Abstrak
<p align="center"><em>At the time of the economic crisis of 1998, many conventional</em> <em>banks collapsed while sharia banks were not affected. After the crisis, sharia banking experienced significant growth in Indonesia. The problem was how the policy direction of supervision of sharia banking in the national banking system in Indonesia? The method used in this study is normative legal research using the approach of legislation. Sources of data used in this study are secondary data, namely data obtained from legislation, scientific journals, and legal literatures. Data collection techniques used in this study is literature study. Data analysis technique used in this research is qualitative analysis. The result of this research is the policy on supervision of sharia banking in the national banking system in Indonesia towards a better direction. Law Number . 7 of 1992 and Law Number 10 of 1998 state that the supervision of sharia banking is performed by Bank Indonesia as the central bank. However, based on Law Number 21 of 2008, supervision of sharia banking is not only done by Bank Indonesia, but also internally supervised by the Sharia Supervisory Board. Following the enactment of Law Number 21 of 2011, supervision of sharia banking shifted from Bank Indonesia to an independent institution called the Financial Services Authority.</em></p>