Journal Islamic Economic Minangkabau

THE SYARIAH-COMPLIANT DIGITAL TRANSFORMATION: MAPPING ETHICAL FRAMEWORKS FOR ISLAMIC FINTECH ADOPTION IN SOUTHEAST ASIA

Mukhid Mukhid — 2025-02-24

Rapid digital transformation has reshaped financial services, positioning Islamic fintech as a strategic alternative grounded in syariah ethics. In Southeast Asia, the expansion of Islamic fintech has outpaced the development of coherent ethical frameworks, raising concerns about the depth of syariah integration beyond procedural compliance.This study aims to map and critically examine ethical frameworks guiding syariah-compliant digital transformation and Islamic fintech adoption across Southeast Asian contexts. The research employed a qualitative comparative design using secondary regulatory data, institutional documents, and selected case studies from major Islamic fintech markets. An ethical mapping approach was applied to analyze how principles such as transparency, justice, risk-sharing, and maqasid al-shariah are embedded within fintech governance and design. The findings reveal uneven ethical integration across jurisdictions, with stronger alignment in countries possessing mature regulatory and shariah governance systems. Most platforms emphasize formal compliance, while transformative ethical objectives remain weakly operationalized. Case evidence shows that early-stage ethical integration enhances governance coherence and stakeholder trust. The study concludes that sustainable Islamic fintech adoption requires shifting from compliance-oriented models toward integrative ethical frameworks embedded throughout the digital innovation lifecycle. This orientation supports inclusive finance, regulatory legitimacy, and long-term socio-economic resilience regionally sustainability.

MODELING RIBA-FREE CIRCULAR ECONOMY: A STRATEGIC ROADMAP FOR SUSTAINABLE RESOURCE MANAGEMENT IN MUSLIM-MAJORITY COUNTRIES

Amin Zaki — 2026-02-18

The growing urgency of environmental degradation and resource inefficiency has intensified the search for sustainable economic models that are not only environmentally sound but also ethically grounded. In Muslim-majority countries, sustainability initiatives often face structural tension due to reliance on interest-based financial systems that conflict with Islamic economic principles, particularly the prohibition of riba. This study aims to develop a conceptual model of a riba-free circular economy and to formulate a strategic roadmap for sustainable resource management that aligns circular economy principles with Islamic economic ethics. The research adopts a qualitative–conceptual design supported by systematic analysis of secondary data, policy documents, and comparative case studies from selected Muslim-majority countries. Conceptual modeling and analytical synthesis are employed to integrate circular economy mechanisms with riba-free financial instruments and governance structures. The findings demonstrate a strong normative and operational compatibility between Islamic economic principles and circular economy objectives, particularly in promoting long-term investment, risk-sharing, and real-sector engagement. The proposed strategic roadmap highlights the roles of regulatory alignment, Islamic finance innovation, and institutional coordination in operationalizing sustainable resource management. The study concludes that a riba-free circular economy constitutes a viable and contextually relevant pathway for advancing sustainability in Muslim-majority countries, offering both theoretical enrichment and practical guidance for policymakers and practitioners.

ASSESSING THE RESILIENCE OF ISLAMIC MICROFINANCE INSTITUTIONS AGAINST THE DISRUPTIVE FORCES OF PLATFORM ECONOMICS

Wahyu Hidayat — 2026-02-21

The rapid expansion of platform economics has fundamentally altered financial intermediation through digital platforms, algorithmic decision-making, and data-driven services. These developments pose significant challenges for Islamic Microfinance Institutions (IMFIs), which are grounded in ethical principles, relational trust, and community-based financial inclusion. The growing dominance of platform-based financial models raises concerns regarding the capacity of IMFIs to remain resilient while preserving their Islamic moral and social missions. This study aims to assess the resilience of Islamic Microfinance Institutions against the disruptive forces of platform economics, with particular attention to institutional, technological, and ethical dimensions. The research employed a mixed-method explanatory design, combining quantitative survey data from selected IMFIs in Southeast Asia with qualitative case studies, interviews, and document analysis. Resilience was examined through indicators of governance quality, adaptive capacity, digital readiness, and ethical sustainability. The findings reveal that resilience among IMFIs is uneven and strongly influenced by ethical governance and institutional coherence rather than by technological adoption alone. Institutions with strong shariah governance and community trust demonstrate greater resilience despite limited digital capabilities, while technology-driven adaptation without ethical integration yields fragile outcomes. The study concludes that sustainable resilience of Islamic Microfinance Institutions in platform-driven economies requires ethically grounded adaptation strategies that balance digital innovation with moral continuity and relational accountability.