Capturing Regulation On Islamic Banking Finance In Indonesia

Abstract

This article discusses about the regulation on Islamic Banking finance in Indonesia. The regulation of Islamic banking finance in Indonesia is a multifaceted issue that encompasses compliance with Sharia principles, the role of supervisory bodies, and the evolving landscape of digital banking. By legal research method, this article tried to understand is there any problem with regulation on Islamic Banking finance in Indonesia. As a results, The Sharia Supervisory Board (SSB or Dewan Pengawas Syariah/DPS) is pivotal in ensuring that Islamic banks adhere to Islamic law, influencing operational compliance through rigorous evaluation of products and services. Additionally, the Financial Services Authority (Otoritas Jasa Keuangan/OJK) plays a crucial role in overseeing Islamic banks, particularly in managing customer fund loss and ensuring adherence to regulatory standards. The regulatory framework also extends to Islamic microfinance, which is essential for providing financial access to underserved populations, yet faces challenges in compliance and management. Furthermore, the rise of digital Islamic banks necessitates robust regulations to protect consumers and ensure compliance with existing laws. In contrast, while the regulatory framework aims to enhance the stability and growth of Islamic banking, challenges remain in the effective implementation and enforcement of these regulations, which can hinder the sector's potential.