Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Analysis of Sharia Economic Law and Government Policies in Enhancing Sharia Investment in Indonesia

Author(s): Evita Isretno Israhadi

The research aims to analyze sharia economic law and government policies in increasing investments on sharia business in Indonesia by way of a normative judicial study collected through a literature review and documentary analysis. There are four policies over sharia investment to be discussed in this study, namely; policies on the developments of sharia banking, sharia stock market, IKNB (sharia non-banking industry) and a policy on UUS (sharia financial service unit) spin off over Financing Institution. The result of the study shall underlie the authors’ ideas to suggest the government to reinforce regulations, in terms of sharia compliance, as a portfolio attribute within government policies oriented towards new paradigm shift in sharia economic law practices in Indonesia. The research describes opportunities by which sharia economic law and government policies shall enhance sharia investments on business. Consequently, it demonstrates significant evidence in supporting collaborations and broadening aspects regarding sharia economic law despite the lack of essential legal rules and specified policies on sharia investment. Hence, sharia laws on investments need to be intensively evaluated and drafted for the near future. Furthermore, legal rules and government policies should be consistently and continuously enabled to boost the growth of either national or global sharia business to meet investors’ expectation. This study is expected to provide contributions to respective stakeholders within the government currently in need of strategic moves to improve investment for the upgraded Indonesian economic.

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