Benchmarking the Business Model of Bank Syariah Indonesia Against International Best Practices: A Comparative Literature Review
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Hirshi Anadza*
The development of Islamic banking in Indonesia still faces challenges in Sharia governance, product diversification, risk management, digitalization, and regulatory harmonization when compared with practices in the Gulf Cooperation Council (GCC) countries and Malaysia. This study aims to analyze these gaps and to identify strategies for strengthening the competitiveness of Indonesian Islamic banking. It applies a PRISMA-based comparative literature review and a bibliometric analysis of 20 academic sources published between 2008 and 2026, with the discussion covering ten strategic dimensions of Islamic banking. The review identifies several main challenges: the dominance of murabahah financing, Sharia governance and supervision that are not yet optimally standardized, limited integration of financial technology, regulatory fragmentation, and the insufficient incorporation of sustainability indicators and Maqasid al-Shariah into performance measurement. It also draws attention to benchmark practices, namely centralized Sharia supervision, a more consolidated legal framework, product diversification, and the adoption of financial technology. The study concludes that improving the competitiveness of Indonesian Islamic banking calls for stronger governance, the development of profit-sharing-based products, regulatory harmonization, and digital transformation. Its contribution lies in a multidimensional comparative synthesis that serves as a conceptual basis for developing a hybrid performance index, one that integrates financial, digital, and sustainability aspects grounded in Sharia principles. These findings can serve as input for regulators and Islamic bank managers in formulating policies and strategies for sustainable industry development.
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