Islamic Banking Law Research Articles

Legal Analysis of The Role of Notaries in The Drafting of Financing Agreement Deeds Based on Sharia Principles At PT. Bank Syariah Indonesia Batam Branch Office

In every transaction or agreement they observe, notaries are crucial in guaranteeing adherence to sharia rules. It is essential for notaries to comprehend sharia principles in muamalah (business transactions) in order to perform their duties responsibly and in compliance with applicable legal rules. Muamalah based on sharia principles addresses a number of topics, including justice, openness, unity, and adherence to Islamic legal norms. To determine if a transaction or agreement complies with the relevant sharia principles, notaries must comprehend and internalise these principles. This research aims to find out, analyse and explain in depth the role of notaries in making financing agreement deeds based on sharia principles, so that they can contribute to the development of Islamic banking law and notaries in Indonesia, and analyse and explain comprehensively the responsibilities of notaries both civilly, criminally, and administratively for the sharia financing agreement deeds they make, so that they can contribute to the legal protection of the par. This research uses a type of legal research that is Normative as well as Sociological (empirical). The findings revealed that the role of the Notary in the application of Sharia principles in contract deeds at Bank Syariah Indonesia KC Batam is not overly dominant, because the Notary's role is essentially limited to legalising the contract, while the bank determines the contract's content entirely. The notary bears accountability for the Sharia Financing Agreement deed and must read and comprehend its contents. With this reading, the notary can also amend any inaccuracies in the deed's contents. The Notary will refuse to legalise the deed if it violates the law, public order, or decency. The constraints of the absence of Notary competencies that are in accordance with and fulfill sharia provisions, make not all Notaries who are partners of Islamic banks lack understanding of sharia principles.

An Analysis of Interest-Free Finance in Pakistan

An interest-free economy plays a prominent role in the country's development. Pakistan being an Islamic country should make efforts to flourish Islamic finance in order to get the benefits of this justified and equitable Islamic economic system. The basis of interest-free finance is avoiding interest (usury) which is against the teachings of the Quran and Sunnah. The present research is qualitative in nature, data is extracted from audited financial statements of the respective Islamic banks and websites. The global annual growth rate of interest-free finance is 10% and the same growth is exhibited by Islamic banks. Islamic banks are contributing to charity to achieve SDG goals under CSR. In Pakistan, the people believe Islamic banking is not un-Islamic. Islamic finance's challenges were also mentioned. The biggest challenges include a lack of qualified people, different schools of thought, no Islamic banking laws, no client awareness, and few Islamic products.

THE IMPLEMENTATION OF MUSYARAKAH FINANCING IN ISLAMIC BANKS IN INDONESIA IN RELATION TO DEFAULTS BUSINESS PARTNERS

This research aims to analyze the implementation of musyarakah financing in Islamic banks in Indonesia related to the default of business partners. The principal banking law states that the function of banking in Indonesia is to collect and distribute funds. Islamic banking law regulates various types of financing, including musyarakah financing. The method used in this research is descriptive analytical method using qualitative approach. The results of this research discussion show that legal protection for the parties in musyarakah financing in the event of default by business partners consists of: first, legal protection provided by law, namely protected by the Banking Law, especially Articles 1, 7 and 8, second, legal protection based on musyarakah contracts/agreements, in the form of : First, if the business partner has been classified into the collectibility of bad debts, the bank can confiscate the collateral and then proceed with the auction. Second, submitting the dispute to a Islamic arbitration body or court. Meanwhile, the efforts of Islamic banks if there are indications that there will be defaults by business partners in musyarakah financing are to addendum the contract.

Akibat Hukum Merger Bank Syariah Mandiri, BRI Syariah, dan BNI Syariah

The purpose of writing this article is to examine legal arrangements for merger of Islamic banking and legal consequences of the merger of Bank Syariah Mandiri, BRI Syariah, and BNI Syariah. The research method used in this research is normative juridical method. Results of this study found that provisions regarding the merger of Islamic Banking are carried out in accordance with the provisions of the legislation as mandated by Article 17 paragraph (3) of Law Number 21 of 2008 concerning Islamic Banking. The legal arrangements for the merger of Islamic Banking in Indonesia can be referred to the Banking Law, Limited Liability Company Law, Islamic Banking Law, Government Regulation Number 28 of 1999, and OJK Regulation Number 41 of 2019. In addition, the merger of Sharia Banks must also pay attention to terms and conditions relating to the prohibition of monopolistic practices and unfair business competition as referred to in Law Number 5 of 1999. The legal consequences of the merger of BRI Syariah, BNI Syariah and Bank Mandiri Syariah may affect the company, shareholders, customers and employee.

Juridical Fundamentals for the Establishment of Islamic Banking Law in Indonesia

••• English ••• The existence of Islamic banks is a sign of the revival of the Islamic economy in Indonesia, especially since Indonesia is a country where the majority of its people are Muslims. So, the existence of Islamic banking in Indonesia should become an important matter because it is related to the establishment of the people's economy, moreover, Indonesia is a legal state that binds all activities and rules in legal writings that are ratified and agreed upon. This research was conducted to answer about the importance of the legal foundations of the establishment of Islamic banking law in Indonesia. This research method use a normative juridical approach. Legal research with this approach is oriented toward the norms contained in the legislation. The results is, the formal position of Islamic banking law in Indonesia is said to be strong from a juridical point of view, even in line with the position of other conventional banking. On this basis, the existence of laws and regulations related to Islamic banking in Indonesia is something that needs to exist. Because Islamic banking is the foundation of the economic milestone for the Muslim community. The existence of these laws and regulations will further strengthen the existence of Islamic banks in Indonesia, to provide services to all people with a sharia system and pattern, which is based on the Al-Qur'an and also the Hadith of the Prophet Muhammad Saw. ••• Indonesian ••• Keberadaan bank syariah merupakan tanda bagi kebangkitan ekonomi syariah di Indonesia, apalagi Indonesia merupakan negara yang mayoritas penduduknya beragama Islam. Maka keberadaan perbankan syariah di Indonesia seharusnya menjadi suatu hal yang penting karena berkaitan dengan terwujudnya ekonomi kerakyatan, apalagi Indonesia adalah negara hukum yang mengikat segala kegiatan dan aturan dalam suatu tulisan hukum yang disahkan dan disepakati. Penelitian ini dilakukan untuk menjawab tentang pentingnya landasan hukum berdirinya hukum perbankan syariah di Indonesia. Metode penelitian ini menggunakan pendekatan yuridis normatif. Penelitian hukum dengan pendekatan ini berorientasi pada norma-norma yang terkandung dalam peraturan perundang-undangan. Hasilnya, posisi formal hukum perbankan syariah di Indonesia dikatakan kuat secara yuridis, bahkan sejalan dengan posisi perbankan konvensional lainnya. Atas dasar tersebut, keberadaan peraturan perundang-undangan terkait perbankan syariah di Indonesia merupakan sesuatu yang perlu ada. Karena perbankan syariah merupakan tumpuan tonggak ekonomi bagi masyarakat muslim. Adanya peraturan perundang-undangan tersebut akan semakin memperkokoh eksistensi bank syariah di Indonesia, untuk memberikan pelayanan kepada seluruh masyarakat dengan sistem dan pola syariah, yang berlandaskan pada Al-Qur'an dan juga Hadith Nabi Muhammad Saw.

The Legal Argumentation Regulatory Framework for Management of Sharia Funding and Risk Loans in Indonesia

This study discusses legal arguments related to Indonesia's regulatory framework for managing Sharia funding and loan risk. This study uses a legal analysis approach concerning the principles of the state constitution, Islamic banking laws, the fatwa of the Indonesian Ulema Council (MUI), and regulations from the Financial Services Authority (OJK). This arrangement aims to protect consumer interests, ensure compliance with Sharia principles, and maintain the sustainability of the Sharia financial industry in Indonesia. This study uses qualitative research with data search methods, namely through library research sources and literature studies through library research in scientific journals, books, papers, and articles directly related to the research problem under study. It has the purpose of doing a description of the problem under study. In conclusion, this regulatory framework is essential to protect consumer interests, ensure compliance with Sharia principles, and maintain sustainability in Indonesia's Islamic finance industry. These regulations are based on solid legal principles, such as the country's constitution, laws, MUI fatwas, and OJK regulations. This research contributes to understanding the legal arguments regarding Indonesia's regulatory framework for managing Sharia funding and loan risk. It can be a reference for further research and development in this field..

The Urgency Of Establishing Sharia Economic Law (Omnibus Law) In Increasing Sharia Economic Development In Indonesia

The non-maximum development of Indonesia's shari'ah economy has become a joint work for the Government, KNEKS, and Muslims in Indonesia. Based on data quoted from GIEI (Global Indicator Economic Islam), Indonesia is in sixth place in the finance sector under Kuwait and the United Arab Emirates, second in the halal food sector under Malaysia, not in the top 10 in the travel sector, third in the fashion sector, not in the top ten in the pharma & cosmetics sector, and not in the world's top 10 in the media and leisure sector. Even though Indonesia is a country that has the largest Muslim population in the world, it means that this country has great potential to develop more rapidly. In the opinion of researchers, the most fundamental problem is the not-yet optimal development of the shari'ah economy in Indonesia, namely because there are still many regulations that overlap with each other, and many sectors still need to be appropriately covered. The findings of the authors, currently Indonesia only has four rules at the level of laws governing the Islamic economic sector, namely the Islamic banking law, the Islamic capital market law, halal food and beverages, and ZISWAF (Zakat Infaq Shodaqoh Wakaf). Many sectors have yet to be well covered, such as Sharia financing, export financing, and pensions. Accordingly, the function of the CIPTAKER law is to harmonize one regulation with another and cover sectors that need to be appropriately regulated. The formation of the Sharia Economic Law using the omnibus law concept is believed to enhance the development of the Sharia economy in Indonesia. The results of this study indicate that the presence of a shari'ah economic law using the omnibus law concept has a critical urgency in increasing the shari'ah economy in Indonesia, particularly in aligning the shari'ah econnomic sector, which has not been integrated and comprehensively regulating the shari'ah economic sector which has not been completely held.; Omnibus Law. Keywords: Urgency, Sharia, Economic, Omnibus Law

Juridical Study of The Development of Islamic Banking Law and Its Implications for Islamic Bank Products

This study aims to analyze the development of Islamic banking law and its implications for the development of Islamic banking products. The researcher examined the significance of changes in laws related to Islamic banking for regulatory development and their implications for the development of Islamic banking institutions and products using a juridical-normative approach. This research includes literature research with a normative approach. The data collection technique used in the study is documentation techniques. Meanwhile, the data analasis technique used is induction technique with a qualitative approach. The results of the study show that changes in the law on Islamic banking have had a significant effect on the development of Islamic banking regulations in Indonesia. The implementation of Law Number 21 of 2008 concerning Sharia Banking is expected to answer some of the problems and doubts regarding the direction of development of Islamic banking in the future, including the direction of legal developments governing Islamic banking activities. With the enactment of Islamic banking regulations spread across sharia banking laws and regulations, the compilation of sharia economic law and fatwa dsn-mui as the legal basis for Islamic banking activities in Indonesia, it is expected to have implications for increasing the market share of Islamic banking and service networks and being able to encourage the development of Islamic banking products. The implications of this research are expected to develop knowledge in the field of legal politics and laws and regulations in the fields of economics and business. In addition, it is hoped that it can be useful for the fulfillment of human life celebrations related to aspects of structuring collective life, including developing an appreciation of legal and unlawful politics. Penelitian ini, bertujuan untuk menganalisis perkembangan hukum perbankan syariah dan implikasinya terhadap pengembangan produk-produk perbankan syariah. Peneliti mengkaji signifikansi perubahan undang-undang terkait perbankan syariah bagi perkembangan regulasi dan implikasinya terhadap pengembangan institusi dan produk-produk perbankan syariah menggunakan pendekatan yuridis-normatif. Penelitian ini termasuk penelitian kepustakaan dengan pendekatan normatif. Tehnik pengumpulan data yang digunakan dalam penelitian adalah tehnik dokumentasi. Sedangkan tehnik analasis data yang digunakan adalah tehnik induksi dengan pendekatan kualitatif. Hasil dari penelitian menunjukkan bahwa perubahan undang-undang tentang perbankan syariah, telah berpengaruh secara signifikan bagi perkembangan regulasi perbankan syariah di Indonesia. Implementasi Undang-Undang Nomor 21 Tahun 2008 tentang Perbankan Syariah, diharapkan dapat menjawab sebagian persoalan dan keragu-raguan mengenai arah perkembangan perbankan syariah ke depan, termasuk arah perkembangan hukum yang mengatur kegiatan perbankan syariah. Dengan diberlakukannya regulasi perbankan syariah yang tersebar dalam Peraturan Perundang-undangan Perbankan Syariah, Kompilasi Hukum Ekonomi Syariah dan Fatwa DSN-MUI sebagai landasan hukum bagi kegiatan perbankan syariah di Indonesia, diharapkan dapat berimplikasi terhadap peningkatkan pangsa pasar perbankan syariah dan jaringan pelayanan serta mampu mendorong perkembangan produk perbankan syariah. Implikasi penelitian ini, diharapkan dapat mengembangkan pengetahuan di bidang politik hukum dan peraturan perundang-undangan dalam bidang ekonomi dan bisnis. Selain itu, diharapkan dapat berguna bagi pemenuhan hajat hidup manusia berkenaan dengan aspek penataan kehidupan kolektif termasuk mengembangkan apresiasi terhadap politik hukum dan peraturan perundang-undangan, khususnya perbankan syariah.

PAKİSTAN VE NİJERYA İLE KARŞILAŞTIRMALI OLARAK AFGANİSTAN’DAKİ İSLAMİ FİNANSAL KURUMLARIN ŞER’İ YÖNETİŞİM ÇERÇEVESİ

The existence of Sharia governance in the structure of Islamic Financial Institutions (IFIs) guarantees the compliance of the IFI to the Sharia principles and prevents the top management of the IFI from involving in high-risk business activities. This research studies the concept of Sharia governance framework of IFIs operating in Afghanistan, the structure of Sharia governance, hierarchy, and authorities are articulated. The study elaborates on the initiation of the Sharia governance framework of the IFIs of Afghanistan. In order to find a clear picture of the challenges in the implementation of the Sharia governance framework, a questioner was developed, and interviews were conducted with ten persons from the senior practitioners of Islamic finance sector. The research found that the Islamic financial institutions in Afghanistan have a comprehensive NSGF in place, which guides its operations. The study highlighted the challenges as the lack of Islamic banking law and lack of qualified Sharia scholars who have experience in the finance and banking sector to serves on the Sharia board. Lack of sharia-compliant products in the market, lack of public awareness, and irrelevant interventions of the shareholders in the operation of the IFIs are also highlighted as challenges.

Kebijakan Peraturan OJK Terhadap Perbankan Syariah dalam Menghadapi Wabah Covid-19 di Era New Normal

<p><em>This study aims to examine the policy of Islamic banking law in maintaining its existence in the face of the plague that is hitting Indonesia. OJK (Financial Services Authority) has also made a number of policies that are used as an effort to save the economy in Indonesia. One of the regulations is stated in POJK Number 18 / POJK.03 / 2020 concerning "Written Orders for Handling Bank Problems". The legal policy used by Islamic banking is to measure the new OJK regulations as the organizer of an integrated regulatory and supervisory system of all activities in the financial services sector. The method used in this research is descriptive qualitative. The method used in this research is descriptive qualitative. related to the world of banking. The method used in this research is descriptive qualitative. The object of this research is Islamic banking which has more religious wisdom. The results of this study indicate that Islamic banking is making service updates, considering that the transition of the banking world to digital can increase the efficiency of work processes and improve the quality of customer service, by digitizing during the pandemic. The bank has made long-term investments and it is projected that digital services will be one of the main drivers of sustainable banking industry growth in the context of fulfilling POJK Number 18 / POJK.03 / 2020.</em></p><p><em><br /></em></p>

Prospects for Attracting Islamic Financial Industry Institutions to Algeria after 2024 - Requirements and Challenges

This study aimed to identify the opportunities and possibilities available for nationalizing the Islamic financial industry in Algeria at present and after 2024, in light of the growing international economic challenges and the increasing requirements of sustainable development. The problem of this study revolves around the prospects for attracting Islamic financial institutions to Algeria after 2024 in terms of requirements and challenges. It is divided into four themes: the milestones of Islamic banking under the new Law No. 20-02, the reasons for integrating Islamic financial institutions into the financing process, the expected opportunities for the assets of the Islamic finance industry in Algeria Horizons 2040, and the challenges of implementing financial institutions in Algeria. The study concluded that there is a political will on the part of the public authorities in Algeria that has culminated in the issuance of the Islamic banking law as an alternative to the participatory banking system. This is expected to be a strategic option for mobilizing the hoarded financial resources of families and those circulating in the informal market that finances the shadow economy, especially if various challenges are faced. The most important of these are legislative challenges, challenges of financial inclusion, and challenges related to administrative and financial corruption.

Legal Protection of Islamic Banks, Challenges and Solutions

The Islamic banking industry is an important part of the financial system in any country that has this type of banking. Islamic banking institutions are regulated by several laws and regulations as same as conventional banks. The Islamic banking Act and general banking law, financial laws, and other related laws are the main piece of law for organizing the Islamic banking system. One of the main challenges that facing Islamic banking institutions is the lack of a legal framework to protect Islamic banking and manage these banks. The legal framework of the Islamic banking industry includes special Islamic banking law and other laws that have relation to Islamic banks such as finance law and company law. The two main legal challenges of Islamic banking institutions is lack of legal framework and lack of Sharia court to deal with disputes and issues relating to Islamic banking cases. thus, it is necessary for Islamic banking institutions to have special Islamic banking law and provisions in other law that they regulate Islamic banking institutions. Therefore, enacting Islamic banking law and amending some other laws to include the Islamic banking industry is needed. Furthermore, establishing a Sharia court to settle Islamic banking cases when there are disputes. Alternatively, appointing Shariah experts and professionals in Islamic banking issues in civil court can be an alternative solution for dealing with Islamic banking cases. Purpose of The Paper: The purpose of this study is to find out the legal challenges that face Islamic banks, and then find proper solutions for these challenges. Methodology and Approach: The qualitative method-based is applied for this study as qualitative research is a proper method for conducting this type of research. The study uses various documents and content analysis approach to understand and analyse the nature of legal challenges of Islamic banking institutions. In this paper, both primary and secondary materials are part of the data collection. Thus, Acts, books, academic journals are used for collecting data for the purpose of this research. Findings: It is found that the current legal framework of the Islamic banking industry needs to be reformed to be a proper legal framework. Therefore, related laws and regulations to Islamic banks should be amended to cover Islamic banking institutions. In addition. Islamic banking Act is necessary to be enacted for regulation Islamic banks. Furthermore, establishing a Sharia court or appointing qualified Shariah scholars in civil court is necessary for resolving legal challenges that face Islamic banking institutions. Keywords: Islamic Banking, Legal Issues, Shariah Court, Civil Court DOI: 10.7176/JLPG/107-10 Publication date: March 31 st 2021

Relevance on islamic principle law with application at the field: review of islamic banking publication in Indonesia

This paper evaluates the principles, relevance, and usefulness of Islamic banking law in implementing Islamic banks' administrative system. Islamic sharia law has become a source of law in several Islamic countries. Sharia law comes from the Islamic religion, which must be applied in many sectors, including the banking system. The goal is to improve kaffah Islamic teachings in aspects of life by adhering to the Koran, a concept to be applied to many systems. Although this banking system has become a fundamental law, studies are still needed to determine the relevance, principles, and application of Islamic banking law with application in the field to see the advantages and disadvantages. An in-depth data analysis process was carried out, which included data coding, critical interpretation, and evaluation that matched the findings with the discussion topic and determined the findings' validity and reliability. Based on the literature, the findings of this study confirm that Islamic banking law has been applied correctly in the context of administrative services in the field because of the effectiveness and vision of the ummah in the context of concepts, principles, and field application; assisting public financial services in Islamic countries.

Is spin-off policy an effective way to improve performance of Islamic banks? Evidence from Indonesia

Indonesia has adopted a dual banking system in which both conventional and Islamic banks operate. Most of the sharia-based banks, however, are still operating Islamic windows within their conventional entity. To strengthen the role of Islamic banking in the intermediation system, the government issued Islamic Banking Law No. 21/2008 to encourage Islamic windows of conventional banks to become a legal entity separate from their parent company. Because some Islamic windows have spun off in this fashion, we can employ a difference-in-difference approach to examine the effect of such a spin-off on Islamic banks’ performance, efficiency, and risk. Our study covers all Islamic commercial banks (including Islamic windows of conventional banks) in Indonesia from 2008–2019. We find that the performance and efficiency of full-fledged Islamic banks are significantly lower compared with Islamic windows of conventional banks. Moreover, our results show that financing risk increases after the spin-off. The inferior performance of full-fledged Islamic banks persists for four years after the spin-off. We also find that a conversion strategy results in better outcomes, particularly for profitability and efficiency, than a pure spin-off strategy.

Islamic Banking Law Perspective in the Concept of National Law

AbstractThe focus of this article is the perspective of Islamic Banking Law in the concept of national law, both from the institutional aspect, the aspect of business activities. As well as aspects of liquidity management and financial instruments used, both at the level of laws and implementing regulations; and influencing socio-political, cultural and economic factors. Islamic banking law is a new entity in which there is interaction and mutual greeting between Islamic law and national law. In other words, Islamic banking law lies in two areas of law: Islamic law and national law. Sharia banking law, as the name implies, is Islamic law because it is formed on the principles of Islamic law. At the same time, Islamic banking law is also part of national law because it is formed by the competent state institution with the infrastructure and mechanisms that are formally justified. The discussion focuses on the dynamics of the encounter between Islamic law and national law as the elements of its formation. Such efforts can not ignore the factors - factors that influence it, whether political, cultural or economic.

Evaluation of the UK Islamic Banking System, Challenges and Prospects

Under the UK financial law, Islamic banks are treated in the same way as conventional banks-there is no special Islamic banking law, nor is there any provision under the current banking law system for Islamic banks. The Financial Services Authority (FSA), the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) regulate and supervise all financial institutions, and this includes Islamic banks. However, the only official document to mention Islamic banks is a paper issued by Her Majesty’s Treasury, which simply explains Islamic banking rather than setting out any rules or regulations. The UK banking system’s policy is to not favoritise any specific type of financial institution; all institutions are treated equally, without giving Islamic banks a special treatment.The UK government has tried to facilitate and assist Islamic banks with developing and conducting their activities effectively. many obstacles that previously faced Islamic banks in the country have either been removed or at least reduced to some extent. These efforts have been made to open the gate for Islamic banks to enter the UK banking market and develop their business there. For example, as described in this paper, some changes have been made concerning tax regulation and legislation to help facilitate Islamic banking transactions. In addition, the Islamic Bank of Britain’s definition of ‘deposit’ has been modified to become more acceptable. Generally speaking, the Islamic banking industry in the UK is managed and organised very well, regardless of there being no special Islamic banking law. However, some issues are still existing and faced by Islamic banks in the UK, such as lack of Islamic banking law, shortage of experts, and lack of transparency. Thus, this paper evaluated and criticised the Islamic banking system of the UK and attempted to find out solutions for all these issues. Keywords: the United Kingdom, Islamic Banks and Challenges DOI: 10.7176/PPAR/10-8-04 Publication date: August 31 st 2020

On The Road To Fairness For All

Equitable economic development is an essential element in order to achieve justice and equality in a multi-ethnic society. The reality of Malaysia, which is a country of multi-ethnicity, multi-religion and multi-cultural societies, demands a concept of justice and equality that is different from other countries, particularly the ones with homogenous societies. The highest law of the land places Islam, the religion associated with one of the main ethnicity, as the official religion of the nation and allowed the duality of economic system, in particular banking system, whereby conventional banking system exists side-by-side with the Shariah-compliant, Islamic one. By reviewing the pertinent literature on the development of Islamic banking, the reviewed cases on Islamic banking and its contributions to Malaysian society regardless of ethnicity and religion. The discussion in this paper therefore will be directed towards highlighting the laws and cases on Islamic banking and its implication to enhance the application of Islamic banking laws to consumers regardless of ethnicity and religion, in order to maintaining fairness and justice in a multi-ethnic society.

Recovery Issues on Murabahah Financing in Malaysia

This qualitative research paper considers the recovery issues on Murabahah financing as the theme as to add to the existing Murabahah literature. The purpose of this paper is to investigate the recovery issues on Murabahah financing in Malaysia, specifically on the recovery via court cases. A descriptive and content analysis were performed on six Murabahah cases heard in the Malaysian court extracted from Lexus Nexus database. The results suggest that the issue on ta’widh, Murabahah restructuring and guarantees is of common weight while the issue on ibra is also important lately. Apart from the recovery issues, it is noted that failure to adhere to the guidelines formulated by the regulator persists and heavy reliance on common laws is unavoidable and continue to be the subject matter. Future research should further discuss on the efficiency of the recovery activities and discuss the area of developing Islamic banking laws appropriate to cater for the issues discussed herein.

KONFIGURASI POLITIK DALAM PEMBENTUKAN HUKUM PERBANKAN SYARI’AH

Sharia banking law was formed in the reform era through the procedure of making political decisions at the suggestion of the DPR RI. At the beginning of the reform order the legal product tended to be responsive. All the pillars of democracy can play a role. It's just that legal products that are born more serve international institutions or financiers because political configurations are more likely to be oligharkhi-cartels. The birth of this law is in line with the increasingly existence of Islamic banking in contributing and economic growth in Indonesia. As a political product, sharia banking law was born after a number of fundamental changes, especially changes in the construction of judicial authority carried out by the Supreme Court and the Judiciary under it. The birth of Islamic banking law follows a responsive legal character because this law embodies the needs of the community, guarantees business certainty and guarantees legal protection, gives space and movement to Islamic banking to develop and create innovations in Islamic banking products and services. In addition, this law is also the answer to the implementation of laws in accordance with Pancasila and has accommodated the needs of religious law. In the process of forming all stakeholders play an active role in either political parties or political forces, community organizations, government and society.

Legal Consequences for the Execution of Foreclosed Collateral (AYDA), Both for the Ownership of Collateral and for the Bank

As a sharia financial institution that carries out the intermediation function, Islamic banking has a risk of financing problems. This problematic financing does not only have an impact on the low income as a business institution, and ultimately results in the soundness of the bank. Settlement of problem financing is always sought in an efficient and effective way, with a minimum level of legal risk. This settlement effort is certainly inseparable from the provisions of the Islamic banking law, the the mortgages Act and the regulations of the financial services authority. One of the efforts to resolve the problematic financing allowed by the sharia banking law, and the regulation of the financial services authority is the Foreclosed Collateral (AYDA), even though this effort is contrary to the provisions of the mortgages Act. The problems in this thesis are four, namely first, the process of binding financing that is burdened with mortgagerights at PT. Bank Syariah Bukopin, Bukittinggi Branch. Secondly, the debt settlement process in financing encumbered with Foreclosed Collateral(AYDA) at PT. Bank Syariah Bukopin, Bukittinggi Branch. Third, concerning the legal consequences of the Foreclosed Collateral (AYDA), both for the ownership of collateral and for the Bank. Fourth, regarding the realization of the sale of Foreclosed Collateral (AYDA). This thesis research uses a sociological juridical research method, which moves from the existence of norm conflicts between laws and regulations related to efforts to resolve problematic financing by means of Foreclosed Collateral (AYDA), including its implementation at PT. Bank Syariah Bukopin, Bukittinggi Branch. The approach in legal sociology research, using the legislative approach and implementation practices, is carried out by reviewing and analyzing regulations regarding AYDA and implementation and the legal consequences of AYDA implementation. The results of the study indicate that the implementation of the AYDA is contrary to the mortgages Act and has legal risks in the form of null and void. For this reason, it is recommended that the implementation of the AYDA be avoided and steps taken to adjust the applicable provisions. This is to avoid not only legal risk for banks and customers as executors of existing regulations, but also to ensure the certainty and effectiveness of the laws that apply in the Republic of Indonesia.