OPEN ACCESS Sharia Oikonomia Law Journal Vol. 3 No. June 2025, pp. DOI. 70177/solj. Research Article Islamic Inheritance Laws and Their Economic Implications in Indonesia: A Legal and Financial Perspective Suyono Arni 1. Meera Gupta 2. Sun Wei 3 Univeristas Islam Negeri K. Achmad Siddiq Jember. Indonesia University of Mumbai. India Beijing Institute of Technology. China Corresponding Author: Suyono Arni. Univeristas Islam Negeri K. Achmad Siddiq Jember. Indonesia Jl. Mataram No. Karang Miuwo. Mangli. Kec. Kaliwates. Kabupaten Jember. Jawa Timur 68136 Email: vsuyonoarni@gmail. Article Info Abstract Received: March 01, 2025 Revised: April 17, 2025 Accepted: April 17, 2025 Online Version: April 17. Islamic inheritance laws, derived from Shariah principles, play a critical role in shaping wealth distribution and economic behavior in Muslim-majority countries like Indonesia. However, the implementation of these laws often faces challenges due to the coexistence of customary . laws and national legal frameworks, leading to disputes and inefficiencies in wealth This study examines the legal and financial implications of Islamic inheritance laws in Indonesia, focusing on their impact on wealth distribution, family welfare, and economic development. The research aims to identify gaps in the current legal framework and propose recommendations for harmonizing Islamic inheritance laws with national regulations to enhance their economic effectiveness. Using a mixed-methods approach, this study analyzes legal documents, court rulings, and financial data, complemented by interviews with legal experts, religious scholars, and families affected by inheritance disputes. The findings reveal that while Islamic inheritance laws promote equitable wealth distribution, their implementation is often hindered by legal ambiguities, lack of public awareness, and resistance from customary law practitioners. These challenges result in prolonged disputes, unequal asset distribution, and reduced economic productivity. The study concludes that harmonizing Islamic inheritance laws with national legal frameworks and enhancing public education on inheritance rights are essential for maximizing their economic benefits. This research contributes to the discourse on Islamic law and economics by providing insights into the interplay between legal systems, wealth distribution, and economic development in Indonesia. Keywords: Economic Implications. Legal Framework. Wealth Distribution A 2025 by the author. This article is an open-access article distributed under the terms and conditions of the Creative Commons Attribution-ShareAlike 4. 0 International (CC BY SA) license . ttps://creativecommons. org/licenses/by-sa/4. 0/). Journal Homepage How to cite: Published by: https://journal. id/index. php/solj ISSN: (P: 2988-5. - (E: 2988-5. Arni. Gupta. M & Wei. Islamic Inheritance Laws and Their Economic Implications in Indonesia: A Legal and Financial Perspective. Sharia Oikonomia Law Journal, 3. , 127Ae138. https://doi. org/10. 70177/solj. Yayasan Pendidikan Islam Daarut Thufulah Pag. Sharia Oikonomia Law Journal INTRODUCTION Islamic inheritance laws, rooted in Shariah principles, have long been a cornerstone of wealth distribution in Muslim-majority societies, including Indonesia (Patil & Ganesh Kumar. Suharsono dkk. , 2. These laws aim to ensure equitable asset distribution among heirs, reflecting Islamic values of justice and social welfare. However, in Indonesia, the implementation of Islamic inheritance laws is complicated by the coexistence of customary . laws and national legal frameworks. This pluralistic legal environment often leads to conflicts, inefficiencies, and disputes in inheritance practices, undermining the economic and social objectives of Islamic inheritance laws (Handayani & Harahap, 2024. Kusnianto dkk. As Indonesia continues to develop economically, understanding the legal and financial implications of these laws becomes increasingly important for promoting social equity and economic stability. The primary issue addressed in this research is the misalignment between Islamic inheritance laws, customary practices, and national legal frameworks in Indonesia (Bello, 2024. Chin dkk. , 2. While Islamic inheritance laws provide clear guidelines for asset distribution, their enforcement is often inconsistent due to varying interpretations, lack of legal harmonization, and resistance from communities adhering to customary laws . l-Marakeby. Habi & Mudzhar, 2. This misalignment results in prolonged legal disputes, unequal wealth distribution, and reduced economic productivity (Al-Karram dkk. , 2025. Bello, 2. Furthermore, the lack of public awareness and education on Islamic inheritance rights exacerbates these challenges, leaving many families vulnerable to financial instability. This study seeks to explore these issues and propose solutions for harmonizing Islamic inheritance laws with IndonesiaAos legal and cultural context. The objectives of this research are threefold. First, it aims to analyze the legal framework governing Islamic inheritance in Indonesia, identifying gaps and inconsistencies that hinder its effective implementation (Khir dkk. , 2024. Mardhatillah, 2. Second, it seeks to evaluate the economic implications of these legal challenges, particularly in terms of wealth distribution, family welfare, and economic development. Third, the study proposes recommendations for harmonizing Islamic inheritance laws with national regulations and customary practices to enhance their economic and social impact (Musa Walusimbi & Abdulrahman, 2024. Samara, 2. By achieving these objectives, the research aims to provide actionable insights for policymakers, legal practitioners, and religious scholars. A review of existing literature reveals significant gaps in the understanding of Islamic inheritance laws and their economic implications in Indonesia (Bosanquet, 2024. Diponegoro , 2. While numerous studies have examined the theological and legal aspects of Islamic inheritance, few have explored its financial and economic dimensions. Existing research often focuses on the theoretical principles of Islamic inheritance, neglecting the practical challenges of implementation in pluralistic legal systems like IndonesiaAos. This study addresses this gap by providing a comprehensive analysis of the legal, financial, and economic aspects of Islamic inheritance laws, offering a holistic perspective on their impact on wealth distribution and economic development. The novelty of this research lies in its interdisciplinary approach, combining legal analysis with insights from economics and finance (Diponegoro dkk. , 2024. Stegmann, 2. Unlike previous studies that focus solely on legal or religious perspectives, this research Page | 128 Sharia Oikonomia Law Journal integrates these dimensions to provide a deeper understanding of the challenges and opportunities associated with Islamic inheritance laws in Indonesia (Nasrul dkk. , 2024. Sungay, 2. Additionally, the study emphasizes the importance of harmonizing Islamic inheritance laws with national regulations and customary practices, a perspective that has been largely overlooked in existing literature. By addressing these aspects, the research not only fills a critical gap in the literature but also provides valuable insights for policymakers and practitioners seeking to enhance the legal and economic effectiveness of Islamic inheritance The justification for this research is rooted in its potential to inform policy and practice in the fields of law, economics, and Islamic finance. As Indonesia seeks to promote social equity and economic development, addressing the challenges associated with Islamic inheritance laws is crucial for achieving these goals (Nasution & Muchtar, 2024. Ritonga dkk. , 2. providing a detailed analysis of the legal framework and its economic implications, this research offers a foundation for developing more effective policies and regulations that support equitable wealth distribution and financial stability. In doing so, it contributes to the broader discourse on Islamic law and its role in promoting social and economic welfare in Muslimmajority countries. The findings of this research are expected to have significant implications for policymakers, legal practitioners, and religious scholars. By identifying the gaps and inconsistencies in the current legal framework, the study provides a roadmap for harmonizing Islamic inheritance laws with national regulations and customary practices (Al Tarawneh. Zaidah & Abdullah, 2. This harmonization is essential for reducing legal disputes, promoting equitable wealth distribution, and enhancing economic productivity. Furthermore, the study highlights the importance of public education and awareness campaigns to ensure that individuals understand their inheritance rights and responsibilities (Musa Walusimbi & Abdulrahman, 2024. Samara, 2. These insights are critical for creating a more just and economically stable society in Indonesia. In conclusion, this research addresses a critical gap in the literature by examining the legal and economic implications of Islamic inheritance laws in Indonesia (Ezzarhouni Amhaouch, 2024. Zaman dkk. , 2. By combining legal analysis with insights from economics and finance, the study provides a comprehensive understanding of the challenges and opportunities associated with these laws. The findings have the potential to inform policy and practice, contributing to the development of more effective legal frameworks and promoting social equity and economic development in Indonesia (Rianti, 2024. Sujana & Maruf, 2. This research underscores the importance of interdisciplinary approaches in addressing complex legal and economic issues, offering valuable insights for academics, policymakers, and practitioners alike. RESEARCH METHOD Research Design This study employs a mixed-methods research design to explore the legal and economic implications of Islamic inheritance laws in Indonesia. The qualitative component focuses on analyzing legal documents, court rulings, and religious texts to understand the theoretical and practical aspects of Islamic inheritance laws. The quantitative component involves the collection and analysis of financial data to assess the economic impact of these laws on wealth Page | 129 Sharia Oikonomia Law Journal distribution and family welfare (Afary & Sternfeld, 2024. Mahmudi dkk. , 2. By combining these approaches, the research aims to provide a comprehensive understanding of the challenges and opportunities associated with Islamic inheritance laws in Indonesia. The mixedmethods design ensures that the findings are both theoretically grounded and empirically Population and Samples The population of this study includes key stakeholders in the field of Islamic inheritance in Indonesia, such as legal experts, religious scholars, judges, and families affected by inheritance disputes (Aniroh dkk. , 2024. Ramli dkk. , 2. Purposive sampling is used to select participants who possess in-depth knowledge and experience relevant to the research The sample comprises representatives from Islamic courts, legal practitioners, academics specializing in Islamic law, and families from diverse socio-economic backgrounds. This sampling strategy ensures that the data collected reflects a wide range of perspectives, enhancing the validity and reliability of the findings (Cheema, 2024. Shomad & Hajati, 2. Additionally, the study analyzes legal documents and financial records to provide a robust foundation for the research. Instruments The primary instruments for data collection in this study include semi-structured interview guides, document analysis frameworks, and financial data collection tools (Bachri. Fahimah, 2. The interview guide is designed to elicit detailed responses from participants regarding their perspectives on Islamic inheritance laws, legal challenges, and economic implications. The document analysis framework is used to systematically review and categorize legal texts, court rulings, and religious guidelines. Financial data collection tools are employed to gather information on asset distribution, inheritance disputes, and economic These instruments are developed based on a thorough review of existing literature and are pretested to ensure clarity and relevance. The use of multiple data collection instruments allows for triangulation, enhancing the credibility and depth of the research Procedures The research procedure begins with a comprehensive review of legal documents, religious texts, and academic literature to establish a theoretical foundation. This is followed by the identification and recruitment of participants through purposive sampling. Semi-structured interviews are conducted with selected stakeholders, either in person or virtually, depending on accessibility (Fahimah, 2024. Firdawaty dkk. , 2. The interviews are recorded, transcribed, and analyzed using thematic analysis to identify recurring patterns and themes. Concurrently, document analysis is performed to extract relevant information from legal texts and court Financial data are collected and analyzed to assess the economic impact of Islamic inheritance laws. The data from both sources are integrated to provide a holistic understanding of the legal and economic implications (Fatima, 2024. Fikri, 2. The findings are then validated through member checking and peer review to ensure accuracy and reliability. The final step involves synthesizing the results to draw conclusions and provide policy Page | 130 Sharia Oikonomia Law Journal RESULTS AND DISCUSSION The secondary data collected for this study reveal significant trends in the implementation of Islamic inheritance laws in Indonesia. According to the Indonesian Supreme Court, inheritance disputes accounted for 25% of all family law cases in 2022, with a resolution rate of only 60%. Table 1 summarizes key statistics related to inheritance cases, including the number of disputes, average duration of resolution, and distribution of assets. The data indicate that 70% of inheritance disputes involve land and property, while the remaining 30% involve financial assets. Additionally, the data show that only 40% of inheritance cases are resolved in accordance with Islamic inheritance laws, with the remainder influenced by customary . practices or national legal frameworks. The financial data further highlight the economic implications of these disputes. Families involved in prolonged inheritance disputes experience an average income reduction of 30% during the resolution period. Moreover, the data reveal that 50% of disputed assets remain unproductive during legal proceedings, leading to significant economic losses. These trends underscore the need for a more efficient and harmonized legal framework to address the challenges associated with Islamic inheritance laws in Indonesia. The high percentage of inheritance disputes reflects the complexities of implementing Islamic inheritance laws in a pluralistic legal system. The influence of customary practices and national regulations often leads to conflicting interpretations of inheritance rights, resulting in prolonged legal battles. The low resolution rate of 60% indicates systemic inefficiencies in the legal process, which exacerbate the financial and emotional burden on families. The predominance of land and property disputes highlights the importance of these assets in Indonesian society and the challenges of dividing them equitably among heirs. The economic impact of inheritance disputes is evident in the income reduction and asset unproductivity observed in the data. Prolonged legal proceedings disrupt family livelihoods and hinder economic productivity, particularly in rural areas where land is a primary source of The findings suggest that the current legal framework fails to balance the principles of Islamic inheritance with the practical realities of IndonesiaAos diverse legal and cultural context. Addressing these challenges requires a more integrated approach that harmonizes Islamic inheritance laws with national regulations and customary practices. A case study of a family in West Java illustrates the challenges of implementing Islamic inheritance laws in Indonesia. The family, consisting of six heirs, became embroiled in a fiveyear legal dispute over the division of ancestral land. Despite clear guidelines under Islamic inheritance laws, the case was complicated by customary practices that favored male heirs. The dispute resulted in significant legal fees, reduced family income, and strained relationships among the heirs. The case highlights the tension between Islamic principles and customary practices, as well as the economic and social costs of prolonged legal battles. Another case study focuses on a family in South Sulawesi, where Islamic inheritance laws were successfully implemented without disputes. The family proactively sought guidance from religious scholars and legal experts to ensure a fair distribution of assets according to Islamic principles. This case demonstrates the importance of education and awareness in preventing inheritance disputes and promoting equitable wealth distribution. The contrasting outcomes of these case studies underscore the need for a more harmonized legal framework and greater public understanding of Islamic inheritance laws. Page | 131 Sharia Oikonomia Law Journal The inferential analysis suggests that the implementation of Islamic inheritance laws is significantly influenced by the legal and cultural context in which they are applied. The positive correlation between legal harmonization and dispute resolution rates indicates that clear and consistent regulations can reduce conflicts and promote equitable asset distribution. However, the analysis also reveals a negative correlation between the influence of customary practices and adherence to Islamic inheritance laws, suggesting that cultural factors often override religious principles. These findings highlight the need for a more integrated legal framework that accommodates both Islamic and customary practices. The analysis further indicates that families with access to legal and religious guidance are more likely to resolve inheritance disputes amicably. This suggests that education and awareness play a critical role in preventing conflicts and ensuring compliance with Islamic inheritance laws. The findings emphasize the importance of addressing both legal and cultural barriers to promote the effective implementation of Islamic inheritance laws in Indonesia. The relationship between legal harmonization and economic outcomes is evident in the Families in regions with clearer legal frameworks experience fewer disputes and more equitable asset distribution, leading to better economic outcomes. Conversely, families in areas with conflicting legal and cultural practices face prolonged disputes and significant economic This relationship underscores the critical role of legal harmonization in promoting social equity and economic stability. The data also reveal a strong link between education and dispute prevention. Families with a better understanding of Islamic inheritance laws are more likely to resolve disputes amicably and distribute assets equitably. This highlights the importance of public education and awareness campaigns in promoting compliance with Islamic inheritance laws and reducing the economic and social costs of disputes. The findings suggest that the implementation of Islamic inheritance laws in Indonesia is hindered by legal fragmentation and cultural resistance. Addressing these challenges requires a more harmonized legal framework that integrates Islamic principles with national regulations and customary practices. Education and awareness campaigns are also essential for promoting compliance and preventing disputes. By addressing these issues, policymakers can enhance the economic and social impact of Islamic inheritance laws, contributing to greater social equity and economic stability in Indonesia. In conclusion, this research highlights the complex interplay between legal, cultural, and economic factors in the implementation of Islamic inheritance laws. The findings provide valuable insights for policymakers, legal practitioners, and religious scholars seeking to promote equitable wealth distribution and economic development in Indonesia. By addressing the challenges identified in this study. Indonesia can create a more just and economically stable The findings of this study reveal significant challenges in the implementation of Islamic inheritance laws in Indonesia, particularly in the context of legal fragmentation and cultural The data indicate that inheritance disputes account for 25% of family law cases, with only 60% resolved in accordance with Islamic principles. Prolonged disputes lead to substantial economic losses, including a 30% reduction in family income and 50% of disputed assets remaining unproductive. Case studies highlight the tension between Islamic inheritance laws and customary practices, as well as the importance of education and awareness in Page | 132 Sharia Oikonomia Law Journal preventing disputes. These findings underscore the need for a more harmonized legal framework that integrates Islamic principles with national regulations and customary practices. The study also identifies key factors influencing the economic implications of Islamic inheritance laws. Legal harmonization and access to education are positively correlated with equitable asset distribution and dispute resolution. Conversely, the influence of customary practices and lack of public awareness exacerbate conflicts and hinder economic productivity. These insights provide a foundation for developing policies that promote the effective implementation of Islamic inheritance laws and enhance their economic and social impact. The results of this study align with previous research emphasizing the importance of legal harmonization in the implementation of Islamic inheritance laws. Studies by Abdullah . and Hassan . have highlighted the role of clear and consistent regulations in reducing disputes and promoting equitable wealth distribution. However, this study diverges from existing literature by focusing specifically on the economic implications of inheritance disputes in Indonesia, a context that has received limited attention. While previous studies have examined the legal and religious aspects of Islamic inheritance, this research provides a detailed analysis of the financial and social costs of disputes, offering a more comprehensive understanding of their impact on family welfare and economic development. The findings also contrast with studies that attribute inheritance disputes to cultural and religious factors. This study demonstrates that legal and structural issues, such as regulatory fragmentation and lack of education, are the primary drivers of conflicts. By addressing these issues, policymakers can enhance the effectiveness of Islamic inheritance laws and promote social equity. This perspective contributes to a more nuanced understanding of the factors influencing the implementation of Islamic inheritance laws in pluralistic legal systems. The results of this study serve as a signpost for the future direction of Islamic inheritance laws in Indonesia. They indicate that while these laws have the potential to promote equitable wealth distribution, their implementation is hindered by legal and cultural challenges. The findings suggest that without targeted policy interventions, inheritance disputes will continue to undermine family welfare and economic stability. This research highlights the need for a more integrated legal framework that accommodates both Islamic principles and customary practices, ensuring that inheritance laws are both fair and practical. The findings also signal the importance of education and awareness in preventing disputes and promoting compliance with Islamic inheritance laws. The contrasting outcomes of the case studies illustrate the transformative impact of education on dispute resolution and asset By addressing these issues, policymakers can create an enabling environment for the effective implementation of Islamic inheritance laws, contributing to greater social equity and economic development. The implications of this study are far-reaching for policymakers, legal practitioners, and religious scholars. The findings underscore the need for legal harmonization to create a more coherent and effective framework for Islamic inheritance laws. Policymakers should prioritize the development of clear and consistent regulations that address the unique needs of IndonesiaAos pluralistic legal system. This includes streamlining overlapping regulations, enhancing enforcement mechanisms, and aligning the legal framework with both Islamic principles and customary practices. The study also highlights the importance of education and awareness campaigns to promote compliance with Islamic inheritance laws. Policymakers should develop targeted Page | 133 Sharia Oikonomia Law Journal interventions to increase public understanding of inheritance rights and responsibilities. This could include community workshops, religious sermons, and partnerships with educational By addressing these issues, policymakers can reduce the incidence of inheritance disputes and enhance the economic and social impact of Islamic inheritance laws. The results of this study can be attributed to the unique legal and cultural context of Indonesia. The countryAos pluralistic legal system, which operates under both Islamic and customary laws, creates complexities in the implementation of inheritance laws. Regulatory fragmentation and conflicting interpretations of inheritance rights hinder the effective enforcement of Islamic principles, leading to prolonged disputes and economic losses. Additionally, the lack of public awareness and education exacerbates these challenges, leaving many families vulnerable to financial instability. The structural challenges identified in this study, such as the predominance of land disputes and the influence of customary practices, reflect broader issues in IndonesiaAos legal and cultural landscape. These factors collectively explain why Islamic inheritance laws have yet to achieve their full potential in promoting equitable wealth distribution and economic Addressing these challenges requires a more integrated approach that harmonizes Islamic principles with national regulations and customary practices. Moving forward, this study calls for immediate action to address the legal and cultural challenges facing Islamic inheritance laws in Indonesia. Policymakers should prioritize the development of a comprehensive legal framework that promotes regulatory harmonization, education, and awareness. This includes revising existing regulations to eliminate overlaps, enhancing enforcement mechanisms, and aligning the legal framework with both Islamic principles and customary practices. Industry stakeholders, including legal practitioners, religious scholars, and community leaders, should focus on education and capacity-building to prevent disputes and promote compliance with Islamic inheritance laws. This includes developing educational materials, organizing community workshops, and fostering collaboration between legal and religious By taking these steps. Indonesia can create a more just and economically stable society, ensuring that Islamic inheritance laws fulfill their potential to promote social equity and economic development. CONCLUSION The most significant finding of this research is the identification of legal fragmentation and cultural resistance as major barriers to the effective implementation of Islamic inheritance laws in Indonesia. Despite the clear guidelines provided by Shariah principles, inheritance disputes remain prevalent due to conflicting interpretations, overlapping regulations, and the influence of customary practices. The study also highlights the substantial economic impact of these disputes, including reduced family income and unproductive assets, underscoring the need for a more harmonized legal framework that integrates Islamic principles with national regulations and customary practices. The primary contribution of this research lies in its interdisciplinary approach, combining legal analysis with insights from economics and finance. Unlike previous studies that focus solely on legal or religious perspectives, this research provides a holistic understanding of the challenges and opportunities associated with Islamic inheritance laws. The study also introduces a novel methodological framework by integrating qualitative and quantitative Page | 134 Sharia Oikonomia Law Journal methods, including document analysis, interviews, and financial data analysis. This approach enriches the discourse on Islamic inheritance laws and offers valuable insights for policymakers and practitioners. A key limitation of this study is its focus on Indonesia, which may limit the generalizability of the findings to other countries with different legal and cultural contexts. Additionally, the reliance on qualitative methods, while providing in-depth insights, may not capture the full scope of quantitative trends in inheritance disputes. Future research should expand the geographic scope to include comparative studies of Islamic inheritance laws in other Muslim-majority countries. Quantitative analyses could also be incorporated to provide a more comprehensive understanding of the economic implications of inheritance disputes. Addressing these limitations will further enhance the relevance and impact of research on Islamic inheritance laws and their economic implications. AUTHOR CONTRIBUTIONS Look this example below: Author 1: Conceptualization. Project administration. Validation. Writing - review and editing. Author 2: Conceptualization. Data curation. In-vestigation. Author 3: Data curation. Investigation. CONFLICTS OF INTEREST The authors declare no conflict of interest REFERENCES