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The Paradox Struggle Between Islamic and Conventional Banking Systems
adjudication of disputes belonging to Islamic economic
matters, including Islamic banking. 1
This expansion arguably enhanced the status and authority
of Religious courts as a dispute settlement institution within
the judiciary system in Indonesia. However, this turns out as
another challenge for Religious courts due to the fact of the
complexity of Islamic economics matter, and needed more
time to be properly absorbed and understood.
Therefore, the only sensible solution for the matter relative to
lack of education of Islamic matters in civil courts would be
to educate them or call experts to give evidence in the
matters relating to Islamic Banking. Islamic Commercial
matters are indeed technical matters and hence the
complexity on the matters can only be explained by an
expert. And there is nothing discreditable in calling an
expert.
Islamic Finance and Alternative Dispute Resolution
Dispute resolution in the Islamic Banking sector has
emerged; however the extent to as which it serves as an
alternative to litigation is questionable. Islamic finance
disputes can be referred to arbitration by specialists in many
countries but many Malaysian cases still go court. In
Bahrain, such cases have mostly gone to dispute resolution
committees staffed by judges and specialized central bank
officials. Where as in Indonesia the arbitrators lack ample
knowledge of Islamic commercial matters and this inhibits
their capacity to solve the disputes in issue.
In Malaysia, under the auspices of the Malaysia
International Islamic Finance Centre which was setup in
2006, the International Shariah Research Academy (ISRA)
was established in March 2008, with a mandate on
researching Shariah issues on Islamic finance, with special
focus on contemporary matters. One project currently
1 Gemala Dewi, Aspek-Aspek Hukum dalam Perbankan dan Perasuransian
Syariah di Indonesia, (Jakarta,
Kencana, 2004), p. 104
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