Revisiting the Compilation of Islamic Economic Law in Indonesia: Legal Challenges and Pathways to Harmonization

Abstrak

This study examines the urgency of revising the significant gaps in the Compilation of Sharia Economic Law (KHES). Misalignment between the KHES and the fatwas of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI)ÔÇöthe reference for sharia economic practices in IndonesiaÔÇöhas led to inconsistent application of Islamic economic law across the country. This study emphasized the necessity for realigning KHES with DSN-MUI and adapting to the evolving landscape of contemporary Islamic economics. Using a legal-normative approach, we conducted a literature review, analyzing relevant legislation, DSN-MUI fatwas, and other literature to assess the effectiveness of KHES and pinpoint areas for improvement. Our key findings indicated that KHES did not consistently align with the DSN-MUI Fatwa and fell short of addressing the norms required for modern Sharia economic practices. If this situation is not remedied, it could lead to a multi-level crisis of legitimacy, resulting in legal uncertainty and eroded trust in religious courts. A viable solution lies in legal harmonization, which can facilitate necessary normative adjustment and foster a radical transformation through systemic reconstruction and comprehensive restructuring of the existing normative framework.