Article Sidebar
Main Article Content
Abstract
Islamic Financial Institutions (IFIs) are financial entities that operate in accordance with Islamic Sharia principles, which prohibit practices such as riba (usury), gharar (uncertainty), and maisir (gambling), while upholding social and economic justice. This article aims to provide a comprehensive explanation of the operational concepts and Sharia principles that underpin the management of Islamic financial institutions, and to analyze their implementation within the modern financial system. This study employs a qualitative approach, drawing on sources from the Qur'an, Hadith, fatwas issued by the National Sharia Board of the Indonesian Ulema Council (DSN-MUI), and regulations issued by the Financial Services Authority (OJK). The findings indicate that the operations of Islamic financial institutions are founded upon three main pillars: justice ('adl), public interest (maslahah), and transparency (amanah). These principles are implemented through various Sharia contracts such as mudharabah (profit-sharing), musyarakah (partnership), murabahah (cost-plus sale), ijarah (leasing), and wakalah (agency). Sharia principles serve not only as a legal and moral foundation but also shape the institution's risk management system, Sharia governance, and Islamic Corporate Social Responsibility (ICSR). Therefore, the management of Islamic financial institutions is not merely profit-oriented but also grounded in spiritual, social, and sustainable economic values for the ummah. This study is expected to enrich academic literature on strengthening Sharia governance and to provide recommendations for regulators and practitioners to enhance the quality of Sharia compliance within the financial sector.
Keywords
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
- Adinda Arafah, Dwi Anggraini, and Sabilla Cahya Kinanti, "The Implementation of Sharia Principles in Sharia Financial Institutions," Studia Economica: Journal of Islamic Economics 9, no. 2 (2023): 186–93
- Antonio, M. S. (2001). Sharia Banks: From Theory to Practice. Gema Insani Press.
- Ascarya. (2017). Dual Monetary System and Interest Rate Policy in Indonesia: A Sharia Perspective. Bank Indonesia.
- Bank Negara Malaysia. (2019). Shariah Governance Framework for Islamic Financial Institutions. Kuala Lumpur: BNM.
- Beik, I. S., & Arsyianti, L. D. (2016). Sharia Development Economics. Rajawali Press.
- Chapra, M. U. (2000). The Future of Economics: An Islamic Perspective. Islamic Foundation.
- Dudi Badruzaman, "Implementation of Sharia Economic Law on Sharia Financial," Journal of Sharia Economics and Business 2, no. 2 (2019)
- Dusuki, A. W., & Abdullah, N. I. (2007). Maqasid al-Shariah, Maslahah, and Corporate Social Responsibility. American Journal of Islamic Social Sciences, 24(1), 25–45.
- Haniffa, R. Hudaib. M. Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports, Journal of Business Ethics (2007), 76:97-116
- Hasan, Z. (2011). A Survey on Shari'ah Governance Practices in Malaysia, GCC Countries, and the UK. International Journal of Islamic and Middle Eastern Finance and Management, 4(1), 30–51.
- IFSB. (2020). Guiding Principles on Shariah Governance Systems for Institutions Offering Islamic Financial Services. Kuala Lumpur: Islamic Financial Services Board.
- Karim, A. A. (2010). Islamic Bank: An Analysis of Fiqh and Finance. Rajawali Press.
- Lewis, M., & Algaoud, L. M. (2001). Islamic Banking. Edward Elgar Publishing.
- Mayang Rosana, "The Urgency of Applying Sharia Principles to Islamic Financial Institutions," Lunggi Journal: Multidisciplinary Scientific Excellence Literacy 1, no. 2 (2023)
- Financial Services Authority. (2019). Roadmap for Indonesia's Sharia Financial Development 2019–2024. Jakarta: OJK.
- Financial Services Authority. (2023). Indonesian Sharia Banking Statistics 2023. Jakarta: OJK.
- Rukaini, Juliana Putri, Implementation of Sharia Principles in Sharia Financial Institutions, Journal of Sharia Economic Innovation and Accounting (JIESA), No. 1, Year 2025
- Saeed, A. (1996). Islamic Banking and Interest: A Study of the Prohibition of Riba and Its Contemporary Interpretation. Brill Academic Publishers.
References
Adinda Arafah, Dwi Anggraini, and Sabilla Cahya Kinanti, "The Implementation of Sharia Principles in Sharia Financial Institutions," Studia Economica: Journal of Islamic Economics 9, no. 2 (2023): 186–93
Antonio, M. S. (2001). Sharia Banks: From Theory to Practice. Gema Insani Press.
Ascarya. (2017). Dual Monetary System and Interest Rate Policy in Indonesia: A Sharia Perspective. Bank Indonesia.
Bank Negara Malaysia. (2019). Shariah Governance Framework for Islamic Financial Institutions. Kuala Lumpur: BNM.
Beik, I. S., & Arsyianti, L. D. (2016). Sharia Development Economics. Rajawali Press.
Chapra, M. U. (2000). The Future of Economics: An Islamic Perspective. Islamic Foundation.
Dudi Badruzaman, "Implementation of Sharia Economic Law on Sharia Financial," Journal of Sharia Economics and Business 2, no. 2 (2019)
Dusuki, A. W., & Abdullah, N. I. (2007). Maqasid al-Shariah, Maslahah, and Corporate Social Responsibility. American Journal of Islamic Social Sciences, 24(1), 25–45.
Haniffa, R. Hudaib. M. Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports, Journal of Business Ethics (2007), 76:97-116
Hasan, Z. (2011). A Survey on Shari'ah Governance Practices in Malaysia, GCC Countries, and the UK. International Journal of Islamic and Middle Eastern Finance and Management, 4(1), 30–51.
IFSB. (2020). Guiding Principles on Shariah Governance Systems for Institutions Offering Islamic Financial Services. Kuala Lumpur: Islamic Financial Services Board.
Karim, A. A. (2010). Islamic Bank: An Analysis of Fiqh and Finance. Rajawali Press.
Lewis, M., & Algaoud, L. M. (2001). Islamic Banking. Edward Elgar Publishing.
Mayang Rosana, "The Urgency of Applying Sharia Principles to Islamic Financial Institutions," Lunggi Journal: Multidisciplinary Scientific Excellence Literacy 1, no. 2 (2023)
Financial Services Authority. (2019). Roadmap for Indonesia's Sharia Financial Development 2019–2024. Jakarta: OJK.
Financial Services Authority. (2023). Indonesian Sharia Banking Statistics 2023. Jakarta: OJK.
Rukaini, Juliana Putri, Implementation of Sharia Principles in Sharia Financial Institutions, Journal of Sharia Economic Innovation and Accounting (JIESA), No. 1, Year 2025
Saeed, A. (1996). Islamic Banking and Interest: A Study of the Prohibition of Riba and Its Contemporary Interpretation. Brill Academic Publishers.