<![CDATA[The growth of the Sharia banking industry in Indonesia requires legal policies ensuring the effective application of Sharia economic principles within the national banking system. The enactment of Law Number 21 of 2008 concerning Sharia Banking, reinforced by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK), demonstrates the state's commitment to strengthening Sharia banking regulation, governance, and supervision. This study analyzes legal policy regarding the application of Sharia economic principles within Indonesia's Sharia banking system, evaluates its implementation, and identifies future policy directions. The research employs a normative-juridical method using statutory, conceptual, and analytical approaches. Data were obtained through a literature review of primary, secondary, and tertiary legal materials and analyzed qualitatively using a descriptive-analytical method. The findings indicate that Sharia economic principles have a robust legal foundation through regulations concerning Sharia contracts (akad), Sharia compliance, and supervision by the Financial Services Authority (OJK) and Sharia Supervisory Board (DPS). However, implementation faces challenges involving regulatory harmonization, financial service digitalization, product innovation, and low public literacy. Therefore, legal policy strengthening should focus on regulatory harmonization, improved supervision, Sharia-compliant digital transformation, and enhanced financial literacy to establish a fair, sustainable, and competitive Sharia banking system.]]>
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