Sharia Economic and Management Business Journal (SEMBJ)

Branding of Halal Accommodation in Supporting Sharia Tourism

2026-03-18T04:31:18+07:00

Background: The global Muslim population reached 26% in 2020 and is projected to reach 34% by 2070, driving significant demand for halal tourism. Indonesia, as the country with the largest Muslim population, possesses enormous potential for Sharia tourism development, yet faces challenges including unclear regulations, limited facilities, and low public awareness of halal certification. In Aceh, only two out of 84 accommodation units have obtained halal certification despite many claiming to operate on Sharia principles.

Method: This study employed a quantitative approach with explanatory and correlational research design. A sample of 600 respondents was selected using simple random sampling from star-rated hotels in Banda Aceh. Data were collected through closed questionnaires with a 1-5 Likert scale. Data analysis utilized Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) using SmartPLS 4.0 software.

Results: The results indicate that all branding variables—Brand Salience, Brand Meaning, Brand Response, Brand Resonance—and the Role of Government have significant positive influences on Sharia tourism development (p-value < 0.05). Brand Resonance demonstrated the strongest influence (path coefficient 0.321), followed by the Role of Government (0.289). The model showed good goodness of fit with SRMR 0.035 and NFI 0.926.

Conclusion: The conclusion emphasizes that strong halal accommodation branding and government support through regulation and oversight are essential keys to positioning Aceh as a leading destination in the global halal tourism industry.

Analysis of Digital Consumerism Based on Cultural, Economic, and Social Aspects in the Islamic Economic Framework

2026-04-05T22:35:19+07:00

Background: The advancement of digital technology has significantly changed people's consumption behavior, especially among Generation Z Muslims. However, studies that specifically measure digital consumerism within the framework of Islamic economics are still limited. This study aims to analyze digital consumerism based on cultural, economic, and social aspects, as well as develop a valid and reliable measurement instrument in accordance with Islamic values.

Method: The method used is descriptive quantitative with a Likert scale questionnaire instrument consisting of 13 statement items. The instrument was tested on 30 Muslim generation Z respondents in Bengkulu Province through three validity and reliability tests using Minitab software.

Results: The results showed that most statement items had correlation coefficients above 0.5 and a Cronbach's Alpha value above 0.94, signifying excellent internal consistency and reliability. The results of validity and reliability tests conducted three times using Minitab showed that out of 13 items, there were 8 items that were declared valid and reliable with a correlation value > 0.5 and Cronbach's Alpha above 0.94.

Conclusion: This instrument is expected to be a reference for further research in measuring Islamic consumerism and as a basis for developing consumption education strategies that are in accordance with sharia principles in the digital era.

The Influence of Capital, Education, and Motivation of Female Fisherwomen on the Development of Fisheries Entrepreneurship in Manado City

2026-03-18T16:32:07+07:00

Background: Female fisherwomen in coastal Indonesia play a key role in post-harvest fisheries activities, yet their entrepreneurship development remains constrained by limited capital access, inadequate education, and motivational barriers. Objective: This study examines the influence of capital access, educational level, and entrepreneurial motivation on fisheries entrepreneurship development among female fisherwomen in Manado City, using an Islamic entrepreneurship framework.

Method: A quantitative survey design was employed with 120 respondents selected through purposive sampling across four coastal sub-districts of Manado. Multiple linear regression was used to test four hypotheses.

Results: Capital access (β = 0.312, p < 0.01), educational level (β = 0.287, p < 0.01), and entrepreneurial motivation (β = 0.341, p < 0.01) each significantly and positively influence fisheries entrepreneurship development, with the model explaining 60.8% of variance (Adj. R² = 0.608). Entrepreneurial motivation is the strongest predictor.

Conclusion: Integrating Islamic microfinance instruments (qard hasan, mudharabah) alongside gender-responsive entrepreneurship education and productive waqf mechanisms can meaningfully strengthen women's fisheries entrepreneurship in coastal Indonesia.

The Role of Stress Testing in Enhancing Financial Transparency and Credit Risk Management: Evidence from Islamic and Conventional Banking in ASEAN

2026-04-06T12:11:16+07:00

Background: Despite the growing importance of stress testing as a supervisory tool, its role in reducing information opacity and improving credit risk management remains underexplored in ASEAN’s dual banking system, where Islamic and conventional banks operate under distinct financial structures.

Method: Using a Panel Vector Autoregression (PVAR) model with Generalized Method of Moments (GMM), this study analyses 72 listed banks across five ASEAN countries over 2012–2022. Credit risk is proxied by NPL/NPF ratios, incorporating key macroeconomic and bank-specific variables.

Results: The findings indicate that credit risk dynamics are highly persistent, with own shocks accounting for more than 97% of forecast error variance in both banking systems. GDP growth and real interest rates emerge as the most influential macroeconomic determinants. Islamic banks display mean-reverting credit risk behaviour, whereas conventional banks exhibit greater persistence. Impulse response analysis reveals that macroeconomic shocks have statistically significant but heterogeneous effects across bank types. In addition, Granger causality results suggest that macroeconomic variables can serve as early warning indicators of credit risk. The COVID-19 period provides additional evidence that stronger capital buffers help mitigate the transmission of macroeconomic shocks to NPL ratios.

Conclusion: These results support the role of stress testing as a tool for improving risk assessment and strengthening supervisory oversight in ASEAN banking systems. This study contributes by providing the first PVAR-based comparative analysis of stress testing in ASEAN’s dual banking system, incorporating the COVID-19 shock as a natural experiment, and offering cross-country evidence on the role of stress testing in improving financial transparency.

Integrating Islamic Values into HR Practices to Combat Fraud in Islamic Finance

2026-04-10T10:47:38+07:00

The rapid growth of Islamic financial institutions has highlighted the need for HR practices that integrate Islamic values, particularly in preventing fraud. This study investigates the relationships between recruitment, selection, trustworthy human resources (HR), and fraud-free systems within Islamic financial institutions. Using Structural Equation Modeling (SEM) with SmartPLS 4, the study tests the direct and indirect effects of recruitment and selection on fraud prevention through trustworthy HR. The results show that both recruitment and selection significantly influence the formation of trustworthy HR, which in turn reduces the risk of fraud. The study also finds that trustworthy HR mediates the relationship between recruitment, selection, and fraud prevention. The research highlights the importance of aligning recruitment and selection strategies with Islamic ethical principles to ensure the development of a trustworthy workforce. The findings contribute to the literature on Islamic HRM by offering a model that links HR practices to fraud prevention. This study suggests that HR managers in Islamic financial institutions should prioritize value-based recruitment and selection processes, along with ongoing ethical training, to foster a culture of integrity and transparency. Future research could examine the role of other organizational factors, such as leadership and external regulations, in preventing fraud.

Determining User Comfort With Bank Syariah Indonesia: Perspectives On Electronic Word Of Mouth And Brand Image

2026-04-13T07:28:58+07:00

Background: Indonesia’s Islamic banking sector continues to expand, with Bank Syariah Indonesia (BSI) playing a major role in asset growth and digital service adoption. Despite increasing use of BSI Mobile, customer complaints about digital service reliability have generated negative electronic word-of-mouth (e-WOM) that may affect brand image and user trust. Most previous studies focus on purchase intention and loyalty, while limited research examines user comfort. Therefore, this study analyzes the influence of e-WOM and brand image on user comfort in using BSI Mobile services.

Method: This study employed a quantitative approach to examine the influence of Electronic Word of Mouth and Brand Image on User Comfort. The population consisted of 991 Sharia Banking students at UIN North Sumatra who use BSI Mobile. Using the Slovin formula, a sample of 91 respondents was selected based on specific usage criteria. Data were collected through questionnaires distributed via Google Forms, supported by observation and documentation, and analyzed using Multiple Linear Regression.

Results: The findings show that user comfort is positively and significantly impacted by e-WOM and brand image, both partially and concurrently. e-WOM and brand image account for 62.3% of the variation in user comfort, according to the coefficient of determination (R²) of 0.623. These results imply that improving user satisfaction in Islamic digital banking services requires positive digital evaluations and a strong brand image.

Conclusion: The results show that Electronic Word of Mouth (e-WOM) and Brand Image have a significant and positive effect on user comfort in using BSI Mobile services, both partially and simultaneously, with a coefficient of determination (R²) of 0.734. These findings indicate that strengthening positive digital communication and maintaining a strong brand image are essential strategies to enhance user comfort and trust in digital Islamic banking services.

Determinants of successful digital adoption : A Meta-Synthesis Analysis using The TOE Framework

2026-04-30T13:14:30+07:00

undertake. This is a form of organizational management's response to increasingly sophisticated technological developments. However, organizations cannot simply digitize and stop there to combat disruption caused by technological developments. In line with the development of AI and increasing public enthusiasm for utilizing technology, organizations must undertake Digital Transformation. Many organizations simply stop at the digitalization process without being able to increase the use of digital technology in their business processes to maximize services. Organizations are unable to carry out digital transformation to maximize the benefits of technology use within the organization.

Method: By utilizing the TOE Framework, this study analyzed 85 selected articles using the Prisma protocol. The data analysis technique used bibliometric analysis with VOS viewer and content analysis to identify thematic codes found in the selected articles.

Results: There are 4 factors included in the technology component, 6 factors included in the organizational component and 2 factors included in the environmental component.

Conclusion: The results of this study explain that the success of digital transformation is not only determined by the technology adopted by the organization, but also the organization's ability to integrate technology with business strategy, organizational capabilities and changes that occur in the organization's external environment

Transformation of Organizational Models and Structures in the Digital Era: A Systematic Literature Review

2026-04-17T12:12:10+07:00

Background: Digital transformation has fundamentally changed the global business landscape and the strategic direction of modern organizations. Therefore, this study aims to identify the transformation of organizational models and structures in the digital era.

Method: The method used in this study is a Systematic Literature Review with research stages following the PRISMA approach. The research data consists of 30 articles sourced from Google Scholar, Elsevier/ScienceDirect, and Garuda Dikti, covering the period 2020–2025.

Results: The findings indicate that organizational models and structures in the digital era are shifting from traditional hierarchical forms to adaptive, collaborative, and agile structures that enable rapid responses to environmental changes. Digital leadership and organizational culture emerge as key success factors, with leaders acting as agents of change and an innovative culture supporting the internalization of values such as collaboration and continuous learning. The study further found that digital capabilities including digital platforms, AI, and data analytics play a dual role as catalysts for efficiency and drivers of innovation, improving data-driven decision-making and overall organizational performance. An effective digital transformation strategy requires integrated management of digital maturity, adaptive governance, and change risk management, enabling organizations to balance operational efficiency with continuous innovation.

Conclusion: This research confirms that organizational transformation in the digital era is an adaptive process that requires synergy between structure, culture, leadership, digital capabilities, and strategy to achieve long-term success.

Towards a Bankable Biomass Energy System: A Systematic Review of Business Models and Optimization of the Palm Oil Waste Value Chain

2026-04-26T20:11:41+07:00

Background: Transformasi sistem energi global menuju netralitas karbon memerlukan mobilisasi investasi masif dalam energi terbarukan, termasuk bioenergi dari limbah biomassa kelapa sawit yang memiliki potensi sangat besar namun belum dimanfaatkan secara optimal. terhadap literatur tentang teknologi konversi biomassa kelapa sawit, model bisnis, optimasi rantai nilai, dan penilaian bankability untuk mengidentifikasi kesenjangan pengetahuan dan mengembangkan framework konseptual terintegrasi

Method: Penelitian ini melakukan tinjauan sistematis dengan menggunakan pendekatan Systematic Literature Review (SLR) dengan protokol PRISMA dan kerangka SALSA.

Results: penelitian ini menganalisis 42 artikel jurnal internasional open access yang dipublikasikan antara 2018–2025 dari database DOAJ, MDPI, Frontiers, SpringerOpen, dan Wiley Open access. Hasil penelitian menunjukkan bahwa literatur yang ada didominasi oleh studi teknis konversi biomassa dengan fokus terbatas pada aspek model bisnis dan bankability. Analisis tekno ekonomi menunjukkan variasi kinerja finansial yang sangat luas, dengan IRR berkisar 6,75%–22%, NPV dari negatif hingga positif signifikan, dan payback period 2,9–10,8 tahun. Penelitian ini mengidentifikasi kesenjangan kritis dalam integrasi antara optimasi teknis, model bisnis, dan penilaian bankability, serta mengusulkan framework konseptual terintegrasi yang menghubungkan ketiga dimensi tersebut untuk mendukung pengembangan sistem energi biomassa yang viable secara ekonomi dan menarik bagi investor.

Conclusion: The results show a dominance of technical studies, while business and bankability aspects are still limited. Project financial performance varies (IRR 6.75%–22%) with high levels. Integration between technical, economic, and financial aspects was found. This study proposes an integrated conceptual framework linking value chain optimization, business models, and bankability assessment to improve investment feasibility and encourage the development of sustainable and attractive biomass energy systems for investors.

Brand Awareness And Payment Ease to Create Customer Loyalty In The Strategy of Digital Marketing

2026-04-21T14:46:52+07:00

Background: The rapid development of digital technology has driven a significant transformation in marketing strategies, particularly in utilizing digital marketing as a primary means of reaching and retaining consumers.
Method: This study uses a qualitative approach with the aim of understanding in depth how brand awareness and payment ease play a role in shaping customer loyalty in digital marketing strategies. This approach was chosen because it is able to explore the meaning, perceptions, and subjective experiences of consumers that cannot be measured quantitatively. The informant selection technique was carried out using purposive sampling, with the criteria of respondents who actively use digital services (e-commerce or digital transaction-based applications). Data collection was carried out through in-depth interviews, observations, and documentation, in order to obtain rich and contextual data.
Results: The combination of brand awareness and payment ease in the case study example can empirically build customer loyalty if carried out through an intermediary internet marketing system which is divided into certain payment zones to build relationships between customers and suppliers as a process in a digital marketing strategy.There are 5 critical factors in this research to build success between brand awareness and payment ease, namely 4 factors in customer interaction techniques with the internet, namely search engine optimization, social media marketing, content marketing and display marketingConclusion: All of these factors can build a good framework for creating customer loyalty in businesses in the current era of internet technology. Brand awareness serves as a cognitive foundation that influences consumer trust and preference for a brand, while payment ease acts as a functional factor that increases convenience and satisfaction during transactions. The integration of these two variables creates a holistic customer experience, ultimately driving repeat purchases and long-term loyalty. Therefore, companies need to develop digital marketing strategies that focus not only on increasing brand visibility but also on optimizing easy, fast, and secure payment systems to enhance business competitiveness and sustainability in the digital economy era.

Ethnomethodological Study of The Disclosure of Good Government In Cingkreman Practices

2026-04-26T18:47:09+07:00

Background: This study aims to reveal the existence of good governance practiced in cingkreman, namely the practice of family financial planning based on social values, cultural life and religious activities of Hindus carried out by community groups in a community based on group beliefs and agreements.

Method: This research is a qualitative study using an interpretive paradigm and an ethnomethodological approach. Data collection was conducted through observation, in-depth interviews, and documentation. Data analysis was then carried out using Garfinkel Analysis.

Results: The results of this study successfully revealed the existence of good governance in Sekaa Cingkreman. The findings of this study provide an overview that the good governance implemented in Sekaa Cingkreman is a crucial foundation for realizing the sustainability of an informal organization formed from shared interests and social agreements, namely conducting financial planning to meet the needs of implementing religious and cultural activities.

Conclusion: This research provides theoretical implications and enriches the study of good governance and plays a role in the sustainability of the cingkreman practice as a culture-based financial planning practice. Therefore, it can be used in future scientific studies in culturally-based financial planning research and research on good governance. The novelty of this research is that it reveals the application of good governance in a culture-based financial planning practice carried out by parties who are members of the Sekaa Cingkreman

The Embracing Digital Banking: An Innovation Acceptance Model Perspective in Indonesian Islamic Banks

2026-04-22T15:56:46+07:00

Background: This study investigates the determinants of users’ behavioral intention to adopt Islamic digital banking in Indonesia through the lens of the Innovation Acceptance Model (IAM). The purpose of this research is to identify which factors business support, perceived trust, perceived ease of use, perceived usefulness, attitude, perceived behavioral control, and perceived economic considerations significantly influence adoption intention

Method: A mixed-methods design was employed, combining Structural Equation Modeling Partial Least Squares (SEM-PLS) to assess demand-side perceptions with Analytic Network Process (ANP) to prioritize supply-side strategies for Islamic banks

Results: The findings reveal that business support, trust, ease of use, usefulness, attitude, and behavioral control positively and significantly shape behavioral intention, while the economic factor does not exert a significant effect. This suggests that in the context of Islamic finance, trust, Sharia compliance, security, and convenience outweigh financial considerations in driving adoption. The results also highlight the pivotal role of institutional support and digital literacy in shaping favorable perceptions, especially among student and young adult users who formed the majority of the sample.

Conclusion: The novelty of this research lies in applying IAM to Islamic digital banking, demonstrating that not all theoretical constructs universally apply, thereby offering opportunities for contextual refinement of the model. Practically, the study emphasizes the need for Islamic banks to enhance support services, ensure visible Sharia compliance, simplify user experiences, and strengthen trust mechanisms. Overall, this research contributes to both theory and practice by broadening the understanding of digital banking adoption within a faith-based financial system. findings, implications, and the novelty of the study

The Venue Attributes on Customer Satisfaction of Balinese Dinner in Bali Case Study : Megibung Event at The One Legian Hotel

2026-04-27T00:27:55+07:00

Background: The tourism industry plays a crucial role in contributing significantly to the economy, particularly through increased tourism activity, increased cash flow, and the potential for increased local income. This study aims to analyze the influence of venue attributes on customer satisfaction at a traditional Balinese dinner (megibung) at The One Legian Hotel.

Method: This study was conducted over three months at the research location, One Legian Hotel, which conducted a two-part study. First, a descriptive research approach was used to determine respondents' perceptions of venue attributes. Second, a correlational research approach was used to analyze the influence of venue attributes on guest satisfaction during the Mengibung event.

Results: The results showed that guests rated the service as very satisfactory, the decor very beautiful, the price very reasonable, the food very delicious, the ambiance very good, and the facilities very complete. Meanwhile, guests had a high overall satisfaction score of 3.62 (very satisfied). Of the six place attribute variables, there is a significant positive impact (p < 0.05) on satisfaction: price (X3) with 1 price indicator in relation to dinner quality, atmosphere (X5) with 1 place atmosphere indicator, and food (X4) with 2 indicators: appearance and color.

Conclusion: High customer satisfaction leads to increased loyalty and repeat visits, ultimately contributing to the growth of the events industry and increased revenue for businesses and the surrounding community. Therefore, events like megibung not only provide a quality tourism experience but also improve the economic well-being of the community through job opportunities and increased income

Sharia Supervisory Boards as Mechanisms of Religious Governance: A Qualitative Analysis of DPS Reports and Disclosures in Southeast Asian Islamic Banks

2026-04-27T01:54:10+07:00

Background: This study examines how Sharia Supervisory Boards (DPS) communicate their religious governance roles in Islamic banks across Southeast Asia.

Method: Using a comparative qualitative approach, the analysis is based on DPS reports, regulatory frameworks, and AAOIFI governance standards from 2020 to 2024.

Results: The results show regional convergence in core disclosure elements such as annual Shariah opinions, religious framing, and formal oversight statements. Malaysia and Brunei demonstrate the highest narrative detail and transparency, while Indonesia employs concise doctrinal reporting and Thailand presents minimal disclosure. The study reveals that DPS communication serves as a hybrid mechanism combining spiritual accountability, procedural assurance, and legitimacy construction. Variations across countries are shaped by institutional maturity, regulatory environments, and the strength of governance expectations. These findings contribute to a nuanced understanding of how Shariah governance is performed through narrative reporting in Southeast Asian Islamic banks.

Conclusion: This study examined how Dewan Pengawas Syariah (DPS) express and communicate their religious governance roles across Islamic banks in Southeast Asia by analyzing formal DPS reports and related governance documents from Indonesia, Malaysia, Brunei Darussalam, and Thailand. The findings show that DPS consistently construct their role through a combination of devotional language, compliance declarations, and the articulation of oversight responsibilities, reflecting a shared foundation of Islamic accountability. While religious expressions vary in richness and placement, all jurisdictions employ them to signal ethical integrity and alignment with divine and public expectations. Oversight narratives likewise form a core part of DPS communication, although the depth of disclosure differs substantially across countries. Collectively, these patterns reveal that DPS reports function as both spiritual statements and institutional instruments of governance

Green Halal Business Model: Integrating Maqasid al-Shari'ah into Circular Economy Practices for Sustainable Competitive Advantage

2026-04-29T22:49:21+07:00

Background: This study aims to propose an integrative framework of the "Green Halal" business model that synergizes the dimensions of Maqasid al-Shari'ah with the principles of a circular economy to achieve sustainable competitive advantage. The urgency of this research is based on the low waste recycling rate in Indonesia, which only reaches 10-12%, amidst the rapid growth of the national halal industry

Method: Using an exploratory qualitative approach through literature review and content analysis, this study analyzes how Islamic noble values are transformed into modern operational strategies.

Results: The results of the study indicate that the integration of the dimensions of Hifz al-Bi'ah (environmental protection) and Hifz al-Mal (protection of wealth through efficiency) can transform wasteful linear production patterns into regenerative circular systems. The implementation of Digital Halal Traceability technologies such as Blockchain and IoT is identified as a key driver in ensuring supply chain transparency while minimizing the carbon footprint. The novelty of this research lies in the use of Maqasid al-Shari'ah as an operational ethical compass that positions the circular economy not merely as a management trend, but as a theological obligation.

Conclusion: This study concludes that the "Green halal" model provides a competitive advantage through cost leadership and value differentiation for increasingly environmentally conscious consumers

The Effectiveness of Environmentally Friendly Business Strategies: Implementing SDGs-12 in Building the Economy in Central Lombok Regency

2026-05-04T08:15:12+07:00

Background: This study aims to analyze the effectiveness of implementing Sustainable Development Goal (SDG) 12 on responsible consumption and production in supporting economic development in Central Lombok Regency. The current achievement of SDG 12 in the region shows disparities when compared to national progress, despite strong efforts by the central government to strengthen comprehensive environmental governance policies. Various national and regional regulations have been established, including West Nusa Tenggara Provincial Regulation No. 5 of 2019 on Waste Management. However, local performance remains limited, indicating the need for more targeted and collaborative strategies.

Method: This research employs a qualitative approach through case studies and literature reviews, combining observational data, interviews, documentation, and policy analysis. The study examines the involvement of government, communities, self-help groups, and the private sector in waste management and the development of sustainability-based economic initiatives.

Result: Findings reveal that waste management infrastructure and community participation remain inadequate, while policy implementation is not yet integrated across the entire value chain. Consequently, the effectiveness of SDG 12 implementation is still suboptimal, particularly in key local economic sectors such as agriculture, tourism, and recycling-based industries. The results indicate that the successful implementation of SDG 12 in Central Lombok requires multisectoral synergy through collaborative environmentally friendly business strategies. Active community engagement through waste banks, consistent regulatory support, and the adoption of circular economy models constitute essential factors in strengthening sustainable economic development.

Conclusion: The study concludes that accelerating SDG 12 achievements can only be realized through integrated policies, enhanced public awareness, and adequate infrastructure provision, thereby generating balanced economic, social, and environmental impacts.

Influencer Credibility and Content Quality in TikTok Culinary Purchase Decisions

2026-05-03T22:00:37+07:00

Background: This study examines the effects of influencer credibility and TikTok video content quality on culinary purchase decisions in Banjarmasin, Indonesia. It responds to the rapid growth of short-form video marketing and the need for local culinary micro, small, and medium-sized enterprises to promote their products effectively while upholding Sharia-conscious ethical values, particularly honesty, transparency, and trustworthiness..

Method: Using an explanatory quantitative design, data were collected using a structured questionnaire from 103 TikTok users who had viewed culinary promotional content with the goal of having food in their food consumption intentions. The data were analyzed using descriptive statistics, validity and reliability testing, classical assumption testing, and multiple linear regression..

Results: The evidence indicates that influencer credibility has a significant effect on culinary purchasing, with respect to being the strongest of these factors. TikTok video quality has a positive and significant influence too, as it acts to inform and entertain. At the same time, both variables have a significant impact on consumer decision making, yet the limited predictive ability implies the importance of price, taste, halal assurance, accessibility, and the recommendations of peers.

Conclusion: The study adds to social commerce and Sharia-informed management literature by showcasing that successful TikTok culinary promotion is not only a factor of visibility, creativity and authenticity, but also that of legitimate communicators, factual sources and a good standard of ethics in content production.

The Role of Shariah Insurance and Financial Institutions in Developing Islamic Economic Law in Indonesia

2026-05-08T20:22:10+07:00

Background: An important part of the economic law is the regulation about financial institutions insurance. In the field of insurance business development, there is a new field that is Shari'ah insurance. Novelty of shariah insurance business is the operation of its business activities based on the principles of Shari'ah derived from the Qur'an and the Hadith and the Fatwa Ulama mainly gathered in the Indonesian Council of Ulema (MUI). Because since the beginning the shari'ah insurance business is defined as a form of insurance that is based on the values contained in the teachings of Islam.

Methods: This research is a doctrinal law or normative legal research, because this research is conducted with the approach of regulation and conceptual. This study is sourced from primary, secondary, and tertiary legal materials, and non-legal materials that support the subject matter. This research was conducted through the study of literature or documents.

Results: The results of the study is that which distinguishes principle of insurance syar'iah with conventional insurance is Shari'ah insurance eliminates the element of uncertainty (gharar), the element of speculation or gambling (maisir), and the element of money interest (riba) in its business activities so that the participants of insurance (Insured person) feel free from tyranny practices that bring harm.

Conclusion: At this time, the development of economic activity which is based on Shari'ah can be said to thrive. This is because the majority of Indonesia's population is Muslim. In addition, each Shari'ah-based economic activity prioritize in fair sharing of benefits thus in shari'ah-based economic activities do not cause any harm to the doer of this economic activity.