Abstract

At this writing the type of research used, namely the type of normative legal research. Bankruptcy cases in Indonesia have not specifically regulated dealing with Sharia Bankruptcy using sharia principles/sharia contracts. Sharia Bankruptcy Cases are absolutely the competence of the Religious Courts based on the philosophical Aspects, Sociological Aspects, and Juridical Aspects of the Urgency of the Authority of the Religious Courts to Adjudicate Sharia Bankruptcy.

Highlights

  • The Religious Court is one of the judicial circles under the Supreme Court

  • As for sharia principles in banking, there are contract rules based on Islamic law between banks and other parties to save funds and or finance business activities, or other activities that are declared in accordance with sharia, among others, based on the principle of ISSN: 2668-7798 www.techniumscience.com profit sharing (Ishak & Rahman, 2021), financing based on the principle of participation capital, the principle of buying and selling goods with a profit (Lestari & Jayanti, 2020) or financing of capital goods based on the principle of pure lease without a choice (Warninda et al, 2019), or with the option of transferring ownership of the goods leased from the bank by another party (Rauf, 2016)

  • Philosophical aspects The urgency of the Authority of the Religious Courts to Adjudicate Bankruptcy Syariah to realize Article 29 of the 1945 Constitution of the Republic of Indonesia, namely a State based on the One Supreme Godhead with guaranteed independence for each resident to embrace their respective religions and to worship according to their religion and beliefs

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Summary

Introduction

The Religious Court is one of the judicial circles under the Supreme Court. The Law on Religious Courts which is a positive law is regulated in Law No 7 of 1989 which has been amended by Law No 3 of 2006 and the second amendment with Law No 50 of 2009 concerning Religious Courts. Article 49 of Law No 3 of 2006 provides an extension of the authority of the Religious Courts to examine and decide on sharia economic disputes. The expansion of authority brings legal consequences that the District Court is no longer authorized to receive, examine and decide on sharia economic disputes. The cause of the weak authority of the Religious Courts to adjudicate Sharia Bankruptcy, is because currently the settlement of Sharia Bank disputes, especially bankruptcy, is experiencing legal problems or problems, namely the legal vacuum of Sharia Bankruptcy regulations. Sharia Bankruptcy which still has no regulation / legal vacuum so that it still uses the Bankruptcy Legal System adopted by the Law of the Republic of Indonesia Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations (Bankruptcy Law and PKPU) and is applied by non-Sharia banks (conventional banks). As for sharia principles in banking, there are contract rules based on Islamic law between banks and other parties to save funds and or finance business activities, or other activities that are declared in accordance with sharia, among others, based on the principle of ISSN: 2668-7798 www.techniumscience.com profit sharing (mudharabah) (Ishak & Rahman, 2021), financing based on the principle of participation capital (musharakah), the principle of buying and selling goods with a profit (murabahah) (Lestari & Jayanti, 2020) or financing of capital goods based on the principle of pure lease without a choice (ijarah) (Warninda et al, 2019), or with the option of transferring ownership of the goods leased from the bank by another party (ijarah wa iqtina) (Rauf, 2016)

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