Abstract
This article discusses about the extent of readiness of the government regulation to meet the need of Islamic investment in the field of banking in Indonesia and Turkey, especially how legal protection to the banks and the customers in implementing sharia investment in both countries. This article is based on normative legal research, descriptive comparative through analysis the literature and regulatory provisions in force in the two countries. It is concluded that both Indonesia and Turkey have an arrangements of legislation and procedures in which guarantees the legal protection for every parties to apply islamic contract law through its secular legislation system. Depending on the customers would need to seek an appropriate mechanism in sharia based on freedom of contract. The difference is that in the legal systems being used also has differences, in which Indonesia has such a specific sources of law in which regulating the syariah principles. On the other hand Turkey does not.
Highlights
The existence of Banking institutions are important because of their function as the collectors of investment funds is very influential to support the economic growth of a nation
This article discusses about the extent of readiness of the government regulation to meet the need of Islamic investment in the field of banking in Indonesia and Turkey, especially how legal protection to the banks and the customers in implementing sharia investment in both countries
It is concluded that both Indonesia and Turkey have an arrangements of legislation and procedures in which guarantees the legal protection for every parties to apply islamic contract law through its secular legislation system
Summary
The existence of Banking institutions are important because of their function as the collectors of investment funds is very influential to support the economic growth of a nation. 10/17/PBI/2008 Date of 25 September 2008 concerning Islamic Banking products and Sharia.To better accommodate the purity of Islamic banking in Indonesia, as a legal umbrella and in the House of Representatives of the Republic of Indonesia (DPR RI), made the Draft of Law on Islamic Banking (Islamic Banking bill or IB bill) In connection with this IB bill, since it was first proposed around 2003, there was some IB bill proposed by various groups in the country, namely by Bank Indonesia (BI), the Association of Indonesian Islamic Banking (Asbisindo), the Association of Indonesian Muslim Intellectuals (ICMI) and the proposal of the House of Representatives their own initiative. Act 10 of 1998, the Central Bank acknowledged the existence of Contem of Banking ventional Banks and Islamic Banking
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