Jurisdiction on the Implementation of the Decision of the National Sharia Arbitration Board

Sharia economy is an economic business or activity carried out by individuals, groups of people, and business entities in order to meet commercial needs according to sharia principles. In the last three decades, Sharia economy has increased the potential for disputes. The disputing parties tend to choose a non-litigation path through Alternative Dispute Resolution (APS), one of which is with the National Sharia Arbitration Board. This judicial institution has the authority to resolve sharia economic disputes. The results of this study show that the authority of the National Sharia Arbitration Board in resolving sharia economic disputes is determined by the existence of an Arbitration Agreement, either made before the dispute arises (Pactum Compromittendo) or made after the dispute occurs (Acta Compromis). Thus, the legitimacy of the authority of the National Sharia Arbitration Board in resolving sharia economic disputes is based on the Pacta Sunt Servanda principle and the Consensual Principle regulated in the Civil Code. Furthermore, the registration and execution of the Decision of the National Sharia Arbitration Board should be carried out by the Religious Court, including in legal efforts to cancel the Decision. This is based on two factors, namely the legal basis of the absolute competence of the Religious Court in resolving sharia economic disputes as regulated in Article 49 of Law Number 3 of 2006 concerning Religious Courts and the basis of the relevance of the substance of Islamic law used by the National Sharia Arbitration Board.