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This study examines the transformation of Indonesian administrative law in the sharia-based economy, focusing on changes in business licensing and central–regional governmental authority before and after the enactment of the Job Creation Law. Using a normative juridical method with statutory, conceptual, and comparative approaches, this study analyzes relevant legislation and legal literature through grammatical, systematic, and teleological interpretation. The findings reveal that licensing reform has strengthened national regulatory standardization, risk-based administration, and digital governance through the Online Single Submission Risk-Based Approach (OSS-RBA). These developments have improved the regulatory framework for legal certainty and administrative coordination while constraining certain aspects of regional discretion. Within the sharia-based economy, the reform facilitates administrative coordination between business licensing and halal certification, while the Halal Product Assurance Agency (BPJPH) maintains distinct statutory responsibilities. From an administrative law perspective, this transformation reflects a reconfiguration of governmental authority rather than the complete elimination of regional autonomy. Furthermore, integrating good governance with Islamic economic principles, particularly trustworthiness (amanah), justice (‘adl), transparency, and economic fairness, provides a normative basis for evaluating administrative accountability and substantive justice. The study concludes that sustainable licensing reform requires balancing national regulatory consistency, regional autonomy, institutional capacity, and equitable access to administrative services.
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Farisa et al. (2026) studied this question.
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