Governing the Market through Fatwa: The Political Economy of the Indonesian Ulema Council’s Fatwa on the Prioritization of Domestic Products
DOI:
https://doi.org/10.35723/lsjs.v1i1.80Keywords:
MUI Fatwa, Maqāṣid al-Sharīʿah, Political Economy of Religion, Domestic Products, Islamic Economic GovernanceAbstract
Studies on the Indonesian Ulema Council’s fatwas have continued to expand; however, they rarely conceptualize fatwas as instruments of hybrid regulation operating within the political economy of the modern nation-state and functioning as soft law with the capacity to shape market dynamics. In particular, Fatwa No. 14/Ijtima’ Ulama/VIII/2024 on the Priority Use of Domestic Products—together with its maqāṣid al-sharīʿah (the objectives of Islamic law) foundations and its political–economic implications within the framework of Indonesian economic nationalism—has received limited scholarly attention. This study addresses this gap by analyzing the fatwa as a model of ijtihād in Islamic economic governance that integrates maqāṣid al-sharīʿah and the political economy of religion within a unified analytical framework. Employing a qualitative socio-legal methodology, this research conducts close reading and thematic coding of the official fatwa text, relevant regulations promoting domestic products, and pertinent academic literature. The study demonstrates that the fatwa explicitly links the prioritization of domestic products to ḥifẓ al-māl (the protection of wealth), maṣlaḥah ʿāmmah (public welfare), and economic sovereignty, thereby reconstructing consumption at the normative level from a neutral individual preference into a collective moral obligation. Within this framework, the fatwa functions as non-state soft law that symbolically directs market preferences toward local producers, distributes symbolic capital to aligned economic actors, and supports the state’s economic nationalism agenda, while simultaneously leaving unresolved risks related to symbolism, structural inequality, and ethical blind spots. This study offers a conceptual lens for understanding fatwas as instruments of Islamic economic governance that mediate between sharia norms, state policy, and market dynamics in contemporary Indonesia.
References
[1] Abutaleb, S., El-Bassiouny, N. M., & Hamed, S. (2021). A conceptualization of the role of religiosity in online collaborative consumption behavior. Journal of Islamic Marketing, 12(1), 180–198. https://doi.org/10.1108/JIMA-09-2019-0186
[2] Aglozo, E. Y., & Cohen, A. B. (2025). Religious values and consumer behavior. Journal of Consumer Psychology, 35(4), 696–705. https://doi.org/10.1002/jcpy.1464
[3] al-Āmidī, S. al-Dīn. (1984). Al-Iḥkām fī Uṣūl al-Aḥkām (Vol. 3). Riyāḍ: Mu’assasat al-Nūr.
[4] al-Fāsī, ‘Allāl. (1993). Maqāṣid al-Sharī‘ah al-Islāmiyyah wa Makārimuhā. Casablanca: Maṭba‘at al-Najāḥ al-Jadīdah.
[5] al-Ghazālī, A. Ḥāmid. (1993). Al-Mustaṣfā min ‘Ilm al-Uṣūl.
[6] al-Juwaynī, A. al-Maʻālī. (1999). al-Burhān fī Uṣūl al-Fiqh (Vol. 2).
[7] al-Rāzī, F. al-Dīn. (1997). al-Maḥṣūl fī ‘ilm al-uṣūl (Vol. 5). Beirut: Mu’assasat al-Risālah.
[8] al-Shāṭibī, A. I. (1997). al-Muwāfaqāt (Abū ‘Ubaydah Mashhūr ibn Ḥasan Āli Salmān, Ed.; Vol. 3).
[9] Al-‘Alwānī, Ṭāhā Jābir. (1991). Uṣūl al-Fiqh al-Islāmī. Herndon, VA: International Institute of Islamic Thought.
[10] Al-‘Alwānī, Ṭāhā Jābir. (1995). Iṣlāḥ al-Fikr al-Islāmī. Herndon, VA: International Institute of Islamic Thought.
[11] Alnizar, F., Manshur, F. M., & Ma’ruf, A. (2022). Following the Global Rejection: The Motives of Majelis Ulama Indonesia’s Fatwas on Ahmadiyah. Studia Islamika, 29(3), 519–546. https://doi.org/10.36712/sdi.v29i3.15349
[12] Al-Qaraḍāwī, Y. (1999). Madkhal li Dirāsat al-Maqāṣid al-Sharʻiyyah. Cairo: Dār al-Shurūq.
[13] Al-Raysūnī, A. (1992). Naẓariyyat al-Maqāṣid ‘Ind al-Imām al-Shāṭibī. Riyadh: al-Dār al-‘Ālamiyyah li al-Kitāb al-Islāmī.
[14] Al-Raysūnī, A. (2013). Al-Maqāṣid al-Kulliyyah li al-Sharī‘ah al-Islāmiyyah.
[15] Amin, Abd. R. M., Syatar, A., Abubakar, A., Kurniati, K., & Alimuddin, H. (2024). Between Ḍarūrah and Halal Integrity: MUI Fatwas on Harm-Derived Vaccines and Medicines. Samarah: Jurnal Hukum Keluarga Dan Hukum Islam, 8(2), 1239. https://doi.org/10.22373/sjhk.v8i2.8938
[16] Auda. (2008). Maqāṣid al-Sharī‘ah as Philosophy of Islamic Law: A systems approach. London: International Institute of Islamic Thought.
[17] Auda, J. (2010). Revisiting Maqāṣid al-Sharī‘ah. London: International Institute of Islamic Thought.
[18] Awass, O. (2019). Contending with Capitalism: Fatwas and Neoliberal Ideology. Journal of World-Systems Research, 25(1), 145–168. https://doi.org/10.5195/jwsr.2019.843
[19] Barro, R. J., & McCleary, R. M. (2003). Religion and Economic Growth across Countries. American Sociological Review, 68(5), 760–781. https://doi.org/10.1177/000312240306800505
[20] Dahliah, Kurniawan, A., & Putra, A. H. P. K. (2020). Analysis and Strategy of Economic Development Policy for SMEs in Indonesia. The Journal of Asian Finance, Economics and Business, 7(5), 103–110. https://doi.org/10.13106/JAFEB.2020.VOL7.NO5.103
[21] Ensminger, J. (1994). The political economy of religion: An economic anthropologist’s perspective. Journal of Institutional and Theoretical Economics (JITE)/Zeitschrift Für Die Gesamte Staatswissenschaft, 150(4), 745–754.
[22] Esen, M. F., & Esen, A. (2019). Maqāṣid al-Sharīʿah for Socioeconomic Development Index: A Statistical Approach. In S. S. Ali (Ed.), Towards a Maqāṣid al-Sharīʿah Index of Socio-Economic Development (pp. 207–230). Springer International Publishing. https://doi.org/10.1007/978-3-030-12793-0_7
[23] Faizi. (2023). Are Cryptocurrencies Ḥaram? A Critical Analysis toward MUI’s Fatwā. Al-Ihkam: Jurnal Hukum & Pranata Sosial, 18(2), 420–442. https://doi.org/10.19105/al-lhkam.v18i2.8290
[24] Güney, N. (2024). Maqāsid al-Sharī‘a in Islamic Finance: A Critical Analysis of Modern Discourses. Religions, 15(1), 114. https://doi.org/10.3390/rel15010114
[25] Hakim, M. L., Prasojo, Z. H., Masri, M. S. B. H., Faiz, M. F., Mustafid, F., & Busro, B. (2023). Between Exclusivity and Inclusivity of Institutions: Examining the Role of the Indonesian Ulema Council and Its Political Fatwa in Handling the Spread of Covid-19. Khazanah Hukum, 5(3), 230–244. https://doi.org/10.15575/kh.v5i3.30089
[26] Hardiyanto, S., Eriza, F., Ridho, H., Noorikhsan, F. F., Agustian, D., & Batubara, P. E. O. (2023). Analysis of the Fatwa of the Indonesian Ulema Council Supporting Halal Certification and the Progress of Indonesian Muslims. Pharos Journal of Theology, 105(1). https://doi.org/10.46222/pharosjot.10521
[27] Hariyanto, E., Harisah, H., Hamzah, Moh., Mujib, F., Hidayatullah, H., & Marheni, C. L. (2023). In Search of Ummah Welfare Model: The Revitalisation of Sharia Economic Law in Indonesia. Sriwijaya Law Review, 244–261. https://doi.org/10.28946/slrev.Vol7.Iss2.1080.pp244-261
[28] Hashem, M. (2024). Maqasid Al-Shari’ah: A Civilizational Perspective. Herndon: International Institute of Islamic Thought (IIIT).
[29] He, Y., Wang, Y., & Gao, X. (2021). What Role Does Religion Have in Shaping Human Consumption? Religions, 13(1), 8. https://doi.org/10.3390/rel13010008
[30] Herlinda, T., & Verico, K. (2023). Does Imported Input Affect Export Quality? Case of Indonesia in The Period of 2010-2015. Journal of Developing Economies, 8(1), 49–60. https://doi.org/10.20473/jde.v8i1.41152
[31] Ibn ‘Āshūr, M. al-Ṭāhir. (2006). Maqāṣid al-Sharī‘ah al-Islāmiyyah (Aḥmad al-Manūfī, Ed.). Amman, Jordan: Dār al-Nafā’is.
[32] Kamali. (2003). Principles of Islamic Jurisprudence (2nd ed.). Cambridge: Islamic Texts Society.
[33] Kamali, M. H. (2008). Shari‘ah Law: An Introduction. Oxford: Oneworld Publications.
[34] Kartikasari, D. (2025). Consumer Planned Behavior Toward Domestic and Foreign Product Categories in Cross-Border E- Commerce. International Journal of Electronic Commerce Studies, 16(2), 25–46. https://doi.org/10.7903/ijecs.2404
[35] Kuran, T. (1994). Religious Economics and the Economics of Religion. Journal of Institutional and Theoretical Economics (JITE) / Zeitschrift Für Die Gesamte Staatswissenschaft, 150(4), 769–775.
[36] Kurniawan, A., Muhammadromli Samae, S. B., & Arbi, H. (2025). From Judicial Discretion to Maqasid al-Shari’ah Reasoning: The Case of Marriage Dispensation at the Muara Bulian Religious Court, Indonesia. Islamic Law and Social Issues in Society, 1(1), 63–83. https://doi.org/10.64929/ilsiis.v1i1.11
[37] Kurniawan, E. (2018). Distorsi Terhadap Maqasid Al-Syari‘ah Al-Syatibi di Indonesia. Al-Risalah: Forum Kajian Hukum Dan Sosial Kemasyarakatan, 18(2), 175–194. https://doi.org/10.30631/alrisalah.v18i2.301
[38] Kurniawan, E., Ahmad, H., & Muhamad Zaenal Muttaqin. (2025). From Content Creators to Zakat Payers: The Fatwa of Indonesian Ulema Council and the Rise of Digital Fiqh. Islamic Law and Social Issues in Society, 1(2), 99–115. https://doi.org/10.64929/ilsiis.v1i2.9
[39] Kurniawan, E., Mustaniruddin, A., Rizani, A. K., Muchimah, Zaenuri, A., & Muttaqin, M. Z. (2025). Recent Studies on the Maqāṣid al-Sharīʻah of Abū Isḥāq al-Shāṭibī: A Systematic Literature Review. AJIS: Academic Journal of Islamic Studies, 10(1), 1–26. https://doi.org/10.29240/ajis.v10i1.11282
[40] Lai, T. K., Cutright, K. M., & Fitzsimons, G. J. (2025). From believer to buyer: How brands leverage religious values to connect with consumers. Journal of Consumer Psychology, 35(4), 711–720. https://doi.org/10.1002/jcpy.1465
[41] Luhuringbudi, T., Fatahillah, W., Muhtar, A., Masuwd, M. A., & Alrumayh, S. H. (2025). The Impact of the US-China Trade War on the Application of Islamic Law in Indonesia. Islamic Law and Social Issues in Society, 1(1), 1–23. https://doi.org/10.64929/ilsiis.v1i1.12
[42] Mahrinasari, M. S., Bangsawan, S., & Sabri, M. F. (2024). Local wisdom and Government’s role in strengthening the sustainable competitive advantage of creative industries. Heliyon, 10(10), e31133. https://doi.org/10.1016/j.heliyon.2024.e31133
[43] Mangunjaya, F. M., & Praharawati, G. (2019). Fatwas on Boosting Environmental Conservation in Indonesia. Religions, 10(10), 570. https://doi.org/10.3390/rel10100570
[44] Mariani, N. (2013). Ahmadiyah, conflicts, and violence in contemporary Indonesia. Indonesian Journal of Islam and Muslim Societies, 3(1), 1. https://doi.org/10.18326/ijims.v3i1.1-30
[45] McCleary, R. M., & Barro, R. J. (2006). Religion and Political Economy in an International Panel. Journal for the Scientific Study of Religion, 45(2), 149–175. https://doi.org/10.1111/j.1468-5906.2006.00299.x
[46] Mufid, Moh., & Muhammad, A. A. (2023). Islamic Philanthropy and Public Policy: A Study of Zakat Fatwas from the New Order Era to the Post-Reform Era. Jurnal Hukum Islam, 21(2), 201–230. https://doi.org/10.28918/jhi_v21i2_01
[47] Nasir, K. M. (2022). Islamic Revivalism and Muslim Consumer Ethics. Religions, 13(8), 747. https://doi.org/10.3390/rel13080747
[48] Pane, D. D., & Patunru, A. A. (2023). The role of imported inputs in firms’ productivity and exports: Evidence from Indonesia. Review of World Economics, 159(3), 629–672. https://doi.org/10.1007/s10290-022-00476-z
[49] Reviane, I. T. A., Paddu, A. H., Sari Saudi, N. D., Mirzalina Zaenal, F. D., & Sabbar, S. D. (2024). Assessing the implications of imported electricity equipment in Indonesia: A comprehensive ECM approach for short-term and long-term analysis. Journal of Infrastructure, Policy and Development, 8(8), 5926. https://doi.org/10.24294/jipd.v8i8.5926
[50] Rozi, F., Santoso, A. B., Mahendri, I. G. A. P., Hutapea, R. T. P., Wamaer, D., Siagian, V., Elisabeth, D. A. A., Sugiono, S., Handoko, H., Subagio, H., & Syam, A. (2023). Indonesian market demand patterns for food commodity sources of carbohydrates in facing the global food crisis. Heliyon, 9(6), e16809. https://doi.org/10.1016/j.heliyon.2023.e16809
[51] Sanuri. (2025). A maslahah-based review of MUI’s Fatwa on Cryptocurrency: A cognizant human perspective. Syariah Jurnal Hukum Dan Pemikiran, 25(1). https://doi.org/10.18592/sjhp.v25i1.16641
[52] Sanuri, Mubarok, N., Musafa’ah, S., & Irama, Y. (2025). Epistemological Transformation of ʿUrf in the DSN-MUI Fatwa on E-Commerce: A Maqāṣid al-Sharīʿah Based Analysis. Al-Manahij: Jurnal Kajian Hukum Islam, 167–190. https://doi.org/10.24090/mnh.v19i2.13145
[53] Saragih, J. R., Purwoko, A., & Asaad, M. (2024). Classifying Economic Sectors to Improve Regional Development Priorities in Indonesia. International Journal of Sustainable Development and Planning, 19(5), 1773–1783. https://doi.org/10.18280/ijsdp.190515
[54] Sholeh, A. N. (2024). Konsensus ulama fatwa Indonesia: Himpunan hasil ijtima’ ulama Komisi Fatwa se-Indonesia VIII tahun 2024. Jakarta: Majelis Ulama Indonesia.
[55] Sholeh, M. A. N. (2022). A Critical Analysis of Islamic Law and Fatwa of MUI (Majlies Ulama Indonesia) & NU (Nahdlatul Ulama’) on A Gold-Backed Cryptocurrency (OneGram). Al Ihkam Jurnal Hukum Dan Pranata Sosial, 17(2), 506–530.
[56] Sudarsono, H., Ikawati, R., Kurnia, A., Azizah, S. N., & Kholid, M. N. (2024). Effects of religiosity, halal knowledge and halal certification on the intention of Muslims to use the halal vaccine during Covid-19 pandemic. Journal of Islamic Marketing, 15(1), 79–100. https://doi.org/10.1108/JIMA-06-2021-0179
[57] Syihabudin, Rahmatullah, Najmudin, Henri Bimawan, & Fandy Adpen Lazzavietamsi. (2025). Contemporary Dynamics of Sharia Economic Law: DSN-MUI Fatwa No. 21/2001 in Takaful Dispute Rulings. MILRev: Metro Islamic Law Review, 4(2), 868–898. https://doi.org/10.32332/milrev.v4i1.10470
[58] Wardhono, A., Nasir, M. A., Qori’ah, C. G., & Indrawati, Y. (2021). Perfecting policies of chili agribusiness to support food security: Evidence from Indonesia districts. IOP Conference Series: Earth and Environmental Science, 759(1), 012048. https://doi.org/10.1088/1755-1315/759/1/012048
