses from industry players, especially Sharia scholars.By having VBI as a sustainability approach, IFSI is formed to be stronger, especially in resilience to economic crises.In addition, Malaysia is also trying to contextualize VBI into pragmatic practices in financial services offered by IFSI.This is taken with the hope that IFSI can be taken to the next level of growth.In addition to the introduction of the VBI strategy paper, the Central Bank of Malaysia also introduced three important guidance documents, namely: 1. VBI Implementation Guide 2. VBI Funding and Investment Impact Assessment Framework (VBIAF) 3. VBI Scorecard according to an announcement made by the Central Bank of Malaysia.
Generally, any approach that does not contradict Shariah is acceptable to practice unless there is a clear prohibition for such an approach.In the face of the realities of financial services and markets, an innovative approach can be considered as a necessity especially to enhance and strengthen Shariah principles in IFSI in the face of the modern world.This is permissible by following the rules of Islamic law al-aṣlu fῑ al-ashyᾱ' al-ibᾱḥah which means the original is permissible.Although VBI is allowed based on the rules of Islamic law, it is not wrong to consider carefully in analyzing VBI.(Mahadi, Mohd Zain, and Engku Ali 2019) Value Based Intermediation (VBI) aims to reorient the business model of Islamic finance with the aim of realizing the objectives of sharia so that it can generate positive and sustainable impacts for the economy, society, and the environment through practices, processes, offers, and behaviors.
In accordance with the rules of Islamic law which reads ‫اﻹﺑﺎﺣﺔ"‬ ‫اﻷﺷﯿﺎء‬ ‫ﻓﻲ‬ ‫"اﻷﺻﻞ‬ al-ashlu fil ash-yaa-i al-ibahah, in general any approach that does not contradict the Shari'a can be done https://doi.org/10.24256/kharaj.v5i3.4155unless there is a clear prohibition.Although VBI is allowed, it does not rule out the possibility of analyzing and considering carefully related to it.
In analyzing VBI from an Islamic perspective, it is certainly very important to examine the sharia principles relevant to it.VBI is derived from sharia principles so that the final result must certainly be in line with the objectives of sharia holistically and Maqashid Sharia.
When the VBI is mentioned, it gives focus to the role of financial intermediaries of Islamic financial institutions in delivering positive and sustainable impacts on society, SDGs specifically focus on the goals set and their achievement.It is important to remember that the SDGs are manmade goals that are not linked to divine revelation.Thus, the SDGs are secular in nature and subject to criticism.SDGs are suitable to be applied in the capitalist system and are less consistent with sharia.Collectively there are 17 goals set based on human needs.While the holistic goal of Shariah or Maqāṣid al-Sharīʻah is the highest goal of the Lawgiver i.e.Allah Almighty who was revealed through the intermediary of Prophet Muhammad (PBUH).Compared to Maqāṣid al-Sharīʻah, the goals set are limited to 17 goals and can be changed according to need.The foundations of Maqāṣid al-Sharīʻah are general and universal, while they must be consistent with the Shariah, these holistic goals are comprehensive and timeless in their characteristics.(Syed Alwi et al. 2021)

VBI and Sharia Banking
Reflecting on Malaysia, which has previously initiated the implementation of VBI in Islamic banking practices.In Malaysia, the introduction of VBI received positive responses from sharia industry players.With the VBI, it can form stronger Islamic banking, especially in economic crisis.In addition, VBI aims to redirect the Islamic finance business model in realizing sharia goals so that it can have a positive and sustainable impact on the economy, society and the environment through practices, processes, offers and behaviors VBI has guidelines in the application of banking practices as a reference for other Islamic financial institutions that intend to start implementing this VBI.Furthermore, VBI has a financing and investment impact assessment framework to facilitate the implementation of a risk management system to assess the financing and investment activities of Islamic financial institutions.And the VBI scorecard provides an overview that includes objectives, key components of the assessment, and measurement methodology.

VBI and Maqashid Sharia
Maqashid Sharia is the ultimate goal of Islamic law which refers to five fundamental aspects of human life, namely the protection of life, religion, intellect, offspring and property.This goal is a necessity and the basis for the realization of the general welfare of man in this world and the hereafter.If it is ignored, then coherence and world order cannot be established and chaos, and losses will prevail.
Islamic banking must be consistent in providing benefits (maslahah) for its customers by avoiding things that lead to losses, and of course all of it is firmly rooted in the maqasid of sharia.Furthermore, although SDGs are part of VBI, it must be considered and observed that SDGs can also contradict Sharia.Therefore, in achieving sustainable sharia development, SDGs can be used as a set of objectives of VBI by considering sharia maqasid and in accordance with sharia.
Correlation of VBI, SDGs, and Maqashid Al-Sharia VBI has a focus as a financial intermediary for Islamic financial institutions in providing a sustainable positive impact on society.And it is important to know that the SDGs are man-made goals that have nothing to do with divine revelation, so they are secular and often the target of criticism.SDGs are more suitable to be applied in the capitalist system and are less consistent with sharia.https://doi.org/10.24256/kharaj.v5i3.4155 While sharia has a holistic purpose, namely maqasid al-shariah which comes from the highest lawgiver, namely Allah SWT through the intermediary of the Prophet Muhammad SAW.The foundation of maqashid al-shariah is general and universal and must be consistent with sharia.

VBI and Islamic Social Financing
VBI makes SDGs a set of its goals as long as they are in line with Sharia.The existence of Islamic social finance and its instruments is useful as a tool in carrying out VBI-based activities.Islamic social finance consists of traditional Islamic instruments based on philanthropy (zakat, alms, waqf) and cooperation (qard and kafalah) (Islamic Social Finance Report, 2015: 8).But it is not limited to just traditional instruments, but also includes modern forms of Islamic financial services such as Islamic microfinance, Sukuk and Takaful that aim to solve societal challenges.
These traditional and modern Islamic financial instruments remain relevant and can be used by Islamic banking in achieving sharia principles holistically.In addition, Islamic social finance and its instruments are important tools for the success of VBI and also for the sustainability of Islamic financial institutions that also concentrate on the social welfare of society, economy, environment, and others.
The philosophies and principles inherent in Islamic finance underpin the three pillars of a sustainable economy: environment, social justice, and economic growth.Islamic social finance has an important position to contribute positively in achieving the SDGs.VBI focuses on the role of Islamic financial institutions as value-based intermediaries, Islamic social finance and its instruments can be utilized in achieving Maqashid Al-Sharia and SDGs.

VBI and Socio-Economic Impact
Value-based intermediation (VBI) aims to deliver the desired outcomes of Sharia through practices, behaviours and offerings that generate positive and sustainable impacts on society, economy, community and environment, consistent with sustainable shareholder benefits as well as long-term interests.VBI also emphasizes on minimizing and preventing negative impacts arising from the practices, behaviors, and offerings of the Islamic banking industry (BNM, 2018).
The expected results of Sharia focus on improving people's welfare through the preservation of people's wealth, faith, life, offspring, and intelligence in accordance with the maqasid of Sharia.In the context of Islamic finance business, one of which is Islamic banking focuses on encouraging to generate, accumulate, and distribute wealth fairly.https://doi.org/10.24256/kharaj.v5i3.4155 The picture above is an illustration of the expected results of sharia, especially in financial transactions 1.The first is justice, which is to minimize everything that causes injustice such as uncertainty and exploitation.

Source : BNM, 2018
There are five main components in VBI practice in the Islamic banking sector, including Impact-based assessment which has a potential impact on society, the environment, and the economy so that resources can be optimally allocated for productive economic activities.Second, comprehensive measurement includes financial and non-financial indicators so as to have an impact on the balance of motivation in order to achieve short and long-term results.Third, Impact focused disclosure includes details of customers where they lend and invest (goals, locations, and results) so as to increase trust between customers and the public.Fourth, constructive collaboration with various stakeholders so as to provide new insights, opportunities, and broader knowledge in increasing business impact.Fifth, inclusive governance by having active involvement with various stakeholders, both traditional and non-traditional, in the decision-making process so as to align the expectations of stakeholders and business.

Underlying Trust of VBI
Islamic banking institutions in addition to having a commercial business, but also have a business that also benefits the community so it requires a framework that collaborates between stakeholders.In this regard, it is imperative for Islamic banks to ensure that the intent, strategy and performance of their Islamic finance business are based on the area foundation of the VBI so as to create indigo for stakeholders.
Efforts to coordinate between IBI and industry stakeholders are very important so that the implementation of VBI can have a positive impact.Here are four basics that serve as initial guidelines for the beliefs underlying VBI: Entrepreneurial Mindset, this area focuses on facilitating entrepreneurial activities holistically, which includes financing and support in the form of advisors, market infrastructure, and business networks.By offering these facilities, it is expected to increase Islamic banking innovation through the development of new products, equipment, and business models to help and support entrepreneurs.https://doi.org/10.24256/kharaj.v5i3.4155 Community Empowerment, which is providing financial solutions for the community so as to create a positive impact.In the context of social obligations, those who are able have a responsibility to help those who are able through the effective distribution of wealth.Therefore, Islamic banking can play a significant role in creating socio-economic impact for communities.A balance between commercial and social aspects can be achieved through development, funding, and providing solutions to problems faced by the community so as to create a positive impact and open up new business opportunities for Islamic banking.Good Self-Governance, which instills discipline in the organization and has a good governance framework for all stakeholders.Related to governance, there are two main components, including inclusive governance, where all decisions made by Islamic banking not only affect shareholders, but also other stakeholders such as customers and investors.Next is self-governance which instills discipline in practical and operational activities.This is in line with the principle of truth (ihsan) from a sharia perspective so as to produce high values of accountability and integrity in Islamic banking.
Best Conduct, which is behavior that encourages to achieve continuous improvement to increase stakeholder satisfaction.Furthermore, Islamic banking aims to provide efficient services in addressing public needs while ensuring the rights of shareholders and other stakeholders.
Safeguarding the rights of stakeholders can be through transparent and fair disclosure of all transactions in order to minimize the occurrence of information asymmetry.Sharia has clearly outlined a set of rules to protect the interests of various parties, including the prohibition of unfair transactions such as riba and gharar caused by lack of information obtained, as well as avoiding disputes.

CONCLUSIONS
Important note for Islamic banks, especially in Indonesia that want to implement VBI, of course, it all depends on the level of maturity of each institution concerned.And according to the author, it is very necessary to conduct research related to the readiness of Islamic banking in Indonesia in implementing VBI.Because Islamic banking institutions in addition to having a business commercially, but also have a business that also benefits the community, it requires a framework that collaborates between stakeholders.In this regard, it is imperative for Islamic banks to ensure that the purpose, strategy and performance of their Islamic finance business are based on the area foundation of the VBI so as to create value for stakeholders.Efforts to coordinate between VBI and industry stakeholders are very important so that the implementation of VBI can have a positive impact.
4. By Article Type 5. Based on the Methodology Used This literature review identifies six methodologies: (i) empirical; (ii) descriptive; (iii) literature review; (iv) conceptual; (v) case studies; and (vi) comparative.Empirical study involves the application of observation or experience.Descriptive studies involve detailed explanations or representations of sub-sector aspects related to infrastructure development planning.The literature review analyzed several articles related to the impact of infrastructure development.Conceptual 2. The second is the preservation of wealth which consists of three ungsur including: a. Recognizing private ownership b.Prohibit infringement of the rights of others c.Ensure the validity of the transfer of ownership.3. Third is the circulation of wealth which consists of four ungsur including: a. Fair distribution of wealth, b.Prohibit the hoarding of wealth c.Drive increased revenue d.Channeling wealth to productive sectors VBI and Current Banking Practices https://doi.org/10.24256/kharaj.v5i3.4155 business and community.(Ministry of Finance 2019) https://doi.org/10.24256/kharaj.v5i3.4155So based on the background of the above problem , the first research problem can be formulated, namely, how the concept and relationship between Value Based Intermediation (VBI) and Sustainable Development and Maqashid Sharia, second, How Value Based Intermediation (VBI) is a Sharia Banking strategy in supporting Sustainable Development in Indonesia.

Review Sources Based on Research Focus
Based on the graph above, it can be seen that the sources / references used in this study as a whole are 54 reference sources, including 31 articles / books referring to Islamic Banking Strategy and 23 reference sources regarding Sustainable Development.3.By Year of Referral Source https://ejournal.iainpalopo.ac.id/index.php/alkharaj339 https://doi.org/10.24256/kharaj.v5i3.4155 are concerned with basic concepts and general problems related to infrastructure development planning.Comparative studies involve analyzing data from several countries.