PRODUCT INNOVATION IN ISLAMIC COOPERATIVES THROUGH THE LENS OF MAQĀSID SHARIA: EVIDENCE FROM INDONESIA

Abstract

The objectives of Islamic law are articulated in the concept of maqāsid shariah, which encompasses the preservation of religion, life, wealth, intellect, and lineage. The implementation of maqāsid shariah extends across various domains, including Islamic cooperatives. In Indonesia, Islamic cooperatives have developed not only in terms of quantity but also in the variety of products offered to the public. The core products of Islamic cooperatives—covering financing, funding, business, and services—have been further diversified to meet the needs of cooperative members and society at large. This paper discusses the implementation of maqāsid shariah in the context of product innovation within Islamic cooperatives.  Employing literature study and observation methods, it explores the nature of product innovations in Islamic cooperatives and their alignment with maqāsid shariah. The findings indicate that product innovations within Islamic cooperatives are consistent with and contribute to the realization of maqāsid shariah.