ABSTRACT
Islamic banking principles are a part of Islamic education that relate to the economy. Several principles of Islamic economics are the usury restriction in any form and using any system, among others, in the form of profit-sharing principles. With the standard of benefit sharing, Islamic banks are able to establish a healthy and fair investment atmosphere where all the parties are able to share emerging benefits and potential risks, in order to create a balanced position between the bank and its customers. Given the development of Islamic banks so far, Sharia principles, which are the main foundation of Islamic banks in carrying out their duties, cannot be implemented and enforced optimally, especially in the event of a dispute between parties, Islamic banks, and their customers. The purpose of this research is to determine and understand the authority of the Religious Courts in finding a solution for the Sharia banking conflict and the principles of handling Sharia banking dispute settlements. This research is a sociological juridical legal research. The issuance of Law Number 3 of 2006 concerning Amendments to Law Number 7 of 1989 concerning Religious Courts since 30 March 2006, has provided a legal umbrella for the implementation of Sharia economics in Indonesia. Disputes in Sharia banking are the authority of the religious court environment, and dispute resolutions related to Sharia banking economic activities are completed in two ways: litigation and non-litigation. In addition, the issuance of Law Number 21 of 2008 concerning Islamic Banking further reinforces the dispute resolution mechanism between the bank and the customer as stipulated in Article 55 paragraph (1), (2) and (3) that dispute resolution is carried out in accordance with the contents of the contract.
