Enforcing Arbitration Awards: Ensuring Sharia Compliance in Islamic & Secular Jurisdictions

Authors

DOI:

https://doi.org/10.15408/ajis.v25i2.42795

Keywords:

arbitration agreement, arbitration award, sharia principles, uncertainty, interest

Abstract

This study examines the challenges and solutions for enforcing arbitration awards in jurisdictions governed by both sharia (Islamic) law and secular (national) law. It focuses on structuring arbitration agreements and awards to comply with Sharia principles while ensuring enforceability in both legal systems. The research highlights potential conflicts between these frameworks and proposes strategies to harmonize them, ensuring recognition and enforcement across diverse legal contexts. A key focus is the difficulty of enforcing awards that include elements prohibited by sharia, such as ribā (interest), gharar (uncertainty), and maysir (gambling). The study provides practical guidance for legal professionals, arbitrators, and businesses, offering insights into ensuring enforceability while avoiding legal conflicts in cross-border disputes. This study employs a juridical normative approach, focusing on the analysis of laws, legal principles, and relevant case decisions. The data is analyzed using a qualitative method, emphasizing legal interpretation and conceptual analysis. A significant finding is that awards containing elements forbidden under sharia face enforcement challenges, potentially leading to non-recognition in sharia-compliant jurisdictions. To ensure enforceability, awards must adhere to sharia principles and international legal conventions, emphasizing fairness, transparency, and avoiding interest-based mechanisms. Non-compliance risks invalidation or rejection of the award.

 

                                                                                    Abstrak

Penelitian ini membahas tantangan dan solusi pelaksanaan putusan arbitrase di yurisdiksi yang menerapkan hukum syariah dan hukum sekuler. Fokus utamanya adalah bagaimana menyusun perjanjian dan putusan arbitrase agar sesuai dengan prinsip syariah sekaligus dapat diberlakukan dalam kedua sistem hukum. Penelitian ini mengeksplorasi potensi konflik antara kedua sistem tersebut dan mengidentifikasi cara untuk menyelaraskannya guna memastikan keberlakuan putusan arbitrase. Penelitian ini menyoroti kesulitan dalam menegakkan putusan yang mengandung elemen-elemen yang dilarang oleh syariah, seperti ribā (bunga), gharar (ketidakpastian), dan maysir (perjudian). Untuk itu, diperlukan rancangan perjanjian arbitrase yang selaras dengan prinsip syariah dan hukum sekuler, terutama dalam konteks perdagangan internasional yang melibatkan berbagai latar belakang hukum. Temuan utama menunjukkan bahwa putusan arbitrase dengan elemen-elemen yang dilarang oleh syariah sering kali tidak dapat diberlakukan di yurisdiksi syariah. Agar putusan arbitrase dapat diakui, diperlukan kesesuaian dengan prinsip keadilan, transparansi, serta penghindaran mekanisme berbasis bunga. Kegagalan mematuhi ketentuan ini dapat mengakibatkan pembatalan putusan arbitrase.

Author Biography

  • Herliana, Faculty of Law, Universitas Gadjah Mada

    Herliana holds the position of Associate Professor at the Faculty of Law, Gadjah Mada University in Indonesia. She obtained her PhD from the University of Washington, a Master’s degree in Commercial Law from the University of Melbourne, and a Bachelor’s degree in Law from Gadjah Mada University. With a diverse academic background, Herliana's expertise encompasses the Theory of Law, the Law of Evidence, Civil Law, Civil Procedure, Contract Law, Alternative Dispute Resolution, and Arbitration. Her research extends across these fields, with in-depth studies conducted in Indonesia, the United States, Korea, and Japan through various fellowship programs.

    Beyond her role as an educator, Herliana serves as a Mediator at the Indonesian Centre for Mediation (Pusat Mediasi Nasional) and a Legal Auditor at the Indonesian Association of Legal Auditor (Asosiasi Auditor Hukum Indonesia). She also holds the position of Chief at the Center for Intellectual Property, Competition, and Dispute Settlement Mechanism Studies (CICODS) at Gadjah Mada University. Furthermore, she is also a researcher in the Law, Gender, and Society (LGS) study center. Within professional organizations, Herliana actively serves as a committee member in the Indonesian Association of Lecturers in Civil Procedural Law (ADHAPER); treasurer in the Association of Lecturers and Partitioners in Arbitration and Alternative Dispute Resolution and member of working group for the protection and empowerment of women and children in social conflict at Yogyakarta province.   

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Published

2025-12-28

Issue

Vol. 25 No. 2 (2025)

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Articles

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