Indonesian Legal Dynamics in Global Capitalism Reality: Analysis of the Formation of Indonesia’s Regulations

Abstract

Consumer protection in muamalah transactions is a critical aspect that emphasizes the principles of justice and balance in Islamic law. This article examines the mechanisms of consumer protection in muamalah transactions, focusing on both the rights of consumers and the responsibilities of producers or sellers. The study employs a qualitative approach through literature review, referring to Islamic legal sources such as the Quran, Hadith, and scholarly fatwas. The findings reveal that fiqh muamalah includes several provisions explicitly designed to protect consumers, such as prohibitions against gharar (uncertainty), riba (interest), and tadlis (fraud). Additionally, the principles of honesty (sidq) and transparency in transactions are strongly emphasized to ensure that consumers receive clear and complete information about the products or services they purchase. The implications of this study highlight the need for increased awareness and enforcement of laws in muamalah transactions to safeguard consumers from harmful practices. This article also recommends strengthening regulations and educating business practitioners to adhere to sharia principles in their operations.