Effectiveness of the Sharia Supervisory Board in Ensuring Sharia Compliance in Musyarakah Working Capital Financing at BPRS Fitrah

Abstract

This study examines the effectiveness of the Sharia Supervisory Board (SSB) in ensuring sharia compliance in musyarakah-based working capital financing at BPRS Fitrah. The study addresses the gap between the formal supervisory role of the SSB and its practical implementation, particularly in supervision, education, and monitoring of financing activities. A qualitative descriptive case study approach was employed using semi-structured interviews, observation, and document review. The informants included an internal SSB member, five customers, and an external expert in sharia supervision. The findings indicate that the SSB has performed its supervisory role adequately at the structural and normative levels, particularly through policy formulation, documentation review, sharia evaluation, and compliance monitoring. However, its operational effectiveness remains limited because direct involvement in customer business activities, continuous education, communication, and field monitoring is not yet optimal. Limited time and resources also constrain the intensity of sharia education and supervision. The study therefore highlights a distinction between formal sharia supervision and its operational effectiveness, suggesting that stronger coordination, education, and continuous monitoring are needed to enhance the implementation of sharia principles in musyarakah working capital financing