Maqashid Shariah Framework Could Strengthen Indonesia’s Economic Emergency Early Warning System

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FORMOSA NEWS - Bogor - Economic crises are becoming increasingly complex, and researchers from the Law Study Program, Faculty of National Security, Universitas Pertahanan Republik Indonesia (Indonesian Defense University) argue that governments need a more comprehensive framework to determine when an economic emergency should be declared. In a 2026 study published in the Formosa Journal of Multidisciplinary Research (FJMR), Intansevina, Halomoan Freddy Sitinjak Alexandra, and Pujo Widodo propose that the principles of maqashid shariah can serve as a practical foundation for assessing the escalation of economic threats while ensuring that public welfare remains the central priority.

The researchers explain that economic instability is no longer driven solely by domestic challenges. Global inflation, financial crises, pandemics, supply chain disruptions, rising public debt, and dependence on imported goods can quickly evolve into threats that undermine national security and social stability. As these risks become increasingly interconnected, governments require an early warning system capable of identifying the severity of economic threats before they escalate into national emergencies.

According to the study, Indonesia already has legal instruments governing emergency situations, including the 1945 Constitution, Government Regulation in Lieu of Law (Perppu) No. 23 of 1959 on States of Danger, Law No. 9 of 2016 on Financial System Crisis Prevention and Management, and Perppu No. 1 of 2020, which supported extraordinary fiscal and monetary policies during the COVID-19 pandemic. However, these regulations do not provide a clear framework for determining the stages of economic emergency escalation. The proposed maqashid shariah model is intended to fill that gap by offering a structured and ethically grounded decision-making framework.

Why Maqashid Shariah Matters in Economic Emergencies

Maqashid shariah refers to the fundamental objectives of Islamic law, which focus on protecting five essential dimensions of human life:

  • Religion (hifdz ad-din)
  • Life (hifdz an-nafs)
  • Intellect (hifdz al-'aql)
  • Lineage (hifdz an-nasl)
  • Property (hifdz al-mal)

The researchers argue that economic crises should not be evaluated solely through financial indicators such as inflation or gross domestic product. Instead, policymakers should assess how economic disruptions threaten these five essential objectives, particularly public welfare (maslahah) and the prevention of greater harm (dar' al-mafasid).

Under this framework, an economic emergency is justified when threats extend beyond financial losses and begin affecting people's livelihoods, health, education, social stability, and long-term national resilience.

Research Methodology

The study employed a qualitative normative research design based on an extensive literature review rather than field surveys or statistical modeling.

The researchers examined:

  • Indonesian constitutional and emergency legislation
  • Financial crisis management regulations
  • Classical and contemporary literature on maqashid shariah
  • National security theories
  • Government reports from institutions such as Bank Indonesia
  • Previous academic studies related to Islamic economics and emergency governance

Using descriptive and analytical methods, the research synthesized legal principles and Islamic jurisprudence to develop a practical model for determining economic emergency escalation.

Three Levels of Economic Emergency Escalation

One of the study's most significant contributions is a three-tier escalation model designed to guide policymakers.

Level 1: Limited Economic Threat

At this stage, disruptions affect only specific economic sectors without threatening national stability.

Recommended policy responses include:

  • Limited fiscal stimulus
  • Debt restructuring
  • Exchange rate stabilization

These interventions are intended to prevent localized economic problems from spreading further.

Level 2: Widespread Economic Threat

The second level applies when economic instability begins affecting society more broadly, including employment, access to essential goods, healthcare, and education.

Government actions may include:

  • Expanded social assistance
  • Price stabilization for essential commodities
  • Increased access to healthcare and education services

The researchers emphasize that these policies should follow principles of justice and fairness while avoiding unnecessary social inequality.

Level 3: Systemic Economic Threat

The highest level represents a crisis capable of threatening national stability and public welfare on a large scale.

Possible emergency measures include:

  • Capital flow restrictions
  • Strict price controls
  • National resource mobilization
  • Extraordinary fiscal and financial interventions

Even under these circumstances, the study stresses that emergency powers must remain proportional, temporary, and subject to strong legal oversight.

Preventing Abuse of Emergency Powers

Beyond defining emergency levels, the researchers highlight the importance of preventing the misuse of emergency authority.

They argue that every emergency declaration should meet several ethical conditions:

  • The threat must be real rather than speculative.
  • No ordinary legal alternative should be sufficient.
  • Extraordinary measures should remain limited to what is strictly necessary.
  • Policies must continue to respect the core principles of Islamic law and public welfare.

The study recommends transparent oversight mechanisms involving both government institutions and public accountability to ensure that emergency powers are exercised responsibly.

Implications for Public Policy

The proposed framework offers practical guidance for governments seeking to modernize national economic risk management.

According to the researchers, integrating maqashid shariah into Indonesia's economic early warning system could help policymakers:

  • Detect emerging economic threats earlier.
  • Measure crisis severity more systematically.
  • Select proportional policy interventions.
  • Balance economic stability with social justice.
  • Strengthen public trust through transparent governance.

The model also contributes to discussions on how ethical principles can complement conventional economic indicators when governments respond to financial crises and other national emergencies.

The researchers further recommend future empirical studies to develop measurable indicators for each maqashid dimension and test the framework's effectiveness across different types of economic crises.

Researchers' Perspective

Intansevina and colleagues from Universitas Pertahanan Republik Indonesia argue that economic emergency decisions should extend beyond conventional macroeconomic measurements. Their analysis suggests that the true severity of an economic crisis should be evaluated according to how seriously it threatens the protection of religion, life, intellect, lineage, and property—the five central objectives of maqashid shariah. This broader perspective, they conclude, can help governments make emergency decisions that are both effective and ethically accountable.

Author Profile

Intansevina is the corresponding author of the study and a researcher in the Law Study Program, Faculty of National Security, Universitas Pertahanan Republik Indonesia (Indonesian Defense University). The research was conducted in collaboration with Halomoan Freddy Sitinjak Alexandra and Pujo Widodo, who are also affiliated with the same faculty. Their academic expertise includes national security law, public policy, emergency governance, Islamic legal studies, and the application of maqashid shariah to economic and national resilience issues.

Source

Article Title: The Determination of Economic Emergency Threat Escalation from the Perspective of Maqashid Shariah
Authors: Intansevina, Halomoan Freddy Sitinjak Alexandra, Pujo Widodo
Journal: Formosa Journal of Multidisciplinary Research (FJMR), Vol. 5 No. 6 (2026)

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