BUILDING A ROBUST SHARIAH GOVERNANCE POLICY: A QUALITATIVE STUDY ON SHARIAH BANKS IN BOGOR, INDONESIA

HARUN FAIZAL

Abstract


The purpose of this research is to explore the Shariah governance on customer trust in Islamic banking in Bogor, Indonesia. A mixed-method approach is utilized, combining a literature review and in-depth interviews with bank managers. The interviews provide insights into the strategies employed by banks to enhance Shariah governance and customer trust. Preliminary findings indicate a positive correlation between effective Shariah governance and customer trust. Customers value transparency, ethical practices, and the role of qualified Shariah scholars in governance. The study's implications emphasize the significance of strong governance mechanisms in fostering customer trust, which can enhance the competitive advantage of Islamic banks in Bogor's financial market.

Keywords


Islamic Banking, Shariah Bank, Financial market

Full Text:

PDF

References


Aisyah, S., Hariadi, B., & Mardiati, E. (2021). The effect of Islamic intellectual capital, corporate governance, and corporate social responsibility disclosure on maqashid sharia performance, with reputation as a moderating variable. International Journal of Research in Business and Social Science (2147- 4478), 10(4), 75–84. https://doi.org/10.20525/ijrbs.v10i4.1233

Al-Musheifri, Z. J. (2021). An Investigation on Sharia Governance in Islamic Banking A Case of Islamic Banks in Oman. Advances in Social Sciences Research Journal, 8(7), 330–340. https://doi.org/10.14738/assrj.87.10483

Amalia, E. (2019). Good governance for Zakat institutions in Indonesia: A confirmatory factor analysis. Pertanika Journal of Social Sciences and Humanities, 27(3), 1815–1827.

Apriliani Astuti, M., Dewi Y Rozali, R., & Cakhyaneu, A. (2019). Prevention of Fraud in Sharia Banking in Indonesia through Implementation of Sharia Corporate Governance. KnE Social Sciences, 3(13), 183. https://doi.org/10.18502/kss.v3i13.4205

Biyantoro, A. (2019). Sharia Compliance and Islamic Corporate Governance. Trikonomika, 18(2), 69–73. https://doi.org/10.23969/trikonomika.v18i2.1465

Djuwita, D., Setiowati, N. E., & Kulsum, U. (2019). The Influence of Sharia Compliance and Islamic Corporate Governance on Financial Performance of Sharia Commercial Bank. Al-Amwal: Jurnal Ekonomi Dan Perbankan Syari’ah, 11(2), 216. https://doi.org/10.24235/amwal.v11i2.4072

Elamer, A. A., Ntim, C. G., Abdou, H. A., & Pyke, C. (2020). Sharia supervisory boards, governance structures and operational risk disclosures: Evidence from Islamic banks in MENA countries. Global Finance Journal, 46(July). https://doi.org/10.1016/j.gfj.2019.100488

Falikhatun, F., Wahyuni, S., Nilasakti, A. O., & Niswah, M. A. (2020). Sharia Governance and Sustainability Reporting: The Mediating Role of Financial Performance. Al-Uqud : Journal of Islamic Economics, 4(2), 218. https://doi.org/10.26740/al-uqud.v4n2.p218-234

Herry, E., Permana, P. Y. E., Aji, W. B., & Muhtadi, R. (2019). Total Quality Management Development and Sharia Governance Efforts in Sharia Micro Financial Institutions to Improve Market Share. IJIEEB : International Journal of Integrated Education, Engineering and Business, 2(1), 27–35. https://doi.org/10.29138/ijieeb.v2i1.809

Hudaya, F., Kumalasari, A., & Imtikhanah, S. (2020). Pengaruh Sharia Compliance, Islamic Corporate Governance, Car, Dan Zakat Terhadap Kinerja Keuangan Bank Umum Syariah. Neraca, 16(2), 29–50. https://doi.org/10.48144/neraca.v16i2.496

Iryani, L. D., & Wahyudiono, B. (2020). Quality of Sharia Governance Structure on Social Performance in Indonesian Islamic Banking. Jhss (Journal of Humanities and Social Studies), 4(1), 57–61. https://doi.org/10.33751/jhss.v4i1.2042

Mahmudi, M., & Prastmawati, R. L. (2020). The Effect of Sharia Governance and Customer Relationship Marketing on Muzakki Loyalty. AKRUAL: Jurnal Akuntansi, 12(1), 1. https://doi.org/10.26740/jaj.v12n1.p1-17

Mandiri, D. P., & Widana, G. O. (2022). Analysis of the Implementation of Sharia Governance and Reputation of the Behavior of Investment on Fintech Sharia. Jurnal Ilmiah Ekonomi Islam, 8(02), 1610–1616. https://jurnal.stie-aas.ac.id/index.php/jei/article/view/4747

Mukhibad, H., Rochmatullah, M. R., Warsina, W., Rahmawati, R., & Setiawan, D. (2020). Islamic corporate governance and performance based on maqasid sharia index– study in Indonesia. Jurnal Siasat Bisnis, 24(2), 114–126. https://doi.org/10.20885/jsb.vol24.iss2.art2

Nafees, S. M. M., Risna, M. R. P., Rukshana, M. F., Zahira, M. F. F., Language, A., Eastern, S., Lanka, S., & Lanka, S. (2019). South Eastern University of Sri Lanka Sharia Governance Of Islamic Financial Institutions : A Comparative Study Among Malaysia , Bahrain And Sri Lanka Senior Lecturer , Department of Islamic Studies , Faculty of Islamic Studies and , Department of Islamic. Sri Lankan Journal of Arabic and Islamic Studies, 68–83.

Nasution, A. A., Lubis, A. F., & Fachrudin, K. A. (2019). Sharia Compliance and Islamic Social Reporting on Financial Performance of the Indonesian Sharia Banks. Atlantis Press, 292(Agc), 640–644. https://doi.org/10.2991/agc-18.2019.96

Nindiasari, A. D. (2021). Good corporate governance practices and voluntary disclosure in companies listed in the Indonesia Sharia Stock Index (ISSI). Asian Journal of Islamic Management (AJIM), 3(1), 45–55. https://doi.org/10.20885/ajim.vol3.iss1.art5

Prasojo, P., Yadiati, W., Fitrijanti, T., & Sueb, M. (2022). Exploring the relationship between intellectual capital and maqasid sharia-based performance: the moderating role of sharia governance. Journal of Islamic Marketing, September. https://doi.org/10.1108/JIMA-07-2021-0226

Puspitasari, L. L., & Handayani, W. (2020). Do the Characteristics of Internal Audits and Compliance Functions Affect Sharia Compliance? Journal of Indonesian Economy and Business, 35(2), 97–111. https://doi.org/10.22146/jieb.54574

Qoyum, A., Sakti, M. R. P., Thaker, H. M. T., & AlHashfi, R. U. (2022). Does the islamic label indicate good environmental, social, and governance (ESG) performance? Evidence from sharia-compliant firms in Indonesia and Malaysia. Borsa Istanbul Review, 22(2), 306–320. https://doi.org/10.1016/j.bir.2021.06.001

Raharjanti, A. I., & Muharrami, R. S. (2020). The Effect of Good Corporate Governance and Islamicity Financial Performance Index of Internal Fraud Sharia Banking Period 2014-2017. Journal of Business Management Review, 1(1), 061–075. https://doi.org/10.47153/jbmr.v1i1.13

Riduwan. (2018). Menyusun Metodologi Penelitian.

Ridwan, R., & Mayapada, A. G. (2022). Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks? Journal of Sustainable Finance and Investment, 12(2), 299–318. https://doi.org/10.1080/20430795.2020.1749819

Roziq, A., Shulthoni, M., Sulistiyo, A. B., & Anugerah, E. G. (2022). Model of Sharia Governance and Escalation of Performance of Sharia Cooperatives. International Journal of Professional Business Review, 7(3), 1–19. https://doi.org/10.26668/businessreview/2022.v7i3.0596

Sa’diyah, C., & Hilabi, I. I. (2022). The Effect of Corporate Governance on Company Value in The Indonesia Stock Exchange and Sharia Stock in Indonesia. Jurnal Aplikasi Bisnis Dan Manajemen, 8(2), 404–415. https://doi.org/10.17358/jabm.8.2.404

Safitri, R., & Mukhibad, H. (2020). The Influence of Islamic Corporate Governance on The Performance of Maqashid Sharia in Sharia Banking in Indonesia. Accounting Analysis Journal, 9(2), 88–94. https://doi.org/10.15294/aaj.v9i2.36628

Sugiyono. (2019). Metodologi Penelitian.

Wicaksana, A., & Rachman, T. (2018). Substantive Analytical Procedures In Sharia Compliants As Agreed-Upon Procedures Service In Italian Corporate Governance. Angewandte Chemie International Edition, 6(11), 951–952., 3(1), 10–27. https://medium.com/@arifwicaksanaa/pengertian-use-case-a7e576e1b6bf

Wijaya, D. I. F., Sulistyo, A. B., & Roziq, A. (2021). Good Corporate Governance, Capital Adequacy, Financing Risk, Profitability and Islamic Social Reporting (ISR) of Sharia Commercial Banks in Indonesia. Asian Journal of Economics, Business and Accounting, 21(3), 30–42. https://doi.org/10.9734/ajeba/2021/v21i330359

Yuliani, F. D., & Fithria, A. (2022). The Effect of Implementing Good Corporate Governance on the Profitability and Financing Risk of Sharia Commercial Banks. EKONOMIKA SYARIAH : Journal of Economic Studies, 6(1), 01. https://doi.org/10.30983/es.v6i1.4863

Zulfikar, Z., Bawono, A. D. B., Mujiyati, M., & Wahyuni, S. (2020). Sharia corporate governance and financial reporting timeliness: Evidence of the implementation of banking regulations in Indonesia. Banks and Bank Systems, 15(4), 179–192. https://doi.org/10.21511/bbs.15(4).2020.15

Zulpahmi, Nugroho, A. W., Sumardi, & Wibowo, B. P. (2022). Evaluation of Awareness and Perception of Islamic Microfinance Institutions and Higher Education Institutions in Indonesia Towards the Implementation of Sharia Governance: Dyad’S Perspective. International Journal of Professional Business Review, 7(4), 1–21. https://doi.org/10.26668/businessreview/2022.v7i4.743




DOI: http://dx.doi.org/10.15548/jebi.v6i2.733

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

 

View My Stats