Abstract

The increasing awareness of the majority muslim community of Indonesia has major
contribution to development of Sharia Banking in Indonesia. Sharia banking that report their performance in accordance with sharia principles into consideration of muslim decision makers. Therefore, it is necessary to have a special framework for financial reporting of sharia banking in accordance with Islamic principles. The framework is useful not only for corporate stakeholders but also useful for society and as a form of fulfilling accountability to God. One of these responsibilities is in the form of disclosure of Islamic social responsibility as a mandate and manifestation of human obiedience to the laws of God that can’t be separated from the goal of Islam.This Study was conducted with the aim of obtaining empirical evidence of Islamic social responsibility disclosure contribution to the financial performance of sharia banking in Indonesia. The Data used in this study is the sharia banking in Indonesia with the observation year 2014 -2016. The data is obtained in the financial statement published on the IDX as well as on the Bank syariah website in Indonesia. Sample in this research by 8 Sharia Bank by using purposive simple method. Hypothesis test tool used is linier regression using SPSS Program. The results of this study indicate that Islamic reporting has not significant contribution to the financial performance of sharia banking in Indonesia in terms of CAR, ROE, ROA, NPF Gross,and NPF Nett as dependent variables. However, ISR contribute significantly toward the financial performance based on FDR variable.

Keywords: Islamic Social Responsibility, Financial Performance of Sharia Banking