<![CDATA[The development of Islamic banking in Indonesia has created various legal relationships that potentially generate sharia economic disputes, particularly regarding compensation in sharia contracts. Problems arise because the settlement of Islamic banking disputes still tends to apply conventional civil law paradigms in determining the concept of loss and compensation mechanisms. This study aims to analyze the concept of loss in fiqh muamalah and examine the conformity of the legal considerations in the Supreme Court Decision Number 154/K/Ag/2023 with the principles of Islamic economic law. This research employed a normative juridical method using statutory, conceptual, and case approaches. The legal materials consisted of primary and secondary legal sources obtained through library research and analyzed descriptively-qualitatively using deductive reasoning methods. The results show that the Supreme Court Decision Number 154/K/Ag/2023 interprets loss as actual loss that must be objectively proven and directly related to the parties’ breach of contract. This approach is generally consistent with the concepts of ta’widh, dhaman, and the principle of al-dharar yuzal in fiqh muamalah. However, the limitation of compensation solely to material losses indicates that the judges’ legal reasoning is still influenced by the paradigm of conventional civil law. Therefore, strengthening regulations concerning the forms and limitations of compensation in Islamic economic law is necessary to ensure legal certainty and conformity with fiqh muamalah principles.]]>
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