Islamic Banking Research in Indonesia: A Bibliometric Mapping Using Scopus and Biblioshiny

The history of Islamic banks in Indonesia is started by establishment of Bank Muamalat Indonesia (BMI) as the first Islamic commercial bank in Indonesia that has been operated in Indonesia in 1992. Until December 2007, there are 31 banks: 3 Islamic commercial banks and 28 Islamic unit banks. Islamic commercial bank operates fiilly sharia system, while Islamic unit bank operates windows system. During 2003-2007, Islamic banks have been grown significantly include asset, deposit and financing. Each grows 53%, 56% and 55% per year. Islamic banks must improve thier efficiency in order to give profit to stakeholders, and survive againts conventional banks or other financial institutions. Nevertheles, until today the efficiency of Islamic banks in Indonesia is not known. This study to identify: the efficiency of Islamic banks in Indonesia (overall), the efficiency of individual Islamic bank, the difference efficiency of Islamic commercial bank and Islamic unit bank, and the most influence factor to the efficiency of Islamic banks in Indonesia. This study focused on the head office of Islamic banks. The study uses data quarterly from fist quarter 2003 until fouth quarter 2007, includes nine banks: three Islamic commercial banks and six Islamic banking units. This study uses non-pametric DEA model. The results of this study show the efficiency of Islamic banks in Indonesia is average 0.883, and the most efficient Islamic banks is bank 1 (from Islamic commercial bank). Furthermore, the result of study indicates that Islamic commercial bank (BUS) is more efficient than Islamic unit bank (UUS). Besides that, financing is the most influence factor to the efficiency of Islamic banks in Indonesia. As the basic implication of this study are: (i) stakeholders especially government and monetary authority must improve the efficiency of Islamic banks and support and establish more Islamic commercial bank; (ii) stakeholders must support and establish more Islamic commercial bank, includes spint off Islamic unit bank to be Islamic commercial bank; and (iii) Islamic banks must give more financing to improve their efficiency.Keywords: Efficiency, Islamic commercial bank, Islamic unit bank, DEA

This study sought to evaluate the financial performance of Islamic commercial banks in Indonesia from 2018 to 2022, with a specific focus on Sharia compliance and profitability. Secondary data taken from the annual reports of commercial Islamic banks during the specified period were used and a descriptive quantitative approach was adopted. The study population consisted of all 13 Islamic commercial banks registered with the Financial Services Authority in 2022; eight banks were chosen as the research sample. The analysis method used encompasses both Sharia compliance and profitability and is called the Sharia Compliance and Profitability Model. For further analysis, the research findings were divided into four quadrants. The results of the study showed how different Islamic commercial banks in Indonesia performed in terms of Sharia compliance and profitability. It identified banks that showed strong adherence to Sharia principles and high profitability, which could be used as benchmarks by other banks to improve their performance. In more detail, The findings of this research included 3 aspects, namely 1) Identification of Sharia Compliance, this study identified the parameters used to assess Sharia compliance, such as compliance with the principles regulated by the Indonesian Ulema Council (MUI) or equivalent Sharia regulatory institutions. The results of this research revealed banks that consistently complied with Sharia principles in their operations and products. This could include banks that had a financial structure that complied with Islamic law, avoids usury, and adhered to the principles of fairness in transactions. 2) Profitability Assessment. Financial analysis has been carried out to assess the profitability of the investigated banks. This could include profitability ratios such as ROA (Return on Assets) and ROE (Return on Equity), as well as the profit growth from year to year. 3) Factors that influenced the Performance as well as the analysis also included an exploration of factors that contributed to bank performance in terms of Sharia compliance and profitability. This could include internal factors such as risk management and operational efficiency, as well as external factors such as market conditions and regulations. The research has practical implications for commercial banks for enhancing performance and adhering to Islamic values in highly profitable banks that strictly adhere to Sharia principles. By examining the connection between Sharia compliance and profitability, this study added to the understanding of the financial performance of Indonesia's Islamic commercial banks.

Use and disclosure of non-halal income in Islamic banking in Indonesia to analyze the use and disclosure of non-halal income in the financial statements of Islamic banking in Indonesia. The purpose of this study is to find out whether Islamic banking in Indonesia has explained the use and disclosure of non-halal income. The research method used is a qualitative method with a descriptive approach. The data used is a type of secondary data. The secondary data referred to in this study was taken from the annual reports of Islamic Commercial Banks (BUS) in Indonesia for the 2020-2021 period which have been published on the official website of each bank that is a member of Islamic Commercial Banks (BUS). Meanwhile, the reports referred to in this study include non-halal income financial reports, both those that are an integral part of a report and those that stand alone. The population in this study is all Islamic Commercial Banks (BUS) in Indonesia for the 2020-2021 period. The results of the research show that in 2021 only Bank Aladin Syariah does not have non-halal sources of income. Meanwhile, for other banks, namely Bank Panin Dubai Syariah in 2020 and 2021, it does not explain the use and acquisition of non-halal income. Other banks such as Bank Bukopin Syariah, Bank Aceh Syariah, BTPN Syariah, BCA Syariah, BJB Syariah, and BSI have explained the source and use of benevolent funds in their financial reports.

This study aims to examine the Influence of Sharia Compliance and Islamic Corporate Governance on fraud on Islamic banks in Indonesia. The independent variable that was mummified was sharia compliance with Islamic Income Ratio (IsIR), Profit Sharing Ratio (PSR), Islamic Investment Ratio (IIR), and Islamic Corporate Governance. The dependent variable used is fraud that occurs in Islamic commercial banks in Indonesia. The research method used in this study is the method of library research. The type of data used is secondary data in the form of financial statement data and annual GCG implementation reports for the period of 2014 to 2018. The population in this study were all Sharia Commercial Banks (BUS) registered at Bank Indonesia in the period 2014 to 2018. The sample was selected using the purposive sampling method. The total sample used in this study amounted to 11 Islamic Commercial Banks with a study period of 5 years. The analytical method used in this study is multiple regression processed using SPSS version 23. The results of this study indicate that the variable sharia compliance as a proxy Islamic Income Ratio (ISIR), Profit Sharing Ratio (PSR), Islamic Investment Ratio (IIR), have a negative effect on Islamic bank’s fraud while Islamic corporate governance had no effect on fraud in Islamic banks in Indonesia.

A juridical-philosophical analysis of the position of sharia compliance in Islamic banking in Indonesia aims to explore the understanding and legal foundation underlying the implementation of sharia principles within the Islamic banking industry. In this context, sharia compliance refers to adherence to Islamic legal principles that must be applied by Islamic banks in all aspects of their operations, including financial products and services. Islamic banking in Indonesia has a clear legal foundation, namely Law No. 21 of 2008 on Islamic Banking, which provides the legal basis for the development of Islamic banking in Indonesia. In this regard, sharia compliance becomes a crucial element to ensure that transactions and banking activities do not violate sharia principles such as the prohibition of riba (interest), gharar (uncertainty), and maysir (gambling). Philosophically, the implementation of sharia compliance in Islamic banking is not only related to legal aspects but also to moral and ethical aspects in Islam that prioritize justice, blessings, and social welfare. From this perspective, sharia compliance functions as a foundation to create an economic system that is fair, transparent, and based on adherence to religious values. However, challenges in implementing sharia compliance in Islamic banking in Indonesia still exist, particularly related to differences in interpreting the implementation of sharia principles, as well as the need to continuously align regulations and operational practices to keep pace with global economic developments. Therefore, the position of sharia compliance in Islamic banking in Indonesia is not only a legal obligation but also a commitment to integrate moral principles into the management of the financial sector, which ultimately aims to create the welfare of the community within a just economic system.

A Framework for Islamic Social Banking

This study aims to explain the effect of ijarah financing on profitability at Islamic commercial banks in Indonesia, explain the effect of murabahah financing on profitability at Islamic commercial banks in Indonesia and explain the effect of ijarah and murabahah financing on profitability at Islamic banks in Indonesia. The research method used in this study is a quantitative approach with statistical analysis to test the effect of Ijarah and Murabahah financing on the profitability of Islamic banks in Indonesia. The population used is Islamic banks in Indonesia. The samples used in this study were 8 Islamic Banks in Indonesia using purposive sampling technique. The data collection technique used is literature study. The data analysis technique used is the statistical method of multiple linear regression analysis using SPSS. The results showed that there was a negative and significant influence between Ijarah on return on assets, there was a positive and significant influence between Murabahah on return on assets, there was no influence between Ijarah on return on assets and there was a positive and significant influence between Ijarah and Murabahah on return on assets.

This study aims to explain the effect of ijarah financing on profitability at Islamic commercial banks in Indonesia, explain the effect of murabahah financing on profitability at Islamic commercial banks in Indonesia and explain the effect of ijarah and murabahah financing on profitability at Islamic banks in Indonesia. The research method used in this study is a quantitative approach with statistical analysis to test the effect of Ijarah and Murabahah financing on the profitability of Islamic banks in Indonesia. The population used is Islamic banks in Indonesia. The samples used in this study were 8 Islamic Banks in Indonesia using purposive sampling technique. The data collection technique used is literature study. The data analysis technique used is the statistical method of multiple linear regression analysis using SPSS. The results showed that there was a negative and significant influence between Ijarah on return on assets, there was a positive and significant influence between Murabahah on return on assets, there was no influence between Ijarah on return on assets and there was a positive and significant influence between Ijarah and Murabahah on return on assets.

This research aims to examine the influence of financing risk, efficiency, and profitability on market share in Islamic banks. It is a population study that includes all 14 Islamic commercial banks in Indonesia. The data source for this research is secondary data, specifically financial reports of Islamic commercial banks obtained from the statistical reports of the financial services authority and the financial reports published by Islamic commercial banks in Indonesia. The data collection technique used in this study is documentation. The analysis method employed is multiple linear regression analysis using the eviews 10 application. The results of the research indicate that financing risk, efficiency, and profitability have an impact on the market share of Islamic commercial banks in Indonesia. This research implies that the study's findings contribute to the academic literature on Islamic banking and finance, providing a foundation for further research and discussions on the relationship between risk, efficiency, profitability, and market share. This research implies that the study's findings contribute to the academic literature on Islamic banking and finance, providing a foundation for further research and discussions on the relationship between risk, efficiency, profitability, and market share.

This study aims to investigate the impact of equity financing on non-performing financing (NPF) in Islamic commercial banks in Indonesia. To address this issue, we conducted a panel data regression analysis on 12 Islamic commercial banks in Indonesia from 2010 to 2022. The finding of this study suggests that an increase in equity financing is associated with a lower NPF ratio of Islamic banks. While it is theoretically argued that Islamic banks’ equity financing may be associated with higher risk, our empirical evidence indicates the opposite, suggesting an improved risk profile. Indonesia presents a favorable environment for the application of equity financing for Islamic banks because large Islamic banks in Indonesia are often government-owned, which can lead to“safe” loan portfolios and strong loan repayment. Indonesia is also considered a religious country, creating a suitable environment for mudarabah and musharakah financing. Our findings suggest that Islamic banks in Indonesia should consider offering more equity financing, particularly for low-risk projects, such as those initiated by the governments.

The development of Islamic banking in Indonesia today has experienced a rapid increase both in quantity and quality. As an institution that operates based on sharia principles, Islamic banks have different characteristics and assessments of financial performance from conventional banks. Islamicity Performance Index is one of the new concepts as a method that can be used to evaluate the performance of Islamic banks which are not only financially but also able to evaluate the principles of fairness and halalness of an Islamic banking.This study aims to reveal the application of sharia principles to the performance of Islamic Commercial Banks in Indonesia for the 2017-2020 period by using the Islamicity Performance Index. The ratios used are Profit Sharing Ratio, Zakat Performance Ratio, Equitable Distribution Ratio, Directors-Employees Welfare Ratio, Islamic Investment Vs Non-Islamic Investment, Islamic Income Vs Non-Islamic Income and the AAOIFI Index. The data used in this research is secondary data. The population of this study is all Islamic Commercial Banks in Indonesia for the 2017-2020 period, with a sample of five banks. Sampling was carried out using purposive sampling method. From the results of this study, it was found that the performance of Islamic banks can be said to be "unsatisfactory" because they have implemented profit sharing in accordance with Islamic rules and sharia, although the share of profit sharing is still lower than other financing. Islamic banks in issuing zakat are still not maximal, namely below 1%. In distribution to stakeholders, Islamic banks have issued qards and donations, providing employee salaries and net income which are still not felt by the benefits of the stakeholders. In the comparison of the average salary of directors with the average salary of employees, there is a difference in the average salary which is too high so that justice must be upheld in Islamic institutions to reduce the gap between directors and employees. Islamic Commercial Banks invest their funds in the halal sector with a ratio yield of 100% and already have 99% income from halal income. Shariah principles set by AAOIFI as a whole have been fulfilled by Sharia Commercial Banks in terms of promotion costs, risk-weighted assets, non-performing financing, interest-free income, profitability and distribution of zakat, although many of these points have not been maximized. The conclusion is that Islamic Commercial Banks in Indonesia still need to evaluate their performance for a better future.

This research aims to test the effect of the responsibilities of the Sharia Supervisory Board, Sharia Compliance, issuance of Sharia securities, and the size of the Board of Commissioners on the level of disclosure of Islamic Social Reporting at Islamic Banks in Indonesia. This study used descriptive and correlational quantitative methods. The method of data collection is to use secondary data sources, and in terms of the way the data collection method in this study uses data collection techniques with documents in the form of annual financial statements and GCG reports. The data analysis method in this study uses descriptive statistics and classical assumption tests consisting of normality tests, multicollinearity tests, and heteroplasticity tests. The population in this study is Sharia Commercial Bank in Indonesia for the period 2016-2020 which amounted to 14 Islamic Banks. The sample determination technique was carried out using purposive sampling techniques with criteria: Sharia Commercial Bank which publishes annual reports and GCG reports and lists the results of GCG Self Assessment in 2016-2020, from these criteria, a sample of 13 Islamic Banks was obtained. The results of this study showed that partially the variables of the Responsibilities of the Sharia Supervisory Board, Sharia Compliance variables, and the Board of Commissioners Size variables had no effect on the ISR Disclosure Rate at Islamic Banks in Indonesia for the period 2016-2020, it can be concluded that H1, H2, and H4 were rejected. While on the variable issuance of Islamic securities shows that partially the Issuance of Sharia Securities affects the Level of ISR Disclosure at Islamic Banks in Indonesia for the period 2016-2020, it can be concluded that H3 is accepted. Simultaneously the variables of the Responsibilities of the Sharia Supervisory Board, Sharia Compliance, Issuance of Sharia Securities, and the Size of the Board of Commissioners have a significant effect on the Level of ISR Disclosure on Islamic Banks in Indonesia for the period 2016-2020, it can be concluded that H5 is accepted.

Sharia compliance is essential for Islamic financial institutions. This study has two objectives, namely, to determine the level of sharia compliance in Islamic banks in Indonesia, as well as to prove whether sharia compliance affects the performance of Islamic banks in Indonesia. To prove this, the researcher observed the annual report of 11 Islamic banks in Indonesia for the period 2012 to 2016. Sharia compliance is measured through the level of sharia governance in Islamic banks. Sharia governance instruments used to refer to Hasan (2011). While ROA and ROE measure the performance of Islamic banks, content analysis is used to identify sharia governance disclosures in annual reports. The study revealed that on average, the level of sharia compliance of Islamic bank in Indonesia is at the level of best practice while the results of statistical tests prove that there is no significant effect sharia compliance on the performance of Islamic banks both measured by ROA and ROE.

This study empirically demonstrates efforts to strengthen the performance of identity and corporate governance on the sustainability of Islamic banking in Indonesia, the influence of corporate identity performance on Islamic banking governance in Indonesia, and the influence of the performance of corporate identity and governance on the sustainability of Islamic banking in Indonesia. This is due to the low social function of Islamic banks in Indonesia towards the sustainability of better business, social, and environmental performance. Types of quantitative research with an ex post facto research design. The research population of all Islamic banks in Indonesia included BMI, BSI, BMSI, and BSMI samples. The data were analysed using simple additive weighting techniques by modelling using SEM-PLS techniques. The study's conclusions show that strengthening corporate identity performance and corporate governance towards the sustainability of Islamic banking in Indonesia is carried out with regulations, policies, and Sharia compliance. Corporate identity performance positively and significantly affects Islamic banking governance in Indonesia. A company's management has no effect on the sustainability of Islamic banking in Indonesia. This study provides recommendations from the government as a policy regulator that contributes to the supervision of Islamic banks in Indonesia, especially in the implementation of corporate governance, which includes the ethical performance of companies and the sustainability of Islamic banking in Indonesia by making systematic regulations as a reference for Islamic banks. Islamic banks in Indonesia need to re-reflect on neglected social activities because they prioritise commercial activities too much, thus ignoring social activities which are also at the core of bank activities as intermediary institutions and financial services.

Acts of fraud that occurred in several Islamic banks for sometimes are a proof that there is no guarantee of any institution that can be free from fraud cases. As an effort to reduce the level of fraud that occurs in Islamic banks, it is necessary to implement good corporate governance, good supervision, and implementation of an anti-fraud system that can be realized through the application of a whistleblowing system. This study aims to analyze the factors that influence fraud disclosure at Islamic Commercial Banks in Indonesia in 2014-2018. The objects of this research are seven Islamic Commercial Banks (BUS) registered with the Financial Services Authority (OJK) from the 2014-2018 period. The independent variables used in this study are Good Corporate Governance, whistleblowing system, and effective monitoring as measured by the ratio between the number of Independent Commissioners and the total number of Commissioners. The analysis method used in this research is panel data regression. The results of this study indicate that the independent variable application of the whistleblowing system and the value of Good Corporate Governance self-assessment has a positive effect on the disclosure of fraud in Islamic Commercial Banks, while the independent variable ineffective monitoring does not affect on the disclosure of fraud. This study has various limitations, one of which is limited data since it only focuses on Islamic commercial banks. The suggestions from this study are Islamic banks in Indonesia need to implement a whistleblowing system as an effort to prevent fraud, this is evidenced by the whistleblowing system variable influencing the disclosure of fraud in Islamic banks and it must improve the implementation of corporate governance to make it better. It can be seen from the composite value of the self-assessment results of the GCG BUS implementation. There are still many composite scores of 3 (quite good), even though the GCG variable has a positive and significant effect on fraud disclosure.