This paper aims to explore how neoliberal ideology is rooted in Indonesian infrastructural powers through the process of international financial reporting standardisation and the forces that divert Islamic Financial Institutions (IFIs) in Indonesia from fulfilling their religious and socio-economic objectives of transparency, justice and accountability, to their stakeholders. This paper, taking a critical perspective, interviewed key actors involved in standard setting in Indonesia to gain insights on their perceptions and experience on the opportunities and challenges from the decision to adopt International Financial Reporting Standards (IFRS) and the impact on sharīʿah standard setting for IFIs in the country. The analysis is informed by the logic of neoliberalism in supporting the IFRS project and suppressing any form of local resistance. The neoliberalism agenda to capture the potential rise of an alternative competing local standards for IFIs was successful through external cohesive powers aided by political and professional elites in ensuring organisations in the country mimic their capitalist counterparts.