Theological Constructs and the Islamization of Capitalism in Indonesian Islamic Banking: A Case Study

This study investigates the systemic inconsistencies in Indonesian Islamic banking, arising from the failure of sharia formalization by the National Sharia Board – Indonesian Ulama Council (DSN-MUI) and the broader entrapment within the Islamization of capitalism. It aims to uncover previously overlooked processes through which DSN-MUI fatwas have legitimized capitalist logics by endorsing financial systems and products structurally resembling usury. Moreover, social resistance, initially targeting Islamic banks, has increasingly extended to DSN-MUI fatwas themselves. The study presents three key findings. First, DSN-MUI fatwas, intended to formalize sharia, have instead facilitated the Islamization of capitalism by aligning religious rulings with state financial regulations. Second, Islamic banks demonstrate low compliance with sharia principles in both their operational systems and financial products, exploiting weak oversight by DSN-MUI. For instance, products such as mudharabah and murabaha often mirror conventional loan structures with fixed returns. Third, resistance is notably driven by former Islamic bank employees who, disillusioned by internal practices, have founded anti-usury movements aimed at challenging both Islamic banks and their religious justification. Future research should explore the structural relationship between DSN-MUI fatwas and Islamic banking policy as a foundational source of ongoing social resistance toward Islamic financial institutions in Indonesia.

کلیدواژه ها:

Islamic Banking ، Fatwa Of DSN-MUI ، Social Resistance ، Gimmick ، Theology