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VOL. 7, ISSUE 2 (2025)
An ideal model of supervision of islamic banks in Indonesia by the financial services authority (FSA)
Authors
Hasan, Teng Berlianty, Merry Tjoanda, Juanrico Alfaromona Sumarezs Titahelu
Abstract
Islamic banking supervision in Indonesia still
faces challenges in ensuring compliance with sharia principles and applicable
regulations. The Financial Services Authority is tasked with maintaining
stability, integrity, and public confidence in the sector. The Authority
employs a risk-based supervision model and ensures adherence to sharia
compliance. From a legal perspective, Bank Indonesia's authority to regulate
and supervise banks reflects the central bank's function in an integrated
financial system. However, since the enactment of Law No. 21 of 2011 on the
Financial Services Authority, the national political legal policy has
introduced a new paradigm in implementing a model of regulation and supervision
of the financial industry in Indonesia. The focus of supervision ensures legal
certainty, supports product innovation, and maintains the stability of the
Islamic banking sector so that it can develop sustainably in the midst of
global economic changes. Through a solid legal framework, the Financial
Services Authority not only ensures the stability and integrity of the Islamic
banking system but also opens up opportunities for sustainable product and
service innovation, thus supporting the growth of the Islamic financial sector
in Indonesia.
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Pages:41-45
How to cite this article:
Hasan, Teng Berlianty, Merry Tjoanda, Juanrico Alfaromona Sumarezs Titahelu "An ideal model of supervision of islamic banks in Indonesia by the financial services authority (FSA)". International Journal of Law, Policy and Social Review, Vol 7, Issue 2, 2025, Pages 41-45
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