In Legal Updates, Uncategorized

The Supreme Court (MA) has issued a decree of the Supreme Court (PERMA) No. 14 Year 2016 on Procedures for the Settlement of Islamic Economics Dispute, which was approved on last December 22, 2016.

Actually PERMA has long been awaited since its formation as a complement of PERMA No. 2 Year 2008 concerning Law Compilation of Islamic Economics (KHES). Initially, the complement was established due to the concerns of Indonesia Lawyers Association (APSI).

When there is a vacuum on procedural law, economics or sharia business dispute resolutions are still subject to the provisions of ordinary civil procedural law in the district court. Although an economic dispute is based on Islamic principles, but the implementation still complies with the Dutch colonial legal system, such as HIR (Het Herzeine Indlandsche Reglement), R.Bg (Reglement buitengewesten Rechts), and Rv (Reglement of de Rechtsvordering).

PERMA has impact on the implementation of Article 49 of Law No. 3 of 2006 on the Religious Courts against the spread of its jurisdiction as a result of the development of sharia economic. For example, it can settle disputes on sharia economy carried out through the usual procedural law or in the form of a simple lawsuit (small claims court) either orally or in writing to the Registrar of the Religious Court. As stipulated in Article 2 PERMA Islamic Economics Dispute, it states that “Islamic economic case can be filed in the form of a simple claim or lawsuit with regular events”. This is the most important substance of the publication of this PERMA.

PERMA also oversees the implementation of sharia arbitration award and its reversal reinforce the authority of the religious courts that no longer exist dualism in award implementation and annulment of sharia arbitration between religious courts and state courts. This is encompassed in Article 13 paragraph (2) PERMA Dispute of Islamic Economics which states that “the implementation of sharia arbitration award and annulment, carried out by the Court in religious courts circumstance.” However, the procedures for the implementation of sharia arbitration award still refer to the Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution.

Furthermore, PERMA also regulates its jurisdiction that handles the execution of the security rights and fiduciary using sharia contract. It is clarified in Article 13 paragraph (1) PERMA Islamic Economic Dispute, that is :

The enforcement of sharia economic matters, security rights and fiduciary based on the principles of sharia carried out by the Court in Religious Court Circumstance.”

PERMA also accommodates the information technology services such as a registration of a lawsuit and proves it, especially in the expert examination. This is in accordance with Article 4 and 11 of PERMA Islamic Economics Dispute. Article 4 above states that “plaintiffs filed a lawsuit in the court registry or through electronic registration or can register his complaint by filling out forms available at the secretariat.” And Article 11 states that “the expert examination/investigation can be done with the help of information technology.”

Furthermore, PERMA also verifies the judges to examine/investigate and adjudicate sharia economic disputes. They must be certified judges of Islamic economics, or at least religious judges who have followed training of sharia economy.

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