Journal of Islamic Monetary Economics and Finance
Vol. 11 No. 4 (2025)

SUSTAINABILITY-BASED ISLAMIC CORPORATE GOVERNANCE AND ISLAMIC BANKS’ MULTI-PERFORMANCE: EVIDENCE FROM INDONESIA

Lestari, Irna Puji (Unknown)
Hanafi, Mamduh Mahmadah (Unknown)
Wardhana, Leo Indra (Unknown)



Article Info

Publish Date
27 Nov 2025

Abstract

This study develops a Sustainability-based Islamic Corporate Governance (SICG) index that integrates the roles of the Shariah board, regular board, and sustainable board and examines how it impacts multi-dimensional performance of Islamic banks. It employs a sample of 15 Islamic commercial banks in Indonesia from 2010 to 2023. The findings reveal that governance elements have a positive impact on particularly financial performance, while its influence on social performance is limited. For environmental and sustainability performance, a positive impact is primarily observed in the roles of the regular and sustainable boards. Further analysis through the Paris Agreement interaction confirms that most of these findings are consistent and support the role of SICG in enhancing various performances of Islamic banks. These results highlight the need for Islamic banks in Indonesia to transition toward SICG and suggest that policymakers facilitate this transformation by developing relevant regulations and guidelines to align governance structures with broader sustainability objectives.

Copyrights © 2025






Journal Info

Abbrev

JIMF

Publisher

Subject

Economics, Econometrics & Finance

Description

JIMF is an international peer-reviewed and scientific journal which is published quarterly by Bank Indonesia Institute. JIMF is a type of scientific journal (e-journal) in Islamic economics, monetary, and finance. By involving a large research communiy in an innovative public peer-review process, ...