Dispute Resolution in Islamic Economic Transactions: The Role and Function of Sharia Arbitration

Dispute resolution in Sharia economic transactions is essential to align settlement processes with Islamic legal principles. This study examines the function and role of Sharia-based arbitration, focusing on its alignment with the values of justice, efficiency, and confidentiality within Islamic law...

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Main Author: Gunawan Widjaja
Format: Article
Language:English
Published: Muhammadiyah University Press 2025-02-01
Series:Journal of Islamic Economic Laws
Subjects:
Online Access:https://journals2.ums.ac.id/index.php/jisel/article/view/6340
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author Gunawan Widjaja
author_facet Gunawan Widjaja
author_sort Gunawan Widjaja
collection DOAJ
description Dispute resolution in Sharia economic transactions is essential to align settlement processes with Islamic legal principles. This study examines the function and role of Sharia-based arbitration, focusing on its alignment with the values of justice, efficiency, and confidentiality within Islamic law. Using a literature-based methodology, the research analyzes secondary data from legal sources and previous studies on Sharia arbitration in Indonesia, particularly the practices of the Sharia Arbitration Body (BASYARNAS-MUI). The findings indicate that Sharia arbitration offers a streamlined, confidential, and fair dispute resolution method, fostering outcomes based on Islamic values such as justice (adl), truth (haqq), and public good (maslahat). Unlike conventional court procedures, Sharia arbitration provides faster and more effective resolutions, while ensuring privacy and protecting the involved parties' reputations. The study also reveals that Sharia arbitration strengthens the application of Islamic law across various sectors, including finance and inheritance, by embedding ethical considerations into modern economic dispute resolutions. This research underscores the practicality and moral alignment of Sharia arbitration as a robust alternative to conventional litigation, offering readers insights into the benefits of a Sharia-compliant approach to economic dispute resolution.
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spelling doaj-art-b2f6ecb3ef7d4e0aade6ef1d552b42e52025-08-20T03:50:11ZengMuhammadiyah University PressJournal of Islamic Economic Laws2655-96092655-96172025-02-01801607810.23917/jisel.v8i01.63406370Dispute Resolution in Islamic Economic Transactions: The Role and Function of Sharia ArbitrationGunawan Widjaja0https://orcid.org/0000-0002-1558-362XUniversitas 17 Agustus 1945 JakartaDispute resolution in Sharia economic transactions is essential to align settlement processes with Islamic legal principles. This study examines the function and role of Sharia-based arbitration, focusing on its alignment with the values of justice, efficiency, and confidentiality within Islamic law. Using a literature-based methodology, the research analyzes secondary data from legal sources and previous studies on Sharia arbitration in Indonesia, particularly the practices of the Sharia Arbitration Body (BASYARNAS-MUI). The findings indicate that Sharia arbitration offers a streamlined, confidential, and fair dispute resolution method, fostering outcomes based on Islamic values such as justice (adl), truth (haqq), and public good (maslahat). Unlike conventional court procedures, Sharia arbitration provides faster and more effective resolutions, while ensuring privacy and protecting the involved parties' reputations. The study also reveals that Sharia arbitration strengthens the application of Islamic law across various sectors, including finance and inheritance, by embedding ethical considerations into modern economic dispute resolutions. This research underscores the practicality and moral alignment of Sharia arbitration as a robust alternative to conventional litigation, offering readers insights into the benefits of a Sharia-compliant approach to economic dispute resolution.https://journals2.ums.ac.id/index.php/jisel/article/view/6340dispute resolutiontransactionsislamic economicssharia arbitrationadr
spellingShingle Gunawan Widjaja
Dispute Resolution in Islamic Economic Transactions: The Role and Function of Sharia Arbitration
Journal of Islamic Economic Laws
dispute resolution
transactions
islamic economics
sharia arbitration
adr
title Dispute Resolution in Islamic Economic Transactions: The Role and Function of Sharia Arbitration
title_full Dispute Resolution in Islamic Economic Transactions: The Role and Function of Sharia Arbitration
title_fullStr Dispute Resolution in Islamic Economic Transactions: The Role and Function of Sharia Arbitration
title_full_unstemmed Dispute Resolution in Islamic Economic Transactions: The Role and Function of Sharia Arbitration
title_short Dispute Resolution in Islamic Economic Transactions: The Role and Function of Sharia Arbitration
title_sort dispute resolution in islamic economic transactions the role and function of sharia arbitration
topic dispute resolution
transactions
islamic economics
sharia arbitration
adr
url https://journals2.ums.ac.id/index.php/jisel/article/view/6340
work_keys_str_mv AT gunawanwidjaja disputeresolutioninislamiceconomictransactionstheroleandfunctionofshariaarbitration