A New Sharia Governance Framework for Islamic Banks in Indonesia

Abstract

This research proposes a new framework of sharia governance for Islamic Banks in Indonesia. The research adopted an analytical approach to compare sharia governance concepts based on Accounting, Audit Organizations for Islamic Financial Institutions and Islamic Financial Services Board and PBI no 11/33/2009. The author proposed a more comprehensive conceptual framework based on Accounting, Audit Organizations for Islamic Financial Institutions, Islamic Financial Services Board, and BI guidelines. The contribution of this research was to provide a more comprehensive governance framework for financial institutions in Indonesia. This framework was expected to improve the practice of governance of Islamic financial institutions in Indonesia. Based on researchers' best knowledge, there were no studies that had tried to compare these guidelines. Therefore, it was necessary to compare them to find out if there are variations between the suggestions provided by the guidelines.