Shariah Governance Disclosure in Indonesian Islamic Banking: A Multi-Dimensional Content Analysis of Annual Reports

Abstract

Introduction/Main Objectives: This study assesses Shariah governance disclosure (SGD) in Indonesian Islamic commercial banks during 2021–2023 and examines procedural-substantive disclosure asymmetry. Research Methods: An unweighted index comprising 46 items across five SGD dimensions was applied to the annual reports of all 14 Islamic commercial banks, yielding 42 bank-year observations. Content analysis and descriptive statistics were conducted using SPSS 23. Finding/Results: The average SGD level reached 85.3%. Shariah Review and Shariah Risk achieved 100% disclosure, while Transparency and Disclosure averaged 72.6%. Bank-level disclosure ranged from 71.7% to 93.5%, indicating stronger procedural than substantive disclosure. Conclusion: Indonesian Islamic banks demonstrate high overall SGD, but gaps remain in zakat reporting, disclosure of non-permissible income, and accountability of the Shariah Committee, requiring stronger regulatory disclosure standards.