The Political Economy of Fatwas on Digital Finance: Religious Authority, State Governance, and Market Interests

Published: 2026-04-30 Pages: 83–100 DOI: 10.66277/cfs.v1i1.411
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Abstract

This article examines the political economy underpinning the production of fatwas concerning digital finance in Indonesia, positing that contemporary Islamic legal authority is shaped not solely through juristic interpretation but also through institutional interactions among religious authorities, state governance, and market interests. Utilizing a qualitative methodology based exclusively on documentary analysis, this study examines selected fatwas issued by the National Sharia Council of the Indonesian Council of Ulama (DSN–MUI), alongside regulations promulgated by Bank Indonesia (BI) and the Financial Services Authority (OJK), as well as pertinent institutional documents. The findings reveal that fatwas on digital finance operate not merely as religious opinions but as instruments of governance that structure contractual relationships, facilitate regulatory coordination, and support the institutionalization of emerging financial technologies. Building on these insights, the article introduces the concept of Negotiated Fatwa Governance to elucidate how contemporary Islamic legal authority is co-produced through ongoing institutional negotiation rather than exclusively through doctrinal reasoning. This framework advances contemporary fiqh by reconceptualizing the fatwa as a dynamic governance mechanism within the political economy of digital finance.

Keywords

Political Economy of Fatwa Digital Finance Religious Authority State Governance Market Interests

Copyright

Copyright Holder: Intan K. Khotimala Putri

Copyright Year: 2026

License: Creative Commons Attribution 4.0 International License

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How to Cite

The Political Economy of Fatwas on Digital Finance: Religious Authority, State Governance, and Market Interests. (2026). Contemporary Fiqh Studies, 1(1), 83–100. https://doi.org/10.66277/cfs.v1i1.411