Embedding Islamic Economic Principles in Indonesia's Cooperative Law: Pathways to Social Justice and Economic Equity
DOI:
https://doi.org/10.31958/jisrah.v6i03.15988Abstrak
Islamic Economics constitutes a comprehensive economic framework rooted in Islamic teachings derived from the Qur'an and Sunnah, integrating moral, ethical, and value-based principles such as the prohibition of riba (usury), social justice, and communal solidarity. In Indonesia, this system finds practical expression through cooperative management as a community-driven financial institution, regulated primarily by Law No. 25 of 1992 on Cooperatives. Notably, this legislation does not explicitly incorporate Sharia economic principles, despite the proliferation of Sharia-compliant cooperatives. This study employs a descriptive qualitative methodology with a normative legal approach, utilizing literature analysis of Law No. 25 of 1992 to examine the embedded Sharia economic values. Findings reveal substantial alignment between the law's provisions and core Islamic economic tenets, particularly in emphasizing social justice, equitable wealth distribution, and mutual cooperation (gotong royong)—fundamental pillars of the Islamic economic paradigm. These synergies underscore the potential of Indonesia's cooperative legal framework to advance inclusive economic development and social equity through Sharia-compliant governance.
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