LITERATURE STUDY ON THE ROLE OF DSN-MUI FATWAS IN THE DEVELOPMENT OF SHARIA INVESTMENT IN INDONESIA

Abstract

This study maps the role of fatwas issued by the National Sharia Council of the Indonesian Ulema Council (DSN-MUI) in establishing the legal and operational basis for sharia investment products in Indonesia. Through a systematic literature review of journals and national repositories, the study examines the legal basis and position of fatwas within the hierarchy of sharia financial regulations, the contribution of fatwas to the design and compliance of investment products (banking, capital markets, mutual funds, digital gold), and the implementation challenges when fatwas intersect with OJK/POJK regulations and market practices. Findings indicate that DSN-MUI fatwas play a crucial role as sharia guidelines that enhance product legitimacy. However, limitations in formal sanctions and the need for harmonization with state regulations sometimes create a gap between sharia norms and technical regulations. Recommendations include strengthening coordination mechanisms between DSN-MUI and regulatory authorities and increasing transparency of sharia compliance criteria in investment products.