Islamic Fintech Lending and Shari’ah Governance:

Efforts Toward Achieving Inclusive and Transparent Finance

Adi Nur Rohman

Sugeng

Rabiah Al Adawiah

Widya Romasindah Aidy

 

Abstract: The rapid growth of Islamic fintech lending in Indonesia presents strategic opportunities for enhancing financial inclusion in compliance with Shari’ah principles. Nevertheless, regulatory dynamics, diverse business models, and varying institutional capacities continue to pose challenges in implementing an effective Shari’ah Governance Framework (SGF). This article aims to analyse the key issues in SGF implementation within Indonesia’s Islamic fintech lending sector and to propose forward-looking, sustainable solutions. The study employs a normative juridical approach, examining statutory regulations, fatwas issued by the National Shari’ah Board, conducting a literature review, and conducting in-depth interviews with relevant stakeholders. The findings reveal gaps between normative provisions and operational practices, limited competency among members of the Shari’ah Supervisory Board (SSB) at the corporate level, and a weak integration of oversight between financial authorities and fatwa-issuing bodies. As a solution, this article recommends strengthening SGF standards by adopting international best practices, enhancing the capacity and certification of SSB members, integrating technology-based supervisory systems, and harmonising cross-institutional regulations. The implementation of these measures is expected to improve credibility, Shari’ah compliance, and the competitiveness of Islamic fintech lending in Indonesia on a sustainable basis.