POLICY EVALUATION OF QANUN NO 11 OF 2018 CONCERNING SHARIA FINANCIAL INSTITUTIONS IN ACEH PROVINCE

Abstract

Background - The implementation of Qanun No. 11/2018 on Sharia Financial Institutions (LKS) in Aceh has
raised concerns regarding its effectiveness in transitions the financial system from conventional to sharia-based.
This study aims to evaluate the impact of the Qanun on access to finance, adaptation of financial institutions, and
overall community access. A qualitative approach was used, involving interviews with key informants including
policy makers represented by DPRA Commission III, Director of Bank Syariah Indonesia (BSI), Director of Bank
BTN Syariah, Director of Bank Aceh Syariah, Director of Bank BCA Syariah, academics and community
representatives in Banda Aceh. Informants were selected by purposive sampling based on involvement or impact
of Qanun implementation. Findings highlighted significant challenges, such as limited community readiness,
inadequate policy socialisation, and barriers faced by businesses in adapting to the new financial system. Lack of
technical support further hampered smooth implementation and created dissatisfaction among affected parties.
This study provides an in-depth understanding of the barriers and opportunities in the evaluation of the shariabased
financial system in Aceh.
Purpose - to assess how the Qanun affects financial access, adoption of sharia financial institutions in Aceh,
access to society as a whole with their implementations.
methodology - A qualitative approach was used, involving interviews with key informants including policy makers
represented by DPRA Commission III, Director of Bank Syariah Indonesia (BSI), Director of Bank BTN Syariah,
Director of Bank Aceh Syariah, Director of Bank BCA Syariah, academics and community representatives in
Banda Aceh. Informants were selected by purposive sampling based on involvement or impact of
Qanun implementation.
Findings - Findings highlighted significant challenges, such as limited community readiness, inadequate policy
socialization, and barriers faced by businesses in adapting to the new financial system. Lack of technical support
further hampered smooth implementation and created dissatisfaction among affected parties. This study provides
an in-depth understanding of the barriers and opportunities in the evaluation of the sharia-based
financial system in Aceh.
Originality - The originality and value of this study lie in its in-depth exploration of the practical challenges faced
during the implementation of Qanun No. 11/2018 on Sharia Financial Institutions in Aceh. By focusing on key
stakeholders, including policymakers and banking leaders, the research provides unique insights into how the
transition from conventional to sharia-based finance affects community access and institutional adaptation.
Additionally, the study highlights gaps in policy socialization and technical support, offering valuable
recommendations for improving the effectiveness of sharia financial systems in similar contexts.