MAQASID AL-SHARIAH BASED MEASUREMENT INDEX FOR SOCIO-ECONOMIC DEVELOPMENT: A CASE STUDY IN NORTH SUMATRA INDONESIA

Abstract

This study develops an index towards the creation of a socio-economic development index based on Maqasid al-Shariah with a special case of North Sumatra Indonesia. The aim of this study is to find indicators and determinant factors of success and lack of success of the implementation of the Maqasid al-Shariah in socio-economic development in North Sumatra Indonesia; to measure the attitude of society in their participation of the socio-economic development based on Maqasid al-Syariah; and to design a suitable modelof a socio-economic development measurement index based on Maqasid al-Shariah.Using Structural Equation Modeling (SEM) and Path Analysis Statistical Method developed by Karl Joreskog and Dag Sorbom, involving 794 respondents from different sectors of society and related institutions such as conventional banks claiming to apply sharia principles, religious institutions in society, religious educational institutions at primary, and secondary and tertiary levels in eight regencies and cities in North Sumatra, the result of the study showed that, in order, the variable of societal religious education quality, health quality, inter-religious relationship quality, and educational level quality are determining indicators to ensure the success of socio-economic development based on maqashid al-sharia in North Sumatra, along with ‘maintaining life’.