The Role of the Shariah Supervisory Board in Law Enforcement of Islamic Banking: Challenges and Solutions

Abstract

The Islamic finance industry in Indonesia had experienced rapid development in recent decades, supported by the world's largest Muslim population, conducive regulations, and public awareness of the importance of sharia principles in the economy. Islamic banking, as one of the main pillars, faced complex challenges in law enforcement, including product innovation, limited human resources, and infrastructure supervision. This study used a qualitative method based on literature studies to analyze the role of supervisory authorities in overcoming these challenges. The results showed that strengthening regulations, improving human resource competencies, harmonizing international standards, and implementing modern supervisory technology are the main solutions to increase the effectiveness of supervision. In addition, developing a legal culture and public awareness were also needed to support the sustainability of the Islamic finance industry. With a comprehensive approach, Islamic banking was able to contribute more to national and global economic stability.