<![CDATA[Mahkamah Syar’iyyah as an Islamic judicial institution in Indonesia has special authority to resolve disputes in Islamic economic matters for Muslims and/or those who declare themselves subject to Islamic law. Based on Law No. 3 of 2006, the Mahkamah Syar’iyyah was granted new authority to adjudicate Islamic economic disputes. Consequently, the Mahkamah Syar’iyyah is required to be prepared in many aspects, including substantive law, which is inseparable from Islamic law as its foundation.This study employs field research with a socio-legal approach. Data collection techniques include observation and interviews. Primary data sources for this research are the Mahkamah Syar’iyyah of Banda Aceh, Dinas Syariat Islam (DSI), Majelis Permusyawaratan Ulama (MPU) Aceh, and the Sharia Supervisory Board (DPS) of Bank Syariah Aceh.The findings indicate that the model of Islamic economic dispute resolution at the Mahkamah Syar’iyyah of Banda Aceh is conducted through two pathways: reconciliation/mediation and ordinary litigation. The process begins with reconciliation, followed by mediation. If no solution is reached, the case proceeds to ordinary litigation, either through regular lawsuits or simplified claims, provided that dispute resolution clauses are included in the contract or agreement. Furthermore, the most effective model of Islamic economic dispute resolution at the Mahkamah Syar’iyyah of Banda Aceh is mediation, due to its relatively short process, simple mechanism, and the fact that no party is disadvantaged, resulting in a win-win solution.]]>
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