The conversion of Islamic institutes into universities has become a major pathway for expanding institutional mandates and public legitimacy in Indonesian Islamic higher education. However, limited attention has been given to how this transformation unfolds in newly established universities beyond Java, particularly regarding institutional autonomy and the integration of religious and general sciences. This study examines institutional transformation through the lens of institutional isomorphism, focusing on regulatory pressures, organizational development, and substantive change. A qualitative single-case study design was employed, using institutional regulations, statutes, strategic plans, and quality-assurance documents, complemented by semi-structured interviews with university leaders, lecturers, and administrative staff. The data were analysed thematically to identify patterns of institutional change. The findings indicate that status transitions were shaped by national regulations and accompanied by organizational expansion to four faculties, a postgraduate school, and 33 study programmes. Nevertheless, financial autonomy and the integration of religious and general sciences remain ongoing challenges. These findings suggest that formal status changes do not automatically produce substantive institutional transformation. Policymakers should align status conversion with phased autonomy and adequate resource allocation, while university leaders should embed knowledge integration in curricula, research priorities, and academic culture to improve educational quality.