THE INTEGRATION OF ISLAMIC LAW AND ISLAMIC ECONOMICS IN HALAL PRODUCT ASSURANCE: A HISTORICAL ANALYSIS OF ITS DEVELOPMENT IN OF HALAL ASSURANCE INDONESIA
DOI:
https://doi.org/10.30863/al-tsarwah.v8i2.10923Keywords:
Islamic financial instruments, Sharia finance, Islamic financial system, ethical financeAbstract
This study analyzes the development, characteristics, and significance of Islamic financial instruments within contemporary Islamic finance frameworks, particularly regarding their contributions to ethical financial practices and economic resilience. The purpose of this research is to identify how Islamic financial instruments operate conceptually and how they adapt to modern financial and technological developments. This research employed a qualitative approach through a library research method using scholarly publications, books, and official institutional documents as primary sources. The findings indicate that Islamic financial instruments do not simply replicate conventional products but represent an independent system grounded in Sharia principles, including risk sharing, asset-based transactions, and prohibition of speculative elements. The results also show that technological innovation, regulatory harmonization, and Sharia governance have become determining factors for sustainable development of Islamic financial instruments. Moreover, social financing mechanisms such as zakat, waqf, and charitable-based instruments expand financial inclusion and contribute to socio-economic empowerment. In conclusion, Islamic financial instruments hold substantial potential in establishing a more ethical, stable, and inclusive financial system. Further efforts are required to strengthen regulatory frameworks, institutional capacity, and digital transformation to enhance global integration and future implementation of Islamic finance.
References
AAOIFI. (2020). Shariah standards for Islamic financial institutions. Accounting and Auditing Organization for Islamic Financial Institutions.
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40.
Chapra, M. U. (2016). Islam and the economic challenge (Rev. ed.). Islamic Foundation.
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4th ed.). Sage.
Dewaya, A. (2024). Product innovation in Islamic banking: A conceptual analysis. Journal of Islamic Finance Studies, 12(1), 22–38.
Dwitami, Y., Suryanto, T., Noviarita, H., & Anggraeni, E. (2024). The influence of financial ratios, sukuk structure and corporate governance on sukuk ratings. Mabsya: Jurnal Manajemen Bisnis Syariah, 3(1), 11–25. https://doi.org/10.24090/mabsya.v3i1.4751
El-Gamal, M. A. (2006). Islamic finance: Law, economics, and practice. Cambridge University Press.
Faizi, F., & Shuib, M. S. (2024). Sharia governance in Islamic financial institutions: A comparative review of Malaysia and Indonesia. El Dinar: Jurnal Keuangan dan Perbankan Syariah, 8(2), 100–115.
Hassan, M. K., & Aliyu, S. (2018). A contemporary survey of Islamic banking literature. Journal of Financial Stability, 34, 12–25.
Heravi, F. A., & Sharofiddin, A. (2025). Assessment of Sharia-compliant risk management framework for sukuk. Journal of Islamic Finance, 14(1), 98–111.
Iqbal, Z., & Mirakhor, A. (2017). Ethics and finance: An Islamic perspective. Wiley-Blackwell.
Karim, A. (2021). Islamic financing instruments and financial stability. Journal of Islamic Economics and Finance, 14(3), 200–215.
Maulidizen, A. (2023). Digitalization of Islamic finance: Blockchain, smart contracts, and audit enhancement. Islamic Finance Review, 7(1), 45–62.
Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative data analysis: A methods sourcebook (3rd ed.). Sage.
Mirakhor, A., & Krichene, Y. (2023). Introduction to Islamic economics and finance: Theory and application. Islamic Research and Training Institute.
Nadhifah, T., Risnawati, H., & Yazid, M. D. (2025). Development of sukuk musyarakah and sukuk istisnā’: Legal aspects and implementation in Indonesia. UNCANG: Journal of Sharia Banking and Islamic Finance, 1(1), 64–70.
Nidaussalam, M. (2016). Mudaraba as a model of Islamic finance. Shirkah: Journal of Economics and Business, 1(1), 73–92. https://doi.org/10.22515/shirkah.v1i1.11
Patton, M. Q. (2015). Qualitative research & evaluation methods (4th ed.). Sage.
Rosidi, R., Nugraha, R., & Putri, I. L. (2024). How Islamic corporate governance mitigates financing risk in Indonesian Islamic banking. Share: Jurnal Ekonomi dan Keuangan Islam, 13(2), 553–577. https://doi.org/10.22373/share.v13i2.21469
Samudera, A. B., Ismail, D., Suhendi, S., & Muslim, S. (2024). The development of Islamic financial instruments: Opportunities and challenges. Likuid: Jurnal Ekonomi Industri Halal, 4(2), 93–114. https://doi.org/10.15575/likuid.v4i2.35781
Siddiqi, M. N. (2019). Profit-and-loss sharing: What works & what doesn’t in Islamic finance. Islamic Economic Research Center.
Suaidi, S. (2025). Enhancing Sharia compliance in Islamic financial institutions in Indonesia. El-Uqud: Jurnal Kajian Hukum Ekonomi Syariah, 3(1), 23–39. https://doi.org/10.24090/eluqud.v3i1.13288
Suryani, Y., Siregar, S., & Nurlaila, N. (2024). Sharia governance, leverage and their impact on Islamic corporate social responsibility in Sharia banking in Indonesia. International Journal Ihya’ Ulum al-Din, 26(1), 143–155. https://doi.org/10.21580/ihya.26.1.20482
Susanto, J., & Walyoto, S. (2023). The effect of corporate governance on financial stability of Sharia bank in Indonesia. Journal of Management and Islamic Finance, 3(1), 132–143. https://doi.org/10.22515/jmif.v3i1.6031
Usmani, M. T. (1998). An introduction to Islamic finance. Kluwer Law International.
Winarto, F. H., & Beik, I. S. (2024). The effect of Sharia monetary policy instruments and Islamic bank financing on economic growth and inflation. Jurnal Ekonomi & Keuangan Islam, 10(1), 72–89. https://doi.org/10.20885/JEKI.vol10.iss1.art6
Yuninsi, A. R., Khatimah, A., Ramadani, S., Aswad, A., & Kamaruddin, K. (2025). The role of istisnā’ contracts in encouraging Islamic economic growth. E-Bisnis: Jurnal Ilmiah Ekonomi dan Bisnis, 18(1), 392–398. https://doi.org/10.51903/e-bisnis.v18i1.2777
Zed, M. (2014). Metode peneleitian kepustakaan. UI Press.
Zunanto, M., & Abdullah, A. (2023). Corporate governance and financing risk of Sharia bank in Indonesia. Journal of Management and Islamic Finance, 3(1), 1–14. https://doi.org/10.22515/jmif.v3i1.5901
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2025 Abdi Dzul Jalal Ikram, Siradjuddin, Rika Dwi Ayu Parmitasari
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with Jurnal Ilmiah Al-Tsarwah agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
