DISCLOSURE OF ISLAMIC SOCIAL REPORTING ON SHARIA BANKS IN INDONESIA

PRELIMINARY
CSR is a discourse that is emerging in the world of multinational companies. This discourse is used by companies in order to take the role of facing the economy toward free market. The development of free market that has formed the bonds of the world economy with the establishment of AFTA, APEC, and so on, has encouraged companies from all over the world to jointly carry out its activities in order to prosper the surrounding communities CSR
can be defined as any management effort undertaken by a business entity to achieve sustainable development objectives based on economic, social and environmental pillars, by minimizing negative impacts and maximizing positive impacts on each pillar. CSR is a concept of corporate social responsibility, now increasingly widely accepted (Suharto, 2006). The development of CSR in Indonesia has increased in both quantity and quality compared to previous years. This is evident from the increasingly widespread business units reporting CSR practices in the annual financial statements (Fitria and Hartanti, 2010). CSR reporting is a practice established on the basis of norms in the community. In the sharia banking sector, the values of norms used are Islamic religious values, or also called the values of sharia. Related to the need for disclosure of social responsibility in sharia banking, currently, rife about the Islamic Social Reporting Index (hereinafter referred to as ISR index). ISR Index
is an extension of social reporting that includes people's expectations not only about the company's role in the economy, but also the role of the company in a spiritual perspective (Haniffa, 2002). The ISR Index contains a compilation of standard CSR items defined by AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) which is further developed by researchers on CSR items that should be disclosed by an Islamic entity. The ISR index is believed to be an early foothold in terms of CSR disclosure standards that are in line with Islamic perspectives. The implementation of ISR in sharia banking has been done by previous research. Gray, Owen and Adams (1996) in Paino (2001) explain that disclosure of information responsibility in Islamic banks is influenced by two factors. First, the level of CSR disclosure in sharia banks is always focused on the environment. Second, always oriented to the theory of legitimacy and efforts to create relevant concepts of publics. While Purwitasari (2011), conducted research on Syariah Mandiri Bank and Muamalat Indonesia. The results of this study explain the social responsibility reporting actions by BSM and BMI are still influenced by their respective interests. These interests are mainly influenced by money and power. Sairally (2005) evaluates the implementation of CSR at 250 Islamic financial institutions concluding that it is basically an understanding

and the implications of Islamic financial ethics for managers of Islamic financial institutions should be practiced consistently especially in the implementation of CSR. However, according to the results of the study, the behavior of managers of Islamic financial institutions is inconsistent with the prevailing theory. The indication is that little funds to implement CSR. The minimum allocation of funds indicates that the implementation of CSR in Islamic banks is low. Othman, Thani and Ghani (2009), conducted research on the practice of CSR reporting of sharia companies listing on the Malaysian exchanges, and the results show that most are still at a conceptual stage. This is because there is no standard that can be adopted by companies in the implementation of Islamic CSR. Sofyani, Ulum, Syam, Wahjuni (2012) conducted research on Islamic Social Reporting Index as a Model of Social Performance Measurement of Sharia Banking (Comparative Study of Indonesia and Malaysia). And from the results of this study, found some evidence that in general, Islamic banking in Malaysia has a higher level of social performance than Islamic banks in Indonesia. Both social performance of sharia banking in Indonesia in 2010 experienced a significant increase, which is about 10% from the previous year in 2009. While the level of social performance in Islamic banking in Malaysia can be said to be stable because it does not experience an increase or decrease. All three sharia banks, both Indonesia and Malaysia, still have not reached the full number, ie the implementation and disclosure of the ISR Index 100%. This is because the sub items of the ISR Index are indeed impossible to be met by the banking industry such as green product, environmental audit, and assistance for political activities. Further research on the Islamic Social Reporting Index and corporate social responsibility (Corporate Social Responsibility) becomes an important thing to support the practice of social responsibility and sharia in Indonesia. The formulation of the problem in this research is how to disclose the social responsibility of sharia banking by using Islamic Social Reporting Index or ISR index from 2009-2011 period. The purpose of this research is to analyze the disclosure of social responsibility of sharia banking in Indonesia by using Islamic Social Reporting Index from 2009-2011 period. The results of this study are expected to provide scientific insight on the implementation of Islamic Social Reporting at Islamic banks in Indonesia. The results of this study are also expected to be a reference material and comparison for further research related to the disclosure of social responsibility in Islamic banks in Indonesia.

REVIEW OF LITERATURE
The rapid development of the Indonesian sharia banking industry, making research on social responsibility in Islamic banks is needed. Until October 2010, the amount of assets owned
Islamic banking in Indonesia reached 79 billion rupiah. This figure increased by about 39 percent compared to the previous year. Institutionally, Islamic banking has also increased. In 2010, the number of sharia commercial banks increased to 10 units, adding 4 units as compared to 2009. In addition, there was also an institutional increase. This is indicated by the increasing network of sharia banking offices in Indonesia around 400 units (Data Statistics Bank Indonesia October 2010). Syari'ah bank is a bank based on the principle of profit and loss sharing (for profit and loss). Syari'ah banks do not charge interest, but instead invite participation in funded business fields. The depositor also equally gets a share of the bank's profit in accordance with predetermined ratio. Thus there is a partnership between syari'ah banks with the para. Depositors on the one hand and between banks and investment customers as managers of depositors' funds in various productive businesses on the other. This system is different from a conventional bank that essentially borrows funds by paying interest on one side of the balance sheet and lending funds by attracting interest on the other. The ISR index is an extension of social reporting that includes the expectations of society not only about the role of the company in the economy, but also the role of the company in a spiritual perspective (Haniffa, 2002). There are two things that should be expressed in the Islamic perspective, namely: full disclosure and social accountability. The concept of social accountability is related to the principle of full disclosure with a view to meeting the public's need for information. In the context of Islam, the public has the right to know various information about organizational activities. This is done to see if the company keeps doing its activities according to sharia and achieves its intended purpose (Baydoun and Willet, 1997). According to Fitria and Hartanti (2010), the ISR Index categorizes into six disclosure indicators, each of which includes various items, namely:

Investment and Finance Items included in the investment and financial indicators are the sources of funds for investment and financing activities that are free from elements of usury, gharar, and transactions forbidden by Islam, as well as items on organizational policy to deal with troubled customers
2.Products and Services The second indicator on the ISR index is about products and services. Itemitem on this indicator disclosure of complaints or complaints of customers
Employment At the ISR index these items of indicators continue to emphasize the principles of Islam that include the characteristics of workers, education and training and equality of opportunity
4.Social Social indicators are indicators that are closely related to the concept of social responsibility. Social indicators on the ISR index
mostly focused on disclosures related to Islamic principles such as saddaqah, waqaf, qard hassan items, and other charitable activities.
Environmental Indicators environment on the ISR index has related items in emphasizing the disclosure of activities and the amount of funds the organization spends on its environmental activities.
Manage Organization The last indicator in the ISR index is the organizational governance indicator. Unlawful transactions According to Mulyanita (2009), the reason why banking companies do social reporting is because of a change of responsibility paradigm, from management to shareholders to management to all stakeholders. Aspects of service in syari'ah banking is a combination of moral and business aspects. In operation it always aims to gain profits and freed from the elements of gambling, gharar (unclear / manipulation), and usury. . Maali (2003), explains that the disclosure of social responsibility from Islamic banks should be based on an Islamic perspective on accountability, social justice, and ownership. Meanwhile, according to Meutia (2010), there are some principles that actually describe the relationship between man and his Creator, namely Allah SWT. These principles are sharing with justice, rahmatan lil alamin (grace for the whole of nature), and maslaha (community interest).
RESEARCH METHODS

The population used in this study is all sharia banks registered at Bank Indonesia. The sample in this research is sharia bank which publish financial report and other information year 2009-2011 based on data from www.bi.go.id. There are 5 sharia banks that are sampled, namely Bank Muamalat Indonesia, Bank Syariah Mandiri, Bank Mega Syariah, Sharia BRI, Bank Bukopin Syariah. Data analysis method used in this research is content analysis that is by identifying practice of CSR at syariah bank using Islamic Social Reporting (ISR) index developed by AAOIFI. This index consists of: investment and finance, products and services that are lawful, labor, environmental, social, and corporate governance. Furthermore, after the identification of the next step is scoring. Assessment is done by scoring from 0-1, where: - Value 0 is applied if there is absolutely no related disclosure of the item.
A value of 1 is applied if the hooks are very well done. The calculation of the social responsibility disclosure index is formulated as follows:? ? • ??? ??? • ??? ??? •? • ?? •? • ????????? •? • ??? ??? • ??? ??????? •? • ??? •? • ?? •? • ?????????
After doing the calculation it will look sharia banks that get the highest value in disclosing social responsibility to the public. From the results of these scores then conducted a review of the implementation of Islamic Social Reporting in Islamic banks in Indonesia.

RESULTS AND DISCUSSION

Percentage of CSR activity implementation using ISR Index in each syariah bank in Indonesia is reported in the following table. Table 1 Level of Social Disclosure of Syariah Banking in Indonesia Bank Name 2009 2010 2011 Average Bank Muamalat Indonesia 47.95% 47.95% 47.95% 47.95% Bank Syariah Mandiri 47.95% 49.23% 49.23 48.80% 50.68% 50.68% 50.68% 50.68% 50.68% 50.68% 50.68% Bank Bukopin Syariah 45.21% 45.21% , 58% 45.67% Source: the results of data processing

Bank Muamalat Indonesia In 2009 the score obtained by Bank Muamalat Indonesia that is equal to 47.95%. The total score consists of Investment and finance 8.22%. Products and services 4.11%. Labor 11%. Social 9.59% ie. Neighborhood 0%. 15.1% organizational governance. In 2010 and 2011 the disclosure result obtained is still the same in 2009. Form of disclosure made by Bank Muamalat no change, so the score is still the same that is 47.95% with indicators and items disclosure that is not different. CSR activities disclosed during the period 2009-2011 by Bank Muamalat Indonesia based on reports that are related to social activities. This is inversely proportional to the score that shows that Bank Muamalat Indonesia has the highest social responsibility value on organizational governance indicators. This result difference occurs because social indicators have a closer relationship in the search for customers than labor indicators and organizational governance. In addition, Bank Muamalat Indonesia (BMI), through Baitulmaal Muamalat (BMM), distributes aid to disaster victims
Bank Mandiri Syariah In 2009 Bank Syariah Mandiri obtained a score of 47.95%. This total score consists of Financial Investment 5.48%. Products and services 4.11%. Labor 9.59%. Social 12.3%. Environment 9.59%. Organization organization 6.85%. In 2010 and 2011 the score increased 49.23%. This increase occurred in labor indicators by 11%. Based on the report of corporate social responsibility issued by Bank Mandiri Syariah is known that in 2009 the form of social responsibility disclosed is on social indicators that is in the form of aid or charity. These results are consistent with scoring assessments conducted in studies showing that the highest scores are obtained on social indicators. In 2010 and 2011 the research results show the same value as in 2009 and the social responsibility report issued in that year the result is the same that the highest indicator that is disclosed is on social activities. The form of social activities of sharia self-supporting banks, among others, namely handover of aid, as well as capital loans without margin for the community Bank Mandiri Syariah more social responsibility in social activities dikarena independent banks have had the goal of helping to overcome or reduce the problems that occur in society, society, and striving for the achievement of the welfare of people's lives.

Bank Mega Syariah From the scoring in 2009 by Bank Mega Syariah then obtained 50.68%. The total score consists of 8.22% Investment and finance. Products and services 4.11% .The workforce is 11%. Social 11%. Neighborhood 0%. Organizational governance is 16.4%. In 2010 and 2011 the score of disclosures conducted by Bank Mega Syariah is still the same with the results disclosed in 2009 that is 50.68%. In the period 2009-2011 based on Bank Mega Syariah CSR report obtained information that during that period the bank mega syariah running CSR activities on social activities or indicators that is in the form of providing social assistance to the community / population / people who are less able, among others: orphans (orphanages ), elderly parents (nursing home), homeless, disabled people, disaster victims and so on. In 2010 Bank Mega Syariah Indonesia distributed corporate charity.

Bank BRI Syariah From the results of the score of 2009 is known that the total value obtained by Bank BRI Syariah 50.68%. This total score consists of. Investment and finance 11%. Products and services 4.11%. Labor 13.7%. Social 8.22%. Environment 1.37%. 12.3%. In 2010 and 2011, there were scores on each indicator having the same value, so there was no increase or decrease in the social responsibility disclosure done by Bank BRI Syariah. In 2009 Bank BRI Syariah issued a report
related to social responsibility. Disclosure of CSR of Bank BRI Syariah leads to indicators of products and services mainly related to the activities of Micro Small and Medium Enterprises (MSMEs). In 2010, the disclosure made by Bank BRI Syariah changed to disclose social indicators. One of the social responsibility of Bank BRI Syariah is the submission of national zakat information system application (sizn) to the national zakat amil agency (baznas). In addition Support the organization of Art Day in the Museum of BI as an effort of Bank BRI Syariah to preserve the value of history as well as teaching Indonesian children to love the museum so that makes it one of recreation alternatives.

Bank Bukopin Syariah In 2009 the result score was obtained that is 33 45.21%. The total score consists of Investment and finance 9.59%. Products and services 1.37%. Labor 8.22%. Social 9.59% ie. Environment 4.11% ie organizational governance 12.3%. In 2010 the results obtained the same score in 2009. However, in 2011 there was an increase in the value of 46.58%. This increase occurred in the organizational governance indicators of 13.7%. Year 2009-2011 Bank Bukopin Syariah realize Corporate Social Responsibility (CSR) program in the form of awareness. This is obtained based on Corporate Social Responsibility (CSR) report which explains that Bank Bukopin Syariah conducts CSR program in the form of compensation. CSR Commitment
which is manifested by Bank Bukopin is a pattern that has been applied in the corporate plan. In accordance with its priorities, the social programs are consistently emphasized on three areas, namely education, health and social welfare. This form of social concern is not only physical, but also concern for the improvement of community's religious life and the need to express themselves through sports and cultural arts activities.

COVER
Based on the results of research conducted on the Annual Report of Bank Syariah from various sources, it can be concluded that: 1. In general, CSR activities conducted by Islamic banks in Indonesia leads to social activities. These activities include providing social assistance to orphans, distributing zakat funds, assistance to disaster victims, planting tree seedlings, support for education, health assistance to the community. 2. Disclosure of Islamic Social Responsibility (ISR) conducted by each Sharia Bank shows that the bank Mega Syariah amounted to 50.68%. Then BRI Syariah scored by reaching a percentage of 50.68%. Furthermore, in Syariah Mandiri Bank 48.80%, Bank Muamalat Indonesia 47.95%, and the last at bank Bukopin Syariah 45.67%.

The average scores on all syariah banks in this study amounted to 48.75%. While for the average of each indicator is the indicator of investment and finance of 8.58%, product and service indicators 3.56%, employment indicators 10.48%, social indicators 10.3%, environmental indicators 3.1%, organizational governance indicators 12.54%.

Suggestion

Suggestions in this study are as follows: 1. It is expected that sharia banks in Indonesia pay more attention to the disclosure of ISR in each report in accordance with the implementation that has been run by Islamic banks. 2. It is expected that the next researcher in disclosure of corporate social responsibility, especially in sharia banking can be done further by linking ISR disclosure to syariah bank with company value or other variables such as corporate governance.

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