The Indonesian Association of Islamic Economists (IAEI) emphasized the importance of strengthening the legal and institutional framework for Sharia bankruptcy as part of efforts to ensure legal certainty for Islamic economic actors in Indonesia. This issue was raised during a book discussion titled “Sharia Bankruptcy as a Pillar of Legal Certainty for the Islamic Economy in Indonesia,” held virtually via Zoom on Tuesday (July 21).
The discussion of the book, written by Dr. Syamsul Huda, highlighted the ongoing issues of jurisdictional authority and inconsistencies in the resolution of Sharia bankruptcy cases, particularly since such cases are currently still handled by the Commercial Courts within the General Court system.
Prof. Irfan Syauqi Beik, Deputy Chairman of the IAEI, emphasized the importance of Sharia bankruptcy regulations in providing certainty for Indonesia’s Islamic financial ecosystem, serving as a key pillar in ensuring fair, transparent legal protection that aligns with the principles of maqashid sharia for all economic actors. “The rapid growth of the Sharia finance industry and transactions today absolutely requires the support of robust legal certainty,” said Prof. Irfan.
His Excellency Dr. Yasardin, in his presentation, emphasized that the resolution of Islamic economic disputes must remain grounded in Sharia principles. “Disputes in the Islamic economy must be adjudicated based on Sharia principles. These Sharia principles must be present in the resolution of such disputes,” asserted Dr. Yasardin.
Dr. Yasardin explained that although the Religious Courts’ authority to handle Sharia economic disputes already has a legal basis, the resolution of bankruptcy cases and Debt Payment Moratoriums (PKPU) based on Sharia contracts still requires strengthened regulations and institutional frameworks, including a study on the establishment of a Sharia Commercial Court involving the Supreme Court, Bank Indonesia, the DSN-MUI, academics, and experts in Islamic economics.
Dr. Syamsul Huda, the author, explained that the book under discussion represents an effort to conduct an in-depth study of the concept of bankruptcy from the perspective of Islamic law and its relevance to the development of the Islamic economy in Indonesia. In his view, the growth of the Islamic finance and business industries in Indonesia must be accompanied by a legal system capable of providing protection and legal certainty.
In his study, Dr. Syamsul employs the perspectives of legal certainty, development law theory, and maqashid al-sharia to analyze the urgency of developing a Sharia bankruptcy system. One of the ideas proposed is the need for a clearer distinction between conventional bankruptcy and bankruptcy arising from Islamic economic activities within bankruptcy legislation, or the strengthening of regulations that specifically govern Islamic bankruptcy mechanisms.
In response to the book, Prof. Amran Suadi expressed his appreciation and noted that the book addresses an urgent need to strengthen the legal foundations of Sharia economics in Indonesia. According to Prof. Amran, the concept of bankruptcy in Islam is not a new idea. The concept of “taflis” has long been recognized within Islamic legal tradition and is grounded in the Qur’an, Sunnah, ijma, and qiyas.
In addition to strengthening regulations and institutions, Prof. Amran also advocated for enhancing judges’ competencies, developing a Sharia bankruptcy curriculum, strengthening the role of the Zakat Collection Agency (Lembaga Amil Zakat) in assisting debtors classified as “gharimin,” and conducting broader outreach to judges, trustees, academics, and practitioners of Sharia economic law.
Closing the event series, Prof. Jaih Mubarak stated that the strengthening of Sharia economic law must be part of the agenda for the development of the Islamic economy in Indonesia. According to him, the growth of the halal industry and Sharia finance must be balanced by a legal system capable of providing certainty, justice, and protection for all economic actors.
Through this book discussion, the IAEI encourages enhanced dialogue among academics, religious scholars, practitioners, judicial institutions, and policymakers to build a more comprehensive Sharia bankruptcy system. This effort is expected to contribute to the development of an Islamic economic legal ecosystem that is adaptable to industrial developments, remains grounded in Sharia principles, and is capable of providing legal certainty for the public.
