The Integration of Sharia Principles Into The National Arbitration System Under Law No. 30 of 1999

Abstract

This study examines Sharia arbitration from the perspective of Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution as one of the mechanisms for out-of-court dispute resolution based on the principles of Islamic law. The objective of this study is to analyse the status, basic concepts, advantages, and challenges of implementing Sharia arbitration within Indonesia’s national legal system. The method employed is a literature review (library research) using a normative qualitative approach through the analysis of various relevant literature, academic journals, and legal documents. The research findings indicate that Sharia arbitration plays a significant role in facilitating the swift, confidential, and efficient resolution of Sharia economic disputes, whilst providing legal certainty through binding awards. However, its implementation still faces a number of challenges, such as limited public understanding, a shortage of experts, and the absence of comprehensive specific regulations regarding Sharia arbitration within Indonesia’s positive legal system. Furthermore, there are also issues regarding the harmonisation of Sharia principles with national law, as well as obstacles in the enforcement of arbitration awards in practice. The conclusions of this study confirm that Sharia arbitration is an important instrument within Indonesia’s dispute resolution system, with significant potential to support the development of the Sharia economy. Therefore, there is a need to strengthen regulations, enhance the competence of arbitrators, and conduct wider public awareness campaigns so that Sharia arbitration can function optimally as a fair, effective, and Sharia-compliant alternative for dispute resolution.