The Implementation of Smart Contracts and Blockchain-Based Smart Sukuk in Islamic Finance: A Sharia Economic Law Perspective

Abstract

This study explores the application of smart contracts and blockchain-based smart sukuk within the framework of Islamic finance, focusing on their alignment with Sharia Economic Law principles such as justice ('adl), maslahah (public benefit), and maqasid sharia (including hifz al-mal or wealth protection). As blockchain technology advances, it offers innovative solutions for transparent, automated, and secure financial transactions, potentially enhancing the efficiency of Islamic financial instruments like sukuk. However, the integration of smart contracts—self-executing agreements coded on blockchain—raises concerns about compliance with Sharia prohibitions on uncertainty (gharar) and speculation (maysir). The research adopts a normative juridical approach, analyzing primary sources (Quran, Hadith, DSN-MUI fatwas) and secondary sources (Indonesian regulations like Law No. 21 of 2008 on Sharia Banking, OJK guidelines on fintech, and blockchain-related policies). Data were gathered through literature review and regulatory analysis. Findings indicate that while smart contracts and smart sukuk can promote inclusive and equitable finance, challenges persist in ensuring Sharia compliance, particularly in rural areas with limited digital access. Recommendations include strengthening regulatory frameworks to incorporate blockchain innovations while upholding Islamic principles.