Reformulation of Criminal Law Policy and Islamic Law Perspective in Addressing Misuse of Regional Assets as an Effort to Prevent State Losses

Abstract

This study aims to analyze criminal law policies regarding the misuse of Regional Government Property (Barang Milik Daerah/BMD) and to reconstruct a preventive framework against state financial losses through positive law and Islamic law perspectives. The key concepts and definitions utilized include criminal law policy, misuse of regional assets, state financial losses, asset governance, and maqāṣid al-sharīʿah principles (ḥifẓ al-māl and the prohibition of ghulūl). A normative-juridical research method was employed, incorporating statutory, conceptual, comparative, and Islamic legal approaches supported by primary legal materials and contemporary scholarly literature. The object and scope of the research focus on the national regulatory architecture of regional asset management—including laws on state finance and treasury, government regulations, and home affairs ministerial regulations—synchronized with anti-corruption enforcement and public governance ethics. The main findings indicate that foundational weaknesses stem from fragmented asset databases, weak internal controls, and a lack of integration between preventive controls and enforcement, resulting in the delayed detection of asset misappropriation until large-scale fiscal losses materialize. The challenges or constraints of the research involve bureaucratic regulatory dynamics that lag behind modern risk mitigation requirements and the complexity of proving non-cash economic losses. Recommendations and practical implications highlight the necessity of establishing interoperable digital asset information systems, risk-based internal auditing, standardized commercial utilization contracts, and integrated asset recovery mechanisms.