THE EVOLUTION OF THE DUTIES AND FUNCTIONS OF THE SHARIA SUPERVISORY BOARD IN ISLAMIC BANKING IN INDONESIA

Abstract

Development of Duties and Functions of the Sharia Supervisory Board in Sharia Banking. The purpose of writing is to find out how the duties and functions of the sharia supervisory board have developed. In this research, the author uses a qualitative descriptive approach. Descriptive qualitative is a type of research that describes existing phenomena or realities, both natural and human engineering, by utilizing qualitative data and explaining it descriptively. This qualitative approach aims to find out how the duties and functions of the sharia supervisory board have developed in sharia banking in Indonesia. Meanwhile, the data source used is a secondary data source. The author obtained data from data that has been published in scientific articles on the internet. The DPS's task is to discuss problems and business transactions that are presented to it and determine whether the transactions or problems are in accordance or not in accordance with Islamic law. In practice, direct supervision is a daily activity for DPS in carrying out its duties. In making proposals for institutions and product developments, they are compiled into work reports. The results of work reports are compiled and submitted to the National Sharia Council (DSN) every six months. So throughout the year, DPS sends reports at least twice. The duties and functions of the Sharia Supervisory Board are to supervise activities in sharia financial institutions so that they do not deviate from sharia principles, as well as providing advice on the implementation of transactions that occur in sharia financial institutions so that they remain on track with sharia principles. The implementation of DPS duties and functions is still in progress and there are many weaknesses.