Research Article
The Establishment of OJK Syariah from The Perspective of Legal Institutionalization Theory
@INPROCEEDINGS{10.4108/eai.17-10-2024.2353750, author={Vanissa Assyafi and Isman Isman}, title={The Establishment of OJK Syariah from The Perspective of Legal Institutionalization Theory}, proceedings={Proceedings of the 6th International Conference on Law, Social Sciences and Education, ICLSSE 2024, 17 October 2024, Singaraja, Bali, Indonesia}, publisher={EAI}, proceedings_a={ICLSSE}, year={2024}, month={12}, keywords={ojk syariah institutionalization theory unified supervisory islamic financial institutions}, doi={10.4108/eai.17-10-2024.2353750} }- Vanissa Assyafi
Isman Isman
Year: 2024
The Establishment of OJK Syariah from The Perspective of Legal Institutionalization Theory
ICLSSE
EAI
DOI: 10.4108/eai.17-10-2024.2353750
Abstract
This research focuses on the weaknesses of the Financial Services Authority (OJK) in supervising the Islamic financial industry in Indonesia from the perspective of legal institutionalization theory. The purpose of this study is to analyze the urgency of establishing OJK Syariah as a supervisory institution that is more effective in maintaining compliance with Shariah principles. The research uses a doctrinal method with data collection techniques through a literature review. The data analysis technique is qualitative, and the results of the study show that the current institutional design of the OJK, through the unified supervisory model, suffers from weaknesses in specialization and response to the complexity of the financial sector. These weaknesses include a heavy workload, slow regulation, and the inability to supervise the Islamic sector. The main recommendation of this study is the establishment of OJK Syariah as a separate entity that can address the specific challenges of the Islamic finance industry and strengthen Shariah-based supervision in Indonesia
