Synergy of Bank Indonesia, the Financial Services Authority, and the National Sharia Board in Building Indonesia's Islamic Financial System (Aimmah: Social Sciences Journal)
Summary
- Bank Indonesia maintains monetary and macroprudential stability under Law No. 23 of 1999 juncto Law No. 6 of 2009.p.4
- The Financial Services Authority (OJK) operates as an integrated supervisor under Law No. 21 of 2011 across banking, capital markets, and non-bank financial sectors.p.4
- The National Sharia Board (DSN-MUI) acts as the normative sharia authority issuing fatwas that form the foundation for sharia compliance.p.1
- Bank Indonesia has developed sharia-based monetary instruments such as Sertifikat Bank Indonesia Syariah (SBIS) and Sukuk Bank Indonesia Syariah.p.4
Key insights
- Bank Indonesia focuses on macroprudential policy and liquidity management through sharia instruments like SBIS and Sukuk Bank Indonesia Syariah.p.4
- OJK executes integrated supervision across financial sectors under Law No. 21 of 2011 while ensuring sharia compliance.p.4
- DSN-MUI issues fatwas on sharia financial products which are typically converted into binding OJK regulations.p.5
- OJK's supervisory function aligns with the Islamic concept of hisbah to maintain justice and prevent harmful market practices.p.4
- Sharia banking practice in Indonesia currently experiences a dominance of murabahah contracts over profit-sharing structures.p.6
- The principle of muwazanah provides a framework for balancing state regulatory mechanisms with normative sharia requirements.p.5
Topics and entities
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