Udayana Journal of Law and Culture
Vol 7 No 2 (2023)

Now and Forward: Customer Deposit Insurance of Sharia Bank in Indonesia

Nun Harrieti (Faculty of Law Padjadjaran University, Bandung, Indonesia)
Azlin Alisa Ahmad (Faculty of Islamic Studies Universiti Kebangsaan Malaysia, Selangor, Malaysia)
Eidy Sandra (Faculty of Law Padjadjaran University, Bandung, Indonesia)
Fatmi Utarie (Faculty of Law Padjadjaran University, Bandung, Indonesia)



Article Info

Publish Date
31 Jul 2023

Abstract

Sharia banking's characteristic, which underpins its activities on sharia principles, requires a customer protection mechanism in accordance with its characteristics, including customer deposit insurance. This study aims to determine the readiness of sharia banking regulations on customer deposit insurance in Indonesia to strengthen the protection mechanism for Sharia Banking Customers. This article is a normative juridical research that applies an analytical descriptive approach. The insurance for customer deposits of sharia bank in Indonesia is regulated explicitly in the Regulation of Deposit Insurance Cooperation No. 1 of 2020 concerning the Implementation of Sharia Bank Deposit Insurance and Resolution. The regulation determines that deposit insurance must be carried out through a kafalah contract between the Deposit Insurance Corporation and the Customer. However, it does not yet provide a specific arrangement regarding the protection of deposits on social funds in sharia banking. In the future, it is necessary to have regulations related to deposit insurance for social funds in sharia banking in implementing the social functions of sharia banking, especially as Sharia Financial Institutions-Recipients of Money Waqf and arrangement of Money Waqf Nazhir.

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Journal Info

Abbrev

UJLC

Publisher

Subject

Arts Humanities Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Udayana Journal of Law and Culture (UJLC) is hence created by reflecting the aforementioned phenomenon. This journal offers a recovery of the landscape of the science of law by means of recovering the position of ideology as an aspect of science of law analysis, with particular in analyzing the ...