Analysis of Muhammadiyah's Decision to Withdraw Funds from BSI: An Administrative Science Perspective

Abstract

This study analyzes Muhammadiyah's decision to withdraw IDR 13 trillion from Bank Syariah Indonesia (BSI) from an administrative science perspective. This decision has significant implications for risk management, corporate governance, public administration, and public trust in Islamic financial institutions. Using a literature review method, this research explores various relevant theories and concepts, including risk management, portfolio diversification, corporate governance, and distributive justice. The analysis results show that Muhammadiyah's decision is a strategic step to reduce concentration risk and encourage healthier competition in the Islamic banking sector. Additionally, this study highlights the importance of effective communication and transparency in public policy management to maintain public trust and financial stability. The concrete implications of this study are the enhancement of competitiveness and service quality in the Islamic banking sector and the emphasis on ethical responsibility in managing community funds. Keywords: risk management, corporate governance, portfolio diversification, distributive justice