Reorienting Indonesia’s Islamic Financial Policy: A Normative Review of State Sukuk

Abstract

This study investigates the normative orientation of Indonesia’s state sukuk policy within the framework of Islamic public finance. Drawing from sharia jurisprudence, legal theory, and fiscal policy, the research examines the degree of alignment between Indonesia’s sukuk issuance practices and Islamic ethical principles. Using a qualitative normative-juridical method, the study analyzes legal documents, policy instruments, and scholarly sources to assess the conformity of state sukuk to maqāṣid al-sharī‘ah. The findings reveal that while Indonesia’s sukuk framework shows technical adherence to Islamic finance standards, it lacks substantive ethical integration. Weaknesses include limited transparency, insufficient governance, and a focus on fiscal pragmatism over social justice. To resolve these issues, the study proposes a policy reorientation emphasizing maqāṣid-based planning, ethical oversight, and legal harmonization. These insights contribute to the discourse on Islamic financial reform, offering a model for integrating normative principles into national finance strategies in Muslim-majority countries.