Comparative Analysis of Regulation and Fatwa on Islamic Insurance in Indonesia: A Perspective of DSN-MUI, OJK, and AAOIFI

Abstract

Islamic insurance (takaful) has developed as an important component of Indonesia’s Islamic financial industry, operating under Sharia principles that prohibit riba (interest), gharar (excessive uncertainty), and maisir (gambling). The governance of Islamic insurance in Indonesia involves multiple institutions with different authorities and orientations, namely the National Sharia Council of the Indonesian Ulama Council (DSN-MUI), the Financial Services Authority (OJK), and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). This study aims to analyze and compare the regulatory and fatwa frameworks issued by these three institutions in order to identify similarities, differences, and their implications for Islamic insurance practices in Indonesia. This research employs a qualitative descriptive approach using library research and document analysis methods. Primary data consist of DSN-MUI fatwas, OJK regulations on Islamic insurance operations, and AAOIFI Sharia and accounting standards. Secondary sources include academic literature and official reports relevant to Islamic insurance regulation. The analysis focuses on fundamental Sharia principles, operational structures, governance mechanisms, and financial reporting standards. The findings indicate that DSN-MUI, OJK, and AAOIFI share common foundational Sharia principles but differ in institutional orientation and regulatory scope. DSN-MUI emphasizes theological legitimacy and Sharia compliance, OJK concentrates on operational regulation and financial stability, and AAOIFI provides comprehensive international standards for governance and accounting. The study concludes that while Indonesia’s Islamic insurance framework demonstrates strong normative consistency, greater regulatory harmonization and institutional coordination are necessary to enhance transparency, legal certainty, and global competitiveness.