The Legal Architecture of Indonesia's Sharia Economy and Finance: Enabling the Common People to Smile Happily
Indonesia’s sharia economy and finance have moved from the fringes to the mainstream. It no longer stands merely as a religious expression but has become part of the national development strategy, strengthening competitiveness, the equity agenda, and an instrument for national economic growth. This strengthening will only be sustainable if it stands on a solid and integrated legal architecture within the types and hierarchy of legislation.
The Constitution or the 1945 Constitution of the Republic of Indonesia up to Regional Regulations must serve as the legal foundation that affirms the Legal Architecture of Sharia Economy and Finance as a complete and solid legal framework so that sharia economy and finance are not easily trapped in programme fragmentation, overlapping authorities, and policies that do not depend on momentary whims. Therefore, the strengthening of sharia economy and finance does not stand in a vacuum but is based on interconnected legal structures and substances that need to be continuously refined so that ultimately it creates a living and growing culture of Sharia Economy and Finance Law in the archipelago and as the main driver of national economic growth.
At the level of basic norms (grundnorm) as the highest legitimacy for the Constitution, the Legal Architecture of Sharia Economy and Finance is sourced from the source of all legal sources, namely Pancasila. The dimension of Divinity, the dimension of Social Justice, the dimension of Humanity, and the dimension of Populism become the foundational values and spirit of the nation that affirm the practice of sharia economy and finance that lives and grows within the framework of the nation-state. Freedom of religion and recognition of citizens’ beliefs open space for the development of sharia-based transactions and financial institutions, while the aims of social justice, humanity, and populism direct sharia economy and finance to contribute to the welfare of all the people, not just certain groups.
From a legal theory perspective, what is happening can be read through Gustav Radbruch’s thoughts on the three basic values of law: justice, utility, and certainty. Sharia economy and finance contain basic values of justice and utility, but only gain certainty when translated into generally applicable legal norms (positive law). It is evident that the Legal Architecture of Sharia Economy and Finance contained in MEKSI 2025-2029 will be able to drive a shift from mere religious morality to binding positive law in general.
At the same time, J.J. Rousseau’s political legal theory with his Social Contract theory, which affirms the Constitution as the embodiment of a social contract, can make or provide a better impact for the people than what the people obtained before, the people will get something better and safer, so the Legal Architecture of Sharia Economy and Finance contained in MEKSI 2025-2029 will make the state’s choice to include sharia economy and finance in the national development agenda for long-term, medium-term, and annual terms as a political legal decision that will facilitate the state in realising the welfare of the people, prosperous people, ordinary people easily smile happily.
Meanwhile, from Hans Kelsen’s pure theory of law, policies contained in implementing regulations will obtain their validity because they are sourced from higher legal norms in the hierarchy of legislation (Stufenbau Theory). From H.L.A. Hart’s perspective, with his rules of recognition theory, sharia economy and finance are indeed recognised as part of the official standards that must be referred to by state organs in acting to achieve the state’s goals, the welfare of the people, prosperous people.
It is in this context that MEKSI gains significance. Formally, it is not a Law. However, functionally, MEKSI works as a bridge between constitutional visions and macro policies on one side, and sectoral regulations on the other. It contains policy directions, strategic programmes, and targets that serve as references for ministries/institutions and regional governments.
Lawrence M. Friedman’s legal system theory helps explain this position. According to Friedman, the legal system consists of three elements: substance (content of norms), structure (institutional), and culture (values and behaviour patterns). MEKSI touches all three at once. It regulates policy substance, is born from the official state structure, and seeks to change bureaucratic culture by encouraging legal loyalty to the sharia economic agenda. Thus, MEKSI’s legitimacy is not only normative but also institutional and sociological.