Overview of Islamic Banking Accounting

Abstract

The development of the Islamic financial system in Indonesia has shown significant progress along with increasing public awareness of sharia-based economic principles. One of its main pillars is sharia banking, which conducts financial activities based on the principles of justice, transparency, and the prohibition of riba (usury), gharar (gharar), and maisir (gambling). This paper provides a comprehensive overview of sharia banking accounting, including product types, accounting principles, institutional oversight mechanisms, implementation challenges, and future development opportunities. Sharia banking products consist of fundraising, contract-based financing such as mudharabah, musyarakah, murabahah, salam, istishna, and ijarah, as well as fee-based services. The accounting implementation refers to the principles of monotheism, justice, trustworthiness, transparency, and sharia compliance based on the Sharia Financial Accounting Standards (PSAK) and the fatwa of the National Sharia Supervisory Board (DSN-MUI). Operational supervision is carried out through coordination with the National Sharia Council (DSN-MUI), the Sharia Supervisory Board (DPS), the Financial Services Authority (OJK), and sharia auditors. Despite challenges such as limited human resources, inconsistent accounting standards, and low public literacy, Islamic banking accounting offers strong prospects through government regulatory support, technological innovation, increased Islamic literacy, and international cooperation. Overall, Islamic banking accounting plays a crucial role in creating a financial system that is fair, transparent, and grounded in Islamic moral values.

Keywords: Sharia Accounting, Sharia Banking, Sharia PSAK, Sharia Products, Sharia Compliance, Sharia Audit.