Islamic Law Analysis of the Practice of Monopoly and Modern Market Oligopoly: Efforts to Realize Distribution Justice in Indonesia

Abstract

Market concentration in Indonesia’s energy, food, transportation, and digital economy sectors has intensified the dominance of large actors, generating risks of artificial scarcity, unfair pricing, and the exclusion of small business participants. This study aims to examine the implications of monopoly and oligopoly practices for distribution and consumption justice by integrating competition law analysis with Islamic legal principles. Using a qualitative normative-empirical approach, the research analyzes official KPPU reports, national regulations, and empirical studies published between 2020 and 2025, complemented by doctrinal analysis of fiqh muʿāmalah and the maqāṣid al-syarīʿah framework. The findings indicate that cartel behavior, supply control, and data-driven digital monopolies contradict the Islamic prohibitions of iḥtikār, ghabān fāḥish, tadlīs, and talāʿub bi al-asʿār when they cause public harm. Applying maqāṣid al-syarīʿah particularly ḥifẓ al-māl and distributive justice this study argues that monopoly practices are normatively acceptable only when they demonstrably produce public benefit and prevent mafsadah. The novelty of this research lies in its development of a normative-empirical evaluation framework that links Islamic legal principles with competition policy and regulatory practice. Practically, the findings support the strengthening of competition governance, regulation of state-owned enterprises and digital platforms, and the application of modern hisbah principles to promote inclusive and welfare-oriented market structures. This study is limited to secondary data and sectoral policy analysis, suggesting future research using firm-level or quantitative evidence.