In the era of digital transformation, the integration of technology into business practices has become essential for the sustainability and competitiveness of Micro, Small, and Medium Enterprises (MSMEs). In Indonesia, where MSMEs constitute a significant portion of the national economy, their digitalization is not only a strategic economic agenda but also a vital step toward achieving the Sustainable Development Goals (SDGs), particularly those related to economic growth, innovation, and reduced inequality. Amid this transformation, the role of Sharia Economic Law has gained increasing attention, especially in supporting MSMEs that operate based on Islamic principles [1] .

The relevance of Sharia economic law in this context lies in its ability to provide a regulatory framework that aligns ethical, legal, and financial practices with the values of justice, transparency, and social welfare. Policies such as the Sharia QRIS and fatwas issued by the Indonesian Ulema Council (MUI) have opened new opportunities for Sharia-compliant MSMEs to participate in the digital economy. However, challenges such as digital literacy gaps, regulatory harmonization, and limited access to infrastructure persist. This research theme is thus crucial, as it explores how Islamic legal frameworks can actively contribute to the empowerment of MSMEs and the realization of inclusive, ethical, and sustainable economic development aligned with Indonesia's commitment to the SDGs [2] .

Digital transformation is the implementation of digital technology to improve services in a business through changing services from manual processes to digital processes or replacing old technology with newer technology, Digital solutions aim to achieve efficient automation innovation and creativity. Digital transformation requires organizations to change more professionally [1] , [3] .

Digital transformation has become an urgent need for businesses in this digital era. Experts have extensively discussed the positive impact and importance of this transformation in improving operational efficiency, creating added value, and enhancing business competitiveness. Digital transformation plays a crucial role in changing the way businesses operate and interact with customers. According to the 2023 McKinsey Study, digital transformation can increase productivity by up to 40% and cost efficiency by up to 30% in various industry sectors [2] .

The importance of MSMEs in the context of Indonesia's economy and welfare, Micro, Small, and Medium Enterprises (MSMEs) play an important role in the Indonesian economy, making a significant contribution to economic growth, job creation, and poverty alleviation. The latest literature underscores the importance of the MSME sector in improving economic inclusion and community welfare. The history of the Indonesian nation itself has recorded and proven the strength of SMEs in facing the economic crisis that occurred in 1998, the Government of the Republic of Indonesia itself realized the great role of SMEs in increasing the absorption of labor which can reach 97% of the entire national workforce and the contribution to the gross domestic product turnover is around 57% [4]. According to recent research, the MSME sector in Indonesia contributes more than 60% to the Gross Domestic Product (GDP) and creates about 97% of jobs in the private sector [5]. The role of the government, both at the central and regional levels, is very important in supporting the development of MSMEs. Support policies such as low-cost financing, entrepreneurship training, market access, and licensing are crucial factors in increasing the competitiveness and growth of MSMEs in Indonesia [6].

MSME companies such as Tokopedia and Bukalapak in Indonesia have become successful examples of implementing digital transformation. They use technology to increase market penetration, expand product range, and significantly improve customer experience. Digital transformation also allows MSMEs to better face global challenges, as explained by Shah et al. (2022), who underline that digital technology allows companies to adapt to market changes quickly and effectively [7]. In this context, digital transformation is not only about technology adoption but also about changing business processes and organizational culture to create long-term value [8].

One of the agendas of Indonesian Sharia economic stakeholders to promote independence and make the world the center of the Sharia economy is the utilization and strengthening of digital economy platforms in terms of trade (e-commerce, marketplace) and finance (financial technology/fintech) [9] . The economy and digital platforms are also able to strengthen several goals or strategies at once, including MSMEs [10] . Stating that Islamic banks play an important role in developing MSMEs. Islamic banks must be able to provide financing products that are by the needs, competitive, and easily accessible to MSME actors engaged in the halal food sector, halal lifestyle, must be further developed.

The Coordinating Ministry for Economic Affairs (2022) shows that the government's efforts to encourage MSMEs through various incentive and facilitation policies have had a positive impact on increasing the productivity and competitive capacity of this sector [11] . In addition, the presence of State-Owned Enterprises (SOEs) and Regional-Owned Enterprises (BUMD) also plays an important role in providing infrastructure support and access to capital for MSMEs in remote and border areas [12] .

Digital banks in Indonesia are now increasingly popular among the public. The Financial Services Authority (OJK) has even issued a regulation on commercial banks which also explains digital banks. Based on OJK Regulation number 12/POJK.03/2021, it is stated that a digital bank is a bank incorporated in Indonesia (BHI) that provides and carries out business activities, especially through electronic channels without a physical office other than the head office or using a limited physical office.

Financial Services Authority [13]. OJK's guidebook entitled Assistance for digital bank branch operators, namely banking services/activities through certain bank offices using electronic/digital means owned by the bank and/or through digital media carried out independently by customers that allow prospective customers and/or bank customers to obtain information, communicate, register, open accounts, bank transactions and close accounts, This includes obtaining other information and transactions outside of banking products, including financial advisory, investments, e-commerce transactions, and other needs of the Bank's customers [14].

Maqasid al-Shariah is the main principle or objective of Islamic sharia which includes the protection of religion, soul, intellect, heredity, and property. In the context of the digital transformation of MSMEs in Palembang, the application of maqasid al-Shariah principles is important to ensure that digital technological innovations contribute positively to the socio-economic life of the community, maintain moral and ethical values, and ensure fairness in the distribution of economic benefits [15] .

Realizing a benefit through maqosid as-sharia according to Fatkhi ad-Daraini commented: "that laws are not made for the sake of the law itself but for benefit". In a language that is not much different, Abu Zahrah stated that the essential purpose of Islamic law is benefit. There is not a single law that is shari'a either in the Qur'an or in the hadith but in it, there is benefit. The above statement further emphasizes al-Syatibi's statement that indeed the shari'a aims to realize the benefits of human beings in this world and the hereafter. Maqasid al-Shari'ah is a benefit. Through the analysis of maqasid al-Shari'ah, the benefits are not only seen in a mere technical sense but in the effort to dynamically develop the law, maqasid al-Shari'ah is seen as something that contains the philosophical value of the laws that God has decreed to humans. Based on the description above, the researcher is interested in discussing The Role of Sharia Economic Law in Advancing MSME Digitalization for SDGs in Indonesia: A Systematic Literature Review (SLR) [16] .

The intersection of Sharia economic law and the digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia has emerged as a significant area of academic inquiry, particularly in relation to inclusive economic development and the Sustainable Development Goals (SDGs). Previous studies have examined the critical role of MSMEs in national economic growth, job creation, and poverty reduction, highlighting the importance of facilitating their transition into the digital economy. Digital transformation is seen as a means to improve operational efficiency, expand market access, and enhance competitiveness, especially in the post-pandemic era [17].

Sharia economic law, which emphasizes ethical business practices, transparency, and social justice, offers a unique foundation for supporting the digitalization of MSMEs in Indonesia, where a large portion of the population adheres to Islamic principles. Scholars have explored how instruments such as Sharia-compliant financial technology (fintech), QRIS Syariah, and MUI fatwas can drive technological adoption among Islamic-based enterprises. However, despite these positive developments, various barriers remain [18].

Literature has identified challenges such as inconsistent legal frameworks between Sharia and national regulations, limited digital infrastructure in rural areas, and low levels of digital literacy among MSME actors. Some researchers have emphasized the need for government and institutional support, including harmonized policies, incentives, and educational programs, to foster a more inclusive digital ecosystem. There is also a growing call for integrating Islamic values with technological innovation to ensure digitalization aligns with moral and social objectives. The current body of literature underscores the necessity of a more systematic understanding of how Sharia economic law can be effectively leveraged to support MSME digital transformation in alignment with the SDGs, particularly in the areas of economic growth (SDG 8), innovation (SDG 9), and reduced inequalities (SDG 10). This study contributes to filling that gap by offering a comprehensive systematic literature review (SLR) that synthesizes existing research, identifies best practices, and outlines strategic policy directions for a Shariabased digital economy [18] .

Unlike previous studies that generally focused on MSME digitalization from technological or economic perspectives alone, this research uniquely integrates Sharia economic law as a guiding framework. It explores how Islamic legal principles specifically influence digital transformation among MSMEs, addressing both ethical and regulatory dimensions. While earlier themes may emphasize innovation or digital literacy, this study connects these elements with religious compliance, offering a holistic approach aligned with the Sustainable Development Goals (SDGs). This makes it distinct in bridging faith-based law with digital economic empowerment in the Indonesian context.

This study uses the Systematic Literature Review (SLR) approach. Systematic Literature Review (SLR) is defined as the steps of identifying, assessing, and interpreting all existing research evidence to provide answers to specific research questions The purpose of the SLR method is to identify, review, and evaluate all relevant research to provide answers to the questions of a research set by some journal sources written by researchers. This research consists of several stages, namely the formulation of research questions, literature search, data, data processing, and conclusion [19] .

The inclusion criteria method includes journal articles, books, and research reports published in the last seven years, which discuss sharia economic law, MSMEs, and digitalization in Indonesia. Exclusion criteria include non-peer-reviewed literature, opinion articles, and literature that is not available in full text. The elements used in compiling the questions in this study use PICOS [19] . An acronym that refers to the five main elements that help design and focus research in SLR, namely:

The results of the search strategy described in the previous discussion were obtained from the Google Scholar database The researcher limited the search to articles published from 2014 to 2024 to see the newness and development of research over the last 10 years, out of 200 articles the author did a screening of relevant articles so that it could be 10 articles relevant to the research that are suitable for answering The research question in this study, which will be explained in the table below:

The thematic analysis of the entire research above, meeting the inclusion criteria, provides in-depth insight into the discussion of the influence of the implementation of Sharia economic law. The synthesis results of these articles can provide a comprehensive overview of the digitization of MSMEs in Indonesia, which is recorded academically from various literature, After presenting the above articles along with the main themes and summaries of the results and findings, the researcher will conduct further discussions about the distribution of the themes of the eight articles, as well as answer questions from research questions (RQ) [36] .

Political policies of Islamic law in Indonesia have played a strategic role in supporting the digitalization of MSMEs. Initiatives such as the implementation of the Sharia-based Quick Response Code Indonesian Standard (QRIS) and the development of halal fintech platforms demonstrate the commitment of the government and related institutions to create a digital ecosystem that supports sharia principles [37] . This policy facilitates MSMEs to access a wider market, improve operational efficiency, and create Shariabased financial inclusion.

The politics of Islamic law encourage harmonization through the synergy between the regulations issued by the National Sharia Council (DSN-MUI) and the regulations set by the Financial Services Authority (OJK). However, inconsistencies between several regulations are still a challenge, especially in the implementation of Sharia-based digital products [38] . This harmonization requires strengthening dialogue between financial institutions, regulators, and religious authorities to create a consistent and inclusive legal framework.

The main obstacles faced include:

a. Low digital literacy: Many Sharia-based MSME actors do not have a sufficient understanding of digital technology.

b. Regulatory inconformities: Differences in interpretation between Sharia law and positive law often slow down the digital adoption process.

c. Limited access to technology: Uneven digital infrastructure, especially in remote areas, hinders the transformation of MSMEs into digital ecosystems [39].

d. Lack of incentive policy support: There are not many incentives that specifically support Sharia MSMEs in adopting technology.

e. Islamic Law Political Strategy Can Improve Digital Literacy of Sharia-Based MSMEs to Support a Sustainable Economy

a. Community-based education: Conducting digital literacy training tailored to sharia values through collaboration between the government, Islamic financial institutions, and local communities.

b. Utilization of digital media: Digital literacy campaigns through social media, e-learning platforms, and Sharia-based applications.

c. Involvement of universities and educational institutions: Internship and counseling programs involving students and lecturers to assist Sharia-based MSMEs.

d. Strengthening incentive policies: Providing technology subsidies or fiscal incentives for MSMEs that adopt Sharia-based digital platforms.

Policies such as the MUI Fatwa and QRIS Syariah have accelerated the digital transformation of MSMEs by giving confidence to MSME actors that technology adoption is by sharia principles. Sharia QRIS, for example, facilitates safe and Shariacompliant digital transactions, making it easier for MSMEs to reach Muslim consumers who are increasingly concerned about halal transactions [40] . Additionally, this policy helps reduce reliance on cash and improve payment efficiency. However, its effectiveness still requires supervision and strengthening of digital literacy among MSME actors.

Based on the analysis of the formulation of the problem, this study concludes that Sharia economic law plays a significant role in advancing the digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, contributing directly to the achievement of the Sustainable Development Goals (SDGs). The study highlights several key factors influencing this transformation: 1). The Influence of Political Policy on Islamic Law: The implementation of Islamic legal political policies such as Shariacompliant QRIS and MUI Fatwa has had a positive impact on supporting the digitalization of Sharia-based MSMEs. These policies provide a framework that facilitates MSMEs' access to a halal and efficient digital ecosystem, promoting SDG 8 (Decent Work and Economic Growth). This opens up opportunities for MSMEs to expand their digital presence, driving economic growth and fostering inclusive business practices. 2). The Importance of Harmonization of Regulations: A crucial aspect of successful MSME digitalization is the harmonization between Sharia regulations and national positive law. Despite the benefits, regulatory conformity remains a challenge. The need for crossagency collaboration and the alignment of these regulations is vital to overcoming barriers and ensuring that MSMEs can fully benefit from digital transformation, contributing to SDG 16 (Peace, Justice, and Strong Institutions). 3). Obstacles in the Digitalization of MSMEs: The digitalization process is hindered by several obstacles, including low digital literacy, limited infrastructure, and a lack of specific incentives for Sharia-based MSMEs. These challenges slow the wider adoption of digital technologies and hinder the achievement of SDG 9 (Industry, Innovation, and Infrastructure), which aims to build resilient infrastructure and foster innovation. 4). Strategies for Digital Literacy: Effective political strategies within Islamic law, such as prioritizing community-based training, strengthening the role of educational institutions, and offering policy-based incentives, have been proven to encourage digital literacy among MSME actors. These initiatives play a critical role in equipping entrepreneurs with the necessary skills to adopt digital technologies and ensure their businesses remain competitive and sustainable, aligning with SDG 4 (Quality Education). 5). The Role of Policies such as MUI Fatwa and Sharia QRIS: The implementation of policies like the MUI Fatwa and Sharia-compliant QRIS has accelerated MSME digital transformation. These policies provide Sharia-compliant payment instruments that improve efficiency and boost the confidence of MSME actors in adopting digital technologies, further contributing to SDG 8 by promoting sustainable economic growth. In conclusion, while challenges remain, the strategic implementation of Sharia economic law policies offers significant potential for MSME digitalization, supporting the broader goals of economic growth, innovation, and education.

We would like to express our deepest gratitude to all parties who supported the completion of this research entitled "The Role of Sharia Economic Law in Advancing MSME Digitalization for SDGs in Indonesia: A Systematic Literature Review (SLR)." Special thanks to our respective institutions-Universitas Islam Negeri Syarif Hidayatullah Jakarta, Universitas Islam Negeri Raden Fatah Palembang, Politeknik Elektronika Negeri Surabaya, the Libyan Authority for Scientific Research, Mu'tah University, and Madrasah Aliyah Negeri 1 Palembang-for their valuable contributions, academic support, and encouragement throughout this study.

All authors contribute equally to the publication of this paper, all authors read and agree to this paper, and all authors declare no conflict of interest.

All authors declare no conflict of interest.