OPTIMIZING WORKING CAPITAL FINANCING IN INDONESIA: AN ISLAMIC ECONOMIC LAW PERSPECTIVE

Heni Noviarita; Khavid Normasyhuri; Jum Anggriani; Hasani Ahmad Said; Abdul Qodir Zaelani

doi:10.33102/mjsl.vol13no2.1374

Authors

Heni Noviarita Faculty of Islamic Economics and Business, Raden Intan Islamic University of Lampung, Jl.Letkol H.Endro Suratmin Kampus Sukarame Bandar Lampung Indonesia
Khavid Normasyhuri Faculty of Islamic Economics and Business, Raden Intan Islamic University of Lampung, Jl.Letkol H.Endro Suratmin Kampus Sukarame Bandar Lampung, Indonesia
Jum Anggriani Faculty of Law, Pancasila University Jakarta, Jl.Lenteng Agung Raya No 56,Srengseng Sawah Jakarta Selatan, Daerah Khusus Jakarta, Indonesia
Hasani Ahmad Said Faculty of Islamic Theology, Syarif Hidayatullah University, Jakarta, Jl.Ir.H Juanda no 96 Viputat Kota Tangerang Selatan, Indonesia
Abdul Qodir Zaelani Faculty of Islamic Economics and Business, Raden Intan Islamic University of Lampung, Jl.Letkol H.Endro Suratmin Kampus Sukarame Bandar Lampung, Indonesia

DOI:

https://doi.org/10.33102/mjsl.vol13no2.1374

Keywords:

Optimisation, working capital financing, Islamic bank, Islamic economic law

Abstract

Islamic banking firms in Indonesia face challenges in maximizing working capital funding. These challenges stem from the limited use of digital technology, partially adaptable legislation, and inadequate risk management skills aligned with Shariah principles and values. This paper analyzes the use of Islamic economic law concepts in developing effective, equitable, and Shariah-compliant working capital financing solutions. This study employs a qualitative approach, utilizing a literature review method and a descriptive-analytical framework to analyze literature on Islamic economic law, DSN-MUI fatwas, and the operational practices of Islamic financial institutions. The data are sourced from the Financial Services Authority (OJK), an independent state institution responsible for regulating and supervising the financial services sector in Indonesia. The results indicate that fundamental principles, including the prohibition of usury, fairness ('adl), partnership (syirkah), and transparency, serve as the primary foundations for the execution of Islamic financial contracts such as mudharabah, musyarakah, and murabahah. In contrast to traditional financial institutions that rely on interest, LKI prioritizes a balanced system of profit-sharing and risk-sharing, thereby promoting engagement in genuine economic activity. Furthermore, DSN-MUI Fatwa No. 117/DSN-MUI/IX/2018 on Shariah digital financial services enhances the technology dimension in delivering secure and efficient funding. This research establishes that Islamic economic law is essential for developing an inclusive, sustainable, and maqashid Shariah-compliant working capital finance system. It significantly enhances the practice of Islamic economic law and presents strategic suggestions for LKI to address issues in financing the productive sector, particularly MSMEs in Indonesia.

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