Comparison of Islamic Trade Law in the Indonesian and Malaysian Stock Exchanges 111 253

Abstrak

The development of Islamic capital markets in Southeast Asia reflects growing demand for ethical and Sharia-based trading systems. Indonesia and Malaysia play strategic roles in this sector but differ in their Islamic Trade Law frameworks and implementation. This study examines and compares the legal foundations and application of Islamic Trade Law in the Indonesian and Malaysian Stock Exchanges, focusing on legal basis, institutional structure, supervisory mechanisms, investor protection, and dispute resolution. Using a normative juridical approach with a comparative law method, the research relies on statutory regulations, capital market authority rules, Sharia fatwas, court decisions, and relevant academic literature. The findings reveal that Indonesia adopts a collaborative model combining state law and religious fatwas, while Malaysia incorporates Sharia standards directly into binding positive law. These approaches influence regulatory flexibility, consistency, and supervisory structures. Despite structural differences, both countries share the objective of establishing a fair, transparent, and sustainable Islamic capital market. The study concludes that integrating Indonesia’s normative flexibility with Malaysia’s regulatory consistency offers a potential model for strengthening Islamic Trade Law and advancing regional harmonization efforts.