Sadd al-Dharā’iʿ-Based Sharia Governance Model for Mitigating Moral Hazard in Indonesia’s Islamic Digital Economy: Model Tata Kelola Syariah Berbasis Sadd al-Dharā’i‘ untuk Memitigasi Moral Hazard dalam Ekonomi Digital Syariah Indonesia

M ALFISYAHRIN Alfisyahrin (Universitas Islam Negeri Raden Fatah Palembang)
Ria Agustina (Universitas Islam Negeri Raden Fatah Palembang)
Raed Hassan Muhammad Bani Issa (Islamic University of Minnesota - USA)

Transformatif
Vol 10 No 1 (2026): ISSUED IN APRIL 2026

The rapid growth of Indonesia’s Islamic digital economy has accelerated financial innovation through Islamic fintech, digital banking, and online financing platforms. However, this transformation also increases moral hazard risks, including contract manipulation, hidden charges, information asymmetry, and weak sharia compliance. Existing governance systems remain largely administrative and insufficiently preventive. This study aims to formulate a sharia governance model based on sadd al-dharā’iʿ to minimize moral hazard within Islamic digital finance. Using a mixed-method approach, the study integrates Islamic legal principles, sharia governance, and modern risk management frameworks. The findings indicate that preventive governance grounded in sadd al-dharā’iʿ strengthens transparency, accountability, and ethical supervision within digital financial systems. This research contributes theoretically by integrating ushul fiqh with contemporary governance theory and practically by offering governance recommendations for regulators and Islamic fintech institutions in Indonesia