Legal Supervision of Islamic Banking in Indonesia: A Post-Law No. 21/2008 concerning Islamic Banking Analysis

Abstract

This study critically evaluates Indonesia's supervisory framework for Islamic banking following the enactment of Law No. 21 of 2008. Utilizing a qualitative legal method, it explores how legal reforms institutionalized shariah compliance and distributed supervisory responsibilities among secular and religious authorities. The research analyzes doctrinal mandates, institutional behavior, and jurisprudential alignment, identifying both progress and challenges in regulatory coherence. While the law advanced legal certainty and structured oversight, issues such as jurisdictional ambiguity and capacity constraints persist. The findings offer a balanced assessment of the supervisory regime, aligning it with global standards and highlighting areas for reform. The study contributes original insights to legal theory, Islamic finance governance, and policy development.