Analysis of Corporate Governance on Islamic Bank in Indonesia
Abstract
This research demonstrates conceptual corporate governance (CG) which has relationship with regulations and Islamic teaching. Then, to investigate CG in Islamic Bank in Indonesia and to review law aspects and Islamic values related to rules of corporate CG in Islamic Bank in Indonesia. The study used qualitative approach using study literature and interview to analyze the implementation of corporate governance in Islamic bank in Indonesia. This study found that Islamic Banks which issued the rules of CG were not following philosophy of Islamic principles and not following strongly Islamic law and positive law. Hence, there were several fraud cases on Islamic banks inIndonesia. Islamic corporate governance in Indonesia still not find the implementation like in Malaysia. Rules of CG through regulation for Islamic bank is involving futher researher to examine the right policy. The regulation of corporate governance regulations for Islamic bank still need to be refined and turned into Islamic corporate governance standard in accordance with Islamic principles and national laws which required by Islamic bank.
Keywords
References
Act of Islamic Bank No. 21 Year of 2008, Article 34
Abeng, T. (1997). “Business Ethics in Islamic Context: Perspectives of a Muslim Business Leader.” Phyloshopy Documentation Center: Business Eyhics Quartely, Vol. 7, No. 3: 47. https://www.pdcnet.org, accessed on December 7th, 2012).
Islamic Bank A, (2015). Interview with Compliance Director of Bank A Shariah. Jakarta: Bank A Shariah on February 4th.
Bank Syariah Mandiri, (2015). Interview with Compliance Director of BSM on February 5th. Jakarta.
Cadbury, A. (1992). “The Financial Aspect of Corporate Governance,” London: Gee (a Division of Professional Publishing Ltd), First published December (1992): 14, www.ecgi.org and www.icaew.com, accessed on May 12th, 2014.
Central Bank of Indonesia, PBI 11/33/PBI/2009 Article 1 No. 10 juncto Article 34
Central Bank of Indonesia, PBI 11/33/PBI/2009 Article 16 and Article 50, www.bankindonesia, accessed on May 25th, 2014.
Central Bank of Indonesia, PBI 11/33/PBI/2009 Article 81, www.bankindonesia, accessed on May 27th, 2014.
Central Bank of Indonesia, PBI Number 11/33/PBI/2009 Article 18
Central Bank of Indonesia, PBI Number 11/33/PBI/2009 Article 19
Central Bank of Indonesia, SE-BI No.21/13/DPbs on April 30th, 2010 letter of G.p
Central Bank of Indonesia, SE-BI No.12/13/DPbS on April 30th, 2010 letter of C 1.
Central Bank of Indonesia, SE-BI No.13/28/DPNP on December 9th, 2011 regarding: Implementation of Anti Fraud Strategy for Commercial Banks (Jakarta: Bank Indonesia, 2011), and I. General point 2 and Attachment I.
Central Bank of Indonesia, SE-BI No. 12/13/DPbS on April 30th, 2010 A. General, Number 2, www.bankindonesia.go.id, accessed on May 27th, 2014.
Chodhury, M. A. and M.N. Alam. (2013)."Corporate governance in Islamic persepctive." International Journal of Islamic and Middle Eastern Finance and Management, 6 (3), 180-199.
Darmadi, S. (2013). "Corporate governance disclosure in the annual report: An explanatory study on Indonesian Islamic banks." Humanomics, 29 (1), 4-23.
Di Lorenzo, V. (2007). Business Ethics: Law as a Determinant of Business Conduct. Springer: Journal of Business Ethics, 71 (3), 275, www.jstor.org/stable/25075333, accessed on November 26th, 2012.
Franzini , S. (2009). “Corporate Governance in Theory and Practice.” Spring; Journal of Politics and International Affair, www.myedu and www.bitlib.net, accessed on December 6th, 2012.
Hanif, M. (2018). "Shari'ah-compliance ratings of the Islamic financial services industry: a quantitative approach." ISRA International of Islamic Finance , 10 (2), 162-184.
Hasan, Z. (2009), “Corporate Governance: Western and Islamic Perspectives,” International Review of Business Research Papers, 5(1) in January, www.bizresearchpaper.com (Accessed on May 26th, 2014)
Interview informally with some DPS of Islamic bank. Identity is kept secret for the common good.
Klapper , Leora F., Inessa L. (2004).“Corporate Governance, Investor Protection, and Performance in Emerging Markets.” Journal of Corporate Finance, 10(5), 703, www.sciencedirect.com/science/journal/09291199/ and www.elibrary.worldbank.org, accessed on November 8th, 2012.
Lasghari, M. (2004). “Corporate Governance: Theory and Practice,” The Journal of American Academy of Business, Cambridge. 5,(1 and 2). www.indabook.org, accessed on December 6th, 2012.
Lewis, Mervyn K. (2007). “Islamic Banking in Theory and Practice.” Monash Business Review, 3 (1), www.iefpedia.com/, accessed on June 17th, 2013.
Liun, Sean (2005). “Corporate Governance and Development: The Case of China.” Willey-Blackwell: Managerial and Decision Economics, 26 (7),Corporate Governance: An International Perspective (Oct-Nov, 2005): 445, onlinelibrary.wiley.com, accessed on November 17th, 2012.
Marlina, R. (2015). Interview with BSM Compliance Division. Jakarta: BSM on February 5th.
Masulis, Ronald W., Cong Wang, and Fei Xie. (2007). “Corporate Governance and Acquirer Returns.” Wiley-Blackwell: The Journal of Finance, 62(4), 1851. Available at www.onlinelibrary.wiley.com.,ccessed on December 6th, 2012.
KNKCG, Jakarta: Coordinating Minister for Economic Affairs, 1999.
National Committee on Governance Policy (2006). “Guidelines of Good Corporate Governance of Indonesia Year of 2006.” Jakarta: KNKG, 2006, 1
Rezaee, Z. Z. (2011). “Anti Fraud Role of Corporate Gatekeepers.” Kuala Lumpur Malaysia: International Conference on Financial Criminology, UiTM, June 9th, 2011
Republic of Indonesia, Decree of the Coordinating Minister of Economy Number: EP/31/M.EKUIN/08/1999 on National Committee on Corporate Governance Policy.
R. Eko Irianto, Interview with Department of Islamic Bank OJK . Jakarta: on February 25th, 2015.
Central Bank of Indonesia, SE-BI No. 12/13/DPbS on April 30th, 2010 to all Full-Pledge (BUS) and Sharia Unit Business (UUS) in Indonesia about of: Implementation of Good Corporate Governance for BUS and UUS. Jakarta: Central Bank of Indonesia, 2010, 27-28 and 34.
Somad, A. (2012). Hukum Islam: Penormaan Prinsip Shariah dalam Hukum Indonesia (Islamic Law: Norms of Islamic Principles in the Perspective of Indonesian Law) Jakarta: Kencana Prenada Media Group, Revision Edition, pp. 84-091.
Suma, Muhamad A. (2002). “Ekonomi Syariah sebagai Alternatif Sistem Ekonomi Konvensional (Islamic Economic as the alternative of Conventional Economic System).” Jurnal Hukum Bisnis (Journal of Lawand Business), XX(18)
Sundaram, Anant K. and Andrew C. Inkpen (2004). “Stakeholder Theory and The Corporate Objective Revisited: A Reply.” INFORMS: Organization Science, 15(3), 370, www.thunderbird.edu, accessed September 26th, 2012.
Trunbull. (1999). “Internal Control Guidance for Directors on the Combined Code.” London: The Institute of Chartered Accountants in England and Wales, p. 4-6, www.jstor.org/stable/3867928 and www.ecgi.org. (Accessed at Mei, 12nd 2014); See too at Arif Effendi, The Power of Good Corporate Governance Theory and Implementation (Jakarta: Salemba Empat, 2009), 1.
http//palembang-pos.com/Sunday, October 14th, 2012, accessed on Wednesday, February 12th, 2014
http://komnaslkpipusat.blogspot.com//2013/06/06, accessed on Wednesday, February 12th, 2014
http://m.bisnis.com/Monday, Monday, 04 November 2013, 18:29 WIB, accessed on Wednesday, February 12th, 2014
http://megapolitan.kompas.com/, Monday, 24 October 2013, 23:49 WIB, accessed on Wednesday, February 12th, 2014
http://jawapos.com/Monday, 3/02/15, 05:03, 18:29WIB, accessed on February 2nd, 2015
DOI: 10.15408/ajis.v19i2.12645
Refbacks
- There are currently no refbacks.
