Sharia and Fatwa Dynamics in Islamic Economic Law: Reconstructing Islamic Legal Policy for Contemporary Financial Governance

Suarda Wisni, Jelli Purnama Sari

Abstract


This article analyzes the dynamic interaction between sharia principles and fatwa development within Islamic economic law and its implications for reconstructing Islamic legal policy for contemporary financial governance in Indonesia. Fatwas, once operating purely as non-state moral guidance, have transformed into quasi-regulatory instruments influencing compliance, product governance, and state policy when institutionalized through formal bodies and economic actors. Indonesian Islamic legal policy increasingly exhibits normative migration, wherein fatwas become de facto legal references through state accommodation and market rationalization, particularly in sectors such as banking and fintech. Fatwa authority is strongly articulated through the roles of MUI and DSN-MUI, whose legal opinions guide national sharia financial standards and regulatory behavior. The article emphasizes that effective financial governance demands policy reconstruction beyond formalistic sharia compliance toward adaptive, legitimate, and functional regulation. A transformative Islamic economic law paradigm is proposed to balance doctrinal authority, sociological legitimacy, and state governance, ensuring stability, innovation, and public trust amid digital disruption.

Keywords


Fatwa; Sharia; Governance; Fintech.

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DOI: https://doi.org/10.15548/ijt.v41i2.895

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