Sharia Supervisory Board Research Articles

Implementation of Islamic Inheritance Law: Study of History, Law and Its Principles

The imposition of late payment penalties in Islamic pawnshops at the initial stage of the contract has sparked debate. This study examines the implications of such penalties on the principles of justice, customers, funders, and Islamic financial institutions. Literature study and fatwa review are the basis of the discussion. The results show that fines that are not agreed upon at the beginning of the contract have the potential to cause legal and sharia uncertainty, and open up opportunities for abuse of authority. The negative impact is a decrease in customer trust and tarnishing the reputation of Islamic financial institutions. The proposed solutions are the inclusion of a clear amount of fines in the contract, the involvement of the Sharia Supervisory Board, customer education, and the establishment of industry standards. The application of fair fines can be in the form of tiered fines, adjusted to the customer's ability, and accompanied by alternative fine options. Transparency and accountability of Islamic financial institutions are key to the sustainability of a fair and sharia-compliant Islamic pawnshop system.

Analisis Fatwa DSN MUI No. 140 Tahun 2021 Terhadap Regulasi Dewan Pengawas Syariah pada Produk Securities crowdfunding

The purpose of this study is to determine and analyze the extent of the regulation of the Sharia Supervisory Board on securities crowdfunding products based on the DSN MUI fatwa No. 140 of 2021. The research method used is descriptive qualitative method which is focused on problems based on facts carried out by observation. This research focuses on analyzing data on the Shafiq.id website on the offering of Islamic securities in the form of sukuk through crowdfunding services reviewed through the provisions contained in the DSN MUI fatwa NO. 140 of 2021 concerning Islamic securities offerings through information technology-based crowdfunding services based on sharia principles. The results of this study indicate that the Sharia Supervisory Board (DPS) is tasked with ensuring that all activities in sharia fintech always comply with sharia principles, including in sharia crowdfunding activities. Islamic crowdfunding activities must be based on the spirit of helping in goodness (ta'awun) and must be based on Islamic rules and guided by the Qur'an and As-Sunnah. DPS oversees the information technology-based financing service model to ensure that the form of crowdfunding implementation does not conflict with sharia principles. In addition, DPS adjusts the contract according to the form of sharia crowdfunding that will be used by the parties. DPS is also tasked with providing advice to the parties and, in the event of a dispute, resolving it by consensus or through a sharia dispute resolution institution in accordance with the Fatwa of DSN-MUI.

The Influence of Good Corporate Governance on Financial Performance in Indonesian Islamic Banking

This study examines the impact of Good Corporate Governance (GCG) on the financial performance of Sharia banking in Indonesia Tbk. Analyzed GCG variables include the Board of Commissioners, Board of Directors, Independent Commissioners, Sharia Supervisory Board, and Audit Committee. Using a quantitative method with multiple linear regression analysis, the study employs secondary data from annual reports of Sharia banking in Indonesia Tbk. Normality tests were conducted using the One-Sample Kolmogorov-Smirnov test, while heteroscedasticity tests were performed using a scatterplot of residuals against standardized predicted values.Results indicate that none of the independent variables significantly impact financial performance, with p-values well above 0.05. Additionally, the F-test (ANOVA) shows that the independent variables collectively do not significantly impact financial performance, with an F value of 0.243 and a p-value of 0.939. The very low coefficient of determination (R²) of 0.048 suggests that the regression model explains only 4.8% of the variation in financial performance.The implementation of GCG principles at Bank Muamalat Syariah Tbk has not effectively improved financial performance. Therefore, evaluation and improvement of GCG implementation are needed, along with consideration of other factors potentially influencing financial performance. Recommended measures include enhancing the capacity of the Board of Commissioners and Board of Directors, optimizing the role of Independent Commissioners, and increasing the effectiveness of the Sharia Supervisory Board and Audit Committee to improve the bank's financial performance.

Does Company Size Moderation the Influence of Financial Performance and Good Corporate Governance Toward Islamic Social Reporting Disclosure?

This study aims to determine the influence of profitability, leverage, size of board commissioners, and size of Sharia supervisory board on Islamic social reporting disclosure with company size as a moderation variable in Sharia commercial banks for the 2017-2022 period. The sample was determined using the purposive sampling method. The analysis method used was moderated regression analysis (MRA). The tools used are SPSS. The results of the study partially show that profitability (ROE), leverage (DER), and size of board commissions (UDK) do not affect Islamic social reporting (ISR) disclosure.Meanwhile, the size of the Sharia Supervisory Board (UDPS) affects the disclosure of Islamic social reporting (ISR). Company Size (SIZE) is not able to moderate the influence of the variables of profitability (ROE), leverage (DER), and Size of board commissioners (UDK) on the variables of Islamic social reporting (ISR). Meanwhile, company size (SIZE) can moderate the influence of the Size of Sharia Board Commissioners (UDPS) on Islamic social reporting (ISR). Large banks will need more workers, including the Sharia Supervisory Board, so they can follow Sharia principles in carrying out their activities; the goal is to gain public trust to conduct transactions at Islamic commercial banks.

Characteristics of Sharia Crowdfunding as an Alternative to Financing the Development of the National Capital City

This research started from the construction of the new National Capital City of the Nusantara which has not yet been completed and requires a very large budget. In this regard, a financing model is needed that can be used as an alternative financing for the development of the new National Capital City. The aim of this research is to find the characteristics of sharia crowdfunding as an alternative financing in the process of building the new National Capital City. The research method used is a normative juridical research method with a statutory and a conceptual approach. The results of this research show that there are several characteristics of sharia crowdfunding as an alternative financing for the development of the New National Capital, namely: it is only intended for halal projects and products so that it complies with sharia principles and is free from interest rates; there is fairness in the distribution of profit and loss margins using a profit-sharing system; and supervised by the Sharia Supervisory Board.

Analysis of the Role of DPS in Assessing the Suitability of Savings Products at BMT

This study aims to analyze the role of the Sharia Supervisory Board ( DPS ) in assessing the conformity of savings products at KSPPS Artha Makmur Jaya with sharia principles. The research method used is qualitative with a case study approach. Data were collected through in-depth interviews with DPS members, KSPPS BMT management, and other related parties, and supplemented with secondary data from relevant documentation and literature. The results of the study indicate that DPS has a significant role in ensuring the sharia conformity of savings products, with active involvement in the design, evaluation, and monitoring processes of the products. Despite facing challenges such as limited resources and differences in interpretation of sharia principles, DPS has succeeded in carrying out its duties through increased cooperation and a collegial approach in decision-making. The existence of DPS has been proven to increase sharia compliance and member trust in KSPPS Artha Makmur Jaya. The conclusion of this study emphasizes the importance of strengthening the capacity and coordination of DPS to support the development of sustainable sharia finance at KSPPS. K

Determinant factors that impact Islamic social reporting: a study on Islamic Banking

This research aims to find out how sharia reporting is disclosed by sharia commercial banking using variable indicators such as liquidity, leverage, size of the sharia supervisory board, awards, and company size. This research was conducted on sharia banks registered with the Financial Services Authority (OJK) Indonesia from 2017 to 2022. The method used in data collection was a purposive sampling method and a sample of 14 sharia banks registered with the Financial Services Authority (OJK) was obtained. The results show that the variables liquidity, rewards and company size have a positive and significant impact on the disclosure of Islamic Social Reporting, while the variables leverage and size of the sharia supervisory board have no effect on Islamic Social Reporting disclosure. The research concludes that to increase the impact of Islamic Social Reporting, companies need to increase current assets to maintain liquidity, obtain awards, and increase total assets as a company size. Therefore, disclosing Islamic Social Reporting at each institution is very important to attract public attention regarding the company's excellence and performance, and this disclosure can be beneficial for the company's future.

Analysis of Murabahah Financing in Sharia Banking (Bank BJBS KCP Arcamanik Case Study)

Murabahah is an agreement for the sale and purchase of an item where the seller states the selling price which consists of the cost price and a certain level of profit on the item where the selling price is agreed to by the buyer. The purpose of writing this article is to analyze the issue of murabahah financing in sharia banking. This research examines the banking sector in Indonesia as the focus of the study, especially in terms of solving practical operational problems through exploratory investigations. Three customers and three sharia bank employees were tested in the study material in Bank BJBS KCP Arcamanik's sharia banking research. The Sharia Supervisory Board has carried out good supervision and must carry out strict supervision so that murabahah financing is carried out in accordance with this concept. This is so that murabahah financing which is the foundation for sharia banking financing can continue to exist and not damage the reputation or image of sharia banking.

Comparison of Sharia Governance Between Bank Muamalat and Bank BTN Syariah

Every business has a management strategy to maintain and develop its business, including Sharia financial institutions. The large potential of the Islamic finance industry has a positive impact on national economic growth, therefore it is important to maintain this stability. Good governance is one of the things that must be paid attention to, as well as the governance of Sharia financial institutions must comply with Sharia principles, to maintain the trust of stakeholders in the Sharia banking and finance industry. Moreover, there are rumors that two large sharia financial institutions will merge . This research aims to compare Sharia governance between Bank Muamalat and BTN Syariah, which have significant differences in background. This research uses qualitative methods with a library study approach, and analyzes and selects relevant library sources. Research result comparison of two Sharia banks that are planned to merge into a larger Sharia bank , although both banks follow Sharia governance principles, they both have different approaches due to different focuses and backgrounds. Bank Muamalat, as a pure sharia bank, has a more comprehensive sharia implementation and structure. Meanwhile, BTN Syariah as a sharia business unit of a conventional bank, focuses more on implementing sharia principles in housing products. Both banks demonstrate a strong commitment to Sharia principles and comply with supervision, the Sharia Supervisory Board (DPS), and applicable laws.

Analisis Pengungkapan Tata Kelola Syariah pada Perbankan Syariah Indonesia, Malaysia dan Bahrain

Objectives: This study aims to test and analyze the effect of sharia supervisory board size, sharia supervisory board expertise, sharia supervisory board meetings, audit committee size, audit committee expertise, audit committee meetings, and CEO duality on shari'ah corporate governance in 15 Islamic banks in Indonesia, Malaysia and Bahrain during the period 2013-2022.Design/method/approach: The analysis technique in this study is quantitative with multiple regression analysis tools with a panel data approach Results/findings: The results of this study are (1) supervisory board expertise and meetings have a significant effect on shari'ah corporate governance disclosure (2) supervisory board size, audit committee size, meetings. expertise and CEO duality have an insignificant effect on shari'ah corporate governance disclosureTheoretical contribution: The application of Stewardship Theory to the disclosure of Shari'ah Corporate Governance as well as expanding insight and literature on Shari'ah Corporate Governance, Shari'ah Corporate Governance regulations, and the application of standards used by Islamic banking in several countries.Practical contribution: As a reference for regulators related to Shari'ah Corporate Governance to improve the quality of the standards that have been set.Limitations: The research object is only carried out in three countries, namely Indonesia, Malaysia and Bahrain so that the sample studied is still small

Sharia Compliance Supervision Management at KSPPS Bmt Alhikmah Semesta

The importance of Sharia Compliance in the Sharia financial industry, with a focus on BMT Al Hikmah Semesta. Sharia Compliance supervision management at BMT is considered crucial to ensure compliance with sharia principles, where the Sharia Supervisory Board (DPS) plays an important role in overseeing this compliance. The strategy implemented by BMT Al Hikmah Semesta includes implementing a digital attendance system and establishing a Sharia Compliance Division. Although this article provides a valuable contribution to the understanding of Sharia compliance monitoring activities in the field of Sharia finance, there are several limitations in the research that need to be taken into account, such as weaknesses in the corporate governance of Islamic financial institutions that may affect the performance of these institutions. In this context, the Sharia Supervisory Board (DPS) at BMT Al Hikmah Semesta has an important role in enforcing sharia compliance, by providing fatwas, and recommendations regarding new products and services, as well as carrying out routine monitoring of operational activities. Management needs to increase support for DPS performance and provide education to employees to strengthen the culture of sharia compliance at BMT, so that it can increase effectiveness, maintain quality and increase members' trust in the sharia financial industry.

The Role of Shariah Supervisory Board in Islamic Social Reporting Disclosure

Islamic Social Reporting (ISR) is a concept of social responsibility based on Islamic principles, assisting Islamic banks in enhancing transparency, accountability, and stakeholder relations. ISR encourages Islamic banks to increase their sustainable social responsibility to promote Islamic ethics in business practices. This study aims to analyze the impact of Sharia Supervisory Board (SSB) characteristics on ISR disclosure in Islamic banks in Indonesia. The analysis utilizes the unbalanced panel fixed effect model method and involves 15 Islamic banks from 2017 to 2021. The findings confirm that cross-member, expertise, and turnover of SSB have a significant positive effect. In contrast, the size, the education level, and remuneration of SSB do not affect ISR disclosure.

Impact of Intellectual Capital and Islamic Corporate Governance on Financial Performance of Indonesian Islamic Commercial Banks

The aim this study is to investigate the relationship between intellectual capital, Islamic commercial banks' financial performance, and Islamic corporate governance in Indonesia from 2017 to 2019. The methodology used in the study is quantitative. The people are all Muslims. Commercial banks that have Financial Services Authority registrations (OJK) over the three-year period (2017-2019). The sample is determined using a saturated sampling technique, resulting in 14 Islamic Commercial Banks and forty-two observations in total. The analytical approach is panel data regression analysis and data processing with Eviews 9. The study's findings demonstrate that intellectual capital has a significant impact on return on assets. In contrast, the Sharia Supervisory Board has little effect on Return on Assets. However, the Commissioners' Board and the Directors Board both significantly influence Return on Assets.

The Effect Of Sharia Supervisory Board, Board Of Commissioners And Board Of Directors On Islamic Social Reporting Disclosure At Sharia Commercial Banks In Indonesia

The Effect Of Sharia Supervisory Board, Board Of Commissioners And Board Of Directors On Islamic Social Reporting Disclosure At Sharia Commercial Banks In Indonesia

The Nexus Between Board Diversity and Sustainability Reporting: The Moderating Role of Supervisory Effectiveness and Quality in a Two-Tier Board System

This study aimed to investigate how Board of Director (BOD) diversity affected sustainability reporting in Islamic banks in Indonesia. The effectiveness of three supervisory bodies, namely the Board of Commissioners (BOC), the Audit Committee (AC), and the Sharia Supervisory Board (SSB), was explored to determine their ability to enhance sustainability performance. The study was based on a sample of 13 Islamic banks listed with the Financial Services Authority between 2012 and 2021. Moderated Regression Analysis was applied to test the hypotheses. It was found that board diversity had a positive influence on sustainability reporting. The regression results for all three moderation variables showed positive and significant findings, indicating that the interactions between the BOC, the AC, the SSB, with the BOD played an effective role in enhancing sustainability disclosure. board ’diversity’s importance and supervisory boards’ effectiveness. This study fills a research gap on the relationship between corporate governance and sustainability disclosure, especially in developing countries that adhere to a dual board governance system, specifically Islamic banks that comply with Sharia governance. The research results underscore the need for a diverse board of directors and the effectiveness of the supervisory board as the party responsible for meeting stakeholder demands through its role in encouraging companies to be actively involved in sustainability performance.

AN ANALYSIS OF SOCIOECONOMIC INEQUALITIES AMONG LOW-INCOME INDIVIDUALS WITH A SPECIFIC FOCUS ON THE COMPLIANCE INDEX OF SHARIAH GENERAL BANKS IN INDONESIA

The aim of this study is to investigate the correlation between the focus on the overall compliance index of sharia banks in Indonesia, particularly the profitability role index, sharia supervisory boards, and independent commissioners, and reducing social disparity among low-income groups. This study specifically examines the sharia commercial banks in Indonesia, and the samples were chosen using the purposive sampling method. The data collected comprises secondary data, specifically the annual reports of sharia commercial banks from 2017 to 2021. The data underwent the usual assumption test for analysis. Applying the multiple linear regression method for hypothesis testing. The SPSS software is employed for data processing. The results of this study suggest that the presence of an audit committee has a significant and positive effect on the sharia compliance index. The variables of liquidity, profitability, leverage, and sharia supervisory board have a negative and statistically insignificant effect on the sharia compliance index. The independent commissioner variable has a favourable effect on the sharia compliance index, although this effect is statistically insignificant. Therefore, it may be inferred that the profitability index, Sharia Supervisory Board, and Independent Commissioners, which serve as benchmarks for guaranteeing Sharia compliance in Indonesian Sharia banks, are not successful in alleviating the prevailing social inequality in Indonesia.

Relationship between sharia supervisory board attributes and sustainable development goals (SDGs) financing in Islamic banks

ABSTRACT It has been widely believed that Islamic finance holds a potential role in achieving sustainable development goals (SDGs). Hence, considering the power of the Shari’a Supervisory Board (SSB) to approve or reject Islamic banking products, this paper investigates the association between SSB attributes and Islamic banks’ SDG financing. The study utilized unbalanced data generated from a sample of 32 fully Sharia-compliant Islamic banks across nine (9) countries between 2013 and 2021. The findings reveal that SSB size and SSB financial expertise significantly reduced Shariá-compliant financing for agriculture, education, and health economic activities. Besides, while SSB foreign scholars have an insignificant association with agriculture and education financing, they significantly reduced financing for health. In contrast, SSB meetings and SSB gender diversity significantly increased funding for these activities. These findings could assist regulators in revising the SSB codes of governance to enhance their effectiveness in supporting Islamic banks’ activities aimed at achieving SDGs.

STUDI KOMPARATIF ANTARA ASURANSI SYARIAH DENGAN ASURANSI KONVENSIONAL: SEJARAH, SUMBER HUKUM, MAYSIR, GHARAR, RIBA, DEWAN PENGAWAS SYARIAH, PENGELOLAAN RESIKO DAN PREMI

The purpose of this study is to compare Conventional Insurance with Sharia Insurance in terms of principles, history, legal basis, clean from Maghrib (maisir, gharar, and riba), Sharia Supervisory Board, risk management, and premi. The research method employed is a literature review with a descriptive approach, which is part of qualitative research. The descriptive approach is chosen to depict the distinctions between Sharia and Conventional insurance. The findings reveal significant differences across all aspects examined between Conventional and Sharia Insurance. Conventional Insurance traces its history back to Babylonian practices around 4000-3000 BC, notably the Code of Hammurabi, while Sharia Insurance originates from pre-Islamic Arab customs (aqilah system), later sanctioned by Prophet Muhammad, drawing legal sources from positive law and fatwas from DSN-MUI. Conventional Insurance incorporates elements of maysir, gharar, and riba in its operations, which are absent in Sharia Insurance. Unlike Conventional Insurance, Sharia Insurance has an internal Sharia Supervisory Board to ensure compliance with Sharia principles. Risk management in conventional insurance involves transfer of risk, whereas Sharia Insurance focuses on sharing of risk. Premi in Conventional Insurance consist of mortality tables, interest, and insurance costs, whereas Sharia Insurance premi consist of tabarru’ (donation) and savings (for life insurance), or tabarru’ alone (for non-life insurance). The tabarru’ element is derived from mortality tables without interest calculations.

PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PADA BANK UMUM SYARIAH DI INDONESIA

This research aims to empirically prove the influence of Good Corporate Governance on the financial performance of sharia banking. Based on the purposive sampling method, the samples obtained were 7 sharia banks that met the criteria. Research data was obtained from annual reports for the 2016-2021 period. The data in this research is quantitative data using secondary data. The analytical method used is multiple linear regression analysis of panel data. The research results show that the board of commissioners has a negative and significant effect on financial performance, because too many board of commissioners can reduce the company's profitability, the board of directors has a positive and significant effect on financial performance, the sharia supervisory board has a positive and significant effect on financial performance and the audit committee does not influence on financial performance. Together the board of commissioners, board of directors, sharia supervisory board and audit committee influence Return on Assets. Regarding efforts to improve financial performance, sharia commercial banks should focus more on the board of directors and sharia supervisory board. Because the better the board of directors and sharia supervisory board, the better the financial performance of sharia commercial banks in 2016-2018.

Solusi Akad Murabahah bil Wakalah Pada Perbankan Syariah di Indonesia

A country's economic development can grow if its business sector is doing well. To maintain the existence of business growth, a source of financing capital is needed. This research aims to critically examine the murabahah bil wakalah financing contract in Islamic banking and provide solutions to these problems. This research uses a qualitative method. This study is descriptive analytic in which data collection is carried out by reviewing the literature then analyzing and interpreting the content to produce conclusions and recommendations. The results of the study suggest that there are several problems that occur in the murabahah bil wakalah contract, including goods that are not fully owned by the bank, moral hazard in customers, and an explanation of the cost and profit. The solution is that banks are expected to form a special unit to purchase goods for customers, the need to emphasize the contract at the beginning of the transaction to prevent moral hazard, and the activeness of the sharia supervisory board in overseeing all transactions carried out at Islamic banks.