Indonesia Sharia Bank CSR vs Malaysia Sharia Bank CSR

Abstract

In Indonesia, the government establishes regulations for the disclosure of CSR practises in Law No. 40/2007 and related Bapepam. The purpose of this study is to find out how the implementation of CSR differs in Islamic banking in Indonesia and Malaysia. The population is Islamic Banking in Indonesia and Malaysia with a total of 27, while the sample of this study is 7 Indonesian Islamic Banks and 7 Islamic Banks in Malaysia. The Independent sample t-test with SPSS version 16 was used to analyse the data for this investigation. The study's findings indicate that Malaysian and Indonesian social banking practises are being implemented similarly. The adoption and declaration of the ISR Index of 100% provides some proof that none of all Islamic banks, both in Indonesia and Malaysia, have achieved their full potential (one hundred percent). This is due to the fact that certain sub-items of the ISR index, like green products, environmental audits, and support for political activities, are impossible for the banking sector to complete. As a result, the UK banking system's CSR disclosure is almost identical to that of Malaysian banks in the US.