Indonesian Financial Services Authority Research Articles

Indonesia Insurance Corporate Governance: A Literature Review

The aim of this research is to present and evaluate corporate governance framework for insurance companies in Indonesia based on previous researches related to corporate governance and The Indonesia Financial Services Authority Regulation. We evaluate concerning to governance objectives that include protecting shareholder interests, enhancing shareholder value, ensuring accountability, managing risk, promoting ethical behavior, transparency and disclosure, balancing interests, strategic decision-making, compliance with laws and regulations, efficient operations, long-term sustainability, stakeholder engagement, adapting to change, creating a positive reputation, and facilitating investment. We discuss the corporate governance framework for insurance companies in Indonesia based on the Indonesia Financial Services Authority regulation that states governance structure, corporate governance code, self-assessment & governance report, governance process and corporate governance principles to meet governance objectives. Although every year all insurance companies report corporate governance, but some companies have been stopped by the Authority. This raises research problems for the future relating to why insurance companies that have complied with corporate governance provisions have been stopped by the Authority.

Responding to Islamic finance anomalies in Indonesia: Sharia financial literacy using virtual reality context

Purpose The purpose of this paper is to investigate the process by which the level of immersion in virtual reality-based behavioral simulation (VR-BS) impacts on the non-cognitive and cognitive outcomes. The cognitive outcome is measured using the increase in the level of Sharia financial literacy, while the noncognitive outcome is measured using the behavioral intention to use VR-BS. Design/methodology/approach The method consists of two parts: First, the development of VR-BS, in the context of sharia financial literacy, using the waterfall model. Second, testing the effectiveness of VR-BS using the theory of interactive media effects framework. The participants were 142 students from three secondary schools (two Islamic religious schools and one public school) in Yogyakarta and Central Java, Indonesia. Partial least squares structural equation modeling was used for testing the hypotheses. Findings VR-BS creates a perceived coolness and vividness, which in turn has an impact on increasing the participants’ engagement. Also, the use of VR has an impact on natural mapping, which increases a user’s engagement through its perceived ease of use. As predicted, the user’s engagement affects VR’s behavior, mediated by the user’s attitude toward VR media. VR’s interactivity, however, does not impact on the cognitive aspect. Research limitations/implications The participants were not randomly selected, as the data were collected during the COVID-19 pandemic. As a result, the majority of the participants had never tried VR before this study. The participants, however, were digital natives. Practical implications It is implied from the findings that Islamic financial business actors and the relevant government agencies (e.g. the Indonesian Financial Services Authority [OJK], the Ministry of Education, Culture, Research and Technology and the Ministry of Religious Affairs) should collaborate to best prepare the future generation of ummah by using VR-BS in their joint promotion and education programs. The results of the current study reveal that the use of VR-BS may attract people to engage in Islamic financial activities. By engaging in such activities, or at least engaging in real-life simulations/classes/workshops, people may gradually acquire more knowledge about Islamic finance. Originality/value As predicted, the user’s engagement has an impact on behavior toward VR-BS, which is mediated by attitude toward VR-BS.

MANAGING FINANCING RISK OF ISLAMIC BANKING PRODUCTS IN INDONESIA: A VALUE AT RISK APPROACH

This study aims to assess the potential risk and anticipated returns of equity and debt-based financing products in Islamic banking in Indonesia, represented by the three most prevalent contracts: musharakah, mudharabah, and murabahah. Data was collected from banks' monthly financial reports published on the Indonesia Financial Service Authority (OJK) website from 2014 to 2020, resulting in 82 observations. Data analysis was conducted using the Value at Risk (VaR) method with the variance-covariance approach. Among many methods, VaR is one of the most popular techniques that yields the most comprehensive results in measuring risk and return. The findings reveal that, in general, all equity and debt-based financing yielded stable risk and returns. However, equity-based financing produced higher returns, but also generated higher risks due to its uncertain nature. The results also demonstrate that risk management in Islamic banks improved gradually during the observation period, as indicated by the average score of portfolio combinations. These findings suggest that Islamic banks should balance their product offerings between equity-based financing and debt-based financing while simultaneously strengthening risk management, especially for murabahah products in equity-based financing.

Financial Accelerator in National Private Banks During COVID-19 Pandemic

This research aims to investigate the effect of liquidity, credit risk, and bank size on the financial accelerator in National Private Banks registered with the Indonesian Financial Services Authority during the period of 2019-2022. The research design uses a causal approach. The population of this study is National Private Banks in Indonesia that are registered by Indonesian Financial Services Authority throughout the research period, 2019-2022, with the total population of 68 banks. This study uses purposive sampling method. There are 56 companies as samples of this study, resulting 224 financial statement data. The data is analyzed by using the Generalized Method of Moments (GMM).The research findings indicate that liquidity has a negative and significant impact on the financial accelerator effect in National Private Banks registered with the Indonesian Financial Services Authority during the period 2019-2022 (significance value 0.041 < α = 0.05).Credit risk also has a negative and significant impact on the financial accelerator effect in these banks during the same period (significance value 0.015 < α = 0.05). Bank size shows a negative but statistically insignificant influence on the financial accelerator effect in National Private Banks registered with the OJK during the period 2019-2022 (significance value 0.865 > α = 0.05).

The sustainability and performance of Bank Wakaf Mikro: waqf-based microfinance in Indonesia

PurposeThis study aims to empirically investigate the sustainability and performance of Bank Wakaf Mikro (hereafter called BWM), which is a waqf-based microfinance in the context of Indonesia.Design/methodology/approachThe authors use several model specifications. The specifications mainly take the BWM’s characteristics and governance into account. The authors use a standard-panel data approach with a fixed-effects model as the Hausman test result favors the fixed-effects model. The authors collected monthly data from the Indonesia Financial Services Authority for the period 2018–2020. The detailed data, 39 BWM enabling us to observe the financial, social and governance elements of BWMs.FindingsThe results reveal interesting findings. The authors find that BWM characteristics, governance and social capital are significant in shaping BWM’s sustainability, performance and risk. Furthermore, the authors find that BWM located in a province with higher lending density has lower performance than those located in a province with lower lending density. The results provide some evidence on how waqf-based microfinance could achieve both economic and social goals. It could provide perspectives for stakeholders in designing microfinance institutions.Originality/valueThis paper is the first to empirically study the waqf-based microfinance institutions in Indonesia by looking at the determinants of performance and sustainability of those institutions.

A Structural Equation Model of Governing Factors Influencing the Development of Sustainable Insurance Product in the Future

Designing and proposing sustainable insurance programs to insurance companies that run their businesses in Indonesia have been one of the insurers’ approaches to creating more stable and certain industry climate. Moreover, the Indonesian Financial Services Authority or OJK encourages financial services sector actors in creating, developing sustainable product innovations, and supporting financing of production activities that can create economic growth, social justice and environmental quality improvement. We conduct survey and analyze whether insurance companies in Indonesia are interested in implementing sustainable finance in insurance industry and developing sustainable insurance products. Participants’ responses depict insurance firms’ paradigm on sustainable insurance. In this study a framework is proposed for governing factors that impact the development of sustainable insurance product in the future such as the level of knowledge, readiness, and current sustainable insurance product development. To clarify the relationships, a structural equation model is utilized to examine the framework fit with the hypothesis for the four latent variables of this study. Acceptable goodness of fit is established for validity of the measurement model. The test of validity is accepted for the structural model in this study. The SEM results conclude that an insurer’s knowledge of sustainable finance principles affects the insurance firm’s readiness to implement sustainable insurance. Subsequently, the insurer’s readiness affects its current level of sustainable insurance product development. Eventually, the insurer’s knowledge and current development in sustainable insurance products have a positive effect on the insurance firm’s willingness to develop sustainable insurance products in the future. Thus, this study provides valuable information about factors affecting the development of sustainable insurance products in the future as a key for a successful implementation of sustainable finance in Indonesian insurance industry.

Disclosure Quality Assessment of Sustainability Reporting Practices in Emerging Countries

Indonesia has become a major force in advancing sustainable finance across emerging countries. One of the reasons was due to the role of the regulator and supervisor of Indonesia’s financial services industry, Indonesia Financial Services Authority, who required, through its regulation, Financial Services Institutions, Issuers and Public Companies to submit sustainable reports to Indonesia FSA and publish them for the public. This study is intended to conduct an assessment on the scope of disclosure presented on the sustainability report submitted by the Indonesian banking industry. The methodology used is qualitative with descriptive analysis. The evaluation was conducted through a desk study by analyzing banks’ sustainability reports available on their websites. The results of the analysis demonstrated that two years before the implementation of the Indonesia FSA sustainable finance regulation, only 28,5% of sustainability reports, which have submitted voluntarily by large commercial banks, are in line with materiality and stakeholders’ engagement principles. After the sustainable finance regulation was implemented, it was found that only 56,6% of the sustainability reports submitted met the materiality and stakeholders’ engagement principles required by the regulation. Therefore, the biggest challenge lies in the effort to promote awareness and understanding on the importance of sustainable finance and the quality of sustainability report disclosure.

Islamic Securities Crowdfunding Based on Indonesia's Islamic and Positive Law Perspective

This paper analyzes Islamic Securities Crowdfunding (SCF) based on Indonesia's Islamic and positive law perspectives. This paper is a descriptive qualitative by using a normative juridical approach that observes the governing or binding law in society with the convergence on Islamic law and regulations of the Indonesian Financial Services Authority (OJK). The findings reveal that the practice of Islamic SCF is allowed by referring to the Qur'an, Hadith, legal maxim, maqasid al-shariah, and syirkah musahamah contract in DSN-MUI Fatwa No.140/DSN-MUI/VIII/2021 issued on August 24, 2021. Furthermore, from the positive law's perspective, Islamic SCF is allowed to operate by referring to POJK No.57/POJK.04/2020, which accommodates to four principal regulations, namely, organizers, crowdfunding services, issuers, and financiers

Legal Reconstruction of Standard Agreements with Exoneration Clauses on Peer-To-Peer Financial Technology Based on Justice Values

This research aims to examine and analyze standard peer-to-peer lending contract agreements with exoneration clauses that are not based on the value of justice. To study and analyze the weaknesses that arise in implementing peer-to-peer lending Financial Technology agreements at this time. To study and analyze the reconstruction of standard agreements with exoneration clauses on peer-to-peer lending Financial Technology based on the value of justice. The method used in this research is sociological juridical. The paradigm in this research is constructivism. The theory used in this study is the Pancasila legal theory of justice as a grand theory, the working theory of law as a middle ranged theory, and the progressive theory as an applied theory. Based on the research conducted, it was found that standard peer-to-peer lending contract agreements with exoneration clauses that are not based on the value of justice are due to overlapping rules, the lack of reach of law enforcement in standard contracts made by Financial Technology institutions, and the influence of globalization which has resulted in the growth of financial institutions. technology is getting out of control. So it is necessary to amend the provisions of the Financial Services Authority Circular Letter Number 13/Seojk.07/2014 in which the financial services business actors are not only entitled to make procedures regarding standard agreements, but it is necessary to regulate the position of Financial Technology institutions in the Republic of Indonesia Financial Services Authority Regulation Indonesia Number 10/Pojk.05/2022 concerning Information Technology-Based Joint Funding Services is clear. It is necessary to regulate information on the process of public complaints against the OJK, especially in the case of Financial Technology institutions. It is also necessary to control sanctions related to Financial Technology that violates the law, especially in standard agreements with exoneration clauses.

Trend Comparison Of Bank Sustainable Financial Statements Based On Assessment Of Economic Aspects, Environmental Aspects, And Social Aspects

The acceleration of unbalanced economic development has an impact on environmental damage and social inequality. This article aims to find out how the trend of comparing sustainable financial statements in banks is based on assessments from economic aspects, environmental aspects, and social aspects. This sustainable financial report is the first time it has been applied to financial service institutions that have been determined based on the regulatory policies of the Indonesian Financial Services Authority. descriptive quantitative is used as a method that helps researchers in conducting research with trend analysis of sustainable financial statements comparison in banking from 2020-2021, at the bank that won the Annual Report Award in the Category of Listed Financial Banking. Research results based shows that economic, social, and environmental damage can be overcome with awareness by each bank in providing financing to consumers who care about these three aspects. This sustainable financial report is so that it can be used by the company as a policy improvement on the awareness of the financial services industry to apply from economic, environmental, and social aspects

Relationship between Islamic bank consumptive financing and gross regional domestic product in Indonesia, 2016-2020

IntroductionPrevious literature discussed financing's impact on performance without separating the financing model.ObjectivesThis study uses the consumptive financing data of Islamic commercial banks, inflation rate, and population as independent variables, and the GRDP of 33 provinces in Indonesia as the dependent variable. MethodThe study used Indonesia and Malaysia banks for its pioneering efforts in establishing Islamic banking in Southeast Asia. The study collects data from five Indonesian and four Malaysian Islamic banks, with an observation period of 2011–2020. The data analysis used in this study was the Generalized Method of Moment (GMM).ResultsThe results of this study explain that the consumptive financing of Islamic commercial banks has a negative insignificant effect on GRDP in Indonesia, the inflation rate has a negative insignificant effect on GRDP in Indonesia, and the population has a positive and significant impact on GRDP in Indonesia. Consumptive credit in conventional banks and consumptive financing in Islamic banks account for more than 45% of total financing. ImplicationsThe Indonesian Financial Services Authority should adopt policies to maintain the growth of Islamic Bank productive financing, that is, working capital and investment financing, because Islamic bank consumptive financing has a negative effect on GRDP in IndonesiaOriginality/NoveltyThis study has a unique feature compared with previous studies that use consumptive financing at Islamic banks with inflation and population variables to analyze the contribution of the local economy to gross regional domestic product.

Market share and efficiency: Causality test in Indonesian general insurance industry

This study aims to analyze the relationship between market share and technical efficiency in the Indonesian general insurance industry. The data for the period 2010-2020 is used, which was obtained from the Indonesian Financial Services Authority (OJK). The results show that efficient companies emerged from the category of industry possessing comparatively higher and lower market shares. Furthermore, the panel Granger-causality test indicates a one-way direction of causality, where only the market share has an impact on the technical efficiency score. The panel regression using the Feasible Generalized Least Square (FGLS) model shows that market share has a negative impact on technical efficiency scores. Other variables, such as the age of the industry, merger, and acquisition are listed in the stock exchange and do not have a significant effect on the efficiency score. Based on the aforementioned findings, it can be inferred that the quiet-life hypothesis is applicable within the Indonesian general insurance sector. Consequently, the government must foster competition among the businesses operating within the industry.

Post-Issue of Sustainability Report: Does Market Valuation Improve?

Following the increased concern on sustainability reporting in Indonesia, this study attempts to investigate whether the issuance of sustainability report is able to provide positive impact on bank reputation and market valuation. We use a set of unbalanced panel data that consist of 43 Indonesian listed banks throughout 2010-2018 while our analysis is performed with panel data regression using STATA statistics software. Overall, the findings demonstrate that environmental disclosure provides positive impact on market valuation while economic and social disclosure do not. We also find the mediating role of bank reputation between the link of environmental disclosure and market valuation. By splitting the observation period into pre and post sustainable finance roadmap implementation, we find that economic disclosure holds significant contribution to increasing market valuation in the period before sustainable finance roadmap implementation while social and environmental disclosure demonstrate positive effect in the period when sustainable finance roadmap is implemented. This study, however, still contains limitation due to the use of content analysis in assessing sustainability report quality that may contain subjectivity issue. Further studies can obtain external assurance from independent experts in this subject. The use of quantitative-qualitative mixed method may also be a solution to solve this issue. This study provides several implications. Firstly, this study supports the regulation from the Indonesia Financial Service Authority to increase the participation of Indonesian banks in sustainability reporting in which the implementation must be followed with high regulation enforcement. We also suggest the practice of sustainability reporting for Indonesian listed banks as it gives considerable benefit in higher market valuation. This research addresses the gap in Indonesian literature that is limited on determinant study by providing more insights on how sustainability reporting provides on higher bank reputation and market valuation.

Risk Disclosure and Earnings Quality in Indonesia Banking Industries: Fair Value, Diversification, Financial Stability

High earnings quality can reflect a company’s actual performance. Stakeholder needs high earnings quality as earnings information is used for decision-making by stakeholder. This study investigates the effect of fair value, diversification, and financial stability on earnings quality and the roles of risk disclosure in moderating these effects. This study employs secondary data sourced from annual reports available at www.idx.com. The sample used in this study is bank companies from 2016 to 2020. Using purposive sampling, the sample obtained in this study was 180 observations. The research data were analyzed using multiple linear regression for panel data. This study suggested that fair value does not affect earnings quality. Other than that, diversification positively affects earnings quality while financial stability negatively affects earnings quality. Furthermore, risk disclosure failed to moderate the effect of fair value, diversification, and financial stability on earnings quality. This study indicates that the Indonesian Financial Services Authority needs to regulate the bank's diversification and risk disclosure policies. Moreover, the Indonesian Financial Services Authority should maintain and improve the bank’s financial stability policies.

HARMONIZATION OF ENVIRONMENTAL LEGAL POLICIES WITH BANKING REGULATION IN INDONESIA

The banking industry plays a crucial and strategic part in efforts to manage and safeguard and take care of the earth. The bank's performance in environmental protection can be achieved by involving the purpose of preserving the environment of life in its business activities, one of which is through the provision of environmentally sound loans. These financial institutions must put forward the sustainable development goals. The current problem is that there is no regulatory firmness that specifically regulates the synergy between environmental law and banking law in a standardization of compliance of banking business activities, especially in the arrangement of environmentally sound lending and borrowing agreements. Therefore, researchers conduct research with the normative legal approach method by collecting primary, secondary and tertiary data using the rules and regulations in laws, books, journals, both the internet. This paper aims to examine the harmonization between environmental law in banking activities, suggest it to the Indonesian Financial Services Authority as well a concept of harmonization and synchronization of banking and environmental regulations by applying sustainable finance principles in a regulation internal banking credit policy.

Determinan Pengungkapan Kebijakan Anti Korupsi Ditinjau dari Good Corporate Governance dan Reputasi Auditor

Corruption is a major challenge as well as a problem in an organization or business. Economic development will weaken and corporate accountability will be lost due to corruption. As a result of corruption, it will have a negative impact in various fields, including on the country's economy. For this reason, company awareness is needed in disclosing anti-corruption policies as a form of minimizing the occurrence of corruption in the business world. Even the Indonesian Financial Services Authority (OJK) also explains the recommendations for disclosing anti-corruption policies to every company that goes public in its annual report. The internal control mechanism can be a key factor in fostering information disclosure so that it will reduce the potential for loopholes for acts of fraud. Good Corporate Governance (GCG) is intended as a tool that minimizes fraud. In addition, by using a reputable public accounting firm, it is hoped that it can also show a more convincing and quality reputation and will be more motivated to disclose information, especially related to efforts to prevent corruption. The purpose of this study is to determine the effect of Good Corporate Governance (board of directors size, board of commissioners' independence, audit committee meeting frequency, and governance committee) and auditor's reputation on anti-corruption policy disclosure. This research uses all companies listed on the Indonesia Stock Exchange in the 2019-2021 period using a purposive sampling method. From 1739 companies, the results obtained were that the independence of the board of commissioners, governance committee, and auditor reputation had a positive effect on disclosing anti-corruption policies. Meanwhile, the size of the board of directors and the frequency of audit committee meetings have no effect on anti-corruption policies.

Value relevance of IFRS 9 adoption: A case study of Indonesian banking companies

Research aims: This study examines the effect of allowance for impairment losses (CKPN) on value relevance.Design/Methodology/Approach: This research employed quantitative data using secondary data from banking financial reports derived from www.idx.co.id during 2019-2021. Also, this study used stock price data sourced from www.finance.yahoo.co.id. The use of data for 2020 was due to the first year of PSAK 71 implementation. While data for 2019 were employed to compare the year before the PSAK 71 implementation, and data for 2021 were used to compare the PSAK 71 implementation in the second year. Data testing was then performed utilizing multiple linear regression analysis for cross-section data.Research findings: This study suggests that CKPN was positively associated with the value relevance of earnings in the first year of PSAK 71 implementation.Theoretical contribution/Originality: This research is expected to complement the financial accounting literature on adopting IFRS 9, especially in Indonesia, which is rarely discussed in previous studies.Practitioner/Policy implication: This study is expected to be employed by the Indonesian Financial Services Authority in improving policies on financial stability in the capital market based on applying financial accounting standards.Research limitation/Implication: This study only employed data on banking sub-sector companies listed on the Indonesia Stock Exchange, which were relatively small in number. Future research can therefore use data from all financial companies in Indonesia or banking companies in other countries related to IFRS 9 implementation to compare the test results with this study.

WHO IS THE MOST AUTHORIZED TO ERADICATE ILLEGAL FINANCIAL INSTITUTION ?

Illegal financial institutions have repeatedly appeared and disappeared in the community. Illegal banks or savings institutions disguise their businesses as travel agents or public fund savings institutions called arisan. At the moment, there have been emerging illegal online loan institutions (Pinjol). In 2021, illegal online loans (Pinjol) become a trending topic in Indonesia. Illegal lending has become a long-standing issue in society. The authorities have carried out the eradication of illegal lending. However, illegal borrowing is never completely eradicated and is always present in the community. Illegal borrowing has also caused a lot of community problems. This research aims to examine the illegal borrowing in the midst of society. This research uses a normative juridical method. This research concludes that eradicating illegal lending is the responsibility of the police, not the responsibility of the Indonesian Financial Services Authority (OJK). Even though illegal lenders operate in the financial industry, the Indonesian Financial Services Authority has no authority over the illegal financial industry. The authority of the Indonesian Financial Services Authority has been confirmed in Law of the Republic of Indonesia Number 21 of 2011. The illegal financial industry does not only exist in the financial technology industry, but has also emerged repeatedly in the conventional financial industry, such as illegal banks, fraudulent investments, and credit unions.

Legal Reconstruction of Financial Technology Crime Sanction Regulations Based on Pancasila Justice

In a very rapid economic development, it cannot be denied that the absorption of credit in people's lives is growing rapidly. In this case, in all the use of products or services by consumers, consumers have the right to obtain legal certainty corporate bullying billing financial technology is one of the most publicly highlighted violations of law today. This study has 2 (two) main problems, namely to identify and analyze the weaknesses that result in the implementation of criminal sanctions regulations in financial technology criminal cases in Indonesia that are currently not fair and attempts to reconstruct criminal sanctions regulations in financial technology criminal cases based on Pancasila justice. This research method uses a juridical-empirical approach. Analysis of primary and secondary data is carried out using a descriptive-analytical method. The results of the research and discussion show that the weaknesses that result in the implementation of criminal sanction regulations in financial technology crime cases in Indonesia are that they do not contain criminal threats for violating the provisions of Article 44 paragraph (1) of the Republic of Indonesia Financial Services Authority Regulation Number 10/Pojk.05/ 2022 Regarding Technology-Based Co-Funding Services. Efforts to reconstruct the regulation of criminal sanctions in financial technology crime cases based on Pancasila justice, namely by adding criminal provisions to the criminal provisions in Article 44 of the Regulation of the Financial Services Authority of the Republic of Indonesia Number 10/Pojk.05/2022 Concerning Information Technology-Based Joint Funding Services by adding one paragraph. So that the provisions in Article 44 of the Regulation of the Financial Services Authority of the Republic of Indonesia Number 10/Pojk.05/2022 Concerning Information Technology-Based Joint Funding Services.

Maqashid Sharia Performance In Indonesian Islamic Banks: The Role Of Intellectual Capital And Sharia Supervisory Boards Cross-Membership And Gender Diversity

This study will examine the link between intellectual capital and maqashid sharia performance as well as the moderating effects of cross-membership and gender diversity of the sharia supervisory board to improve the influence of intellectual capital on maqashid sharia performance. The secondary source of data for this study was the yearly financial statements listed in the Indonesian Financial Services Authority between 2008 and 2020. The data analysis method used in this inquiry was a panel data regression model. The analytical techniques employed in this work include descriptive statistical tests, preliminary tests, and hypothesis testing. According to the results of the three preliminary tests that were used to develop the panel data regression model, this study uses the random effect model in models 1 and 2 to evaluate the relationship between intellectual capital elements and maqashid sharia performance. Cross-membership and the gender of SSB women are moderating factors. The results of this study show that intellectual capital influences Indonesian Islamic Banks' performance following maqashid sharia positively. This suggests that making better use of intellectual capital can improve a company's maqashid sharia performance. Cross-membership has a negative impact on maqashid sharia's performance, demonstrating that it will hinder the board's ability to focus and function effectively, which will lead to a decrease maqashid sharia performance. The results of this study demonstrate that the average female representation on the sharia supervisory board is only 4% of the total samples, meaning that it cannot affect maqashid sharia performance. Therefore, the female gender of the sharia supervisory board has no impact on maqashid sharia performance. In this study, there was no empirical support for the claim that gender diversity and cross-membership on sharia supervisory boards may increase intellectual capital for maqashid sharia performance.