Dewan Syariah Nasional – Majelis Ulama Indonesia Under Construction Sharia Economic Supervision System In Indonesia

Indonesia, with the world's largest Muslim population, sees the application of Sharia values in economic behavior as imperative. Sharia principles are increasingly extending to non-financial services beyond the traditional domains of banking and financial institutions. The Sharia economic supervision system includes the DSN-MUI, a regulatory construct. However, a critical issue arises due to legal loopholes, notably the non-state status of DSN-MUI established by the Indonesian Ulema Council. This research addresses the legal policy direction concerning Sharia economic supervision in Indonesia, specifically examining its connection to DSN-MUI. The investigation aims to understand why these legal policies result in an uneven implementation of the Sharia financial supervision system. Employing qualitative research methods, document searches were conducted, and the findings were presented descriptively for inductive analysis. The research reveals that legal policies concerning Sharia economic supervision require strengthening DSN-MUI's position in overseeing Sharia economic practices. The imbalance in the Sharia financial supervision system is attributed to a dual monetary system adopted by state administrators, contradicting Article 31 Paragraph (1) of the 1945 Constitution, which advocates for a family-based financial system. This misalignment of Sharia economics in the national economic framework renders the construction of a Sharia economic supervision system by DSN-MUI non-imperative, non-integrative, and incomplete. Consequently, this may impede the growth of Sharia economics in Indonesia. Efforts should be made to rectify legal policies and institutional structures to ensure a more cohesive and supportive environment for Sharia economic practices to flourish in the country.