AUTHORITY RECONSTRUCTION MODEL SHARIA SUPERVISORY BOARD OF SHARIA BANK INDONESIAN LEGAL PERSPECTIVE
The Sharia Supervisory Board (DPS) as stipulated in Law Number 21 of 2008 concerning Sharia Banking Article 32 paragraph 3, is tasked with providing advice and suggestions to the board of directors and supervising the Bank's activities to comply with Sharia Principles, while the welfare of the Sharia Supervisory Board is not considered by the sharia financial institution. So that supervision does not have an impact on the performance and progress of the sharia financial institution, and the existence of SSB supervision in Sharia Banks is between existing and non-existent.This study aims to discussWhat is the nature of the Sharia Supervisory Board's regulation in supervising the activities of Sharia Banks according to the Indonesian legal system, how is the implementation of the Sharia Supervisory Board's authority in Sharia Banks, and what is the reconstruction model of the Sharia Supervisory Board's authority according to the Indonesian legal perspective. The method used in this study is normative law which analyzes secondary data and then the results of the information collection (facts) will be interpreted comprehensively using a statute approach, conceptual approach, philosophical approach, and banking.The results of this study indicate thatIn essence, DPS is a body that exists in Islamic financial institutions and is tasked with supervising the implementation of decisions of the National Sharia Council in said Islamic financial institutions..DPS is required to supervise audit findings or examinations and recommendations from the Bank's internal audit work unit, external auditors, the results of supervision by the Financial Services Authority, and/or the results of supervision by other authorities and institutions, related to the implementation of Sharia Principles..The reconstruction model of the Authority of the Sharia Supervisory Board according to the perspective of Indonesian law is that it is necessary to form a Law on Sharia Financial Supervision which will produce a Sharia Financial Supervisory Agency (BPKS) under the Ministry of Finance, both the supervisory function of the DSN MUI being merged into BPKS. The suggestions that the author can give from this research are:To the DPR and the Government to immediately issue a law on the DPS which is independent and has integrity in carrying out its absolute authority.. In addition, we hopeTo State Institutions to always be authoritative and independent institutions through the manifestation of DPS attitudes and behavior that consistently uphold integrity both within and outside supervision..
Reconstruction, Sharia Supervisory Board, Islamic Bank.