Economic, Social, Environmental: Exploring Sustainability Performance and Sharia Compliance of Islamic Financial Institutions in Indonesia

  • Authors

    • Kamilah K. Universitas Islam Negeri Sumatera Utara
    • Abdul Ghafar Ismail Faculty of Economics and Management, Universiti Kebangsaan Malaysia
    • Achmad Firdaus Universitas Islam Negeri Sumatera Utara
    • Sugianto. S Universitas Islam Negeri Sumatera Utara
    • Oktavera Rizki Universitas Islam Negeri Sumatera Utara
    • Rahmi syahriza Institut Agama Islam Tazkia
    • Suri Purnami Universitas Islam Negeri Sumatera Utara and Politeknik Negeri Medan
    https://doi.org/10.14419/eee8ba50

    Received date: September 20, 2025

    Accepted date: November 3, 2025

    Published date: November 16, 2025

  • Islamic Financial Institution; Sharia Compliance; Sustainability

  • Abstract

    This study analyzes sustainability in Islamic financial institutions by integrating economic, social, and environmental ‎aspects with sharia compliance. Using an interpretative phenomenological approach, the research explores participants’ ‎experiences to gain a deeper understanding of how sustainability can be realized. The findings highlight that sustainability in Islamic financial institutions is built upon the synergy of these three dimensions. From the economic perspective, ‎the focus lies on environmentally friendly financing and strengthening local economies. The social aspect emphasizes ‎combining commercial and social finance while supporting MSMEs. Meanwhile, the environmental aspect underscores ‎the need for regulations and the adoption of green technology. The originality of this study lies in offering a solution ‎framework that Islamic financial institutions can adopt to implement sustainability. This framework is derived from the ‎insights of practitioners, academics, and regulators, whose experiences encompass both sustainability and Sharia compliance. Theoretically, the study contributes new perspectives on sustainability within Islamic financial institutions. Practically, it provides a framework of solutions for institutions, regulators, and stakeholders to ensure long-term survival and ‎competitiveness. By aligning economic, social, environmental, and Sharia principles, Islamic financial institutions can ‎achieve sustainable growth and remain resilient in a dynamic financial landscape‎.

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    K., K., Ismail, A. G. ., Firdaus , A. ., S, S. ., Rizki , O. ., syahriza , R. ., & Purnami , S. . (2025). Economic, Social, Environmental: Exploring Sustainability Performance and Sharia Compliance of Islamic Financial Institutions in Indonesia. International Journal of Accounting and Economics Studies, 12(7), 487-498. https://doi.org/10.14419/eee8ba50