Role and Effectiveness Supervision of the Sharia Supervisory Board in Guard Sharia Compliance of Islamic Banking in Indonesia

Linda Puspita Sari; May Santi

doi:10.61132/iceat.v3i1.238

Authors

Linda Puspita Sari Sekolah Tinggi Islam Muhammadiyah 1 Tulungagung
May Santi Sekolah Tinggi Islam Muhammadiyah 1 Tulungagung

DOI:

https://doi.org/10.61132/iceat.v3i1.238

Keywords:

Islamic Banking, Sharia Compliance, Sharia Governance, Sharia Supervisory Board, Supervisory Effectiveness

Abstract

This study examines the role and effectiveness of the Sharia Supervisory Board (SSB) in maintaining Sharia compliance within Islamic banking operations in Indonesia. The discussion focuses on the strategic role of the SSB, supervisory mechanisms over Islamic banking products and operations, challenges affecting supervisory effectiveness, and efforts to strengthen Sharia governance in Islamic banks. This research employs a qualitative descriptive approach using a library research method. Data were collected from scientific journals, official regulations, DSN-MUI fatwas, and relevant literature published between 2020 and 2025. The findings reveal that the SSB plays a significant role in ensuring Sharia compliance through product evaluation, contract review, compliance audits, periodic supervision, and coordination with internal and external auditors. However, the effectiveness of SSB supervision is still influenced by several challenges, including limited human resource competency, institutional independence, non-standardized supervisory procedures, and the growing complexity of Islamic financial products. To improve supervisory effectiveness, Islamic banks need to strengthen SSB capacity through continuous training, professional certification, standardized Sharia audit systems, transparency in supervisory reporting, and the integration of digital-based supervisory technologies. This study concludes that effective SSB supervision is essential for strengthening Sharia governance, maintaining institutional integrity, and enhancing public trust in the Islamic banking industry in Indonesia.

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