ANALYSIS OF NON-PERFORMING FINANCING (NPF) AT PT. INDONESIA SHARIA BANK SOUTHWEST ACEH BRANCH

Non-Performing Financing (NPF) is one of the indicators in assessing the performance of Islamic banking. A high NPF level indicates the low performance of Islamic banking due to non-performing financing. The formulation of the problem is, how is Non Performing Financing (NPF) and its settlement at PT Bank Syariah Indonesia Aceh Barat Daya Branch. This research is a qualitative descriptive research using field research. The data collection techniques used are interviews, observation and documentation. The results showed that the NPF at PT. Bank Syariah Indonesia (BSI)Aceh Barat Daya in 2018 amounted to Rp.263,527,831.33 and decreased in 2019 by Rp.121,553,953.75 but in 2020 there was an increase of Rp.505,073,688.03, lastly in July 2021 it increased again by Rp.809,000 ,000.00. So that it falls into the collectability category 2 (in special attention) or does not exceed 5%. This is because business actors (UMKM) who take mudharabah financing products are unable to pay installments according to a predetermined time. The main cause is the Covid-19 pandemic which hampers people’s economic activities. Although the nominal non-performing financing increased, the Bank was able to stabilize the nominal amount by restructuring. Through this strategy, the number of NPFs at PT Bank Syariah Indonesia (BSI) Aceh Barat Daya Branch is said to be good because it is able to overcome non-performing financing by being at a value below 5% in accordance with Bank Indonesia regulations.