The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing

Siti Hamidah; Gusti Wimba Saputra

doi:10.47268/ballrev.v5i1.1897

The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing

Siti Hamidah⁽¹⁾, Gusti Wimba Saputra⁽²⁾

(1) Faculty of Law, Universitas Brawijaya, Malang, Indonesia
(2) Faculty of Syariah, Umm Al-Qura University, Mecca, Saudi Arabia
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Corresponding Author

Abstract

Introduction: Islamic banking is growing significantly and rapidly. The state needs its presence not only related to providing the right to freedom of religion but also ensuring that its implementation is following the provisions of sharia. Islamic banks have received a lot of criticism due to the existence of prohibited elements specifically in financing. Therefore, a supervision system for sharia compliance is needed.

Purposes of the Research: This paper analyzes the basis and form of state obligations and their manifestation in ensuring compliance with Sharia principles in Islamic banking financing contracts in Indonesia. Because the State Financial Services Authority as the party with the authority in supervision has not reached the conformity of Sharia principles in the agreement as a private aspect.

Methods of the Research: The problem analysis methodology involves legal research with a philosophical approach. The Statute Approach is conducted by reviewing applicable legal regulations, while the Analytical Approach involves analyzing legal principles and understanding through the examination of legal materials using techniques such as grammatical, teleological, and systematic interpretation.

Results of the Research: The state is responsible for ensuring Sharia compliance in Islamic banking financing stems from the basic principles of Pancasila and the Constitution, as reflected in various laws, regulations, and fatwas of the National Sharia Council. These regulations serve as guidelines for sharia-compliant financing. However, legal certainty is needed in supervision and sanctions in implementing Sharia compliance.

Keywords

Islamic Banking; State obligation; Sharia Compliance.

DOI

10.47268/ballrev.v5i1.1897

Published

2024-03-31

How To Cite

APA: Hamidah, S., & Saputra, G.W. (2024). The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing. Batulis Civil Law Review, 5(1), 32 - 44. DOI: https://doi.org/10.47268/ballrev.v5i1.1897.

IEEE: S. Hamidah, and G.W. Saputra, "The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing", Batulis Civ. Law Rev., vol. 5, no. 1, pp. 32 - 44, Mar. 2024. Accessed on: May. 5, 2024. [Online]. Available DOI: https://doi.org/10.47268/ballrev.v5i1.1897

Harvard: Hamidah, S., and Saputra, G.W., (2024). "The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing". Batulis Civil Law Review, Volume 5(1), pp. 32 - 44. [Online]. Available DOI: https://doi.org/10.47268/ballrev.v5i1.1897 (Accessed on: 5 May 2024)

Chicago: Hamidah, Siti, and Gusti Wimba Saputra. "The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing." Batulis Civil Law Review 5, no. 1 (March 31, 2024): 32 - 44. Accessed May 5, 2024. doi:10.47268/ballrev.v5i1.1897

Vancouver: Hamidah S, Saputra GW. The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing. Batulis Civ. Law Rev. [Internet]. 2024 Mar 31 [cited 2024 May 5];5(1):32 - 44. Available from: https://doi.org/10.47268/ballrev.v5i1.1897

MLA 8th: Hamidah, Siti, and Gusti Wimba Saputra. "The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing." Batulis Civil Law Review, vol. 5, no. 1, 31 Mar. 2024, pp. 32 - 44, doi:10.47268/ballrev.v5i1.1897. Accessed 5 May. 2024.

BibTeX:

@article{BALLREV1897,
		author = {Siti Hamidah and Gusti Saputra},
		title = {The Obligation of The State to Realize Sharia-Compliant Certainty in Islamic Banking Financing},
		journal = {Batulis Civil Law Review},
		volume = {5},
		number = {1},
		year = {2024},
		keywords = {Islamic Banking; State obligation; Sharia Compliance.},
		abstract = {Introduction: Islamic banking is growing significantly and rapidly. The state needs its presence not only related to providing the right to freedom of religion but also ensuring that its implementation is following the provisions of sharia. Islamic banks have received a lot of criticism due to the existence of prohibited elements specifically in financing. Therefore, a supervision system for sharia compliance is needed.Purposes of the Research:  This paper analyzes the basis and form of state obligations and their manifestation in ensuring compliance with Sharia principles in Islamic banking financing contracts in Indonesia. Because the State Financial Services Authority as the party with the authority in supervision has not reached the conformity of Sharia principles in the agreement as a private aspect.Methods of the Research: The problem analysis methodology involves legal research with a philosophical approach. The Statute Approach is conducted by reviewing applicable legal regulations, while the Analytical Approach involves analyzing legal principles and understanding through the examination of legal materials using techniques such as grammatical, teleological, and systematic interpretation.Results of the Research: The state is responsible for ensuring Sharia compliance in Islamic banking financing stems from the basic principles of Pancasila and the Constitution, as reflected in various laws, regulations, and fatwas of the National Sharia Council. These regulations serve as guidelines for sharia-compliant financing. However, legal certainty is needed in supervision and sanctions in implementing Sharia compliance.},
				issn = {2746-8151},		pages = {32--44}			doi = {10.47268/ballrev.v5i1.1897},
				url = {https://fhukum.unpatti.ac.id/jurnal/ballrev/article/view/1897}
		}

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