Role Board Supervisor Sharia In Strengthening Sharia Compliance Management in Islamic Financial Institutions

Abstract

The rapid development of the Islamic financial industry in Indonesia requires strengthening the supervisory system to maintain integrity and compliance with sharia principles. Islamic Financial Institutions (LKS) are not only oriented towards profitability, but are also required to comply with Islamic law which rejects the practices of usury, gharar, and maysir. In this context, the Sharia Supervisory Board (SSB) has a crucial role to ensure that the institution's operations run in accordance with sharia principles. The focus of this study is to analyze the strategic role and form of SSB involvement in sharia compliance management in LKS and to identify the challenges faced and strategies for strengthening them. This study uses a descriptive qualitative approach with data collection techniques in the form of literature studies, document analysis, and semi-structured interviews with expert informants in the field of sharia economic law. The results of the study show that SSB has a 
multifunctional function, ranging from providing sharia fatwas, operational supervision, internal education, to being a strategic partner for management in compliance governance. However, SSB also faces various obstacles such as limited independence, access to information, and technical capabilities. Therefore, the strategy to strengthen the DPS needs to be directed at regulatory reform, optimization of organizational structure, increasing human resource capacity, and utilizing technology in the supervisory system. This study confirms that the existence of a strong and effective DPS is the key to the success of LKS in maintaining sharia credibility and public trust in a sustainable manner.