Abstract

Currently, the legal environment for dispute resolution in the Islamic banking industry in Indonesia is not sufficient to achieve the main purpose of establishing a bank. Although Islamic legal frameworks are important for resolving financial disputes recognized under classical Islamic law, this paper aims to overcome increasing disputes as Islamic banking revenues increase. , provides arguments and solutions for resolving Islamic banking disputes using the Engel curve theory of microeconomics. Therefore, changes in the income of Islamic banks in Indonesia do not significantly affect changes in alternative dispute resolution/ADR requests. Even if the demand for ADR continues to grow, the demand for ADR will be relatively smaller than the change in Islamic banking earnings. The legal framework is dispute resolution in the Islamic banking industry based on the alternative dispute resolution (ADR) process that Prophet Muhammad has demonstrated since his stay in Medina. Conclusion; With this in mind, the Islamic banking services industry is saved from litigation domination that always comes with negative stereotypes about unnecessary payments.

Keywords:

Sharia Banking, Dispute, Engel Curve, Arbitrase

References:

1) Abbas, Shahrizal Mediation in terms of Sharia, Customary and Domestic Law, Jakarta: Kenkana, 2011

2) Abdul Gafoor, A.L.M., Interest Free Commercial Banking. kuala lumpur :we. North, 2002.

3) Ayub, Muhammad, Understanding Islamic Finance.England: John Wiley & Sons, Inc., 2007.

4) Bouheraoua, Said, “Foundation of Mediation in Islamic Law and its Contemporary Application”, Paper presented at the 4th Asia-Pacific Mediation Forum Conference hosted by Harum Hashim Law Centre, Ahmad Ibrahim Kriya in Law, International Islamic University Malaysia , 16-16 – 18. June 2008.

5) Diah, Marwah, Principles and Alternative Forms of Non-Judicial Dispute Resolution, Journal of Law and Community Dynamics, Vol. No. 5 No. 2, April 2008

6) El-Gamal, Mahmoud Amin, A Essential Guide to Contemporary Islamic Banking and Finance. Indiana:ISN, 2000.

7) El-Naggar, Ahmed A., “Islamic Banks in Egypt:Models and Challenges”, Ataul Huq Pramanik (ed.), published in Islamic Banking. How far have we gone Kuala Lumpur: Research Center IIUM, 2005.

8) Mohamed Ismail bin Mohammed Sharif, ``The Legislative Powers of the Federal Assembly on Islamic Law'', [2005] 3 MLJ cv.

9) Noorashikin Tan Sri Abdul Rahim, "Mediation in KLRCA", paper presented at his 2009 ADR Medical Negligence Conference, July 24-25, 2009.

10) Oseni, Umar A., A Comparative Legal Analysis of the Role of Arbitration in Maritime Dispute Resolution, (MCL Paper, International Islamic University Malaysia, 2009). 25

11) Othman, Aida, “And Sulh is the best. Amicable Reconciliation and Conflict Resolution in Islamic Law” (PhD Thesis, Harvard University, 2005).

12) Rashid, Syed Khalid, “His ADR process in resolving medical malpractice disputes,” Paper presented 2009 ADR Medical Negligence Conference, July 24-25, 2009.

13) Rashid, Syed Khalid, “Alternative Dispute Resolution in the Context of Islamic Law.” The Vindobona Journal of International Commercial Law and Arbitration, (2004) 7 VJ (1), 95-118.

14) Seneviratne, Mary, Ombudsman - Public Service and Administrative Justice. England: Reed Elsevier (UK) Ltd., 2002. Leicester: Islamic Foundation, 1983.