THE CHARACTERISTICS OF SHARIA COMPLIANCE IN THE SETTLEMENT OF SHARIA ECONOMIC DISPUTES IN INDONESIA

DOI

10.2991/iclgg-17.2018.15How to use a DOI?

Keywords

non-sharia compliance, dispute settlement, sharia economy.

Abstract

According to Article 1 point 12 of Law no. 21 of 2008 (of the Republic of Indonesia) concerning Sharia Banking (Supplement to State Gazette No. 94 of 2008, Supplement to State Gazette No. 4867) explains that Sharia Principles are Islamic Law Principles in banking activities based on Fatwas issued by institutions that set an agreement under Islamic law between any bank and other parties for the fund deposit and / or financing of business activities or other activities declared in accordance with sharia. In a business transaction, the principle of kafah is obligatory, meaning that sharia compliance shall apply from the contract signing until the end of its implementation, including its dispute settlement instrument in case of a sharia economic dispute in the future. As the global economy develops, communities of Islamic law (sharia) in some countries are compelled to contribute to the establishment laws that regulate contracts (sharia compliant financial documents) as the legal basis for sharia-compliant dispute settlement. On the other hand, law reform in sharia economy seems to be done in order to contribute the improvement of the law (in Indonesia). The parties who have entered into a sharia contract would expect that a dispute settlement be made in compliance with sharia principles, which further detail the settlement arrangements pursuant to sharia (the appropriate legal rules under Islamic sharia / syariah perspective). On 22 December 2016, the Chief Justice of the Supreme Court of the Republic of Indonesia signed the Supreme Court Regulation No. 14 of 2016 concerning Procedures for Sharia-Compliant Dispute Settlement. However, this regulation is still far from meeting the expectations of disputing parties who are bound by sharia contracts and seeking a sharia/kaffah-compliant settlement because some factors therein are still in non-compliance with sharia principles. Therefore, this article will discuss the concept of sharia compliance, as well as non-sharia compliance in dispute settlement in Indonesia

Copyright

© 2018, 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  - Fiska Silvia
AU  - Kukuh Leksono
AU  - Ghansam Anand
PY  - 2017/11
DA  - 2017/11
TI  - THE CHARACTERISTICS OF SHARIA COMPLIANCE IN THE SETTLEMENT OF SHARIA ECONOMIC DISPUTES IN INDONESIA
BT  - Proceedings of the International Conference on Law, Governance and Globalization 2017 (ICLGG 2017)
PB  - Atlantis Press
SP  - 113
EP  - 126
SN  - 2352-5398
UR  - https://doi.org/10.2991/iclgg-17.2018.15
DO  - 10.2991/iclgg-17.2018.15
ID  - Silvia2017/11
ER  -