PERAN DAN OTORITAS DEWAN PENGAWAS SYARIAH DALAM MENGAWASI AKTIVITAS TRANSAKSI PADA LEMBAGA KEUANGAN SYARIAH DI INDONESIA

Abstract

The Sharia Supervisory Board (DPS) plays a strategic role in ensuring that the operations of Islamic financial
institutions in Indonesia comply with Sharia principles. DPS was established by the Indonesian Ulema Council (MUI)
throught the National Sharia Council (DSN) in 1999 to oversee Sharia compliance in the banking and non-bank
financial sectors. The primary roles of DPS include providing advice to management, supervising operational
activities, end ensuring that the products and services offered comply with DSN fatwas. The legal basis for the
existence of DPS is outlined in Law No. 40 of 2007 concerning Limited Liability Companies and Law No. 21 of 2008
concerning Islamic Banking. This study uses a library research method, where library data serve as secondary
sources, meaning that the researcher obtains materials from second-hand sources rather than original first-hand
data from the field. The study’s findings indicate that DPS plays a strategic role in maintaining the Sharia integrity
of Islamic financial instituutions, both through transaction supervision and public education on Islamic finance. DPS
also acts as an advisor, helping financial intitutions develop products that meet market needs without violating
Sharia principles.