THE EFFECT OF THE SHARIA SUPERVISORY BOARD AND THE BOARD OF COMMISSIONERS ON THE FINANCIAL PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA

This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank.


A. INTRODUCTION
Islamic bank is a bank that collects funds from the public and distributes it to parties who lack funds in the context of the welfare of the people and based on the principles of Islamic law. Islamic banking in Indonesia is currently experiencing a fairly rapid increase and already has a place that provides sufficient influence in the national banking environment. Developments in the Islamic banking industry are in line with economic goals, namely broad economic prosperity, optimal economic growth, justice in the social economy, balanced distribution and wealth, and currency balance (Setiawan, 2009).
The development of the Islamic industry can also be seen from the ability of Islamic banks to face the economic crisis. The existence of the economic crisis that occurred in 2009 made Islamic banks viewed positively by the public, this is because Islamic banks can be said to be more resilient than conventional banks, because Islamic banks offer the principles of fairness and openness in channeling funds and collecting funds (Abdul Rahman, 2010).
Funds collected by Islamic banks from the public are usually stored in the form of savings, current accounts, and deposits with the wadiah principle and the mudharabah principle, while the distribution of funds is carried out through financing with four distribution patterns, namely the principle of buying and selling, the principle of profit sharing, the principle of ujrah, and contract. complement. The collection of funds and the distribution of funds carried out by banks must be in accordance with sharia principles so that they will produce good performance (OJK, 2018).
The good and bad performance of banks in general can be seen from the amount of profit or profits obtained. In 2018 the total profit generated by Islamic banks was Rp.
329 billion compared to 2017 which was Rp. 374 Billion. This shows that there is a decrease in the amount of profit generated by Islamic banks. The decrease in net profit was caused by operating income which reached Rp. 3 trillion in January 2018, a decrease compared to January 2017 of Rp. 3.94 trillion (CNBN Indonesia, 2018).
In order to improve the performance of Islamic banks, it can be done by implementing good governance through the size of the sharia supervisory board and the size of the board of commissioners. The existence of DPS in sharia banks is one element of sharia compliance. According to Hameed et al., (2004), the existence of DPS in the bank is a must. The role of DPS in Islamic banking is a very important aspect because it concerns the reputation of Islamic banking in the eyes of the public as a reflection of Islamic banks that have implemented sharia principles in their activities (Satifa & Suprapto, 2014). Kholid & Bachtiar (2015) states that the mechanism of the sharia supervisory board can improve performance. In carrying out its functions, the DPS must meet at least once a month. The meetings held by the DPS will reflect how well the DPS has performed in carrying out its duties and responsibilities.
The board of commissioners is also an important element in improving the performance of Islamic banks. The board of commissioners is a board tasked with supervising and providing advice to company directors. According to (Dewayanto, 2010) stated that the larger the number of the board, the better the monitoring mechanism of the company's management will be. In addition, according to Bukhari & Raharja (2012), with more members of the board of commissioners, supervision of the board of directors is much better, the input or options that the directors will get will be much more. According to Yudha (2016), with the large number of members of the board of commissioners, the supervision of the board of directors becomes much better, there is more advice and input for the board of directors. So that the performance of management becomes better and has an impact on increasing company performance.
Research results by Widagdo & Chariri (2014) concluded that the size of the board of commissioners affects the company's performance.
Research that examines the board of commissioners and the sharia supervisory board has been carried out by many previous studies including those carried out by (Azizah, 2020;Umam & Ginanjar, 2020;Yudha, 2016;Zuliana & Aliamin, 2019) Based on these studies, they concluded different results where there were those who concluded the results of the study were negative and some concluded that the results were positive. The differences in the results of these studies make researchers interested in reviewing the influence of the sharia supervisory board and the board of commissioners on the performance of sharia banking.

Financial Performance
According to Iskandar (2002) financial performance is the financial performance that is reflected in the company's financial statements, namely the profit and loss balance sheet and financial performance describes the company's business (operation income). The profitability of a company can be measured by linking the profits obtained from the company's main activities with the wealth of assets used to generate profits. Martono & Harjito (2008) argues that the financial performance of a company is very beneficial for various parties (stakeholders) such as investors, creditors, analysts, financial consultants, brokers, the government, and the management itself. Harmono (2009) argues that "Financial performance is generally measured on the basis of net income (profit) or as a basis for other measures such as return on investment or earnings per share. Mangkunegara (2005) defines "performance is the result of work in quality and quantity achieved by an employee in carrying out his duties according to the responsibilities given to him". According to (Mathis & Jackson, 2002) defines "performance is what employees do or do not do that greatly affects how much they contribute to the organization". According to Sedarmayanti (2017) defines "Performance is the result of work that can be achieved by a person or group of people in an organization, in accordance with their respective authorities and responsibilities, in an effort to achieve the goals of the organization concerned legally, not violating the law and in accordance with morals and ethics".
Financial performance is the basis that underlies efforts to improve the company's ability to generate profits whose measurements are carried out both in financial and non-financial forms. Basically organizations are run by humans, so assessment is actually an assessment of human behavior carrying out the roles they play in the organization and its employees based on predetermined goals, standards and criteria. Sudarmo & Basri (2002) argues that financial performance appraisal is a series of financial activities in a certain period reported in the financial statements consisting of profit and loss and balance sheets. The financial statements, which consist of a balance sheet and income statement, show that the income statement describes an activity in one year, while the balance sheet describes the situation at the end of the year for changes in events from the previous year.
Maditinos (2006) in Ridhawati, (2014) describes, "performance measurement as an act of monitoring and maintaining control within the company, ensuring that the company is achieving its goals". Meanwhile, according to Rudianto (2013), financial performance is the result or achievement that has been achieved by the company's management in carrying out its function of managing company assets effectively during a certain period. Financial performance is needed by companies to find out and evaluate the level of success of the company based on the financial activities that have been carried out.
From some of the definitions above, it can be concluded that financial performance is an effort to improve the company's ability to generate profits whose measurements are carried out in financial and non-financial forms and to assess the potential economic resources of the company that can be controlled in the future.

Sharia Supervisory Board
The Sharia Supervisory Board plays an important role in the supervision process in Islamic banking. They have the authority to provide input and warn Islamic banking management about management and management policies in relation to compliance with sharia principles. According to (Arifin et al., 2012) The Sharia Supervisory Board is an independent body placed by the National Sharia Council (DSN) in a sharia bank.

Board of Commissioners
According of the board of commissioners, the easier it will be to control the CEO and the monitoring that will be carried out will be more effective.
One of the duties of the board of commissioners is to provide reports on the implementation of supervisory and advisory duties carried out in the annual report and to review and approve the annual report. The board of commissioners as an independent and neutral party in the company is expected to be able to bridge the information asymmetry that occurs between the owner and the manager by encouraging other members of the board of commissioners to perform their supervisory duties better. If the supervision has been carried out effectively, the management of the company will be carried out properly and management will disclose all available information (White, 2007). (2015) proves that there is a positive relationship between the number of commissioners and the level of ISR disclosure.

Research by Anggraini and Wulan
According to Khoirudin (2013)  Based on the three definitions of the board of commissioners above, it shows that the board of commissioners is part of the company's organs (all members of the board of commissioners) whose job is to supervise and ensure that the company implements good corporate governance.

The Influence of the Sharia Supervisory Board on the Performance of Commercial Banks
The results of this study indicate that the sharia supervisory board has a positive and significant effect on the financial performance of Islamic commercial banks in Indonesia. This is shown by the results of the t arithmetic > t table which is 8.224> 1.679 and a significant value of 0.000 <0.05. This shows that the greater the number of sharia supervisory boards, the greater the influence of the existence of the board in managing banking that runs in accordance with sharia principles. and will get higher profits as well.
The cross effect in the study shows that Bank Muamalat, Bank Syariah Mandiri,

Commercial Banks in Indonesia
The results of this study indicate that the Board of Commissioners has a positive and significant impact on the financial performance of Islamic Commercial Banks in Indonesia. This is indicated by the results of the tcount > t The board of commissioners is a board tasked with supervising and providing advice to company directors. The greater the number of the board of commissioners, the more effective supervision will be. Thus, abuse that can reduce bank profitability can be better minimized so that bank profitability can also increase. The board of commissioners is authorized to provide advice and supervise the duties and responsibilities of the board of directors. With the large number of members of the board of commissioners, the supervision of the board of directors becomes much better, there is more advice and input for the board of directors. So that the performance of the management becomes better and has an impact on increasing the company's performance.
The role of the board in carrying out the supervisory function of the company's operations by the management has made an effective contribution to the results of the process of preparing quality financial statements or the possibility of avoiding financial statement fraud so as to limit the company's earnings management. independent board of commissioners, the supervisory process carried out by this board is getting more qualified with the increasing number of independent parties in the company who demand transparency in the company's financial reporting.

E. CONCLUSION
Based on the discussion that has been described, it can be concluded. Partially