The Role of the Ulema Council’s Fatwa in Public Policy Formulation: A Study of Regional Sharia Economic Policy in Indonesia

This research examines the role of the Ulema Council’s fatwa in the formulation of regional sharia economic policies in Indonesia. Fatwas, as non-binding religious legal opinions, hold significant normative authority and serve as moral guidance for Muslim communities, while also providing a reference point for policymakers in shaping sharia-compliant regulations. The study explores the extent to which fatwas influence regional policies, the mechanisms of their integration into governance, and the challenges encountered in their implementation. Using a qualitative approach with literature review, case analysis, and comparative study of selected regions, the research identifies that fatwas have successfully contributed to the growth of sharia-based financial systems, halal certification, and zakat and waqf management. These successes demonstrate the potential of fatwas as instruments that bridge religious values with economic development. However, the research also finds critical challenges, including the non-binding nature of fatwas, issues of legal pluralism, uneven regional capacity, politicization of religious authority, and low levels of public literacy in sharia economics. The study concludes that while fatwas are important normative resources in regional policymaking, their effectiveness depends on harmonization with national law, institutional coordination, and community engagement. By providing both theoretical insights and practical recommendations, this research contributes to a deeper understanding of the intersection between religion and state governance in Indonesia, and underscores the importance of building inclusive, legitimate, and sustainable frameworks for sharia economic development.