DUALISM OF BANKING LEGAL SYSTEM IN INDONESIA LEGAL ANALYSIS OF THE REGULATION GAP BETWEEN SHARIA BANKS AND COMMERCIAL BANKS

Abstract

Indonesia has officially adopted a dual banking system since the enactment of Law Number 10 of 1998 concerning Banking and Law Number 21 of 2008 concerning Sharia Banking. This system is expected to guarantee the existence of sharia banks as an integral part of a pluralistic national financial system. However, in practice, the dualism of the banking legal system has actually given rise to various regulatory gaps and serious legal problems. This study aims to analyze the regulatory imbalance between sharia banks and commercial banks from the aspects of legislation, institutions, supervision, legal protection, and dispute resolution. This study uses a normative legal approach with a descriptive-qualitative analysis method of laws and regulations, DSN-MUI fatwas, and sharia economic law literature.

The results of the study show that Islamic banks have not received equal legal treatment with conventional banks, both in terms of deposit guarantees, supervisory structures, and dispute resolution mechanisms. The function of the Sharia Supervisory Board (DPS) which is only administrative without law enforcement authority, as well as the less than optimal protection of sharia contracts in the national civil law system, strengthens this inequality. In addition, the ambiguity of judicial jurisdiction between religious courts and district courts in resolving Islamic bank disputes further worsens legal certainty.

This study recommends legal harmonization through strengthening sharia regulations, integrating sharia contracts into national law, strengthening DPS institutions, and establishing independent sharia dispute resolution and guarantee mechanisms. Thus, the dualism of the banking legal system can be directed towards a more just, inclusive system based on national legal principles and sharia values.