Sustainability Factors of Sharia Banks in Indonesia

The purpose of this study is to determine the development of Sharia Banks in Indonesia, which is experiencing global challenges with slowing conditions and high uncertainty from the global economy. Changes in the global economy will continue and affect the dynamics of the world economy in 2019. Efforts to restore confidence in the Indonesian banking world through restructuring and recapitalization can have long-term and fundamental impacts, so it requires adherence to the principles of prudence and implementation of corporate governance as well as effective supervision of bank supervisory authority. Based on these reasons, it is necessary to conduct research on corporate governance and financial performance on the sustainable business of Islamic banking in Indonesia.The research was conducted at Sharia Banks in Indonesia according to population criteria and samples with a saturated sampling method using all Islamic commercial banks as the population, namely there are 9 (nine) Islamic commercial banks. This research uses data analysis technique Partial Least square (PLS) which is more predictive model.The results showed that corporate governance had no significant effect on sustainable business and had a significant effect on financial performance. Financial performance has a significant effect on sustainable business. Financial performance does not have a significant effect on sustainable business and does not show full mediation between corporate governance and sustainable business. The limitation of this research is that it does not classify Islamic Commercial Banks according to the type and number of assets. Based on the research results, the ratio as one of the tools to measure the financial performance of Islamic banks is in accordance with the Islamic bank financing scheme in Indonesia which is more dominated by financing. Good corporate governance is able to improve financial performance, even though performance has not become a full mediation between corporate governance and the sustainable business of Islamic banking in Indonesia.