Khazanah Hukum
Vol. 7 No. 2 (2025): Khazanah Hukum

The Role of Legal and Regulatory Frameworks for Sharia-Compliant Financing in Promoting Innovation and Quality Enhancement in Indonesia's Halal Industry

Riduan Mas’ud (Universitas Islam Negeri Mataram, Indonesia)
Mohd Rizal Muwazir (Academy of Islamic Studies Universiti Malaya Malaysia)



Article Info

Publish Date
09 Jun 2025

Abstract

Indonesia’s halal industry is experiencing rapid growth, driven by increasing consumer demand for products that comply with both sharia principles and global quality standards. This study examines the role of legal and regulatory frameworks governing sharia-compliant financing in supporting innovation and improving product quality within the halal sector. Using a qualitative research design with a descriptive-analytical approach, data were collected from 15 experts in Islamic finance, economic law, and halal business practices. The findings reveal that legal instruments—such as the Sharia Banking Law, regulations issued by the Financial Services Authority (OJK), and policies from the National Committee for Islamic Economy and Finance (KNEKS)—provide a legal foundation that facilitates ethical and inclusive access to capital. These frameworks contribute to the development of an innovative and competitive halal industry. However, challenges remain, including regulatory overlaps, weak enforcement mechanisms, and limited harmonization between central and regional regulations. The study concludes by recommending regulatory reforms and institutional strengthening to optimize the legal contribution to the sustainable growth of Indonesia’s halal industry.

Copyrights © 2025






Journal Info

Abbrev

kh

Publisher

Subject

Religion Humanities Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Khazanah Hukum is an international journal published three times a year by the Universitas Islam Negeri Sunan Gunung Djati. This journal discusses aspects of law in the Indonesian context and the context of globalization. The languages used in this journal are Indonesian and English. Khazanah Hukum ...