What Are The Competences of The Religious Courts To Adjudicates In Sharia Economic Cases?

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has talk about "Knowing Red Notice and its Request Procedure", "The Role of Law in Sharia Economic Development", you may read also "These 5 Types of Online Fraud You Should Avoid" and on this occasion we will discuss about 'What Are The Competences of The Religious Courts To Adjudicates In Sharia Economic Cases?'.

Legal Terms of Economic Sharia

Quoting the book Sharia Economics by Yoyok Prasetyo, the notion of Islamic economics is the same as Islamic economics, the only difference being that the perspective of each expert defines it. According to Yusuf Qardhawi, the notion of sharia economics is an economy based on God with the ultimate goal of God and utilizing means that cannot be separated from God's sharia.[1] 

According to Monzer Kahf, the notion of Islamic economics is part of interdisciplinary economics. This means that Islamic economics cannot stand alone and requires good and deep mastery of the supporting sciences. According to M.A Mannan, the notion of Islamic economics is a social science that studies people's economic problems inspired by Islamic values. In general, the notion of sharia economics is an economic system that applies the teachings of the Koran and hadith or Islamic law in its activities.[2] 

Legal Dispute Resolution

Disputes or legal disputes in business activities with Islamic Sharia nuances are no longer the competence of the General Courts Institution. The authority to examine and adjudicate the dispute is transferred to the Religious Courts.[3]

If the settlement must be through a civil lawsuit, the lawsuit is submitted to the Head of the Religious Court according to his relative competence. Through Law no. 3 of 2006 concerning Amendments to Law no. 7 of 1989 concerning the Religious Courts, Article 49 stipulates that the Religious Courts examine, decide, and resolve cases at the first level between people who are Muslims in the fields of:[2]

• Marriage;
• Inheritance;
• Will;
• Grant;
• Waqf;
• Zakat;
• Infaq;
• Sadaqah; and
• Islamic economics.

The procedural law for examining sharia disputes in the Religious Courts is regulated in the Regulation of the Supreme Court of the Republic of Indonesia (Perma) No. 14 of 2016 concerning Procedures for Settlement of Sharia Economic Cases and Perma No. 2 of 2015 concerning Procedures for Settlement of Simple Lawsuits.[4]

Previously, the Procedural Law of the Religious Courts was regulated in Law no. 7 of 1989 concerning the Religious Courts, confirms that the Religious Courts have the duty and authority to examine, decide, and resolving cases at the first level between people who are Muslims is not included in the field of sharia economics.[5] Thus, the differences in Law No. 7 of 1989 with Law no. 3 of 2006, wherein Law no. 3 of 2006 included the dispute on Sharia Economics, Zakat and Infaq as the absolute competence of the Religious Courts. 

Examples of Sharia Economic Cases

The scope of Sharia Economic Cases is cases in the field of sharia economics covering sharia banks, sharia microfinance institutions, sharia insurance, sharia reinsurance, sharia mutual funds, sharia bonds, sharia futures securities, sharia securities, sharia financing, sharia pawnshops, sharia financial institution pension funds , sharia business, including waqf, zakat, infaq, and shadaqah which are commercial in nature, both contentious and volunteer.[6]

In the traffic of conventional business or economic activities, the legal relationship that occurs between business actors is stated in a deed of agreement. In sharia economics, the agreement is equated with akad, the term of akad here of course referred to the contract of sharia economic. According to Perma No. 14 of 2016 which is meant by a Sharia Economic Contract is a legal act carried out by two or more parties on a voluntary basis which gives rise to rights and obligations based on sharia principles.[7] As a practical example in daily economic activities, we can find financial institutions and banks that offer credit based on sharia principles. For example, if we apply for credit or want to borrow money at a bank and are presented with an agreement with the term akad, then the Islamic economic principles in the credit is apply.

And if you have a sharia-based credit that is in default condition and intends to be restructured, then contact us, feel free in 24 hour, we will be happy to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Ekonomi Syariah: Pengertian, Tujuan, dan Karakteristiknya", www.kompas.com., Penulis : Isna Rifka., Editor : Yoga Sukmana, Diakses pada tanggal 2 April 2022 https://money.kompas.com/read/2022/01/19/123200426/ekonomi-syariah--pengertian-tujuan-dan-karakteristiknya?page=all.

2. Ibid.

3. "Gugatan Ekonomi Syariah Menjadi Kewenangan Pengadilan Agama", litigasi.co.id., Diakses pada tanggal 2 April 2022, https://litigasi.co.id/posts/gugatan-ekonomi-syariah-menjadi-kewenangan-pengadilan-agama

4. Ibid.

5. Ibid.

6. Ibid.

7. Ibid.