From Islamic Law to Modern Financial Regulation: Integrating Maqāṣid al-Sharī'ah into Indonesian Legal Framework

Siti Afiyah; Ruslan Ruslan; Sapril Sapril; Barli Halim; Sakirman Sakirman; Nazeer Datti Abdullahi

doi:10.69548/jisrev.2.2.79

Authors

Siti Afiyah ⁽¹⁾ ★ , Ruslan Ruslan ⁽¹⁾ , Sapril Sapril ⁽¹⁾ , Barli Halim ⁽¹⁾ , Sakirman Sakirman ⁽¹⁾ , Nazeer Datti Abdullahi ⁽²⁾

⁽¹⁾ Universitas Islam Darul Ulum Lamongan, Indonesia
⁽²⁾ Northwest University Kano, Nigeria

★ Corresponding author: sitiafiyah@unisda.ac.id

Abstract

Indonesia, as the world's largest Muslim-majority nation, has undertaken significant legislative and regulatory efforts to integrate Islamic legal principles into its modern economic framework. This study examines the transformation of Islamic law particularly through the lens of maqāṣid al-sharīʿ'h (objectives of Islamic law) into Indonesia's contemporary financial regulatory architecture. Employing a qualitative normative-empirical legal research methodology, this research analyzes primary legislative texts, regulatory instruments from the Financial Services Authority (Otoritas Jasa Keuangan, OJK), fatwas of the National Sharīʿah Board (Dewan Syariah Nasional–Majelis Ulama Indonesia, DSN-MUI), and semi-structured interviews with 15 key informants comprising regulators, Sharī'ah scholars, and practitioners. The findings reveal three critical dimensions of transformation: normative adaptation through a legislative-referential model, institutional transplantation via dual-authority governance between OJK and DSN-MUI, and procedural hybridization in compliance mechanisms. The study identifies a persistent "dual-compliance friction" between Sharīʿah governance and conventional financial regulation, manifesting in substantive, institutional, and procedural tensions. Importantly, the research documents an emergent shift toward maqāṣid-based regulatory reasoning within Indonesian Islamic finance governance, offering a promising pathway for harmonizing Islamic economic ethics with modern regulatory demands. The study concludes that maqāṣid-oriented legislative hermeneutics can enhance regulatory coherence, reduce compliance friction, and strengthen the ethical foundations of Indonesia's Islamic economic law.

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