ABSTRACT
The current sharia governance structure in Indonesia is far from ideal compared to international best practice. Therefore, the paper proposes a new sharia governance framework by involving a new higher sharia board authority, named, the Sharia Supervisory Board Authority (Otoritas Dewan Pengawas Syariah, ODPS), under the commissioners of the Indonesian Financial Services Authority (Otoritas Jasa Keuangan, OJK), to oversee, regulate and supervise sharia matters for Islamic banking and financial institutions in Indonesia. The paper concludes that the current shortcomings of a proper sharia governance framework for sharia supervision and regulation require a new sharia board authority under the commissioners of OJK that will have full authority over sharia matters.
