AN EXAMINATION OF SOCIAL DISCLOSURES BY ISLAMIC BANKS IN INDONESIA

Abstract

Islamic banks in Indonesia have grown rapidly in the last fifteen years. These banks operate based on guiding principles called Sharia. It will always be embedded social dimension in sharia principles. This research aims to examine in what extent Islamic bank in Indonesia disclose their social activities. Population of this research is Indonesian Islamic Banks in 2009. The examination use disclosure index that have been developed by. Using this index, content analysis is undertaken to measure the volume of social disclosures. The results shows Islamic bank in Indonesia have low level of social disclosure. Islamic banks do not disclose information about activities that may attract criticism, such as unlawful (haram) transactions on the other hand they provide more disclosures regarding their charitable activities and their involvement in society