Indonesian Journal of Sustainability
Vol 3, No 1 (2024): January

Sociological Study of the Development of Islamic Banking within the Legal System in Indonesia

Kholili, Muhammad Salim (Unknown)
Arifin, Tajul (Unknown)
Abdal, Abdal (Unknown)



Article Info

Publish Date
22 Jan 2024

Abstract

The development of Islamic Financial Institutions (LKS), particularly Islamic banks, in Indonesia has seen significant growth, especially following the enactment of Law No. 21 of 2008 on Islamic Banking and Supreme Court Regulation (PERMA) No. 2 of 2008 on Shariah Economic Dispute Resolution. With the increasing number of institutions operating based on Shariah principles, various new issues related to Shariah compliance have arisen.Fatwas issued by the DSN-MUI hold legal authority in determining Shariah aspects in the economy, including banking. On the other hand, Shariah Economic Dispute Resolution (KHES) plays a role as a social control tool to manage practices not compliant with Islamic commercial law, especially in economics. This research, a descriptive qualitative study with a normative sociological approach, utilizes codified legal sources like KHES and DSN-MUI fatwas. The results suggest that, from a sociological perspective, KHES was developed as a response to the evolving landscape of Shariah economic practices requiring a legal framework. Stakeholders in Shariah economics and finance are expected to actively contribute to its improvement. DSN-MUI fatwas, in a social context, provide a solution for addressing non-compliant financial institutions, reconciling differences among scholars, and promoting Islamic principles in economics and finance. Keywords Sharia Banking, Sociological, Law, KHES, DSN MUI

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Journal Info

Abbrev

ijs

Publisher

Subject

Humanities Civil Engineering, Building, Construction & Architecture Computer Science & IT Economics, Econometrics & Finance Languange, Linguistic, Communication & Media

Description

Indonesian Journal of Sustainability is a peer-reviewed journal published twice a year (January and June) by the Library of Universitas Islam Sultan Agung. IJS Intend to be International journal which provides and promotes broader publishing article from the multi-disciplinary resources. IJS also ...