Compliance of the Warehouse Receipt System with Maqasid al-Shari’ah Principles: Evidence from Indonesia

Muhamad Subhi Apriantoro

 

Abstract: This article investigates alignment of the Warehouse Receipt System (WRS) with Maqasid Shari’ah principles within Indonesia's agricultural sector. Amidst growing interest in embedding Islamic principles across various sectors, the WRS emerges as a crucial mechanism designed to facilitate proper storage and management of agricultural commodities, adhering to Islamic law’s objectives. Through a comprehensive methodological approach, combining literature reviews, case studies, qualitative interviews, and regulatory analysis, this article explore the ethical and legal intersections between Islamic finance principles and agricultural commodity management. The findings reveal that aligning the WRS with Maqasid al-Shari’ah not only upholds ethical standards and justice in agricultural storage and distribution but also significantly contributes to the sector's development and stability by fostering trust among stakeholders. The research underscores the importance of social welfare and environmental sustainability in Islamic jurisprudence, advocating for holistic practices that serve broader community interests while respecting natural resources. The article highlights the potential of Shari’ah-compliant WRS to support ethical and sustainable business practices, enhancing the reputation and credibility of the agricultural sector within the Islamic financial and business community. The article recommends the integration of Maqasid al-Shari’ah values into the regulatory framework governing the WRS through continuous stakeholder engagement to ensure effective and sustainable implementation.