Short Selling and Its Regulation in Indonesia Debating Ownership through Fiqh Muamalah
Abstract
Short selling has gained formal regulatory recognition in Indonesia through POJK No. 6 of 2024, yet its position remains contested in the Islamic capital market. The central problem lies in whether securities may be sold before they enter the seller’s lawful ownership and possession. Using a normative juridical approach, this paper examines DSN-MUI Fatwa No. 40/2003, Fatwa No. 80/2011, Fatwa No. 135/2020, POJK No. 6 of 2024, and relevant fiqh muʿāmalah literature on mulk, qabḍ, bayʿ al-maʿdūm, gharar, maysir, and ribā. The analysis shows that POJK No. 6 of 2024 regulates short selling through authorization, securities lending, collateral, reporting duties, order marking, and market supervision. These mechanisms may reduce operational risk and support market governance, but they do not remove the Sharia ownership problem. DSN-MUI Fatwa No. 80/2011 prohibits short selling because the seller sells securities not yet owned at the time of transaction. Fatwa No. 135/2020 strengthens this reasoning by defining shares as ownership participation. Regulatory recognition, therefore, does not automatically create Sharia legitimacy. Short selling remains difficult to justify in Indonesia’s Islamic capital market unless ownership, possession, fair risk bearing, and lawful entitlement are preserved.
Short selling memperoleh pengakuan regulatif di Indonesia melalui POJK No. 6 Tahun 2024, tetapi praktik tersebut tetap menimbulkan persoalan dalam perspektif pasar modal syariah. Permasalahan utamanya berkaitan dengan keabsahan penjualan efek sebelum berada dalam kepemilikan dan penguasaan sah pihak penjual menurut prinsip syariah. Penelitian ini menggunakan pendekatan yuridis normatif dengan menelaah Fatwa DSN-MUI No. 40/2003, Fatwa DSN-MUI No. 80/2011, Fatwa DSN-MUI No. 135/2020, POJK No. 6 Tahun 2024, serta berbagai literatur fiqh muʿāmalah mengenai konsep mulk, qabḍ, bayʿ al-maʿdūm, gharar, maysir, dan ribā. Hasil penelitian menunjukkan bahwa POJK No. 6 Tahun 2024 mengatur short selling melalui mekanisme perizinan, securities lending, penyediaan agunan, pelaporan transaksi, penandaan order, serta pengawasan pasar untuk menjaga stabilitas dan transparansi perdagangan efek. Meskipun mekanisme tersebut mampu mengurangi risiko operasional dan memperkuat tata kelola pasar modal, pengaturan tersebut belum menyelesaikan persoalan mendasar mengenai kepemilikan dalam hukum syariah. Fatwa DSN-MUI No. 80/2011 secara tegas melarang short selling karena penjual menjual efek yang belum dimiliki saat akad berlangsung. Larangan tersebut diperkuat oleh Fatwa DSN-MUI No. 135/2020 yang menempatkan saham sebagai bukti partisipasi kepemilikan. Dengan demikian, pengakuan regulatif tidak otomatis melahirkan legitimasi syariah terhadap praktik short selling
Full text article
References
AAOIFI, Hay’at al-Muḥāsabah wa al-Murāja‘ah li al-Mu’assasāt al-Māliyyah al-Islāmiyyah. Al-Ma‘āyīr al-Shar‘iyyah, Sharia Standard. AAOIFI, 2015.
Abas, Dalia Adel, Hanan Hassan Gad Allah, and Hadeer Salama Gad Gouda. "Short-Selling as a Market Discipline Mechanism: A Survey of Academic Literature." Scientific Journal for Financial and Commercial Studies and Research 6.2 (2025): 1149-1197.
Abbasi, Sami M., Kenneth W. Hollman, and Joe H. Murrey. “Islamic Economics: Foundations and Practices.” International Journal of Social Economics 16, no. 5 (1989): 5–17. https://doi.org/10.1108/03068298910367215.
Abdurrahman, Landy Trisna, Ahmad Yani Anshori, Moh. Tamtowi, Asmara Edo Kusuma, and Muhammad Farhan Burhanudin. “Rethinking Assets in Islamic Law: Understanding the Logic of Camels as Authorized-Value in Socio-Economic Context.” Az-Zarqa’: Jurnal Hukum Bisnis Islam 17, no. 2 (2025): 279–301. https://doi.org/10.14421/az-zarqa.v17.i2.4710.
Abī Dāwūd, Sulayman. Sunan Abī Dāwūd. III. Dār Al-Kutub Al-‘Ilmiyyah, n.d.
Alsaif, Almuhannad. "An analysis of the role of short selling in detecting default risk." Journal of Applied Finance & Banking 14.6 (2024): 51-67. https://doi.org/10.47260/jafb/1464
Andriansyah, Yuli. "Analysis of fatwas by the National Sharia Board-Indonesian Council of Ulama on the stock market." Millah: Journal of Religious Studies (2023): 525-552. https://doi.org/10.20885/millah.vol22.iss2.art9
Ayub, Muhammad, and M. Fahim Khan. “EVOLVING MONETARY ECONOMICS IN ISLAMIC PERSPECTIVE.” Journal of Islamic Monetary Economics and Finance 7, no. 2 (2021): 317–40. https://doi.org/10.21098/jimf.v7i2.1372.
Barardehi, Yashar, et al. "Are Short-Selling Restrictions Effective?." Management Science 71.5 (2025): 3829-3851. https://doi.org/10.1287/mnsc.2024.4987
Beber, Alessandro, and Marco Pagano. "Short‐selling bans around the world: Evidence from the 2007–09 crisis." The Journal of Finance 68.1 (2013): 343-381. https://doi.org/10.1111/j.1540-6261.2012.01802.x
Bianda, Ryan, Aang Gunaepi, and Muhammad Misbakul Munir. "Offering Sharia securities through technology based crowdfunding services based on sharia principles according to Mui Fatwa." Journal of World Science 2.3 (2023): 332-340. https://doi.org/10.58344/jws.v2i3.240
Boehmer, Ekkehart, Charles M. Jones, and Xiaoyan Zhang. "Shackling short sellers: The 2008 shorting ban." The Review of Financial Studies 26.6 (2013): 1363-1400. https://doi.org/10.1093/rfs/hht017
Cao, Guohua, et al. "Overconfidence, short selling, and corporate fraud: Evidence from China." The Quarterly Review of Economics and Finance 97 (2024): 101889. https://doi.org/10.1016/j.qref.2024.101889
Chang, Eric C., Yan Luo, and Jinjuan Ren. "Short-selling, margin-trading, and price efficiency: Evidence from the Chinese market." Journal of Banking & Finance 48 (2014): 411-424. https://doi.org/10.1016/j.jbankfin.2013.10.002
Cohen, Lauren, Karl B. Diether, and Christopher J. Malloy. "Supply and demand shifts in the shorting market." The Journal of Finance 62.5 (2007): 2061-2096. https://doi.org/10.1111/j.1540-6261.2007.01269.x
Cortelezzi, Flavia, and Alessandro Ferrari, eds. Contemporary Issues in Islamic Law, Economics and Finance: A Multidisciplinary Approach. Routledge-Giappichelli Studies in Religion, Law and Economics in the Mediterranean Space. Routledge, 2023.
Diamond, Douglas W., and Robert E. Verrecchia. "Constraints on short-selling and asset price adjustment to private information." Journal of financial economics 18.2 (1987): 277-311. https://doi.org/10.1016/0304-405X(87)90042-0
Djazuli, Saifudien Djazuli, and Mujibu Da’wat. "Sadd Dzari’ah dalam Perlindungan Investor Pasar Modal Syariah." Iqtisad: Reconstruction of Justice and Welfare for Indonesia 12.2 (2025): 259-282.
Engelberg, Joseph E., Adam V. Reed, and Matthew C. Ringgenberg. "Short‐selling risk." The Journal of Finance 73.2 (2018): 755-786. https://doi.org/10.1111/jofi.12601
Figlewski, Stephen. "The informational effects of restrictions on short sales: Some empirical evidence." Journal of Financial and Quantitative Analysis 16.4 (1981): 463-476. https://doi.org/10.2307/2330366
Firdaus, Muhammad Irkham, and Theo Aditya Pradhana. "Share Trading in Limited Liability Companies According to the 2007 Law and Fatwa No. 40/DSN-MUI/X/2003." Al-Muamalat: Journal of Islamic Economics Law 8.2 (2025).
Firdaush, Mustapha Bayu, and Citra Rahayu Indraswari. "The Effects of Short Selling Bans on the Stock Price Volatility of LQ45 Banking Companies in Indonesia." Contemporary Studies in Economic, Finance and Banking 4.3 (2025). https://doi.org/10.21776/csefb.2025.04.2.17
Ghaisani, Sabila Nur, and Cucu Susilawati. "Analysis of the Suitability of Sharia Stock Investment on the Indo Premier Securities Application." Sighat: Jurnal Hukum Ekonomi Syariah 4.1 (2025): 12-22.
Grullon, Gustavo, Sébastien Michenaud, and James P. Weston. "The real effects of short-selling constraints." The Review of Financial Studies 28.6 (2015): 1737-1767. https://doi.org/10.1093/rfs/hhv013
Harahap, Asrul Saputra, and Fauziah Lubis. "Legal Protection of Investors Due to Misleading Information in the Sharia Capital Market Perspective of DSN MUI Fatwa Number 80 of 2011." Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) 6.3 (2023): 2930-2945.
Hidayat, Enang. "Induction and Its Relevance to the Transformation of Sharia Economic Law in Indonesia: A Study of Four Madhhabs." Ulul Albab: Jurnal Studi Dan Penelitian Hukum Islam 7 (2023): 71-87. https://doi.org/10.30659/jua.v7i1.28692
Hikmara, M. Abdi, and Nuzul Rahmayani. "Tinjauan Hukum Mengenai Short Selling dari perspektif hukum perdata Konvensional dan Hukum Syariah." Sakato Law Journal 3.2 (2025): 173-181.
Ibn Rushd, Abū al-Walīd Muḥammad ibn Aḥmad. Bidāyat Al-Mujtahid Wa Nihāyat al-Muqtaṣid. Vol. 3. Dār al-Ḥadīth, 2004.
Ifwat Ishak, Muhammad Shahrul, and Nur Syahirah Mohammad Nasir. “Maqasid Al-Shari’ah in Islamic Finance: Harmonizing Theory and Reality.” The Journal of Muamalat and Islamic Finance Research, June 1, 2021, 108–19. https://doi.org/10.33102/jmifr.v18i1.334.
Indonesia Stock Exchange. Announcement No. Peng-00042/BEI.POP/03-2026 on the Postponement of Short Selling Implementation. March 16, 2026.
Intihani, Siti Nur, et al. "Optimalisation of the Role of Basyarnas MUI in Dispute Resolution Sharia Capital Market." RSF Conference Series: Business, Management and Social Sciences. Vol. 6. No. 1. Research Synergy Foundation, 2026. https://doi.org/10.31098/bmss.v6i1.1090
Islahi, Abdul Azim. History of Islamic Economic Thought: Contributions of Muslim Scholars to Economic Thought and Analysis. Edward Elgar, 2014.
Jiang, Haiyan, Ahsan Habib, and Mostafa Monzur Hasan. "Short selling: A review of the literature and implications for future research." European Accounting Review 31.1 (2022): 1-31. https://doi.org/10.1080/09638180.2020.1788406
Jones, Charles M., and Owen A. Lamont. "Short-sale constraints and stock returns." Journal of Financial Economics 66.2-3 (2002): 207-239. https://doi.org/10.1016/S0304-405X(02)00224-6
Kāsānī, ‘Alā’ al-Dīn Abū Bakr ibn Mas‘ūd al-. Badā‘i‘ al-Ṣanā‘i‘ Fī Tartīb al-Sharā‘i‘, Kitāb al-Buyū‘, Bāb Mā Yabṭul Bihi al-Bay. Vol. 5. Dār al-Kutub al-‘Ilmiyyah, 1986.
Kouzoubasis, Thomas, and Homam Al Sakka. "The Impact of Short Selling on Stock Returns-An Event Study in Sweden." (2021).
Laila, Ahrina, Harianto Harianto, and Peny Cahaya Azwari. "Sharia Stock Investment On The Indonesia Stock Exchange In The Perspective Of Sharia Economic Law." Jurnal Fokus Manajemen 5.2 (2025): 241-250.
Laksono, Muflih Adi. "Eksegesis Prohibisi Jual Beli Al-Maksyuf (Short Selling) Dalam Elaborasi Investasi Saham Syariah." Hikamuna: Jurnal Kajian Hukum Islam 9.1 (2024): 637-650.
Meulbroek, Lisa K. "An empirical analysis of illegal insider trading." The Journal of Finance 47.5 (1992): 1661-1699. https://doi.org/10.1111/j.1540-6261.1992.tb04679.x
Miller, Edward M. "Risk, uncertainty, and divergence of opinion." The Journal of finance 32.4 (1977): 1151-1168. https://doi.org/10.2307/2326520
Muhammadi, Ali Akbar Ruhullah, Edo Segara Gustanto, Januariansyah Arfaizar, and Ali Asghar Fadlullah Muhammadi. “Mitigating Gharar in Sharia Capital Market Volatility: Governance, Regulation, and Technology: Mitigasi Gharar Dalam Volatilitas Pasar Modal Syariah: Tata Kelola, Regulasi, Dan Teknologi.” Az-Zarqa’: Jurnal Hukum Bisnis Islam 16, no. 1 (2024): 58–74. https://doi.org/10.14421/yxqd6f17.
Muhammadi, Ali Akbar Ruhullah, et al. "Mitigating Gharar in Sharia Capital Market Volatility: Governance, Regulation, and Technology: Mitigasi Gharar Dalam Volatilitas Pasar Modal Syariah: Tata Kelola, Regulasi, Dan Teknologi." Az-Zarqa': Jurnal Hukum Bisnis Islam 16.1 (2024): 58-74.
Mujahidah, Anisa Syahidah. "A Sentiment Analysis on Short Selling: An Islamic Perspective." Text Analytics in Economics 1.1 (2023). https://doi.org/10.58968/tae.v1i1.462
Mujahidin. "Analysis of the Application of the Maslahah Concept in DSN MUI Fatwa in the Sector of Sharia Economics and Finance." Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah 4.6 (2022): 1958-1970.
Naysābūrī, Muslim ibn al-Ḥajjāj al-. Ṣaḥīḥ Muslim. Vol. 3, edited by Muḥammad Fu’ād ‘Abd al-Bāqī. Dār Iḥyā’ al-Turāth al-‘Arabī, n.d.
Parsih, Feli, and Asyari Hasan. "Investing in Systems Digital Finance in Perspectives on Islamic Law Studies Case: System Online Loans." istinbath 23.1 (2024): 139-155.
Peng, Juan, et al. "Modeling the unintended consequences of short selling for innovation investment." The North American Journal of Economics and Finance 62 (2022): 101763. https://doi.org/10.1016/j.najef.2022.101763
Pradana, Erwin. "Pengaruh Economic Value Added dan Market Value Added terhadap Return Saham pada Perusahaan yang Terdaftar di Jakarta Islamic Index Periode 2018-2023." Jurnal Muamalat Indonesia-JMI 5.2.
Pradikta, Aditya Rahayu, and Arie Arie. "Sharia investment: Understanding prohibitions and guidelines for the right investment choices." Al-Aghniya: Journal of Syariah Business Management 1.1 (2024): 43-52.
Pradikta, Aditya Rahayu, and Arie Arie. “Sharia Investment: Understanding Prohibitions and Guidelines for the Right Investment Choices.” Al-Aghniya: Journal of Syariah Business Management 1, no. 1 (2024): 43–52. https://doi.org/10.58988/aghniya.v1i1.366.
Putra, Syah Budianto Chai, and Reinan Astika Nurul Hidayah. “Dilema Short Selling Terhadap Saham Syariah : Tinjauan Kepastian Hukum Di Bursa Efek Indonesia.” Pagaruyuang Law Journal 8, no. 2 (2025): 57–80. https://doi.org/10.31869/plj.v0i0.6287.
Putri, Febbyanti Agustina Eka, Wahyu Akbar, and Haidi Hajar Widagdo. "A Comparison of Islamic Capital Market Supervision in Indonesia and Malaysia." Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) 8.2 (2025): 3664-3680.
Putri, Indriana Rezkia. "Sharia Stock Practices and Cases of Stock Speculation in Islamic Finance." Jurnal Ekonomi dan Bisnis Indonesia 7.2: 1-7. Http://doi.org/10.37673/jebi.v7i2.2167
Putri, Riska Fitri Anggina, et al. "The Implementation of Sharia Principles in Stock Trading: A Comparative Analysis of Conventional and Sharia-Compliant Stock Markets." Socius: Jurnal Penelitian Ilmu-Ilmu Sosial 3.4 (2025): 484-489. https://doi.org/10.5281/zenodo.17768922
Qudāmah, Ibnu. Al-Mughni. Vol. 3. Dār ‘Alīmul Kutub, n.d.
Rahayu, Nur Ellyanawati Esty. "Analysis Of Financial Performance And Strategies For Increasing The Minimum Core Capital Of Bank BPD In Accordance With The Provisions Of Pojk No. 12/Pojk. 03/2020." Jurnal Ilmu Manajemen 22.2 (2025): 237-253.
Rahman, Md Habibur, and Siti Noor Shafiqha Binti Ramle. "Shari’ah Issues in Short Selling: Critical Analysis and The Alternatives." The Journal of Management Theory and Practice (JMTP) (2021): 104-109. https://doi.org/10.37231/jmtp.2021.2.2.120
Ramlah, Ramlah, et al. "Scientific Approach and Spirituality in Islamic Economic Development: A Philosophical Analysis of Science." Mauriduna: Journal of Islamic Studies 6.3 (2025): 556-573.
Rohma, Amilia, T. Sutrisno, and Aulia Fuad Rahman. "Financial Reporting Quality, Investment Efficiency, and the Role of Indonesian Sharia Stock Index (ISSI) as a Moderating Variable." Asian Journal of Management, Entrepreneurship and Social Science 3.03 (2023): 879-900. https://doi.org/10.63922/ajmesc.v3i03.468
Ruhullah, Ali Akbar, et al. "Mitigating Gharar in Sharia Capital Market Volatility: Governance, Regulation, and Technology." Az-Zarqa': Jurnal Hukum Bisnis Islam Vol 16.1 (2024).
Samsudin, Agus Rojak. "Evolution of The Concept of Gharar in DSN-MUI Fatwas on Islamic Insurance (2001-2024)." Prosiding 1.1 (2025): 15-41.
Sari Yulis Terfiadi, Muhammad Jais, Sayed Mahdi, and Ratna Husein. “The Potential of The Islamic Capital Market (ICM) as an Investment Model for the Baitul Mal.” Journal of Trends Economics and Accounting Research 3, no. 4 (2023): 620–28. https://doi.org/10.47065/jtear.v3i4.635.
Satiri, Ahmad, et al. "Dynamics of Fatwa DSN-MUI on Financing Products at Shari’ah Financial Institutions (LKS) from 2010 to 2021." Pena Justisia: Media Komunikasi dan Kajian Hukum 24.1 (2025): 6803-6828.
Selasi, Dini, Cory Vidiati, and Tardjono Tardjono. "Sharia Capital Market: Securities Fatwa, Derivative Securities and Mechanisms." IJOBBA: International Journal of Bunga Bangsa Cirebon 1.1 (2022): 1-24.
Sharma, Nitika, et al. "Mapping the Literature on Short-Selling in Financial Markets: A Lexicometric Analysis." International Journal of Financial Studies 13.3 (2025): 135. https://doi.org/10.3390/ijfs13030135
Shofawati, Atina. "Islamic screening mechanism of islamic capital market—a comparison between the fatwa—DSN-MUI, the Kuala Lumpur stock Exchange islamic index and the Dow Jones islamic market index." KnE Social Sciences (2018). https://doi.org/10.18502/kss.v3i10.3456
Siddiqui, Shamim A. “Riba, Time Value of Money and Discounting.” In Handbook on Islam and Economic Life, edited by M. Kabir Hassan and Mervyn K. Lewis. Edward Elgar Publishing, 2014. https://doi.org/10.4337/9781783479825.00012.
Staley, Kathryn F. The art of short selling. John Wiley & Sons, 1996.
Sulaeman, A. Hanief Alfadhil, and Oman Fathurrahman SW. "Islamic Law Perspective on Sharia Stocks in the Capital Market as an Investment Alternative for Investors." al-Afkar, Journal For Islamic Studies 8.4 (2025): 443-456. https://doi.org/10.31943/afkarjournal.v8i4.1805
Surahman, Arif, et al. "The Perspective of Islamic Economic Philosophy, Management, and Investment Decisions in Critique of Conventional Systems." International Journal of Science, Technology & Management 7.2 (2026): 313-319. https://doi.org/10.46729/ijstm.v7i2.1389
Surahman, Arif, Muhardi Muhardi, Jamaludin Jamaludin, Kartono Kartono, and Achmad Agus Yasin Fadli. “The Perspective of Islamic Economic Philosophy, Management, and Investment Decisions in Critique of Conventional Systems.” International Journal of Science, Technology & Management 7, no. 2 (2026): 313–19. https://doi.org/10.46729/ijstm.v7i2.1389.
Suryomurti, Wiku, et al. "A data envelopment analysis of Sharia stock listed companies on the Jakarta Islamic Index." Jurnal Ekonomi & Keuangan Islam (2026): 130-145. https://doi.org/10.20885/JEKI.vol12.iss1.art8
Terfiadi, Sari Yulis, et al. "The Potential of The Islamic Capital Market (ICM) as an Investment Model for the Baitul Mal." Journal of Trends Economics and Accounting Research 3.4 (2023): 620-628. https://doi.org/10.47065/jtear.v3i4.635
Tuasikal, Muhammad Abduh, Jaih Mubarak, and Yulizar Djamaluddin Sanrego. "Cryptocurrency Volatility, Gharar, and Risk Perception in Islamic Economics: A Qualitative Descriptive Study." Jurnal Ilmiah Akuntansi Kesatuan 13.6 (2025): 1895-1910.
Tuseno, Tuseno, Muhammad Syukri Albani Nasution, and Dhiauddin Tanjung. "Dissecting OJK Requirements for Companies That Go Public That Issue Sharia Shares." Sosioedukasi: Jurnal Ilmiah Ilmu Pendidikan Dan Sosial 14.1 (2025): 184-193.
Umar, Zulkarnaini, et al. "Syariah Stocks: A Normative Analysis of Islamic Law and Investment Practices in Indonesia." Kanun: Jurnal Ilmu Hukum 6.2 (2024): 317-336.
Widjaja, Hidajat. "The Effect of Theta Variable Before and After of Screening Process to Every Changes of Price and Volume of Jakarta Composite Index, Application of TSR Method." Application of TSR Method (July 30, 2015) (2015). http://dx.doi.org/10.2139/ssrn.2638105
Yang, Xiaoqi, et al. "Short selling and firms’ long-term stock return volatility: Evidence from Chinese concept stocks in Hong Kong." Finance Research Letters 70 (2024): 106339. https://doi.org/10.1016/j.frl.2024.106339
Yunilhamri, Muhammad Syauqi, and Rozi Andrini. "Optimalisasi Akad dalam Produk Pasar Modal Syariah untuk Mendorong Literasi Investor di Indonesia." Al-Muzdahir: Jurnal Ekonomi Syariah 8.1 (2026): 1-17.
Zatadini, Nabila, Setiawan Bin Lahuri, and Yuniar Fathiyyatur Rosyida. "Towards a Systematic Classification of Methodologies in Islamic Economics." Journal of Sharia Economics, Banking and Accounting 2.2 (2025): 224-236.
Zuḥaylī, Wahbah al-. Al-Fiqh al-Islāmī Wa Adillatuh. 4th ed. Vol. 5. Dār al-Fikr, 1997.
Authors
Copyright (c) 2026 Kukuh P. I. Haq, A. Solahuddin
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.