Integrated Supervision System of Islamic Financial Institutions in Indonesia: An Analysis of Opportunities and Challenges

Abstract

This article aims to provide an overview of the integrated supervision system in Islamic financial institutions, focusing on Islamic banking. This research is descriptive qualitative research with a literature study approach, analyzed using opportunity and challenge analysis. The data collection techniques are sourced from journal articles, both nationally and internationally reputed, scientific books, the websites of OJK and BI. The results of this study indicate that the opportunity for the formation of an integrated supervision system lies in the presence of KPJKS (Komite Pengembangan Jasa Keuangan Syariah or Committee for the Development of Islamic Financial Services), which is expected to unify the previously separate supervision systems, namely based on sharia compliance under DSN-MUI and prudential and risk oversight under OJK. Other opportunities include cost efficiency of the organizational structure and ease of coordination regarding communication and information. The challenges faced are the quite complicated regulations of Islamic financial institutions and the performance that seems passive and only focuses on sharia compliance supervision.