KNEKS and the Dynamics of Sharia Economic Law Bureaucratization in Indonesia (2016–Present)
DOI:
https://doi.org/10.22373/sjhk.v10.i1.32646Keywords:
KNEKS, Bureaucratization, Sharia Economic LawAbstract
This article examines the bureaucratization dynamics of sharia economic law through the role of the National Committee for Islamic Economy and Finance (KNEKS). Employing a qualitative research design with an institutional–legal analysis approach, the study draws on documentary analysis, official policy documents, and in-depth interviews with key informants. The findings demonstrate that, in contrast to the Indonesian Council of Ulama (MUI), which functions as a quasi-legislative body producing normative legal instruments, KNEKS operates primarily as a legal structure that coordinates and harmonizes cross-institutional policies within the sharia economic governance framework. However, the study also reveals a persistent gap between legal structure and legal culture, as KNEKS’s institutional positioning has yet to significantly enhance public legal awareness and literacy in sharia economic law. This article contributes to the literature on Islamic legal governance by offering an institutional perspective on bureaucratization processes and highlighting the need for policy formulations that integrate bureaucratic mechanisms with community-based social capital to strengthen legal culture in sharia economic development
References
Journals and Books
Abbas, Ahmad, Neks Triani, Wa Ode Rayyani, and Muchriana Muchran. “Earnings Growth, Marketability and the Role of Islamic Financial Literacy and Inclusion in Indonesia.” Journal of Islamic Accounting and Business Research 14, no. 7 (2022). world. https://doi.org/10.1108/JIABR-12-2021-0322.
Abduh, Muhamad, and Mohd Azmi Omar. “Islamic Banking and Economic Growth: The Indonesian Experience.” International Journal of Islamic and Middle Eastern Finance and Management 5, no. 1 (2012). https://doi.org/10.1108/17538391211216811.
Addiarrahman, Addiarrahman, and Illy Yanti. “Dari Idealisme Ke Pragmatisme: Pergeseran Paradigma Dalam Pengembangan Hukum Ekonomi Syariah Di Indonesia.” Al-Manahij: Jurnal Kajian Hukum Islam 14, no. 2 (2020). https://doi.org/10.24090/mnh.v14i2.3408.
Addiarrahman, and Illy Yanti. “Halal Industry in Javanese Culture: Yogyakarta Regional Government Policy in Obtaining Its Economic Values.” Inferensi 16, no. 1 (2022).
Alfitri, Alfitri. “Bureaucratizing Fatwā in Indonesia: The Council of Indonesian Ulama and Its Quasi-Legislative Power.” Ulumuna 24, no. 2 (2020). https://doi.org/10.20414/ujis.v24i2.412.
Anton Athoillah, Mohamad, et, al, The Historicity Of The Economic Verses On Fatwa Of Dsn-Mui About Sharia Electronic Money, Jurnal Ilmiah Peuradeun, Vol. 9, No. 1, 2021. http://doi:10.26811/peuradeun.v9i1.545
Arsadani, Qosim, Fathurrahman Djamil, Asep Saepudin Jahar, and M. Asrorun Niam Sholeh. “The Progressiveness of Sharia Economic Fatwas: Direction of Islamic Legal Thoughts within NU and Muhammadiyah.” AHKAM: Jurnal Ilmu Syariah 24, no. 1 (2024): 1.
Ascarya, Ascarya, Raditya Sukmana, Siti Rahmawati, and Atika Rukminastiti Masrifah. “Developing Cash Waqf Models for Baitul Maal Wat Tamwil as Integrated Islamic Social and Commercial Microfinance.” Journal of Islamic Accounting and Business Research 14, no. 5 (2022). https://doi.org/10.1108/JIABR-09-2020-0267.
Choiruzzad, Shofwan Al Banna. “More Gain, More Pain: The Development of Indonesia’s Islamic Economy Movement (1980s–2012).” Indonesia, no. 95 (2013). https://doi.org/10.5728/indonesia.95.0125.
Effendy, Bahtiar. “Islamic Economic Institutions in Indonesia: A Religio-Political Perspective.” Islam in Southeast Asia: Political, Social and Strategic Challenges for the 21st Century, no. 11 (2005).
Fakhrina, Agus, and Abdul Hamid. “Sacralizing the Market? The Role of DSN–MUI in the Legal-Economic Legitimacy of Islamic Banking in Indonesia.” AHKAM: Jurnal Ilmu Syariah 25, no. 1 (2025): 1.
Friedman, Lawrence M. The Legal System: A Social Science Perspective. Publications of Russell Sage Foundation. Russell Sage Foundation, 1975.
Friedman, Lawrence M. “Legal Culture and Social Development.” Law & Society Review 4, no. 1 (1969).
Grassa, Rihab. “Legal Origin, Institutional Quality, and Islamic Finance Development: Does Shari’a Matter?” Law and Development Review 13, no. 2 (2020). https://doi.org/10.1515/ldr-2020-0053.
Grassa, Rihab, and Kaouthar Gazdar. “Law and Islamic Finance: How Legal Origins Affect Islamic Finance Development?” Borsa Istanbul Review 14, no. 3 (2014). https://doi.org/10.1016/j.bir.2014.05.001.
Hamidi, Luthfi, and Andrew C. Worthington. “How Social Is Islamic Banking?” Society and Business Review 16, no. 1 (2020). https://doi.org/10.1108/SBR-03-2020-0036.
Hamidi, M. Luthfi, and Andrew C. Worthington. “Islamic Banking in Indonesia: Emergence, Growth, and Prospects.” In Growth and Emerging Prospects of International Islamic Banking. IGI Global Scientific Publishing, 2020. https://www.igi-global.com/chapter/islamic-banking-in-indonesia/249031.
Handayani, Nur Sillaturohmah, Muhamad Subhi Apriantoro, and Malikah Al-Husnayaini. “The Strategic Role of DSN-MUI in Developing Islamic Economic Law.” AL-IKTISAB: Journal of Islamic Economic Law 7, no. 1 (2023): 1. https://doi.org/10.21111/aliktisab.v7i1.9297.
Harahap, Darwis, Ahmad Afandi, and Try Mahendra Siregar. “The Islamic Banking Customers’ Intention To Use Digital Banking Services: An Indonesian Study.” Journal of Islamic Monetary Economics and Finance 9, no. 3 (2023). https://doi.org/10.21098/jimf.v9i3.1673.
Hasyim, Syafiq. “The Politics of ‘Halal’: From Cultural to Structural Shariatisation in Indonesia.” Australian Journal of Asian Law 22, no. 1 (2022). https://papers.ssrn.com/abstract=4046306.
Hefner, Robert W. Islamizing Capitalism: On the Founding of Indonesia’s First Islamic Bank. 2003. https://scholar.google.com/scholar?cluster=682639606664724150&hl=en&oi=scholarr.
Hidayati, Noor Azmah. “Politik Akomodasionis Orde Baru Terhadap (Umat) Islam: Telaah Historis Kelahiran Perbankan Syariah.” Millah: Journal of Religious Studies, 2005, 47–62.
Ismal, Rifki. “Islamic Banking in Indonesia: Lessons Learned.” Kertas Kerja Dalam Multiyear Expert Meeting on Services, Development and Trade: The Regulatory and Institutional Dimension. United Nations Conference on Trade and Development (UNCTAD). Geneva, 2011. https://www.financialislam.com/uploads/3/8/5/3/3853592/cimem3_3rd_country_paper_indonesia1.pdf.
Jahar, Asep Saepudin. “Bureaucratizing Sharia in Modern Indonesia: The Case of Zakat, Waqf and Family Law.” Studia Islamika 26, no. 2 (2019). https://doi.org/10.15408/sdi.v26i2.7797.
Johan, Irni Rahmayani. “Tackling the Challenges of Financial Inclusion and Illegal Lending in Indonesia.” ISEAS Perspective, 2022. https://www.iseas.edu.sg/articles-commentaries/iseas-perspective/2022-5-tackling-the-challenges-of-financial-inclusion-and-illegal-lending-in-indonesia-by-irni-rahmayani-johan/.
Kasdi, Abdurrohman. “Contribution of National Sharia Council Fatwa of Indonesian Council of Ulama (DSN-MUI) in The Islamic Economic Development in Indonesia.” Iqtishadia: Jurnal Kajian Ekonomi Dan Bisnis Islam 11, no. 1 (2018). https://doi.org/10.21043/iqtishadia.v11i1.3187.
Khasanah, Miftakhul, Rizki Aminullah, and Dewi Setianingsih. “Determinants of Islamic Financial Literacy Index: Comparison Based on Ethnographic Studies in Yogyakarta, Indonesia.” Afkaruna: Indonesian Interdisciplinary Journal of Islamic Studies 18, no. 1 (2022). https://doi.org/10.18196/afkaruna.v18i1.12584.
Lestari, Yuliani Dwi, Raditya Sukmana, Irfan Syauqi Beik, and Mahfud Sholihin. “The Development of National Waqf Index in Indonesia: A Fuzzy AHP Approach.” Heliyon 9, no. 5 (2023). https://doi.org/10.1016/j.heliyon.2023.e15783.
Lindsey, Tim. “Monopolising Islam: The Indonesian Ulama Council and State Regulation of the ‘Islamic Economy.’” Bulletin of Indonesian Economic Studies, Taylor & Francis Group, 1, 2012. world. https://www.tandfonline.com/doi/abs/10.1080/00074918.2012.694157.
Masrizal, Raditya Sukmana, and Budi Trianto. “The Effect of Islamic Financial Literacy on Business Performance with Emphasis on the Role of Islamic Financial Inclusion: Case Study in Indonesia.” Journal of Islamic Marketing ahead-of-print, no. ahead-of-print (2024). world. https://doi.org/10.1108/JIMA-07-2022-0197.
Maulina, Rindawati, Wawan Dhewanto, and Taufik Faturohman. “The Integration of Islamic Social and Commercial Finance (IISCF): Systematic Literature Review, Bibliometric Analysis, Conceptual Framework, and Future Research Opportunities.” Heliyon 9, no. 11 (2023). https://doi.org/10.1016/j.heliyon.2023.e21612.
Müller, Dominik. The Bureaucratization of Islam and Its Socio-Legal Dimensions in Southeast Asia: Conceptual Contours of a Research Project. Max Planck Institute for Social Anthropology, 2017. https://pure.mpg.de/rest/items/item_2552995_4/component/file_2554254/content.
Müller, Dominik M. “Bureaucratic Islam Compared; Classificatory Power and State-IFIED Religious Meaning-Making in Brunei and Singapore.” Journal of Law and Religion 33, no. 2 (2018). https://doi.org/10.1017/jlr.2018.29.
Müller, Dominik M., and Kerstin Steiner. “The Bureaucratisation of Islam in Southeast Asia: Transdisciplinary Perspectives.” Journal of Current Southeast Asian Affairs 37, no. 1 (2018). https://doi.org/10.1177/186810341803700101.
Nastiti, Nur Dyah, and Rahmatina Awaliah Kasri. “The Role of Banking Regulation in the Development of Islamic Banking Financing in Indonesia.” International Journal of Islamic and Middle Eastern Finance and Management 12, no. 5 (2019). https://doi.org/10.1108/IMEFM-10-2018-0365.
Nelken, David. “Using Legal Culture: Purposes and Problems.” In Using Legal Culture, edited by David Nelken. JCL Studies in Comparative Law. Wildy, Simmonds & Hill Publishing, 2012.
Nour Aldeen, Khaled, Inayah Swasti Ratih, and Risa Sari Pertiwi. “Cash Waqf from the Millennials’ Perspective: A Case of Indonesia.” ISRA International Journal of Islamic Finance 14, no. 1 (2021). https://doi.org/10.1108/IJIF-10-2020-0223.
Nugroho, Moh Agus, Asfi Manzilati, Marlina Ekawaty, Nurul Badriyah, and Sulaeman Sulaeman. “Factors Driving the Growth of the Halal Industry in Top GIEI Countries: The Role of Domestic Investment, FDI and Economic Freedom.” Journal of Islamic Marketing, ahead of print, 2025. https://doi.org/10.1108/JIMA-07-2024-0273.
Otto, Jan Michiel. Sharia Incorporated: A Comparative Overview of the Legal Systems of Twelve Muslim Countries in Past and Present. Leiden University Press, 2010. https://hdl.handle.net/1887/21170.
Rasyid, Fauzan Ali. “Konfigurasi Politik Hukum Ekonomi Syariah Di Indonesia.” Ijtihad: Jurnal Wacana Hukum Islam Dan Kemanusiaan 16, no. 2 (2016).
Renie, Elsy. “The Urgency of Fatwa in The Law of Sharia Economics in Indonesia.” JURIS (Jurnal Ilmiah Syariah) 20, no. 2 (2021). https://doi.org/10.31958/juris.v20i2.4059.
Sanusi, Nur Taufiq, Ahmad Fauzan, Abdul Syatar, Kurniati Kurniati, and Hasanuddin Hasim. “Political Configuration of Islamic Law in Legal Development in Indonesia.” Jurnal Adabiyah 23, no. 1 (2023). https://doi.org/10.24252/jad.v23i1a3.
Sari, Mutiara Dewi, Zakaria Bahari, and Zahri Hamat. “Perkembangan Perbankan Syariah Di Indonesia: Suatu Tinjauan.” Jurnal Aplikasi Bisnis 3, no. 2 (2013).
Setiawan, Iwan, Muhamad Umar Mai, and Setiawan Setiawan. “The Contribution of Islamic and Conventional Rural Banks to Indonesia’s Regional Economic Growth.” International Journal of Islamic and Middle Eastern Finance and Management, ahead of print, 12, 2025. https://doi.org/10.1108/IMEFM-10-2024-0514.
Sholihin, Muhammad. “Fatwa antara Makharij Fiqhiyah dan Market Needs: Eklektisisme Pragmatis di balik Fatwa DSN MUI di Indonesia.” Al-Istinbath: Jurnal Hukum Islam 5, no. 1 (2020). https://doi.org/10.29240/jhi.v5i1.1412.
Siroj, A. Malthuf, Ismail Marzuki, and Elkhairati Elkhairati. “Transformation and Future Challenges of Islamic Law in Indonesia.” Al-Istinbath: Jurnal Hukum Islam 8, no. 1 (2023). https://doi.org/10.29240/jhi.v8i1.6618.
Takidah, Erika, and Salina Kassim. “Determinants of Islamic Financial Inclusion in Indonesia: A Demand-Side Analysis.” Journal of Islamic Finance 10, no. 2 (2021). https://doi.org/10.31436/jif.v10i2.595.
Tim Penyusun. “Master Plan Industri Halal Indonesia 2023-2029.” KNEKS & Bappenas, 2023. https://kneks.go.id/storage/upload/1719104658-Master%20Plan%20Industri%20Halal%20Indonesia%202023-2029.pdf.
Tim Penyusun. Masterplan Ekonomi Syariah Indonesia 2019-2024. Badan Perencanaan Pembangunan Nasional, 2018.
Tim Penyusun. Survei Nasional Literasi Dan Inklusi Keuangan (SNLIK) 2024. Otoritas Jasa Keuangan & Badan Pusat Statistik, 2024.
Tim Peyusun Bappenas. Masterplan Arsitektur Keuangan Syariah Indonesia. Bappenas, 2015.
Trinugroho, Irwan, Wimboh Santoso, Rakianto Irawanto, and Putra Pamungkas. “Is Spin-off Policy an Effective Way to Improve Performance of Islamic Banks? Evidence from Indonesia.” Research in International Business and Finance 56 (2021). https://doi.org/10.1016/j.ribaf.2020.101352.
Wen, Jun, Sen Zhang, and Chun-Ping Chang. “Legal Origins and Innovation: Global Evidence.” Technological Forecasting and Social Change 174 (2022). https://doi.org/10.1016/j.techfore.2021.121216.
Widiastuti, Tika, Sri Ningsih, Ari Prasetyo, et al. “Developing an Integrated Model of Islamic Social Finance: Toward an Effective Governance Framework.” Heliyon 8, no. 9 (2022). https://doi.org/10.1016/j.heliyon.2022.e10383.
Yanti, Illy and Addiarrahman. “Quo Vadis Peradilan Agama Dalam Pengembangan Hukum Ekonomi Syariah di Indonesia.” Al-Risalah: Forum Kajian Hukum Dan Sosial Kemasyarakatan 16, no. 02 (2016). https://doi.org/10.30631/alrisalah.v16i02.311.
Yunies Edward, Mohammad, Eko Nur Fuad, Hadi Ismanto, Apriani Dorkas Rambu Atahau, and Robiyanto. “Success Factors for Peer-to-Peer Lending for SMEs: Evidence from Indonesia.” Investment Management and Financial Innovations 20, no. 2 (2023). https://doi.org/10.21511/imfi.20(2).2023.02.
Zaini, Faizi, and Mohd Sollehudin bin Shuib. “Fatwa on Sharia Products and Its Role in The Development of Islamic Finance Industry.” Islamadina: Jurnal Pemikiran Islam 22, no. 2 (2021). https://doi.org/10.30595/islamadina.v22i2.11859.
Internet Data
Database Peraturan | JDIH BPK. “PERPRES No. 28 Tahun 2020.” Accessed August 10, 2025. http://peraturan.bpk.go.id/Details/132021/perpres-no-28-tahun-2020.
Fatwa – DSN-MUI. n.d. Accessed January 13, 2025. https://dsnmui.or.id/kategori/fatwa/.
Habir, Manggi, and Siwage Dharma Negara. The Digital Transformation of Indonesia’s Banking Sector: Current Trends and Future Prospects. 2023, no. No. 78 (2023). https://www.iseas.edu.sg/articles-commentaries/iseas-perspective/2023-78-the-digital-transformation-of-indonesias-banking-sector-current-trends-and-future-prospects-by-manggi-habir-and-siwage-dharma-negara/.
Interview Data
Interview with D. Kurniadi, August 2025.
Downloads
Published
Versions
- 2026-03-31 (4)
- 2026-03-31 (3)
- 2026-03-31 (2)
- 2026-03-31 (1)
Issue
Section
License
Copyright (c) 2026 Iskandar Iskandar and Addiarrahman Addiarrahman
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish in Samarah: Jurnal Hukum Keluarga dan Hukum Islam agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed Attribution-ShareAlike 4.0 International (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.
- 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.
- 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. (See The Effect of Open Acces)
