Harmonization of Islamic Law Norms in Sharia Banking Laws

DOI

10.2991/icils-19.2019.39How to use a DOI?

Keywords

harmonization, al-Maslahah al-Mursalah, sadd dzari'ah, Islamic banks, sectoral egoism

Abstract

There are three legal systems that apply in Indonesia, namely the Customary Law system, Islamic law, and Western law. The potential for disharmony is very possible. The question is, how was the birth of Islamic banking legislation in Indonesia, the methodological model used in harmonizing the laws in the Sharia banking Act. The purpose of this paper is to expose the process of drafting Sharia banking regulations. The application of the istimbath method or the method of legal discovery is used as a basic argument in the reform of Islamic banking law that is meaningful and guarantees legal certainty. Writing using normative analysis methods in the dogmatic legal system to create regularity in Islamic banking law in Indonesia. There are 3 components of the harmonization of laws in preparing Sharia banking laws and regulations. The first component of legal material (legal substance) such as the use of the term "financing" with "credit", the term "profit sharing" with "interest". Absorption in the positivity of Islamic law in Sharia Banking legislation is based on the al-Maslahah al-Mursalah method, (attracting benefit) sadd dzari'ah (prevention efforts). The legal structure component and its institution (legal structure), marked by the presence of the MUI represented by the National Sharia Board as an Institution that has the authority to issue a Fatwa which is used as a reference for Sharia guarantees in the technical preparation of Sharia banking Laws. Guaranteed enforcement of Sharia principles at Sharia banks is carried out by the Sharia Supervisory Board in each Sharia Banking. To eliminate the problem of the harmonization process in the legislation there is the Sharia Banking Committee (KPS) and the Dispute Resolution Institution by the Religious Courts as a compromise point in the discussion of competence in the authority of Sharia banking dispute resolution which eliminates sectoral egoism for the benefit of welfare. Components of legal culture (legal culture), namely the requirement to uphold sharia principles, sharia symbols and not to "murtad" in conducting muamalah. Sharia symbolization can be seen in every sharia bank that has permission from Bank Indonesia to conduct business as a sharia bank must clearly state the word "sharia" in the writing of the bank. All of this aims to support the development of Islamic banking business and as a step to prevent (sadd dzari'ah) errors in the practice of Islamic banking.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Baidhowi
AU  - Andry Setiawan
PY  - 2019/11
DA  - 2019/11
TI  - Harmonization of Islamic Law Norms in Sharia Banking Laws
BT  - Proceedings of the 2nd International Conference on Indonesian Legal Studies (ICILS 2019)
PB  - Atlantis Press
SP  - 225
EP  - 231
SN  - 2352-5398
UR  - https://doi.org/10.2991/icils-19.2019.39
DO  - 10.2991/icils-19.2019.39
ID  - 2019/11
ER  -