<![CDATA[Islamic Microfinance Institutions (LKMS) play a strategic role in empowering the economy of Muslim communities, particularly through the implementation of Sharia principles under the supervision of the Sharia Supervisory Board (DPS). However, the effectiveness of DPS in ensuring Sharia compliance within LKMS still faces various challenges, including regulatory, competency, and infrastructural aspects. This study aims to analyze the effectiveness of the DPS role in two LKMS in East Lampung Regency, namely Baitul Mal wat Tamwil (BMT) Assyafi’iyyah Berkah Nasional and Baitul Mal wat Tamwil (BMT) Al-Fath Berkah Bersama. The research adopts a descriptive qualitative approach through case studies and in-depth interviews. The analysis applies Soerjono Soekanto’s theory of legal effectiveness, which comprises five factors: legal substance, law enforcement, facilities and infrastructure, community, and legal culture. The findings reveal that both institutions have met formal compliance with regulations, such as periodic supervision and routine reporting to the National Sharia Council (DSN-MUI), yet have not fully achieved substantive effectiveness. The main constraints include the limited number of DPS members compared to the operational scope, the absence of standardized supervisory mechanisms, minimal utilization of online monitoring technology, low levels of Sharia education among members, and a compliance culture that remains largely administrative. This study recommends reconstructing the role of DPS through competency enhancement and certification, strengthening institutional capacity, utilizing real-time reporting technology, and internalizing Sharia values into organizational culture. The findings are expected to serve as a reference for policymakers and practitioners in strengthening Sharia governance in LKMS.]]>
