Regulatory Dualism in the Legal System of Sharia Microfinance Institutions in Indonesia: Harmonization Or Disharmonization?
Year: 2026
Type: article
Abstract: Islamic Microfinance Institutions (Islamic LKM) in Indonesia play a crucial role in increasing financial inclusion and economic empowerment, particularly for micro-entrepreneurs. This study aims to analyze the regulatory dualism within the Islamic LKM legal system and assess whether this creates harmonization or disharmony. The method used was a literature review with a qualitative approach, utilizing primary, secondary, and tertiary legal materials. The study results indicate that the regulation of Islamic LKMs is based on Law Number 1 of 2013 and the sharia principles established by the National Sharia Council of the Indonesian Ulema Council. While this regulatory dualism can foster harmonization through the integration of legal certainty and religious values, it also has the potential to create disharmony due to differences in norms, authority, and interpretation. Therefore, harmonization efforts are needed through regulatory synchronization, strengthening inter-institutional coordination, and improving the quality of human resources to create an integrated and effective legal system to support the development of Islamic LKMs in Indonesia.
Source: Tasyri Journal of Islamic Law
Authors: Fuja Dastiana, Ahmad Wira, Testru Hendra
Institution: Universitas Islam Negeri Imam Bonjol Padang
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7197024176