ACCEPTANCE OF FATWA OF INDONESIAN ULAMA COUNCIL (MUI) IN ISLAMIC FINANCE AND ECONOMIC REGULATION
Written by Ifa Latifa Fitriani, S.H.I, M.H., (Hakim Pengadilan Agama Morotai)
Indonesia, a country with the largest Muslim population, has a non-civil organization called the Indonesian Ulama Council (MUI). Generally, the Position of MUI and its Fatwa is complex enough to be classified. The existence of this institution has its own uniqueness compared to other similar councils in many Islamic countries. Based on M. Atho Muzhar’s book, Fatwa of The Council of Indonesia Ulama: a Study of Islamic Legal Thought in Indonesia, the history recorded that at first, Soeharto’s government undoubtedly suggested the restriction where the main function of the council was simply adviser in religious issues. It did not allow the council to do any practice programs. However, currently MUI can cover various aspects that impacts social, political, economic, and legal elements of nation state of Indonesia. Specifically, in context of the law, although MUI and its Fatwas have no legal binding directly by its own selves, but the fatwa has its own position in term of sharia regulation especially in sharia finance and economics. Simply stated, at least there are two major considerations to legitimate MUI that ensures the development of Islamic finance and economic transactions regulation in Indonesia.
The first, it is necessary to study the position of MUI as Ulama Council itself. Based on World Population Review data, the current Muslim population in Indonesia in 2020 reaches 229 million people or 87.2% of the total population of 273.5 million. The fact that Indonesia is resided by the most massive Muslim’s citizens in the world requires the guidance of Ulama (Muslim council). After long periods since established in 1975, MUI is more recognized and its position is evidently identified as a main consensus forum of Ulama. As the representation of Ulama of Indonesia, MUI consists of different Islamic social organizations and Islamic scholars. The assembly has several functions including providing advice and fatwas on religious and social issues to the Government and society, balancing their religious life and other social matters, even becoming a liaison between the ulama and the umaro (government) in order to succeed in national development programmes. In term of Fatwa, there are diverse definitions of Fatwa among Islamic scholars, but most of them agree defining Fatwa as an answer or a response from a mufti or mufti council about a question asked by a questioner (mustafi), whether it is the law or other aspects of life. In fact, major ulamas approve that fatwa constituted as Islamic legal opinion issued by ulama, thus it is not like a formal law. It has no direct legal binding to majority, but it has impact to the Muslim society. Interestingly, although MUI is non-state organ, the government noticeably cannot neglect the presence of MUI in every province. Looking further into the situation of Indonesia, the establishment of MUI obviously cannot be separated with the first principle of Pancasila ‘religiousness’, Grundnorm or Staatsfundamental norm, which is the basis of the nation and state. Therefore, respecting the council and its fatwa are the undeniable certainty in the context of Indonesia nation state.
The second aspect that demands to be discussed more is the Legitimation of MUI’s fatwas in Islamic finance and economic regulations. For more two decades, Islamic economics and finance has been practiced and penetrated in all financial sectors from Islamic bonds (Sukuk), Islamic banking, and Islamic microfinance institutions both at the international and at the national levels. According to Director of Sharia Ecosystem Infrastructure at National Committee for Sharia Economics and Finance (KNEKS), Sutan Emir Hidayat states that Indonesia is in the top position in the global Islamic financial market in 2019. It has stably developed since formally formed in 1992. The growth of the market encourages the government to settle the specific regulation, where the law making must involves the expert who can combined the sharia principle and the state regulation. Therefore, MUI who also provides fatwa of Islamic matters including economics and finance by the expert board called Sharia National Board (DSN MUI) must be involved in the law-making process. In case of Indonesia formal law, the adoption of fatwa on the Act is divided into two areas. Firstly, the rule indirectly stated legitimation of MUI, but clearly absorbed the fatwa and advise consideration. Secondly, it directly delegated MUI’ fatwa. Focusing on the first one, the law puts the MUI’ fatwa specified as the main resource of sharia principle beside the others when government asking the consideration and advice of ulama. A slightly different from the first, the second has clearer enough bargaining position. Based on Article 25 of Law Number 19 Year 2008 on Sovereign Sukuk and Article 26 of Law Number 21 Year 2008 on Sharia Banking for the example, the Laws give the attributive authorities to MUI and the more specific legitimation on MUI and its Fatwa. In first Act, the explanation of the article regulates that the term “institutions having internal authority stipulating fatwas in the field of sharia” is the Indonesian Ulama Council or other institutions appointed by the Government. It is similar to the second Act. The Article of second Act clearly legalizes that Sharia principles that referred by this rule are the ones that has been imposed by the Indonesian Ulama Council. Both of the Acts importantly put MUI as a sole resource even sole interpreter for all those sharia transactions. Therefore, regarding these legal problems, MUI and Its Fatwa become the main references.
To summarize, according the aforementioned two key points, it can clearly claim that MUI and its Fatwa occupy significant position to affect the legal system of Indonesian related to sharia finance and economic regulations. MUI and its fatwa cannot be separated with the law-making process, even we can call it ‘as primer sources’ thought of the rule of sharia principle in Indonesia so far. However, as non-government body, the direct legal binding of the MUI’s fatwa only occurs when the state by national legislation system accepts it into the formal law that can be obeyed by all citizens. Therefore, at the end it depends on government good will.