The Urgency of the Implementation of Sharia Bankruptcy (Taflis) in Bankruptcy Cases in Indonesia

Abstract

Sharia economic activities are vital for promoting community economic growth within the national development framework. For Muslims, these activities not only fulfill worldly obligations but also serve as acts of worship to Allah SWT, thus necessitating adherence to the Al Qur’an and Hadith. However, conflicts in sharia economic practices, particularly those arising from business failures leading to bankruptcy or postponement of debt payment obligations (PKPU), highlight the need for a sharia-compliant bankruptcy framework. This study employs a normative juridical approach, focusing on secondary data collection techniques supported by interviews. The research is analytical descriptive, with literature and field studies forming the research stages, and qualitative data analysis. The findings indicate that: (1) Current bankruptcy practices in Indonesia do not incorporate sharia principles. (2) There is no legal certainty for sharia economic actors in bankruptcy due to the absence of regulations that integrate general business agreements with sharia principles. (3) A sharia bankruptcy framework should be established, proposing the formation of a special Sharia Commercial Court within the Religious Courts system. The establishment of a Sharia Commercial Court can significantly enhance the legal certainty for sharia economic activities, encouraging the growth of the sharia economy in Indonesia. This aligns the bankruptcy resolution process with sharia principles, addressing the current legal inadequacies. Incorporating sharia principles into Indonesia’s bankruptcy framework is essential for ensuring legal certainty for sharia economic actors. The proposed Sharia Commercial Court can provide the necessary legal infrastructure to support the growth and development of the sharia economy in Indonesia.