Sharia Economic Law in Encouraging Sustainable Economic Development in Indonesia

Abstract

Sustainable economic development requires an approach that integrates economic growth, equitable prosperity, and environmental responsibility. In this context, Islamic economic law offers principles of justice, balance, partnership, benefit, and responsible resource management. This study aims to analyze how Islamic economic law contributes to sustainable economic development in Indonesia and to identify the challenges and opportunities in implementing its principles. The study uses a descriptive qualitative approach utilizing primary and secondary data analyzed thematically and supported by a comparative perspective. The findings show that Islamic economic law contributes to sustainable development through profit-sharing and partnership mechanisms, expanded access to Islamic financial services, responsible resource management, and regulatory strengthening. This framework is supported by Law No. 21 of 2008 concerning Sharia Banking, Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector, Law No. 4 of 2026, and OJK Regulation No. 4 of 2026 concerning the Implementation of Islamic Banking Investment Products. However, limited public literacy, institutional and human resource capacity, regulatory adaptation, and the need to demonstrate measurable economic, social, and environmental benefits remain significant challenges. Therefore, the contribution of Islamic economic law depends on effective implementation of its principles through adaptive regulation, institutional strengthening, and community empowerment.