EFFECTIVENESS OF DISPUTE SETTLEMENT FACILITATING OF SHARIA BANKING IN INDONESIAS FINANCIAL SERVICES AUTORITY
Khaerudin H, Dewi NM, Ani Yunita
Universitas Muhammadiyah Yogyakarta
Abstract
Dispute Settlement Facilitating in Indonesian Financial Service (OJK) is one of the effective instruments for resolving non-litigation disputes that have many benefits. However, there is still lack of the public understanding on the benefit of using facilitation because the dispute settlement model with a facilitation mechanism has just been implemented after the enactment of the Indonesian Financial Service Regulation No. 1 of 2014. Some people are familiar with mediation which in practice is carried out by Alternative Dispute Resolution Institutions (LAPS). Dispute settlement through facilitation that have not been resolved for the parties can be processed through LAPS. The purpose of this research is to find out the relationship between OJK and LAPS and how the mechanism and procedure of proceedings at LAPS in resolving sharia banking disputes. This study is normative and empirical research. The study use constructivism paradigm and conducted through library research and field research. Secondary data obtained through library research and legal documents. Primary data was obtained through research in the field conducted by interviews with OJK and LAPS Jakarta leaders. Data analysis using qualitative descriptive analysis that describes Effectiveness facilitation in the settlement of sharia banking disputes in OJK Jakarta. The results of study shows that the relationship between OJK and LAPS is a legal commitment based on Law No. 21 Year 2011 and joint decisions of four equal ministers/officer e.g. (1) Coordinating Minister for Economic Affairs (2) Governor of Indonesian Central Bank; (3) Minister of Finance and (4) State Minister for State-Owned Enterprises. The mechanism and procedure for proceedings at OJK and LAPS includes the following stages, as follows: Application, Verification, Election/Appointment, Confirmation, Mediation/Arbitration/Adjudication, Election/Agreement and ended at the Monitoring of the appoinment of the Agreement.
Keywords: Effectiveness, Facilitation, Dispute Resolution, Sharia Banking
Topic: ASIAN Conference on Comparative Laws