The Implementation of Islamic Governance Disclosure: An Empirical Study of Indonesian Islamic Banking


There have been several research related to good corporate governance (GCG). This study aims at examining more deeply the implementation of Islamic Governance Disclosure (IGD) in Islamic banks in Indonesia. The research method used is descriptive quantitative research. The research population is Islamic banks in Indonesia. The sampling method is purposive sampling with the criteria of Islamic commercial banks having assets of more than 20 trillion rupiah on December 31, 2017 and their annual reports for the observation period were accessed. The research sample obtained four Islamic banks, namely, Bank Muamalat, Bank Syariah Mandiri, BNI Syariah, and BRI Syariah. The observation period was 3 years, 2015–2017. The writer employed documentation with a checklist tool developed from previous research and regulations in collecting the data. Then, the writer used content analysis in analyzing data. The analysis is used to calculate the index of IGD disclosure and analyze the extent of disclosure, consisting of three main index such as Shariah Supervisory Board (SSB) disclosure index, SSB report disclosure index, and zakat disclosure index. The results showed that the four Islamic banks had a good IGD index for past three years. The IGD index of BRI Syariah was fluctuating and was the lowest in 2015 and 2017. The IGD index of Bank Syariah Mandiri and BNI Syariah were the highest and most consistent for three consecutive years. The IGD index of Bank Muamalat was consecutively 0.78 in 2015, 0.81 in 2016, and 0.69 in 2017. The IGD index of Bank Syariah Mandiri and BNI Syariah were the same, which was 0.78 in 2015, 0.81 in 2016, and 0.78 in 2017. While the IGD of BRI Syariah was 0.67 in 2015, 0.83 in 2016, and 0.69 in 2017.



Keywords: Islamic governance disclosure, Sharia supervisory board, Islamic bank

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