FINANCIAL SERVICES AUTHORITY SUPERVISION TO NON-BANK FINANCIAL INSTITUTIONS BASED ON SHARIA COOPERATIVES

Abstract

The Financial Services Authority (OJK) is an institution that supervises the banking and non-bank financial services sector. Supervision is only carried out on MFIs registered with the OJK. And OJK delegates its supervision to the local government (PEMDA). How is the supervision of Islamic cooperative-based MFIs. The results show that (1) if a sharia cooperative is registered with the OJK, the supervision is carried out by the OJK by delegating its supervision to the local government. (2) If a sharia cooperative is registered with the Cooperative Office alone, the OJK against the Regional Government cannot supervise, and the supervisor is the cooperative office. It is recommended that OJK reduce the delegation of supervision by the regional government because the delegation is ineffective for several reasons. The need for socialization by OJK to sharia-based microfinance institutions to register the business.