The Position of Fatwa by the Indonesian Ulama Council in the Field of Islamic Business UIN Indonesia

Muhammad Ilham

Abstract


Islamic business has significantly developed in Indonesia over the past few decades, driven by the high awareness among Muslims to apply Sharia in all aspects of life. Unfortunately, this desire is hindered by the inadequacy of regulations as the legal umbrella for the implementation of Islamic business activities in Indonesia. The existing regulations are mostly in the form of fatwas issued by the National Sharia Council (DSN) of the Indonesian Ulema Council, which do not have binding legal power. This type of research is normative juridical, and its nature is descriptive with a legislative and conceptual approach. The data sources for this research are secondary data sources. Qualitative analysis is used to analyze the data. Based on the research results, it was found that in the realm of ushul fiqh, a fatwa is a response to questions from individuals or institutions and is non-binding. Referring to the types and hierarchy as stated in Law Number 12 of 2011, the position of MUI fatwas does not constitute a type of legislation that has binding legal force. From the perspective of abstract regulations, a fatwa can only become binding if it takes a certain legal form issued by a competent authority, thus becoming positive law. The legal consequence of ignoring or defying the fatwa of the National Sharia Council of MUI by Sharia Financial Institutions is limited to administrative sanctions only.


Keywords


fatwa, business, Islam, economy

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References


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DOI: https://doi.org/10.30596/miceb.v2i0.528

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