Deciphering Economic Fatwas in Muhammadiyah: A Comprehensive Qualitative Analysis from 1950 to 2017

Abstract

This study examines the evolution of fatwas issued by the Tarjih and Tajdid Council the Central Executive of Muhammadiyah in the economic sector from 1950 to 2017. This topic was chosen because of the significant impact of these fatwas in shaping economic practices among the Muhammadiyah community, especially in responding to social and economic changes over the past few decades. This research uses a qualitative method by collecting data from various sources, including books, articles, journals, and official documents of the Tarjih Council. The data obtained was analyzed in depth to map the distribution of fatwas, as well as explore the theoretical foundations and arguments of scholars used in the formulation of these fatwas. In its analysis, this study adopts the theory of fiqh to understand the basis of thinking behind fatwa decisions. The results of the study show that the fatwas of the Tarjih Council and the Central Executive of Tajdid Muhammadiyah in the economic sector during the period were divided into three main areas: Social Economy, Banking, and Investment. As-Sunnah (Hadith) is the basis that is most often referred to in these fatwas. In addition, this study identifies that the opinion of the Hanafi School is more dominant compared to other schools. This research contributes to increasing the understanding of fatwas in the economic field formulated by the Tarjih Council and the Central Executive of Muhammadiyah Tajdid, as well as showing a strict and selective process in issuing fatwas, especially in the economic sector.