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Journal : West Science Islamic Studies

Implementation of Fatwa DSN-MUI as a Basis for Regulation in Islamic Finance in Indonesia Judijanto, Loso; Ilhamiwati, Mega; Abdullah, Rais; Winarni, Indah; Lasmiatun, KMT
West Science Islamic Studies Vol. 3 No. 01 (2025): West Science Islamic Studies
Publisher : Westscience Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58812/wsiss.v3i01.1611

Abstract

This study examines the implementation of Fatwas issued by the National Sharia Council-Indonesian Ulema Council (DSN-MUI) as a foundational regulatory framework for Islamic finance in Indonesia. Through a literature review analysis, the research explores the role of these Fatwas in shaping Sharia-compliant financial practices, their integration into regulatory frameworks, and the challenges associated with their application. Key findings highlight the dual role of DSN-MUI Fatwas as theological and regulatory tools, their contribution to ensuring Sharia compliance, and the need for standardized enforcement mechanisms. Drawing lessons from global practices, this study emphasizes the importance of institutional capacity and collaboration in enhancing the effectiveness of DSN-MUI Fatwas. These insights provide a valuable roadmap for advancing Islamic finance in Indonesia, fostering alignment between religious principles and regulatory frameworks.
ESG (Environmental, Social, Governance) Integration in Global Islamic Finance Judijanto, Loso; Fathoni, Ahmad Iqbal; Fauziah, Diah; Lasmiatun, KMT; Ashari, Muhammad Idris
West Science Islamic Studies Vol. 3 No. 01 (2025): West Science Islamic Studies
Publisher : Westscience Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58812/wsiss.v3i01.1612

Abstract

ESG integration is emerging as a game-changing influence on the world's financial systems with wide-ranging consequences for the Islamic finance industry. This research, therefore, has been designed to reach an objective that presents compatibility, challenges, and opportunities concerning ESG adoption in Islamic finance through a systematic review of 22 peer-reviewed manuscripts indexed in the Scopus database. The findings identify a good coincidence between ESG best practices and Sharia principles, as both witness vital echoes on ethical behavior, social development, and sustainability. Good harmony has been noted, though regulatory disparity, weak frameworks, and lack of awareness stand in the way. Green sukuk and international collaboration are promising pathways for the arising ESG issues. This would provide actionable insights for policymakers and financial institutions so that sustainability and ethical value creation can be encouraged at large, while positioning Islamic finance as a world leader in sustainable finance.
Implementation of Fatwa DSN-MUI as a Basis for Regulation in Islamic Finance in Indonesia Judijanto, Loso; Ilhamiwati, Mega; Abdullah, Rais; Winarni, Indah; Lasmiatun, KMT
West Science Islamic Studies Vol. 3 No. 01 (2025): West Science Islamic Studies
Publisher : Westscience Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58812/wsiss.v3i01.1611

Abstract

This study examines the implementation of Fatwas issued by the National Sharia Council-Indonesian Ulema Council (DSN-MUI) as a foundational regulatory framework for Islamic finance in Indonesia. Through a literature review analysis, the research explores the role of these Fatwas in shaping Sharia-compliant financial practices, their integration into regulatory frameworks, and the challenges associated with their application. Key findings highlight the dual role of DSN-MUI Fatwas as theological and regulatory tools, their contribution to ensuring Sharia compliance, and the need for standardized enforcement mechanisms. Drawing lessons from global practices, this study emphasizes the importance of institutional capacity and collaboration in enhancing the effectiveness of DSN-MUI Fatwas. These insights provide a valuable roadmap for advancing Islamic finance in Indonesia, fostering alignment between religious principles and regulatory frameworks.
ESG (Environmental, Social, Governance) Integration in Global Islamic Finance Judijanto, Loso; Fathoni, Ahmad Iqbal; Fauziah, Diah; Lasmiatun, KMT; Ashari, Muhammad Idris
West Science Islamic Studies Vol. 3 No. 01 (2025): West Science Islamic Studies
Publisher : Westscience Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58812/wsiss.v3i01.1612

Abstract

ESG integration is emerging as a game-changing influence on the world's financial systems with wide-ranging consequences for the Islamic finance industry. This research, therefore, has been designed to reach an objective that presents compatibility, challenges, and opportunities concerning ESG adoption in Islamic finance through a systematic review of 22 peer-reviewed manuscripts indexed in the Scopus database. The findings identify a good coincidence between ESG best practices and Sharia principles, as both witness vital echoes on ethical behavior, social development, and sustainability. Good harmony has been noted, though regulatory disparity, weak frameworks, and lack of awareness stand in the way. Green sukuk and international collaboration are promising pathways for the arising ESG issues. This would provide actionable insights for policymakers and financial institutions so that sustainability and ethical value creation can be encouraged at large, while positioning Islamic finance as a world leader in sustainable finance.