Ridwan, Muhammad Fuad Zain
This study aims to analyze the Indonesian government’s political economy policy related to sharia economic law legislation with a legal and political approach since 1998. A fundamental change in the political economy is the policy of formalizing Islamic economic law with the birth of KHES based on the Decree of the Supreme Court's Chief Justice. KMA/097/SK/X/2006, which is strengthened by Law Number 3 of 2006 concerning the Authority of the Religious Courts regarding the Religious Courts which adjudicate marriages, inheritance, wills, and sharia economic dispute resolution. Primary data sourced from state regulations which obtained through document and be analyzed qualitatively by a socio-legal approach. Periodically, the development of the Islamic economy in Indonesia after independence consists of the Old Order period (1945-1966), the New Order period (1967 - 1991), the period of Bank Muamalah (1992-2000), and the Post-Reformation period (2001 to present). The historical development of sharia economic law displays a dynamic character that is unique to regulate socio-politics and culture as essential element that influences the steps and direction of Islamic sharia economic legislation in Indonesia. The results showed a trend of changing legal and political policies after the reformation by strengthening Islamic identity politics. Political reforms became the impetus for the birth of reform ideas and movements in the economic sector, including the sharia economy.