The period from 2020 to the fourth quarter of 2021 was challenging due to the ongoing COVID-19 pandemic, impacting Sharia banking with a decrease in financing distribution and returns. The Indonesian government's focus on banking, health, and the real sector further intensified the challenges, causing a decline in income and hindering customer payments, thereby affecting the performance and stability of Sharia banking [1-2]. While some financial institutions managed to grow amidst the crisis by catering to vibrant economic sectors, others experienced a notable decline in financial activity, particularly when serving clients severely impacted by the pandemic [3]. The slow circulation of money in rural areas in 2023 is attributed to delayed disbursement of social assistance and government subsidies, compounded by the rapid growth of fintech companies targeting low-income segments. The OJK's restructuring policy (11/POJK.03/2020) aimed at micro and macro companies underscores efforts to prevent a sharp drop in Sharia banking performance, emphasizing the need for economic stability and favorable circumstances [4-5]. The evident inequality between income segments during the pandemic, especially in the Java region, highlights the challenges faced by various socioeconomic groups. Despite economic slowdown, Bank Syariah CIPTA faced challenges in customer behavior regarding sentra meetings, prompting a shift back to the previous group financing approach to enhance support and communication [5].

Bank Syariah CIPTA, established over a decade ago, has positioned itself as Indonesia's 12th Sharia Commercial Bank, focusing on supporting inclusive communities, particularly industrious women in small cities and villages. Following its formal registration on 14 July 2014, the bank has maintained steady growth and solid financial performance, uniquely concentrating on financial inclusion and empowerment. Operating in 23 Indonesian provinces, the bank continually updates goods and services to provide advantages for millions of Indonesians. Engaging in banking services that empower underprivileged communities, especially women, the bank offers financing products like Tepat Pembiayaan Syariah and funding products such as Tepat Tabungan. The organizational structure, outlined in the annual report, reflects the bank's commitment to its vision of creating opportunities for growth and a more meaningful life, with a mission to be the best Sharia Bank for inclusive finance. In serving ultra-micro segments, the bank adopts a unique approach, conducting regular center meetings every two weeks to support productive women in small cities and villages. This approach, named the Future Package, aligns with the bank's vision and mission, providing dual benefits for current business development and future enhancements in housing or education [6].

Business Issue

The complex situation faced by Bank Syariah CIPTA is evident in the increasing Non-Performing Loan (NPF) ratio, rising from 2.6% in Q4 2022 to 3.0% in Q1 2023. The surge in NPF rates can significantly impact the company's overall performance, posing challenges in terms of business, risk, and financial aspects. To address this, a focus on identifying and resolving the root cause of the increasing NPF rates is imperative for developing effective strategies. The Sharia Mobile Marketing (MMS) division plays a crucial role in connecting the bank with customers, particularly in underprivileged communities, and its performance is monitored, including profitability analysis. The bank's conservative approach in providing financing restructuring and the cessation of delay payment restructuring as per OJK regulations have impacted portfolio quality. The categorization of Wisma based on loan payment schedules and attendance rates provides a detailed overview of the varying levels of performance within the bank's clientele (Bank CIPTA Syariah website). 

Research Objective, Scope, and Limitation

The research aims to investigate the factors causing decreased profitability in Wisma and propose strategies to enhance the financial performance of Wisma Siaga, with the overarching objectives of understanding the underlying issues and providing valuable insights for future decision-making.

This study restricts the research results to the year before the pandemic (2019) until Quarter 1 of 2023.

The assumptions are based on internal corporate data as well as references from Indonesia's Sharia banking sector and economic environment. 

The Impact of Pandemic for Global banking

Banks will surely be affected as credit losses cascade through the economy and demand trops. Global Banking entered the crisis well capitalized and is far more resilient than it was 12 years ago. Our latest research indicates that in almost Covid-19 scenarios, the vast majority of banks should survive. Banks can capitalize on some deep seated and accelerating trends to rethink their organization, business model and for long term success [7].

Financial Services Authority Regulations (POJK)

PJOK NO.14/PJOK.05/2020 Concerning Economic Stimulus as a Countercyclical Policy Impact of the Spread of Coronavirus Disease 2019 in Nonbank Financial Institutions and Financial Services Authority Regulation (POJK) NO.11/PJOK03/2020 Concerning Economic Stimulus as a Countercyclical Policy Impact of the Spread of Coronavirus Disease 2019 in the Banking Industry are the two Financial Services Authority (OJK) policies that are based on the oldest policies. POJK NO.11/PJOK03/2020 Regarding the Influence of the 2019 Coronavirus Disease Spread on the Banking Sector and Economic Stimulus as a Countercyclical Policy Given that the global spread of the coronavirus disease 2019 (Covid-19) has affected debtors' ability to fulfill financing or credit obligations, both directly and indirectly, and that increasing credit risk can negatively impact debtor capacity and performance in addition to disrupting banking operations and the stability of the financial system, which can ultimately have an impact on economic growth.

According to POJK NO.11/PJOK.03/2020 article 1 [3], a bank is defined as a conventional commercial bank that includes sharia business units, sharia commercial banks, people's credit banks, and sharia people's financing banks that carry out business activities conventionally or on the basis of sharia principles. Banks can implement strategies to stimulate economic growth for creditors affected by the spread of the 2019 coronavirus disease (Covid -19), such as micro, small, and medium firm debtors.

NPF (Non Performing Financing)

Non-Performing Financing (NPF), which is equivalent to Non-Performing Loans in traditional banks, is a ratio that demonstrates the bank's management's capacity to manage problematic financing given by the bank.

NPF is a ratio that shows how much risk the financing provided by sharia banks to customers, in this case mudharib parties. This means financing provided to third parties and does not include financing provided to other banks. The following provisions are mutually agreed upon, such as:

1. Financing that creates risks in the future

2. Refund of problematic principal

3. Financing in special, doubtful and stuck categories

4. Financing is classified as smooth but has the potential to experience arrears.

Profitability

Profit in company operational activities is an important element to ensure the company's survival in the future. The success of a company can be seen from the company's ability to compete in the market. Based on the theory above, it can be concluded that the profitability ratio is a ratio to measure how much a company is able to generate profits by using all the company factors in it to produce maximum profits. This profitability ratio is usually taken into consideration by investors when investing their shares in a company. If a company has a high level of profitability in terms of stock returns, then an investor will choose that company to invest in shares. Large sales and investments are required and have an impact on the magnitude of the profitability ratio. The greater the volume of sales and investment, the higher the profitability ratio. In general, four forms of analysis are employed to determine the level of profitability [8].

CAR (Capital Adequacy Ratio)

The CAR gauges a bank's capacity to use enough capital to offset a drop in assets brought on by bank losses from risky assets [9]. The bank is better equipped to absorb the risk associated with each loan or loan, the higher the CAR. risky productive resources. Stated differently, a bank's performance is positively correlated with its capital sufficiency, which mitigates the risk of bad loans and fosters public trust in the institution, ultimately resulting in higher profits.

FDR (Financing to Deposit Ratio)

FDR is a liquidity metric that quantifies the amount of money placed in the form of loans originating from monies collected by banks (particularly by the public). If the AUH measurement findings exceed the aim and limit, it is probable that the bank would face liquidity issues, putting pressure on the bank's income [10]. The greater the FDR, the higher the company's earnings (provided the bank can distribute loans properly and has a low amount of bad loans).

Allowance for Impairment Losses (CKPN)

In adherence to Bank Indonesia Regulation Number 14/15/PBI/2012, banks categorize their assets into productive assets, generating income, and non-productive assets, devoid of profit potential and susceptible to losses. The risk of impairment, where the asset's value recovery is less than its carrying value, is inherent in the provision of funds for productive assets, necessitating the establishment of a Reserve for Impairment Losses (CKPN). As defined by Indramawan (2019) [11], CKPN serves as a reserve to mitigate the risk of impairment losses, particularly on assets such as credit and securities. The forthcoming implementation of PSAK 71, effective from early 2020, outlines the policy for forming CKPN. Under PSAK 71, banks are mandated to estimate the expected credit loss (ECL) using macroeconomic forecast information, including economic growth projections, GDP, unemployment rate, inflation, and commodity price index. The regulation emphasizes considering at least two macroeconomic scenarios, an improving economy (upside) and a worsening economy (downside), in CKPN formation (OJK's roadmap for PSAK 71).

Data Collection Method

The research focused on Bank Cipta Syariah, utilizing both secondary and primary data collection methods. Secondary data, obtained from the bank's financial reports spanning 2018 to 2022, included key performance indicators such as Return on Assets (ROA), Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), and Non-Performing Financing (NPF). The financial report data were treated as nominal scale figures, categorized into certain ranges for analysis. Primary data were gathered through interviews with five purposely selected experts and practitioners from the bank, including sharia finance experts and academic researchers, contributing to a comprehensive understanding of the subject matter [12-15]. The study spanned two months, aiming to assess factors influencing the profitability of Bank Cipta Syariah and propose directions for future decision-making to enhance financial performance.

To ensure data accuracy and relevance, the primary data collection involved electronic means through the bank's website and direct interviews with experts/practitioners, academic researchers, and company management. Purposive sampling was employed to select individuals with substantial contributions to the formulation and implementation of the company's strategy. The research considered the openness principle, accessing financial data available to the general public via the bank's website and hard copies. The comprehensive approach undertaken, incorporating both quantitative financial ratios and qualitative expert insights, is expected to provide a holistic analysis of Bank Cipta Syariah's financial performance and contribute valuable insights for strategic decision-making [11].

This research using five expert respondents in Sharia, including heads and directors from various departments such as Financing Business Planning & Support, Financial Control & Analytic, Finance, Treasury & Operation, Corporate Planning, and Portfolio Management & Governance, collectively possessing extensive experience in areas crucial to the research focus on Bank Cipta Syariah's financial performance.

Data Analysis Method

This study adopts a quantitative descriptive method, utilizing secondary data from Cipta Syariah Bank's annual reports spanning 2018-2022, with Return On Assets (ROA) as the dependent variable and Current Asset Ratio (CAR), Finance Deposit Ratio (FDR), and Non-Performing Financing (NPF) as independent variables [15]. Multiple linear regression analysis in SPSS is conducted, accompanied by tests for autocorrelation, heteroscedasticity, multicollinearity, linearity, and normality. Additionally, R factor analysis, F-tests, and t-tests are employed to test hypotheses in the research [12].

The multiple linear regression analysis: 

Y = α + β1 X1 + β2 X2 + β3 X3 + β4 X4 + βn Xn + e

Hypothesis testing plays a crucial role in determining the significance of regression coefficients, involving F-tests and t-tests. The F-test assesses the combined impact of independent variables on the dependent variable, while the t-test evaluates the individual influence of each independent variable. The significance level of the F-test, typically set at 0.05, indicates whether there is a substantial relationship between the variables. The t-test, applied individually to regression coefficients, determines if an independent variable significantly influences the dependent variable. Both tests involve comparing computed values with table-based values to accept or reject the null hypothesis [17].

For qualitative data collection, the study adopts a qualitative approach, conducting interviews with open-ended questions to gather non-quantitative textual and visual data. Qualitative data analysis follows an interactive model by Miles, Huberman, and Saldaña [18], involving data condensation, presentation, and conclusion drawing/verification. The cyclical process of data collection and analysis ensures research continuity until saturated data is obtained [19].

The integration of quantitative and qualitative research results is considered when both components are related, providing a comprehensive understanding in a single study. Analytical Hierarchy Process (AHP) is subsequently employed, a decision-making tool aiding managerial decisions by considering unstructured factors through expert opinions. The hierarchical arrangement involves multiple strata, from the target (strata 1) to strategic alternatives (strata 5), each influenced by various unstructured factors [20].

The general form of abstraction of the AHP hierarchical system can be seen in Figure 1.

Figure 1 : General form of hierarchical system abstraction (Hypothetical)

Establishing targets, criteria, and activities within a hierarchical system lacks a specific procedure and depends on the chosen goal for disaggregating a complex system into various elements [21]. The identified system elements are grouped into strata, forming a hierarchical structure. While constructing a hierarchy, the interrelatedness of factors or system elements is not always perfect, requiring insight, patience, and interpersonal skills to gain knowledge and experience. Hierarchical representation offers advantages, such as describing how changes in higher strata priorities impact related elements in lower strata and providing detailed information on structure and function [20].

The Analytical Hierarchy Process (AHP) utilizes pairwise comparison analysis with data analysis facilitated by computer programs like Expert Choice 2000. Consistency of expert opinions is measured using the consistency ratio (CR). AHP helps determine the priority order/level of influence of elements in a hierarchy. The hierarchy is created based on expert opinions, literature, and confirmation with expert respondents through in-depth interviews and discussions. Data processing and revisions are conducted post-questionnaire collection, outlining the process of creating and processing AHP data in research [20].

What are the factors that drive profitability wisma decreased?

The research addresses the decline in homestead profitability during the COVID-19 pandemic, analyzing the risks faced by Islamic banks, including both bank and customer risks. The pandemic has disrupted the normal functioning of Islamic banks as intermediaries, impacting credit distribution, asset quality, and net interest margins. Experts emphasize the challenge of a "K-shaped" recovery, indicating divergent economic speeds and consumer confidence. Strategies for Islamic banks involve measurable expansion into the digital segment. Interviews with experts highlight factors like the quality-related figures and cost of credit influencing bank profitability. Respondents discuss challenges post-COVID, such as customers in arrears, increased loss reserves, and reduced profitability for Sharia Mobile Marketing (MMS). The pandemic's impact on economic activity, particularly in weakening debtor performance, is evident, affecting Islamic banks' growth.

How to improve the profitability of wisma Siaga?

Bank Cipta Syariah has implemented various strategies to navigate the challenges posed by the COVID-19 pandemic, focusing on improving the quality of financing and adapting to new economic conditions. The bank has identified factors causing quality challenges and is continuously adjusting its strategies. Areas with quality problems are given specific attention to avoid future issues.

New segments, such as customer's husbands and companies, are being developed, and operational cost efficiency is a priority. The bank evaluates all strategies to fine-tune them for better alignment with challenges. Despite economic challenges, the bank sees opportunities in decreased competition and is cautious in new financing, looking for sustainable staff.

The bank emphasizes the importance of increasing income while maintaining existing costs. Acquisition strategies are improved, and field officers are trained to enhance their capabilities. The bank is adapting to the preferences and challenges posed by different generations, particularly Generation Z, and acknowledges the significance of effective communication.

The COVID-19 pandemic has led to a shift in the economic landscape, prompting the bank to reevaluate its business strategies. The focus is on maintaining profitability through adjustments in disbursement strategies, area mapping, and discipline reinforcement. The bank anticipates improved profitability by surviving the challenging period and leveraging its proven business model.

In summary, Bank Cipta Syariah's strategies involve quality improvement, segmentation, cost efficiency, and adaptation to new economic realities. The bank remains resilient and optimistic about its profitability, aligning its actions with the evolving demands of the post-pandemic economy.

Quantitative Analysis

The results of descriptive analysis give a summary of the collected data. This data description can serve as a guide to help us understand the features of the data that we collect. The average, minimum, maximum, and standard deviation values are among the attributes of the data that are displayed. This is a broad summary based on the information gathered. 

Table 1 : Descriptive analysis

The features of the study samples are displayed in Table 1 below, which is based on the findings of a descriptive statistical analysis. The aforementioned table displays the observations that were conducted at Bank Cipta Syariah between 2018 and 2022.

The profitability variable (ROA) has an average value of 0.0643 and a standard deviation of 0.0504, with the maximum and minimum values being 0.1116 and 0.0107, respectively, according to the data. The liquidity variable (FDR) has a maximum value of 734.8 and a minimum value of 642.5. The average value is 0.2667 with a standard deviation of 2884.5. Based on statistical analysis, the non-performing financing variable (NPF) has an average value of 239.58, a standard deviation of 132.27, and maximum and minimum values of 458.67 and 100.97, respectively. In terms of statistics, the capital variable's (CAR) maximum and minimum values are 0.3334 and 0.1703, respectively, and its average value is 0.2667 with a standard deviation of 0.0868.

In this study, multiple linear regression analysis to determine the effect of each independent variable on the dependent variable ROA

Table 2 : Simultaneous Test of ROA

Testing Hypotheses Simultaneously Even if the error rate is 0%, H0 is rejected and H1 is allowed since the F-statistical test in this study reveals an error probability value of 0.016, which is less than the confidence level of 0.05 or 5%. The research model's main independent variables—CPR, NPF, and FDR—have a simultaneous, substantial impact on ROA, according to the findings. (table 2)

Table 3 : Partial Test of ROA

• Constant C, if all independent variables have a value of 0, then the ROA value is a constant of 1.036.

• The CAR variable often has a favorable but insignificant impact. Table 4.3 above illustrates this, showing that the probability value is 0.001 and the t-count value is 1.549. Consequently, the findings of this study corroborate those of Pratiwi (2012) and Akter and Mahmud (2014) [22-23] studies, which found that the CAR variable positively affects ROA.

• The t-count for the Bank Cipta Syariah NPF variable is 2.598, and its probability value is 0.004. As can be seen in this figure, the t-calculated probability value is smaller than the significance threshold (α=0.05), leading to the rejection of H0 and the acceptance of H1. This indicates that Bank Cipta Syariah's NPF condition has a substantial and beneficial impact on banking ROA in Indonesia from 2018 to 2022. As a result, the findings of this study corroborate those of Sumarlin (2016) and Lemiyana (2016) [24-25], who found that the independent variable NPF positively affects profitability (ROA).

• The CAR variable often has a noteworthy and favorable impact. Table 4.3 above illustrates this, showing that the probability value is 0.001 and the t-count value is 1.549. Consequently, the findings of this study corroborate those of Pratiwi (2012) and Akter and Mahmud (2014) studies [22-23], which found that the CAR variable positively affects ROA.

• There is typically a positive and strong impact from the FDR variable. Table 4.3 above illustrates this, showing that the probability value is 0.003 and the t-count number is 2.604. Consequently, the findings of this study corroborate those of Pratiwi (2012) and Akter and Mahmud (2014) studies [22-23], which found that the FDR variable positively affects ROA.

Analysis AHP Method

The strategy to improve the financial performance of sharia banking is related to the issues of planning, implementing and controlling persuasive communication with customers. In the analysis of selecting a strategy to improve financial performance, there are four interrelated elements between the factors that influence the selection of a strategy to improve the financial performance of sharia banking, actors who have an interest in developing a strategy to improve the financial performance of sharia banking, the objectives of the strategy to improve the financial performance of sharia banking, and alternative improvement strategies. financial performance of sharia banking which can be implemented by companies so that the goal of improving the financial performance of sharia banking can be achieved.

The AHP structure has been identified and compiled, the elements of each element will then be assessed by experts. The preparation of the hierarchical structure in this research is based on interviews with those developing strategies to improve sharia banking financial performance. This hierarchical structure is used as a basis for preparing questionnaires to obtain respondents' opinions in assessing factors, actors, goals and alternatives in the hierarchical structure.

Figure 2 : Strategy for Improving Financial Performance of Bank Cipta Syariah

The results of the analysis show that the experts (5 experts) placed the strategy of improving employee quality and productivity with a weight of 0.278 (27.8%), the second position was the Information Technology strategy 0.268 (26.8%). Focusing on the business segment in accordance with the bank's risk appetite with a weight of 0.231 (23.1%), the last position is the massive socialization of Islamic banking products and services to the public with a weight of 0.201 (20.1%).

In developing a strategy to improve sharia banking performance, improving institutional performance cannot be separated from the factors that influence it. The main influencing factor is trust with a weight of 0.145 (14,5%), followed by the influence of capital with a weight of 0.198 (19.8%), weight management. amounting to 0.132 (13.2%), the information technology and regulatory factors with a weight of 0.286 (28.6%) and regulations 0.135 (13.5%). ( figure 2)

The resulting strategy model (AHP model), based on model sensitivity performance analysis, shows that the selected strategy will be sensitive to changes in management, technology and regulatory factors. If these factors change, it will influence the chosen strategy. Meanwhile, trust and capital factors do not influence the resulting strategy changes. In other words, the strategy chosen is appropriate because the dominant factors are trust and capital.

Solution and Proposed Implementation Plan

Based on the quantitative and qualitative analysis that has been carried out at Bank Cipta Syariah, the following is a solution and Proposed Implementation Plan based on the research questions that have been addressed.

The factors that drive profitability wisma decreased 

In an economic downturn, many economic sectors experience a decline in income, resulting in an inability to fulfill debt payment obligations or continue to provide capital in the banking sector. Business actors with banking obligations will have difficulty fulfilling their obligations if their business experiences a decline in income due to the Covid-19 pandemic. In these conditions, of course one of the areas affected is the banking sector which has distributed credit or provided capital to economic actors but is experiencing obstacles, which are reflected in bank income as a basis, and trade is also affected by this.

Due to the community's low purchasing power and the restricted amount of activities that take place outside the home, bad credit is an issue. The loss of jobs, the collapse of whole industries, the limitation of access to products and services, and the flow of people have all contributed significantly to the persistent suppression of earnings. Logically, at this point, the possibility of negative credit resulting from company closings and limitations on activities beyond the house is irrevocable. Facts reveal that, as of May 2020, the Financial Services Authority reported that the ratio of non-performing loans (NPL), or bad credit, was 3.01%. This represents a rise from the 2.8% rate reported in prior months.

After some investigations, we found that after pandemic our customer are rarely come to PRS (we usually collect out disbursement with PRS System (loan officer and our    customer gather to collect the credit and saving their money) every 2 weeks but the pandemic situation allowed the Ibu Nasabah ( our customer) don’t have to come to PRS. But the effect is the decreasing number of absences in PRS is leading to high debt collection and it leads to decreased profitability of MMS.

Three things have disturbed Islamic financial institutions during the COVID-19 pandemic: a decline in asset quality, tightening of net interest margins and credit distribution.

• Credit Distribution (Financing): Both Islamic banks and conventional banks will experience difficulties in terms of credit distribution (financing). 

• Decrease in Asset Quality: The existence of POJK No.11/POJK.03/2020 will help sharia banks and conventional banks, especially in terms of sweeping reserves.

• Tightening Net Interest Margin: Islamic banks use a profit sharing system as explained above. Thus, their balance sheets will be flexible during the Covid-19 pandemic crisis because the costs allocated for profit sharing payments will decrease along with the decline in Islamic bank revenues.

   

Sharia financial performance is influenced by operational problems and delays in current sharia bank financing. A study by (Azhari & Wahyudi, 2020) [26] found that the COVID-19 pandemic had an impact on sharia banking performance, with significant fluctuations at the start of the pandemic. In terms of DPK and financing, the performance of Islamic banks varies. During the pandemic, rental financing experienced a fairly consistent decline. However, equity financing has experienced a fairly large and consistent increase. This further supports the theory that the yield system used for Islamic banking products, equity financing, can survive in unstable economic situations both at home and abroad.

Facing this kind of situation, the excellent service that sharia banks must provide is different from normal conditions [27]. There are several excellent service patterns that sharia banking can try in the midst of the Covid-19 outbreak, to protect performance and relationships with customers. In overcoming the consequences of the COVID-19 pandemic, the government responded with various policies, one of which was the issuance of the Republic of Indonesia Financial Services Authority Regulation No. 11/ POJK. 03/2020 Concerning National Economic Stimulus as a Countercyclical Policy Due to the Spread of Coronavirus Disease 2019 which includes credit/financing restructuring [3].

It is vital to identify business variables and their capacity to meet their responsibilities so that they do not make errors in calculating funding distribution, resulting in a delay in meeting their obligations. This company plan will be very vital in times like today, in addition to continually thinking about revenue production, but not simply in giving funding, being cautious and careful in each application received.

Strategy to Improve the profitability of wisma Siaga

The banking sector has a strategic role in improving the community's economy. With capital assistance from Sharia banking, society will be more productive. Unfortunately, during this pandemic, everything has to be adapted to new ways, including Sharia banking. Sharia banks must create new, more creative strategies to reduce risks and the current uncertain economic and environmental conditions. This shows that sharia banking faces greater challenges in efforts to develop sharia banking. Sharia banking must start revising its strategy [28]. Covid-19 poses various challenges in almost all sectors. Many economic activities have been impacted, including the Sharia banking sector. In order for Sharia banks to survive, Sharia banks need to mitigate risks and create innovative strategies.

Each financial institution has several types of strategies, which are broadly divided into three (Tunggal, 2002) [16], namely:

• Corporate strategy, namely the strategy developed at the highest level of the organization telling the organization what activities (the bank) will be involved in

• Business strategy, especially focusing on how competition occurs in a particular business area.

• Functional strategy, namely focusing on the short term, paying attention to sub-functional activities (financial operations, marketing, resources, etc.)

To gain dominance in the market, Islamic banks must follow three pillars. First, strengthening the image of sharia banking, strengthening collaboration in the sharia economic ecosystem, and improving procedures, systems and supervision. In an effort to reduce the impact of COVID-19 on the banking sector, the Banking Services Authority (OJK) issued a national economic stimulus policy (POJK No. 11/POJK.03/2020). This policy regulates banks to support economic growth stimulus, especially for debtors affected by the COVID-19 pandemic, including MSME debtors, but who are still able to pay their debts. Financing or credit restructuring is included in one of them.

Banks can usually make efforts to rescue and settle credit when problematic credit occurs. Credit rescue efforts are efforts to save problem loans through renegotiation between debtors and banks by providing credit relief which is expected to restore the debtor's ability to repay credit.

Restructuring is one of the strategies for sharia banks to be able to provide some convenience for the community, while also maintaining income for sharia banks in terms of financing. Apart from that, another strategy is to review the repayment or installment payment period of the financing to three to six months. Restructuring policy is part of macroprudential policy. Therefore, this sharia bank can be a solution to overcome the economic problems experienced by customers.

Financing restructuring is a convenience offered by Islamic banks to make installment payments by revising them, such as extending the financing period or decreasing nominal installments; nevertheless, it does not imply the elimination of installment obligations. This policy has been in existence from the start of the epidemic, and it was granted to Islamic banks. In this approach, it is envisaged that Islamic banks would enhance their performance.

As a business entity, of course you cannot only view Covid-19 as a disaster, but you must also be able to grasp this as a challenge which will push Islamic banks out of their comfort zone and turn them into opportunities. These opportunities can be optimized by business expansion, improving digital services, and so on. Digital services will expand the business reach of sharia banks. So sharia banks should implement more massive digital services contained in one sophisticated application. [29].

According to OJK, independently performing financial operations and transactions utilizing digital or electronic tools that the bank owns, as well as digital material that is held by potential clients or current bank customers, constitute digital banking services. Customers and potential customers may now acquire financial services independently (self-service) without having to visit the bank directly thanks to the digitalization of bank services [30].

In this case, new technological advancements must make it simpler and more comfortable for users to access sharia banking services. The challenge of transforming the use of digital technology extends beyond simply offering online and mobile banking services; it also requires innovation in fusing digital technology with customer interaction. This affects the company's reputation as well. Islamic banks won't be able to innovate in technology if digital services can't make users feel comfortable and convenient. As a result, there are a lot of factors to consider while switching from traditional to fully digital transactions.

Growth in a company will generally be positively impacted by digitization. Therefore, in this day of technological disruption, all industries need to be prepared to adapt to rapid changes. It is inevitable that the Islamic banking sector will need to change to keep up with technological advancements. Digitalization requires Islamic banks to upgrade their services, noting that the move from conventional banking to digital can boost the efficiency of work processes and improve the quality of customer care. Through the process of digitization, banks have committed to long-term investments, and it is anticipated that digital services will emerge as a primary catalyst for the banking industry's sustainable growth. [31].

Bank policies developed to ensure that they may conduct banking business effectively by adhering to appropriate directives and POJK are incentives for parties impacted by Covid-19 to find relief in satisfying their bank commitments. So that business continues to thrive, the bank will continue to enhance and provide appealing materials to residents, encouraging them to continue to utilize sharia banking services. Being selective in satisfying the demands of customers who ask for financing, given that the economic situation is not normal, it is vital to decide who is seeking financing can truly share the profits and the amount of return can be assessed better. There are always many people who apply for financing, it's just that the bank makes the choice regarding each proposed financing, whether it is appropriate or not considering the current situation is different from the previous situation.

Justification of Implementation Plan

This section delves into the practical aspects of putting the proposed solution into action. Outlining a step by step plan, detailing the timeline, tasks, and methods for rolling out the enhanced questionnaire. Additionally, this chapter provides a rationale for choosing to integrate this new survey into the existing field officers (Community Officer). This section aims to bridge the theoretical framework with the hands-on approach needed to make a meaningful impact on the ground.

Implementation plan below are tasks list that needs to be carried out in the implementation phase

Figure 3 : Implementation Plan

Justification

Based on the results of research and data analysis, the strategy to improve Bank Cipta Syariah's financial performance is to increase profitability. This alternative is in accordance with the main goal of the strategy to increase public trust. Based on the company's strength, this alternative strategy starts from the strength of the company which has a determination together with sharia financial elements to improve services and competitiveness and if you look at it from the perspective of opportunities, the potential for sharia banks in Indonesia is still wide for development. The recommendation for this Alternative Strategy is that Bank Cipta Syariah needs to expand its network, improve service quality, so that customer loyalty is formed based on convenience, security in transactions and also because of the programs carried out by Bank Cipta Syariah. Creating public trust in sharia copyright banks which has an impact on the profitability of sharia copyright banks in Indonesia.

Chairman of the Social and Communications Committee of the Indonesian Sharia Bank Association (Asbisindo) Indra Falatehan outlined 5 strategies that sharia banks are trying to enter a new phase. Sharia banks will always carry out risk mitigation, one of which is by restructuring financing due to the Covid-19 pandemic which has an impact on the real area which is determined to disrupt debtors' ability to pay. The bank wants to map out which debtors are eligible for restructuring and which are not. The reason is that this restructuring will reduce the bank's income. In addition, banks are also faced with liquidity risks which have the potential to tighten due to restructuring. After that, the second strategy is that Islamic banks will continue to stimulate development because on the other hand, banks are also required to generate interest payments that must be paid to bank depositors. Third, is the digitalization of banking services. Banking digitization was already being tried before the outbreak occurred, but now it is a moment to test whether the bank's digital banking will be used by customers or not. Next, the fourth strategy, Islamic banks must provide assistance to MSME players by helping to digitize this business segment so that it can continue to survive.

A form of assistance can be tried through corporate social responsibility (CSR). Fifth, Islamic banks are required to implement innovation. Entering the new normal phase, banks cannot use old methods of carrying out business including providing services to customers. What is very important is that Islamic bank leaders must be smart, they cannot use old methods, they must use new methods so they can adapt because the ones who win are not the smart ones, but the ones who can adapt.

Bank policies developed to ensure that they may conduct banking business effectively by implementing instructions and providing POJK-related incentives for parties impacted by Covid-19 to find relief in satisfying their commitments to the bank. So that business continues to operate successfully, the bank will continue to enhance and supply enticing materials to residents in order for them to continue to utilize Sharia banking services. Be selective in satisfying the demands of customers who seek financing; given the current economic environment, it is vital to establish who is requesting for financing so that profits can be shared and returns can be calculated more accurately. There are always many who ask for financing; it is simply that the bank takes the decision about each proposed financing, whether it is acceptable or not, since the present scenario is different from the previous one. (figure 3) 

It is vital to identify business variables and their capacity to meet their responsibilities so that they do not make errors in calculating funding distribution, resulting in a delay in meeting their obligations. This company plan will be very vital in times like today, in addition to continually thinking about revenue production, but not simply in giving funding, being cautious and careful in each application received.

The next business plan is to develop digital-based sharia banking services, with numerous facilities currently in place at Sharia Bank to facilitate client transactions utilizing digital technology that can be accessible at any time over the internet network. ATM facilities are always maintained so that clients may withdraw dollars or utilize other services without having to visit the office, as ATM services are provided in a variety of locations. Following that, users may appropriately employ Sharia Bank's existing mobile banking facilities with more full capabilities to suit their financial transaction demands. Customers have 24-hour access to mobile banking, making it easier for them to complete any transaction they choose. Complete features may suit customer demands with easier and less expensive access; without leaving the house, users can conduct banking services with enough internet network capital.

Sharia Bank will continue to develop digital banking facilities so that consumers may experience and use them effectively, reducing the necessity for face-to-face transactions. Next, the bank's cash management system will assist each customer with their transactions. In the middle of a pandemic like today, technology-based services are a need that banks must supply in order for consumers to carry out transactions smoothly. The business segment will expand as a result of the development and distribution of digital tools. Customers that have positive and comprehensive experiences choose to place their funds with Islamic banks. If client funds continue to rise, so will the volume of financing distribution, resulting in higher earnings. Digital technology facilities and services are unavoidable at this point in the development of the Sharia banking sector. Included in safeguarding business rivalry between banks, which are vying to develop their digital offerings, which will sustain the banking industry itself.

The second most important alternative strategy for improving the financial performance of Bank Cipta Syariah is to focus on business segments in accordance with risk appetite to increase Bank Cipta Syariah's profits. The implementation of this strategy is very optimal because apart from having measurable indicators, it also has a larger and strategic target market. Implementing this strategy can be done by focusing on the right products and services for customers. The business segments offered are corporate and retail.

The factor that is the main priority in preparing a strategy to improve the financial performance of Bank Cipta Syariah is trust in both raising funds and distributing funds. Customers will want to keep their funds in the bank if they are based on trust. This trust is important to build because in this situation all parties want to feel they have benefited both in terms of storing funds, receiving funds and receiving the distribution. In other words, the higher the public's trust, the higher the third party funds (DPK) that will enter the bank.

The actor who has the main influence in improving the quality and financial performance of Bank Cipta Syariah is the board of directors. Determining the management of company goals based on the provisions regulated in the articles of association and applicable laws, this actor is part of the authority and responsibility. Promotional programs, planned promotional strategies, and product development that support this actor's promotion are part of this actor's authority and responsibility. Managerially, the Board of Directors needs to build effective communication with interested parties in conveying decisions and policies taken in steps to improve the performance of Bank Cipta Syariah.

The main priority goal is to increase public trust. The increasing public trust in sharia copyright banks will of course go hand in hand with increasing financial performance. So with public trust influencing the volume of third party funds, with the level of trust Sharia copyright banks can distribute products and services to the public in the long term. The strategy to improve the financial performance of sharia banks is also carried out by improving service quality and maintaining relationships with customers through effective appropriate programs, so that old customers remain comfortable, and new customers are interested in using sharia banks.

The first challenge facing the sharia banking sector is maintaining physical distance (Physical Distancing). Sharia banks must serve customers from home and adjust their business practices in response to the Covid-19 pandemic. Additionally, sharia banking must provide customers with digitalized services, including financing and fund collection. According to Perry Warjiyo, the governor of Bank Indonesia (BI), the banking sector needs to act quickly and nimbly since people's transactional behavior has changed from traditional to digital, especially since society is growing larger and more people are using smartphones. According to the Financial Services Authority (OJK), digital banking services are independently performed banking services or activities that utilize electronic or digital facilities owned by the bank and/or digital media that is owned by current or potential clients. Customers and potential customers may now independently get financial services (self service) without visiting the bank thanks to the digitalization of bank services.

The best way to understand how technology, like digital banking, is used to create new services to fulfill the demands of consumers or potential customers is to look at how the customers utilize and perceive the services. Serving others is only one aspect of service; there is also knowing, grasping, and experiencing. Service delivery will win over the customer's heart in this way. A product's ability to win over customers' hearts and minds can increase its loyalty. In order for it to improve the company's reputation. The task of transforming the way that digital technology is used involves more than just offering online and mobile banking services; it also requires innovation in the way that digital technology is combined with customer interaction. In this scenario, new technological advancements must facilitate and ease users' access to banking services. Digital banking is one of them; it outlines virtual procedures that support all services and will help businesses expand overall. Consequently, banks must always create digitization initiatives. In general, digitalization will be beneficial to corporate growth.

Digitalization is a must and a responsibility for the financial industry, not a choice. Because consumers need one 24-hour service and speed, convenience, flexibility, and comfort. Reducing operating expenses is the primary advantage of digitizing banks; this is a long-term investment. By cutting back on the investment budget for sub-branch and petty cash office openings, banks may reach a larger market. Achieving client pleasure is one of the objectives of this bank's digital transformation. Customer satisfaction is the most important factor in the banking industry, which is a service sector. If they don't receive what they expected, customers will just switch banks. If they don't receive what they expected, customers will just switch banks. The Islamic banking sector must adapt to the Covid-19 epidemic in order to thrive. To get a competitive edge in the face of the challenging Covid-19 epidemic, innovate. Prioritizing the acceleration of technology-driven business models is imperative both during the COVID-19 epidemic and in the aftermath.

The Bank continues to strive to quickly meet the needs of the field team, which is currently accompanied by the challenge of increasing turnover rates. Apart from that, the ability of leaders in the field to lead different generations is also still challenging. So the Bank takes longer to recover, because implementing improvement strategies requires the adequacy and ability of implementers in the field as well. Business strategy can increase profitability in Bank Cipta Syariah, the bank's pre-provision Covid figures are still good. So that the strategy implemented has been adjusted/aimed at improving the cost of credit figure. If improvements occur in the cost of credit, banks will again achieve good NPAT figures, because the need for financing in this segment is still high, because competitors are actually pulling out of this segment. Meanwhile, we are first time movers, have a business model/process that has been proven to work well before Covid, so if we can survive this period, and successfully get through it, then the bank's profitability will automatically improve too.

The author agrees with research (Ana & Zunaidi, 2022)[32] that improving digital services is the best way to improve banking performance. This is because digital transformation or digital services are the best way to improve banking financial performance. The digital transformation system will make it easier for customers to deposit funds into banks and analyze customer data. One way the Islamic finance industry can maintain its positive performance is by accelerating the Islamic social finance development program. This can be achieved through innovation, cooperation and collaboration to realize the development of a halal value chain ecosystem. The way to achieve this, as a strategy to keep up with changes in Islamic banking during the COVID-19 pandemic, Islamic banks can try various options. Banks can train customer users to connect and set instructions, which eliminates customer complaints for useful use to maintain the position of total assets also increased.

The study concludes that the Covid-19 pandemic has significantly impacted Islamic financial institutions, including Bank Cipta Syariah, leading to a reduction in customers and various risks, such as decreased asset income. The OJK's policies, especially POJK Number 2/POJK.03/2021, aim to address economic challenges during the pandemic, emphasizing the importance of maintaining customer loyalty through improved products, services, technology, and community development programs.

Sharia banks implement business strategies to mitigate risks, including restructuring financing and stimulating development while addressing liquidity risks. Digitalization, especially through digital banking services, is considered a crucial innovation to meet customer needs, reduce operational costs, and enhance customer satisfaction during the pandemic.

The research findings indicate that Financing to Deposit Ratio (FDR), Capital Adequacy Ratio (CAR), and Non-Performing Financing (NPF) significantly influence Bank Cipta Syariah's profitability. A higher FDR and CAR positively correlate with profitability, emphasizing the importance of financing distribution and capital adequacy. However, a higher NPF negatively impacts profitability, indicating the need for effective management of problematic financing.

The study suggests that Bank Cipta Syariah should revise its customer acquisition strategy, focus on digital segment expansion, and train employees as reliable digital marketers. Risk mitigation in relaxation policies is crucial to avoid adverse impacts. Embracing digital technology is essential for improved service delivery and customer engagement. Furthermore, preparing competent human resources is crucial for navigating challenges during the pandemic and enhancing the bank's financial performance.

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