<![CDATA[This study aims to analyze the impact of Sharia Compliance and Good Corporate Governance (GCG) on the financial performance of Islamic banks listed on the Indonesia Stock Exchange (IDX) from 2019 to 2024. Sharia Compliance is measured by the Interest-Based Debt to Total Assets ratio (RUBR) and the Sharia Supervisory Board (DPS), while GCG is proxied by the Board of Commissioners (BOC) and Underwriter’s Reputation (UNDW). Using a quantitative approach and multiple linear regression analysis on 48 observations, the results reveal that RUBR has a significant negative effect on Return on Equity (ROE) with a coefficient of -16.141 and p-value of 0.0044. Conversely, UNDW and BOC show significant positive impacts, with coefficients of 2.720 (p=0.0038) and 12.234 (p=0.0473), respectively. However, the DPS (p=0.3894) does not significantly influence ROE, suggesting its role is primarily focused on religious legitimacy rather than direct profit optimization. Simultaneously, the F-test (0.000016) confirms that all variables significantly affect ROE, with an R-squared value of 0.4643, indicating that these factors explain 46.43% of the variance in profitability. The findings imply that while robust oversight and market reputation are essential, minimizing interest-based instruments is critical for maintaining Sharia integrity and financial stability. This research provides strategic insights for management and regulators to strengthen national Sharia governance.]]>
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