Supervisory Board Research Articles

A text analytics study on the alignment of an Indonesian Muslim community’s municipal corporation policy with Sustainable Development Goals

PurposeThis study analyses the supervision policy of Municipal Corporations (MCs) in the Indonesian Muslim community regarding its alignment with the United Nations Sustainable Development Goals (SDGs).Design/methodology/approachAs a single case study, purposive sampling was adopted to select a municipal corporation policy issued by Ciamis Regency, West Java, Indonesia. A novel mixed methods approach, combining computer analytics and human intelligence, was introduced to perform text analytics.FindingsText mining identified the most frequently occurring words — e.g., ‘perumda’ (municipal corporation), ‘daerah’ (regional), ‘pengawas’ (supervisor), ‘peraturan’ (regulation) — from the sample but found no single word indicating business alignment with SDGs. Further qualitative inductive analysis was conducted, revealing the critical role of MCs’ supervisory boards in business planning, execution, and reporting to align the MC businesses with local SDG initiatives.Originality/valueAligning MC business activities with local SDG actions is entirely within the authority of supervisory boards which demands transformational leadership. This research pioneered an innovative blend of computer-assisted techniques and human reasoning to investigate the supervision policies of MCs concerning local SDG actions, with evidence from a Muslim community in Indonesia.

Pengaruh Eksternal Auditor, Komisaris Independen, dan Dewan Pengawas Syariah Terhadap Sustainable Finance Pada Bank Umum Syariah di Indonesia

The research evaluates external auditors based on their association with the Big Four Public Accounting Firms, measures independent commissioners by their proportion on the board, and counts Sharia supervisory board members as reported in annual disclosures. Using secondary data from annual and sustainability reports, the study employs multiple linear regression analysis.Results indicate that only independent commissioners have a significant impact on Sustainable Finance, while external auditors and the Sharia supervisory board do not. This highlights the importance of independent commissioners in promoting Sustainable Finance, suggesting that regulators and banks should enhance their roles to strengthen commitments to these initiatives

The role of Sharia compliance in moderating the indirect influence of board diversity on roe mediated by Zakat disclosure

This study aims to examine the moderating role of Sharia compliance on the relationship between the diversity of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board and Return on Equity (ROE), with Zakat Disclosure as a mediating factor. The research is grounded in agency theory, stakeholder theory, and legitimacy theory, focusing on how board diversity and Sharia compliance influence corporate governance and financial performance, specifically in the context of Islamic banking. The study utilizes a sample of Islamic commercial banks listed with Bank Indonesia. Data from the banks' annual reports and financial statements between 2013 and 2023 are analyzed using a panel data regression model. Multi-Group Analysis (MGA) is employed to test the moderating effects of Sharia compliance on the indirect relationships between board diversity and ROE, mediated by zakat disclosure. The results show that Sharia compliance moderates the relationship between the diversity of the Board of Directors and ROE, with zakat disclosure acting as a mediator. However, Sharia compliance does not moderate the relationship between the diversity of the Board of Commissioners and Sharia Supervisory Board with ROE, as mediated by zakat disclosure. The research provides insights for Islamic banks, highlighting the importance of Sharia compliance and board diversity in enhancing financial performance through zakat disclosure. The findings can inform regulators and practitioners in improving corporate governance practices within Islamic financial institutions. This study contributes to the literature by offering new evidence on the role of Sharia compliance in the governance-performance relationship, particularly the indirect effects through zakat disclosure, and how this dynamic operates within the unique framework of Islamic banking.

ANALISIS PENYALURAN PEMBIAYAAN DAN MODEL PENGEMBANGAN KOPRASI IBNU AFFAN PATANI THAILAND

This study aims to examine the financing distribution system and the development model of the Ibnu Affan Cooperative in Thailand. A qualitative approach with descriptive methods was utilized, involving interviews and documentation as data collection techniques.Based on the analysis conducted, Koperasi Ibnu Affan applies Sharia principles with a focus on transparency. The transparency referred to involves the openness of information and decision-making processes carried out by the cooperative, where the cooperative is able to manage finances openly to both the management and all members, as well as the supervisory board. Furthermore, the welfare of the members is one of the cooperative's main programs aimed at improving the welfare of its members and the community in general. This is achieved through the use of a modern management model that focuses on the application of efficient and professional management principles while considering cooperative values based on democracy, transparency, and solidarity for operational success.

Ratio Decidendi District Court Decision in Case of Deed Not Read Based on Notary Position Law (Decision No 873/Pdt.G/2013/ Pn.Sby)

This research is aimed at analyzing the Ratio Decidendi of District Court Decision No. 873/Pdt.G/2013/PN.Sby against notaries who do not read their deeds. The purpose of this research is to determine and analyze the Decidendi Ratio of District Court Decision No. 873/Pdt.G/2013/PN.Sby regarding deeds that were not read by a notary. Then to analyze the responsibilities of notary officials based on article 16 paragraph 1 letter (m) of the Law on Notary Positions. This type of research uses normative juridical research using a statutory approach and a conceptual approach using literature study legal material search techniques. The analysis technique used in this research is the interpretation technique used is systematic interpretation. Based on this, the problem formulation is (1) What is the judge's consideration (Ratio Decidendi) regarding Decision No. 873/Pdt.G/2013/PN.Sby regarding deeds that were not read by a notary? and problem formulation (2) What are the responsibilities of notary officials for deeds that are not read out based on article 16 paragraph 1 letter m based on the Law on Notary Positions? (1) Ratio Decidendi, namely the implementation of a decision with a ruling that the lawsuit cannot be accepted (Niet Ontvankelijk verklaard) in District Court Case No. 873/Pdt.G/2013/PN.Sby, even though in principle the lawsuit is not accepted, the notary still has responsibility for deed that he has made. Even though in principle the lawsuit is not accepted, the judge should consider not carrying out the obligation to read the deed by a notary(2) The Notary's responsibility for a deed that is not read, in this case the Notary can be sued because the authentic deed is downgraded to a private deed and then be sued civilly, namely regarding compensation based on 1365 of the Civil Code, as well as administrative sanctions based on the Code of Ethics. Notary. The advice that can be given is that during the examination of the case, if the lawsuit contains formal defects, it is better to stop it so that the decision is not rejected. Then the parties in the lawsuit must make a detailed lawsuit so that the lawsuit can be granted. Then there are administrative sanctions for the notary who does not carry out the obligation to read the deed. less severe and less of a deterrent effect, then the supervisory board should ensure that the deed made by the notary is truly authentic or not during its inspection and there should be a clear place for complaints for the public to the regional supervisory board.

Authority of the Corruption Eradication Commission After the Promulgation of Law Number 19 of 2019 About the Eradication Commission Corruption Crime

A clean government is one that operates free from collusion, corruption, and nepotism. The Corruption Eradication Commission (KPK) has long been established to combat corruption in Indonesia. However, the amendment to the KPK Law through Law Number 19 of 2019 has sparked controversy. This amendment has reduced the KPK’s authority, and the introduction of a Supervisory Board with stronger authority than the KPK commissioners has raised concerns about weakening the commission’s ability to perform its duties. The objective of this research is to analyze the impact of changes in the KPK's authority following the issuance of Law Number 19 of 2019. This research uses a normative legal approach, applying both the statute and conceptual approaches. The legal materials are processed using descriptive legal analysis to examine the implications of the legal changes. The findings reveal significant changes in the KPK’s authority between Law Number 30 of 2002 and Law Number 19 of 2019. The study concludes that the enhanced authority of the Supervisory Board has negatively impacted the effectiveness of the KPK in fulfilling its responsibilities, raising concerns about its ability to optimally combat corruption. The implications of this research suggest that the reduction in the KPK’s authority and the increased role of the Supervisory Board may hinder efforts to eradicate corruption, thus affecting the overall integrity of governance in Indonesia.

Collaborative water governance model for potable urban water supply in Riau Province, Indonesia

ABSTRACT The literature suggests that collaborative governance is a promising framework for addressing complex public problems while some cases have also marked failure in its implementation. Furthermore, the complexities and factors of the collaborative governance context must be understood at the early stage, as they may affect its sustainability. Therefore, this study aims to understand ‘what works and what doesn't’ and the need for sustainability of urban potable water management in Dumai City, Rokan Hilir Regency, and Bengkalis Regency through cross-sectoral collaboration and develop the best model to be developed for this collaboration. This study uses a soft system methodology in the urban potable water supply system of Riau Province with a wide range of stakeholders through in-depth interviews, thematic analysis, and the creation of purposeful activity models and rich pictures to uncover and address complex issues. The study found that the implementation of collaborative water management in urban areas with the collaborative water governance approach has worked well in the short term. However, it has not enhanced organizational autonomy or fostered trust and reciprocity dimensions in the long term. Additionally, we emphasize the importance of a collaborative supervisory board that will open internal and external opportunities.

The influence of professional ethics, competency, integrity, skeptism and experience on audit quality with independence and risk based audit as intervening variables and artificial intellegance audit as a moderation variable at financial and development supervisory board in East Kalimantan

The influence of professional ethics, competency, integrity, skeptism and experience on audit quality with independence and risk based audit as intervening variables and artificial intellegance audit as a moderation variable at financial and development supervisory board in East Kalimantan

Pengawasan Pelaksanaan Akad Notaris pada Perbankan Syariah oleh Dewan Pengawas Syariah

The rapid development of Islamic banking institutions must be supported by effective supervision so that operations are more efficient, so the Sharia Supervisory Board was formed by the National Supervisory Board (DSN) to oversee the application of sharia principles in Islamic banking. This research aims to find out the role of the Sharia Supervisory Board in supervising Islamic financial institutions in Indonesia and the Sharia Supervisory Board (DPS) related to supervising the implementation of contracts by Notary. The method used in this research is doctrinal legal research method using secondary data related to Islamic banking. The results of this study indicate that DPS supervision in Islamic banking is not optimal, which has an impact on the supervision of contracts in Islamic banking, as seen from the many problems in Islamic banking in the form of contract violations contrary to sharia principles. The conclusion of this problem is that the Sharia Supervisory Board (DPS) has not optimally carried out its supervision according to its rules to ensure compliance with sharia principles, as supervisors of Islamic banks must oversee every stage of the financing process to ensure the legal protection of their customers.

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.

Does financial expertise influence Islamic bank risk-taking?

PurposeThis study investigated how the financial expertise of the board of directors, risk management committee (RMC), audit committee (AC) and Shariá Supervisory Board (SSB) influences the risk-taking of Islamic banks.Design/methodology/approachThe study utilized unbalanced panel data for a sample of 43 full-fledged Islamic banks from 15 countries over 12 years (2010–2021). We employed feasible generalized least squares (FGLS) and heteroskedastic panels corrected standard errors (HPCSE) regression regressions as the primary estimation methods and used a two-step system generalized method of moments (GMM) estimator for robustness checks.FindingsThe results indicate that board financial expertise decreases insolvency and credit risks. Similarly, AC financial expertise and SSB financial expertise reduce insolvency and portfolio risks but increase credit risk. In contrast, RMC financial expertise raises insolvency risk. The remaining relationships are statistically insignificant.Research limitations/implicationsDue to the lack of disclosure regarding the educational and professional background of the board and committee members in the annual reports of some Islamic banks, this research used a sample of only 43 full-fledged Islamic banks operating in fifteen countries from 2010 to 2021.Practical implicationsThe findings can assist both local and international regulators in revising corporate governance codes and risk management guidelines in such a way as to ensure that the financial experts appointed to the board, AC, RMC and SSB, are capable of controlling excessive risk-taking behavior in Islamic banks.Originality/valueThis study contributes to the literature by providing comprehensive empirical evidence that corporate governance financial expertise influences the risk-taking behavior of Islamic banks.

Postgraduate Training in Prosthodontics: Residents' and Supervisors' Perspectives on Current Training: A Cross-Sectional Study.

To identify postgraduate (PG) prosthodontic trainees' and supervisors' introspective views regarding prosthodontic education and clinical training. Cross-sectional survey. Place and Duration of the Study: The Aga Khan University Hospital, Karachi, from May to October 2021. Data regarding the trainee induction process, teaching and learning practices, research interests, frequency of assessment, and trainees' satisfaction levels with the adequacy of didactic and clinical training in their centres were collected from Prosthodontic PG trainees and supervisors in Pakistan using REDCap software and analysed using SPSS 23.0. Frequencies of the observed responses from both populations were reported, and associations among private and public training centres were studied with Chi-square (or Fisher's exact). Differences in satisfaction levels across theoretical and clinical training domains were assessed with Mann- Whitney U test. Out of 17 supervisors and 104 PG trainees, 30% reported having a supervisory board in their institute. Most participants had entry tests conducted in their centres. The interference of influential sources during trainee induction was reported by 88.2% of the supervisors, while 66.7% trainees expressed the need for such influence to acquire training. Simulation-based teaching was available to 43.2% of trainees, 83% expressed interest in publishing research and 85% in publishing cases. Trainees were overall satisfied with their didactic and clinical training, whereas their satisfaction level was found neutral with theory and clinical training in maxillofacial-prosthodontics and clinical training of occlusion and temporomandibular disorders. The results emphasise the need for regulation and monitoring of the trainee induction process, quality of training, and frequent assessments in the prosthodontics postgraduate training programmes across Pakistan. Prosthodontics, Programme evaluation, Graduate dental education, Postgraduate dental education, Postgraduate medical education.

Auditor Ratification in Light of Shareholder Dissatisfaction with the Audit Committee—Evidence from Germany

SYNOPSIS Auditor ratification gives shareholders a voice in the auditor selection process. Although votes against auditor ratification primarily relate to the auditor, they also signal shareholder dissatisfaction with the audit committee that is responsible for recommending the auditor. In Germany, shareholders are required to separately vote on auditor ratification and, in addition, ratify the acts of the supervisory board (including the audit committee), allowing us to separately consider whether shareholder dissatisfaction is directed toward the auditor or the audit committee. We find that votes against audit committees’ acts (rather than votes against auditor ratification) are associated with a higher likelihood of subsequent auditor dismissal, suggesting that audit committees particularly respond to shareholder dissatisfaction when their own reputation is at stake. In addition, subsequent audit outcomes (i.e., audit report lag and modified audit opinions) appear to also be affected by shareholder dissatisfaction with the audit committee. Data Availability: Data are available from the sources cited in Appendix A. JEL Classifications: M4; M42; M48; G3; G39.

ENFORCEMENT OF NOTARY CODE OF ETHICS AGAINST PROMOTION VIOLATIONS THROUGH INTERNET MEDIA IN INDONESIA

This study discusses the enforcement of the notary code of ethics against promotional violations through internet media in Indonesia. As a public official, Notary have a great responsibility in maintaining integrity and professionalism in carrying out their duties. However, in the current digital era, promotion through internet media is a complex issue due to the prohibition in the notary Code of ethics related to self-promotion. This study uses juridical-normative approach and descriptive-analytical approach to analyze the legal regulations and notary practices related to promotion in the internet media. The results showed that violation of this promotion ban may result in disciplinary sanctions from the notary Supervisory Board. However, the effectiveness of enforcing the code of conduct is still a matter of debate, with challenges in consistency and transparency in enforcing the rules. The importance of enforcing this code of ethics is not only as law enforcement, but also as a preventive effort to maintain the integrity of the notary profession and public trust. Thus, this study provides a more comprehensive understanding of the enforcement of the notary code of ethics against promotional violations through internet media in Indonesia.

Institutional Possession, Supervisory Board Size, External Auditor Quality, and Profit Quality

Institutional Possession, Supervisory Board Size, External Auditor Quality, and Profit Quality

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.

AKUNTABILITAS DAN AKSESIBILITAS PENGELOLAAN DANA DESA PADA DESA MANDALLE

The aim of this research is to look at the influence of Accountability and Accessibility on Village Fund Management in Mandalle Village, West Bajeng District, Gowa Regency, South Sulawesi Province. The research method applied was quantitative with a total sample of 67 people consisting of village officials, RT Head, RW Head, Village Supervisory Board and Youth Leaders in Mandalle Village, Gowa Regency, South Sulawesi. The results of the questionnaire obtained were tested for validity and reliability as well as classic assumptions in the form of normality assumptions, then data analysis was carried out using multiple linear regression techniques. Based on the findings in several tests, it is clear that accountability has a positive and significant effect on village fund management, but accessibility has no effect on village fund management. The implementation of accountability in Mandalle Village has been carried out optimally because there is an announcement banner containing the contents of the financial report for one year of government in front of the Mandalle Village office. In developing the accessibility of village fund management information, the Mandalle Village Government needs access to social media and the Mandalle Village website.

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.