About Us
Information
Article ETHIS
The Role of the Sharia Supervisory Board (DPS) for Sharia P2P Companies
Published on 20 May 2022
Admin Relations
The Role of the Sharia Supervisory Board (DPS) for Sharia P2P Companies
The Islamic economy in Indonesia continues to grow today. This is evidenced by the increasing enthusiasm of the community in using Islamic financial services and consuming halal products.
The development of the Sharia economy in Indonesia also has an impact on the growth of Sharia financial institutions with various products and services that are by Islamic law.
With the development of Sharia-based financial institutions, Ulamaa' are also required to take part in providing input for the advancement of Islamic financial institutions in our country.
Therefore, the Indonesian Ulema Council (MUI) formed the National Sharia Council (DSN) as a form of their effort to coordinate ulama in various institutions and regions in responding to Sharia-based economic and financial issues.
In addition, DSN is also expected to be a driver and supervisor in the application of the principles of Islamic teachings in Indonesia's Sharia economic life.
The existence of DPS for the Supervision of Islamic Financial Institutions
The Sharia Supervisory Board (DPS) is an institution established to ensure that various economic activities, especially in Islamic financial institutions, are by Sharia principles.
Referring to the letter issued by the National Sharia Council No. 3 of 2005, the Sharia Supervisory Board (DPS) is part of the Sharia financial institution concerned, and its placement is subject to the approval of the National Sharia Council (DSN).
For the duties of the Sharia Supervisory Board to be more effective, of course, there must be an increase in the knowledge and understanding of each member of the DPS regarding various contracts, schemes, and other matters closely related to Islamic financial institutions, including Islamic fintech institutions.
What are the roles of the Sharia Supervisory Board for P2P Lending?
As mentioned earlier, the Sharia Supervisory Board (DPS) was formed to oversee Islamic banks and financial institutions so that all activities and products of these institutions are truly by Sharia principles.
DPS also plays a major role in the development of Sharia products, such as P2P lending from the sharia-based Financial Technology Industry (Fintech). And among these roles and duties are:
Supervisor, where DPS is in charge of direct supervision of whether economic activity in these institutions is by sharia and complies with the MUI DSN fatwas regarding the operation of Sharia Financial Institutions (LKS).
advisors. DPS is also tasked with providing advice, suggestions, and directions regarding the development of Islamic financial products and services. DPS is also a forum for a consultation so that product innovation in LKS can be maximized without having to violate Sharia principles.
Markets. DPS has the role of being a strategic partner in the growth of the LKS industry including Sharia Fintech so that in the future they can continue to improve the quality and quantity of products and services of Islamic financial institutions in Indonesia, including Sharia P2P lending as an investment instrument.
Supporters. DPS is also required to be a supporter of the Sharia P2P lending industry by continuing to provide support in various forms, for the sake of improving Sharia fintech products, especially Sharia P2P lending, and maximizing their potential in the future.
Player, because DPS has the right to go directly into Sharia economic players and actors, both as owners, managers, and partners/channeling customers and financiers, especially in Sharia P2P Lending.
Supervise the development of various new financial products, so that new products can still be in line with Sharia principles, and stay away from various illicit and doubtful transactions.
Conduct regular reviews of Sharia fintech products, and ensure that these products are truly by Sharia principles.
Those are some of the roles of DPS in the development of Sharia P2P Lending. The role of DPS must be carried out as well as possible so that the practice of Sharia P2P lending is truly in line with Sharia maqashid.
DPS also plays a role in protecting Sharia P2P Lending from Sharia risks. Don't let Sharia P2P lending lose public trust because of the issue of Sharia violations in its products.
Source: repository.uinjkt.ac.id
PT. ETHIS FINTEK INDONESIA
Rukan Puri Mansion block B no. 7 Outer Ring West Kembangan Street, RT.2/RW.1, South Kembangan, Kembangan District, Special Capital Region of Jakarta 11610
Customer Service: support@ethis.co.id
Operational Hours: 09.00 - 18.00 WIB
Licensed & Supervised By
Part Of:
Tersertifikasi:
Protected By:
Notes:
1. Tech-based Islamic Financing service (P2P Financing) is a civil agreement between Funder and Beneficiary, in which all risks are charged to all parties.
2. Payment failure is charged to the Funder, except for fraud case and mismanagement. Beneficiaries are imposed if fraud and mismanagement happens as in Risk Sharing terms based on Islamic Principles. There is no national institution or authority that is responsible to financing risk or payment failure or compensating on any parties including loss, failures, fees or consequences after.
3. The platform with agreement from all respective users (funders and/or beneficiaries) accesses, gains, stores, manages and/or uses users’ personal data (Data Utilization) on or in the objects, electronic devices (including smartphones or cellular phones), hardwares or softwares, electronic documents, applications or electronic systems belong to Users or managed by Users, upon the information of aims, limitations and mechanism of Data Utilization to the Users before the approvals.
4. Funders with limited knowledge on this financing are suggested not to use this service.
5. Beneficiaries are obliged to consider return rates/margin/service fee and other fees according to the ability to repay the financing.
6. Each fraud is recorded electronically in cyberspace and easily recognized by public through social media.
7. Users should read and understand this information before deciding to be a Funder or Beneficiary.
8. Government as in this case is Otoritas Jasa Keuangan (OJK) / Financial Services Authority is not responsible for violation or disobedience of users, Funder and Beneficiary (intentionally or unintentionally) against terms and conditions or agreement or attachment between the platform and Funder and/or Beneficiary.
9. Each transaction and financing activities, funding, financing or enforcement agreement regarding financing between or involves the Platform, Funder, Field Partner and/or Beneficiary should happen through escrow account and virtual account as stated in OJK regulation No. 77/POJK.01/2016 about Tech-Based Financing Services.
