<![CDATA[Abstract. The growth of Islamic banking in Indonesia requires effective asset and liability management as well as the implementation of sound Sharia governance to maintain financial stability, profitability, and compliance with Islamic principles. In this context, the Asset Liability Committee (ALCO) plays a strategic role as a committee responsible for formulating policies related to asset and liability management and supporting the bank’s risk management framework. This study aims to analyze the role of ALCO in Asset Liability Management (ALM) and its contribution to the implementation of Sharia governance in Islamic banks in Indonesia. The study employs a library research method by reviewing relevant academic journals, books, and regulations related to ALCO, ALM, risk management, and Sharia governance. The findings indicate that ALCO plays a significant role in liquidity management, asset and liability management, and the mitigation of liquidity risk, market risk, and financing risk associated with ALM. Furthermore, ALCO contributes to the implementation of Sharia governance through the application of transparency, accountability, Sharia compliance, and independence in decision-making processes. The existence of ALCO helps Islamic banks maintain a balance between profitability objectives, risk management, and adherence to Sharia principles. The implications of this study suggest that optimizing the role of ALCO can strengthen the effectiveness of financial management and Sharia governance, thereby supporting the sustainability and competitiveness of Islamic banks in Indonesia. Keywords: Asset Liability Committee; Asset Liability Management; Islamic Banking; Liquidity Management; Sharia Governance Abstrak. Perkembangan perbankan syariah di Indonesia menuntut adanya pengelolaan aset dan liabilitas yang efektif serta penerapan tata kelola syariah yang mampu menjaga stabilitas, profitabilitas, dan kepatuhan terhadap prinsip-prinsip syariah. Dalam konteks tersebut, Asset Liability Committee (ALCO) memiliki peran strategis sebagai komite yang bertanggung jawab dalam merumuskan kebijakan pengelolaan aset dan liabilitas serta mendukung pengendalian risiko bank. Penelitian ini bertujuan untuk menganalisis peran ALCO dalam pengelolaan Asset Liability Management (ALM) dan kontribusinya terhadap penerapan tata kelola syariah pada bank syariah di Indonesia. Metode yang digunakan adalah studi literatur (library research) dengan mengkaji berbagai jurnal ilmiah, buku, dan regulasi yang relevan terkait ALCO, ALM, manajemen risiko, dan tata kelola syariah. Hasil penelitian menunjukkan bahwa ALCO berperan penting dalam pengelolaan likuiditas, pengelolaan aset dan liabilitas, serta pengendalian risiko likuiditas, risiko pasar, dan risiko pembiayaan yang berkaitan dengan ALM. Selain itu, ALCO turut mendukung penerapan tata kelola syariah melalui penerapan prinsip transparansi, akuntabilitas, kepatuhan syariah, dan independensi dalam proses pengambilan keputusan. Keberadaan ALCO membantu bank syariah menjaga keseimbangan antara tujuan profitabilitas, manajemen risiko, dan kepatuhan terhadap prinsip syariah. Implikasi penelitian ini menunjukkan bahwa optimalisasi peran ALCO dapat memperkuat efektivitas pengelolaan keuangan dan tata kelola syariah sehingga mendukung keberlanjutan dan daya saing bank syariah di Indonesia. Kata kunci: Asset Liability Committee; Asset Liability Management; Bank Syariah; Manajemen Likuiditas; Tata Kelola Syariah]]>
