Sharia Supervisory Board Research Articles

Appreciative Inquiry Analysis Through SOAR Approach In The Lens Of Shariah In Facing Industry 4.0 On Indonesia’s Islamic Banking

The research I conducted looked at how the impact of the industrial revolution 4.0 on the Islamic banking sector. In this case, I took a SOAR analysis approach (strengths, opportunities, aspirations and results), in contrast to the SWOT analysis, SOAR analysis resembled more at the advantages and opportunities of Islamic banking in achieving progress not only the world but also the hereafter. The SOAR analysis that I did combines with Sharia principles that will realize as in digital financing products and internet banking. The Sharia Supervisory Board and DSN-MUI are among the regulators making sharia banking stronger and recognized. Virtually a usury-free bank and towards the benefit of the Ummah both in the world and in the hereafter. The different method I use is a qualitative method by viewing at and analyzing the research object to be examined.

Corporate Governance and Disclosure of Sharia Compliance: An Insight Based On Aaoifi Standards

The objective of this study is to examine the effect of size and the frequency of meeting of Sharia Supervisory Board, audit committee, and auditor’s reputation on the disclosure of sharia compliance based on AAOIFI standard. The secondary data of this study was the annual report of 10 Islamic Commercial Banks in Indonesia from 2016 to 2018. Purposive sampling was used in selecting the data. While multiple linear regression was used for data analysis. The results of the study conclude that the size of the Sharia Supervisory Board has a positive and significant effect the on disclosure of sharia compliance based on the AAOIFI standard. On the contrary, the frequency of meeting of the Sharia Supervisory Board, audit committee, and auditor’s reputation have no significant effect on the disclosure of sharia compliance.

Analysis of factors affecting sharia compliance levels in sharia banks in Indonesia

Purpose: This study aims to analyze the factors that influence the level of sharia compliance in sharia banks in Indonesia. In particular, this study examines the effect of liquidity, firm size, Sharia Supervisory Board Size, and Audit Committee on the level of sharia compliance in sharia banks in Indonesia. Methodology: This study uses quantitative methods with secondary data in the form of sharia bank annual reports 2014-2018. The data analysis uses regression test with the help of SPSS software. Findings: The results of the analysis show that the size of the sharia supervisory board and audit committee has a positive effect on the level of sharia compliance. The findings of this study contribute to the literature on sharia compliance and disclosure in Sharia banking in Indonesia. Practical implications: This research also has implications for sharia banking, especially in Indonesia, as an evaluation material in improving the quality of financial reports. Originality: This study uses the sharia compliance index as a measuring tool for the level of compliance of sharia banks which is rarely used by previous studies.

Analisis Persepsi Ulama terhadap Pelaksanaan Perbankan Syariah di Kota Semarang

Ulama have an important and influential role to the Muslim societies in Indonesia. Ulama are Muslim scientists who master and well-understand of religious knowledge in Islam. At the present, Ulama also as an important figure who drives economic growth in the community in this case related to Islamic banking which conducts business activities based on sharia principles. The aim of the research is to explore the perception of Ulama towards the implementation of Islamic banking and to analyse the factors that influence the perception of Ulama in Semarang city. The method used in this research is descriptive qualitative research method. Qualitative data is collected by interviewing 3 representatives of Indonesian Muslim organization including Nahdlatul Ulama (NU), Muhammadiyah and Majelis Ulama Indonesia (MUI) in Semarang city. The data validity technique used is to use the triangulation method and the data collected are analysed by adopting the Miles and Huberman analysis model, which consists of three processes namely data reduction, data display, and conclusion drawing or verification. The results showed that the Kiai and Ulama in Semarang city which could be classified from the Nahdlatul Ulama (NU) revealed that their perceptions were limited to theories through the Qur’an and Hadits. Different from Muhammadiyah who better understand the implementation of Islamic banking because the representatives from the MUI and Muhammadiyah themselves act as Sharia Supervisory Board.

Analisis Fatwa DSN Nomor 123/DSN-MUI/XI/2018 tentang Dana TBDSP dalam Perspektif Sosiologi Hukum

The purpose of this study is to analyze the Fatwa of the National Sharia Supervisory Board No: 123/DSN-MUI/XI/2018 according to sociology of law. This qualitative research uses descriptive-analysis method, which describes the management of TBDSP funds in the DSN fatwa, then it is analyzed using the sociology of law theory and this research uses a sociological-normative approach. The results of this study indicate that Fatwa No: 123/DSN-MUI/XI/2018 was made on the consideration that Islamic Financial Institutions in carrying out their activities need guidelines for using non-halal funds and there is no dhawabith and hudud regarding non-halal fund management. So that it became known the term TBDSP Fund, which means that non-halal funds obtained by Islamic Financial Institutions cannot be recognized as income. These funds must be channeled for social activities and must be separated into special accounts based on what is stated in the fatwa. Changes in regulations related to non-halal funds for Islamic Financial Institutions are influenced by social, economic, and scientific factors. So that the existence of a fatwa regarding the use of TBDSP funds can be said to be an answer to the need for change in Islamic Financial Institutions in terms of non-halal fund management. It should be that the DSN Fatwa regarding the use of TBDSP Funds can be applied by Islamic Financial Institutions and asks DPS in Sharia Financial Institutions to carry out maximum supervision.

Management ownership and the performance of Islamic microfinance institutions: a panel data analysis of Indonesian Islamic rural banks

PurposeThis study aims to analyse the relationship between management ownership and the performance of Islamic microfinance institutions (MFIs) using panel data from Indonesian Islamic rural banks (Bank Pembiayaan Rakyat Syariah [BPRS]).Design/methodology/approachThis study uses unbalanced quarterly panel data from BPRS during the period from 2011 to 2016. Performance, as the dependent variable in this study, is analysed based on three sets of measures, namely, profitability, efficiency and the financing risk. Management ownership, as the independent variable in this study, is represented by ownership by the board of directors (BOD), the board of commissioners (BOC) and the sharia supervisory boards (SSB).FindingsThe results show that ownership by the BOD and BOC does not have a significant relationship with profitability and efficiency. However, the BOD ownership has a negative relationship with the financing risk and vice versa for the BOC ownership. Additionally, the study reveals that ownership by the SSB plays a positive and significant role in increasing the profitability and efficiency but does not have a significant impact on the financing risk.Originality/valueThis is one of the first studies to provide empirical results regarding the relationship between management (BOD, BOC and SSB) ownership and the performance of BPRS. The finding reveals that ownership by the SSB is very important to increase the profitability and efficiency of the BPRS.Contribution to ImpactThis study fills the gap in the literature about Islamic MFIs in Indonesia, especially the BPRS. This research also provides an insight into corporate governance practices and Islamic MFIs’ performance using BPRS data. The findings provide useful information for policy makers and regulators.

The Role of the Government in the Development of Indonesian Sharia Banking

The growth of the Sharia financial industry in Indonesia is quite slow, this is due to the lack of the government's role in helping develop the Islamic finance industry, even though the potential of the Islamic banking market in Indonesia is actually very large. Therefore, the purpose of this study is to discuss the issue of whether the economic values of Sharia are in accordance with Indonesian philosophy and values, so that the Sharia Industry is able to develop fundamentally in Indonesian society, as well as how the role of the government is to provide a strong basis in developing the Islamic Banking Industry in Indonesia. Indonesia. Because the progress of Islamic banking as a financial industry determines its development in the economy in Indonesia. This study uses a normative research method, where research is focused on legal norms or norms. In the development of Islamic banking by the government, it involves several institutions as the means. The scope of cooperation coordination is broad in order to make Indonesia the center of Islamic economics and finance Some of these institutions include: Bank Indonesia, the Financial Services Authority and the Sharia Supervisory Board. Each institution carries out its role in order to achieve the objectives of developing Islamic banking which have been arranged in a development management.

Analysis of The Influence of Audit Committee, Sharia Supervisory Board, and Islamic Work Ethic on The Quality of Sharia Bank Financial Statements in Indonesia

Purpose - This study aims to analyze the influence of audit committees, sharia supervisory boards, and Islamic work ethic on the quality of islamic bank financial statements in Indonesia.Method - The method in this study used Multiple Linear Regression Analysis with SPSS software tools.Result - Based on the results of this research, simultaneously the audit committee, sharia supervisory board, and Islamic work ethic have a significant influence on the quality of islamic bank financial statements in Indonesia. Meanwhile, in part, the audit committee and islamic work ethic have no significant effect on the quality of islamic bank financial statements in Indonesia. SSB partially affects the quality of islamic bank financial statements in Indonesia.Implication - This study uses the data from Islamic bank financial statement in Indonesia, audit committees, sharia supervisory boards, Islamic work ethic.Originality - The data was taken with the dissemination of questionnaires distributed to 30 respondents. The respondents were a reflection of the members of the audit committee and SSB who were qualified as students of sharia banking polytechnic state of semarang who had received islamic bank audit courses.

Islamic Corporate Governance: Pengaruh Tingkat Pedidikan dan Keahlian Keuangan Dewan Pengawas Syariah (DPS) terhadap Perilaku Pengambilan Risiko

This study examines the effect of DPS characteristics on risk-taking behavior in Indonesian Islamic banking in 2010-2016. The first characteristic tested is the level of education and the second is SSB expertise in finance. The population of this research is Islamic banks in Indonesia, while the sample consists of 63 Islamic commercial banks in Indonesia, which were selected by purposive sampling method. The measurement used for the education level of DPS is the percentage of DPS with a master's degree, while for financial expertise it is used the percentage of DPS who have expertise in finance. Then to measure the bank's risk-taking behavior, the Z-score is used. The results of hypothesis testing indicate that hypotheses 1 and 2 are accepted. From the results of the study, it can be concluded that the higher the education level of DPS, will encourage Islamic banks to take bigger risks. And the increasing number of SSB members who have a background of expertise in finance will limit Islamic banks in taking risks. Keywords : Islamic Corporate Governance ; Sharia Supervisory Board (SSB) ; Islamic Bank ; Risk Taking Behaviour.

GLOBAL FINANCIAL CRISIS: AN ISLAMIC MANAGEMENT APPROACH

The purpose of this study is to determine the solutions to financial crises based on the perspective of Islamic management. It also discusses the roles of faith and Islamic monotheism in managing the global financial crisis. The qualitative method was used to obtain data from books and articles related to Islamic management based on Qur’an and Hadith. These data were further analyzed and used as a solution to problems related to the global financial crisis by Islamic values. The result showed that the values of faith and monotheism following organizational policy and management tend to minimize financial speculative actions and greed. In addition, these values assist managers in planning, organizing, directing, and supervising their subordinates under Islamic rules and regulations. The application of this value is mainly reflected in the aspects of behavior, organizational aspects, and system aspects through the mechanism of placing the sharia supervisory board and profit-sharing in Islamic financial institutions, simplicity, and avoiding is in organizational management as well as the principle of prudence and avoiding speculative action. This research supports the role of the Islamic management system in winning finances and implementing organizational policies to overcome global financial problems.
 JELClassification Codes: G01, H12, D46.

Peran Dewan Pengawas Syariah Dalam Perbankan Syariah

One of the characteristics that distinguish Islamic Commercial Banks from conventional banks is the existence of a sharia supervisory board (SSB) in an independent Islamic bank and is located parallel to the board of commissioners. SSB has an important and strategic role in implementing sharia in Islamic Banks. SSB is responsible for ensuring all Islamic Bank products and procedures comply with sharia principles. This research is entirely library research. The purpose of this research is to find out how the role of SSB in Islamic banking is related. The analytical method used is the content analysis method. The results of this study indicate that the SSB is an independent body consisting of muamalah sharia experts who also have knowledge in the banking sector at Islamic financial institutions and are in charge of overseeing the implementation of the decisions of the national sharia board at these Islamic financial institutions. SSB has an important and strategic role in implementing sharia principles in Islamic banking. SSB is responsible for ensuring all Islamic bank products and procedures are in accordance with sharia principles.

THE ROLE OF THE SHARIA SUPERVISORY BOARD (SSB) IN MODERATING THE EFFECT OF GOOD CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN INDONESIA

Purpose — The aims of this research to examine and analyze the extent of the role of the sharia supervisory board (SSB) in moderating the effect of good corporate governance on the financial performance of Islamic banks in Indonesia.  Design/methodology/approach — Population in this research is 14 (fourteen) Islamic banks in Indonesia and the sample used in this research is 9 (nine) Islamic banks that have published financial reports, good corporate governance reports, and annual reports for the period 2010 - 2019. This research data processed were processed using reviews-10.Findings — The results of this research stated that good corporate governance has a significant effect on the financial performance of Islamic banks. The sharia supervisory board (SSB) moderates the effect of good corporate governance on the financial performance of Islamic banks in Indonesia.Practical Implications — The chow test stated chosen model as fixed effects, then the Housman test stated chosen model as random effects. Thus the model used in this research is a random effect.Originality/value — To complete the results, this research used in-depth interviews with practitioners of Islamic banks in Indonesia, specifically the departement of compliance with Islamic banks.Keywords Good corporate governance, Sharia Supervisory Board, financial performancePaper Type Research Paper.

MEKANISME GOOD CORPORATE GOVERNANCE DAN DEWAN PENGAWAS SYARIAH PADA KINERJA KEUANGAN PERBANKAN SYARIAH INDONESIA

This study aims to discuss and analyze about how the mechanism internal of good corporate governance such as: Effect of audit committe effectiveness on the performance of sharia banking, Effect of risk monitoring committee effectiveness on sharia banking performance, Effect of remuneration and nomination committee effectiveness on sharia banking performance, and also sharia supervisorsboard effectiveness on sharia banking performance in Indonesian between 2014-2018. The data used in this study are secondary data by measuring the number of meetings taken from each variable. The method used in sample selection is purposive sampling. The number of samples in this study were 12 banks taken from the annual report with 60 samples. The hypothesis test used in this study is the statistical t test. The data analysis technique used in this study is multiple linear analysis using statistical products and service solutions (SPSS) version 20.0. The results of the study showed that the effectiveness of audit committee, risk monitoring committee, nomination and remuneration committee, and sharia supervisory board had a positive effect on the financial performance of sharia banking

Pengembangan Exchange Trade Fund Syariah Indonesia: Peluang dan Tantangan

This paper aims to discuss the opportunities and challenges of developing Sharia Exchange Trade Fund (ETF) investment products in Indonesia. ETF is an investment product in the capital market that collaborates stock and mutual fund products that can collectively be traded on the capital market. This will provide attractive new investment opportunities for investors who are concerned about sharia investment. With the consideration that Indonesia's population is predominantly Muslim, then of course Islamic investment products will attract them. ETFs have the following advantages: easy and flexible process of ownership and transfer, low cost and risk, wide coverage because they are like investing in several portfolios at once, and the process is transparent. In particular, Islamic ETFs have the advantage in the aspect of ensuring product halalness because their portfolios are always monitored by the sharia supervisory board in each investment manager as the manager. On the other hand, Islamic ETFs are faced with challenges related to the low literacy of the Muslim community about investing in the capital market that has sharia products.

Pengaruh Kinerja Keuangan dan Penerapan GCG terhadap Potensi Kebangkrutan pada PT Bank Muamalat Indonesia Tbk

This study aims to determine the effect of financialoperformance as proxied by ROA, BOPO, CAR and FDR as welloas the implementation of good corporate governance proxiedoby the Sharia Supervisory Board on financial distress (Modified Altman Z-Score) at Bank Muamalat 2008-2018. This research method uses a case study method with secondary data in the form of quarterly financial reports and GCG reports issued by PT Bank Muamalat Indonesia Tbk. for the period 2008-2018, data obtained from theoFinancialoServices Authority andoother data related to the subject and object oforesearch. This study uses the Multiple Linear Regression method with the help of Software Statistic Eviews 9. From this study, the results show that ROA has no effect on financial distress, BOPO has no effect on financial distress, CAR has a significant positive effect on financial distress, FDR has a significant negative effect on financial distress, and GCG has no effect on financial distress.

Pengaruh Sharia Conformity dan Good Governance Business Sharia terhadap Kinerja Bank Umum Syariah

This research aims to examine the influence of Islamic Investment, Islamic Income, Profit sharing, implementation of duties and responsibilities of the Sharia Supervisory Board (SSB), and implementation of duties and responsibilities of the Director towards the performance of Sharia Commercial Bank. The data in this research are obtained by downloading the annual financial report of each sharia bank for the period 2014-2018 (5 years), the selected sample was 6 banks, so the number of observations was 30. The findings indicate that partially, the variable of Sharia Conformity as measured by the indicators of Islamic investment and Islamic income has no influence on the performance of Sharia Commercial Bank where indicator of profit sharing influence the performance of Sharia Commercial Bank. Meanwhile, the variable of Good Governance Business Sharia as measured by indicators of the implementation of duties and responsibilities of SSB and indicators of implementation of duties and responsibilities of the Directors have an influence on the performance of Sharia Commercial Bank. The variable of Sharia Conformity and Good Governance Business Sharia are able to explain the performance of variable of Sharia Commercial Bank of 29%.

Analysis of Sharia Performance Disclosures at Islamic Banks

The purpose of this study is to analyze the ability of financial statements prepared based on PSAK Syariah in disclosing information related to sharia performance. Research uses a qualitative approach and phenomenological techniques to analyze data. Data obtained by documentations, observationsand interviews. Informants were selected using the purposeful and snow balling methods. The informants used were directors, managers, accounting staff at Bank Barakah Sejahtera, Sharia Supervisory Board, OJK supervisors and National Sharia Board. The results showed that the financial statements prepared based on the PSAK Sharia could be analyzed to measure financial performance but could not be analyzed to measure sharia performance. The results of this study provide recommendations to the Indonesian Sharia Accounting Standards Board to review the Basic Framework of the Preparation and Presentation of Sharia Financial Reports.

DRAMATURGY: RIBA ON HOME OWNERSHIP LOAN IN ISLAMIC BANKING (CASE STUDY ON BANK BTN SYARIAH KCPS CIPUTAT, TANGERANG SELATAN)

The purpose of this study was to determine usury behavior in the Housing Loan or Credit in Islamic banks and to determine the application of the existing contract system in Housing Loans in Islamic banks using the dramaturgy method. The data used in this study is primary data, where researchers conducted interviews directly with the Bank BTN Syariah KCPS Ciputat, a member of the Sharia Supervisory Board and one of the customers who used a House Ownership Credit product at an Islamic bank. The results of this study can be concluded that the front stage that the bank shows to the public is in accordance with the back stage that the bank does not show to the public and Bank BTN Syariah KCPS Ciputat conducts its business in accordance with Islamic law and the fatwa of the National Sharia Council. So that in this study Bank BTN Syariah KCPS Ciputat does not have usury in its business.

Implementation of Sharia Business Governance Principles on Regulation of Investment Manager Governance

Investment Manager (MI) as a sharia mutual fund manager is done in two ways are the establishment of Sharia MI and Sharia Investment Management Unit (UPIS) for conventional MI. Most of conventional MI is not ready to spin off to become a Sharia MI because it is considered the current governance of MI is still low. OJK issued regulation No. 10/POJK.04/2018 on the Implementation of Investment Manager Governance that applies to both. However, the arrangement is still general and has not led to sharia governance system, while Indonesia has good governance guidelines for Sharia Business Governance (GGBS) that can be used as a reference standard. Based on these issues, the author reviewed the principles of GGBS to the extent of their implementation in the regulation of investment manager governance. This research is normative juridical with an analytical descriptive approach. Based on the results of the study the authors found that the governance arrangements of investment managers have not been sufficiently the basis for the implementation of sharia governance because principle of Independence has not been implemented for the ban on multiple positions for the Sharia Supervisory Board and spin off mechanisms for UPIS.

THE INFULENCE OF FINANCIAL CONDITIONS AND SHARIA SUPERVISORY BOARD TOWARD CORPORATE TAXPAYER COMPLIANCE

The purpose of this research is to determine whether the financial condition and sharia supervisory board have a significant influence on the compliance of corporate taxpayers either partially or simultaneously. The samples are selected by purposive sampling method so that 9 sharia commercial bank samples are obtained. The unit of analysis in the study amounted to 45 annual reports of Islamic banks. The type of quantitative data is in the form of financial reports (annual reports) of each bank from 2014- 2018. The results of this study find that financial conditions affect the compliance of corporate taxpayers, indicated the better financial condition, the greater the profits obtained, the better the compliance of corporate taxpayers. Sharia Supervisory Board affects the compliance of corporate taxpayers, it is indicated that the better the one in supervising a bank, the better and obedient the company is in compliance with corporate taxpayers.