REFORMULATION OF MEDIATION IN DISPUTE SETTLEMENT ON ISLAMIC BANKING

Purpose of the study: The general objective of this study was to explore the potential of the mediation process as a reformulation of Islamic banking dispute settlement after the Supreme Court Regulation (SCR) on mediation procedure in the court. On the one hand, this study tries to find a repositioning of mediation procedures in resolving disputes over Islamic Banking in religious courts. Methodology: This research was normative and empirical. The data collection techniques of this literature would be done utilizing literature study and field research. Primary data was obtained through field research with interviews. The participants from Judges of Religious Court, Abdul Manan as a Judge of in the Supreme Court Institution, Islamic banking legal unit. Data were processed by a qualitative descriptive analysis technique. Secondary data used consisted of primary legal material sourced from SCR No. 1 of 2016 and the contract. Principal Findings: The mediation process as a reformulation of Islamic banking dispute settlement especially in the Religious Court is according to Article 2 Paragraph (1) SCR No. 1 of 2016. The repositioning of mediation procedures in resolving Islamic banking disputes in the Religious Courts applied by making changes as part of the case registration process implemented through honesty, fidelity, and justice. Applications of this study: This paper is essential for the parties to get the legal certainty in maintaining the continuing development of Islamic banking business, product development, risk management and efficiency of the bank. The study may be instrumental in helping to improve the development of the legal studies programs, notably the Islamic Economic Law. The results of this study will provide benefits for the religious court to improve its performance effectively and efficiently in dispute settlement through mediation. Novelty/Originality of this study: Determination of the mediation as reformulation of dispute settlement on Islamic banking post-enactment or issuance of the SCR No. 1 of 2016 and to find out about repositioning of the mediation procedure and proposing changes in the position (repositioning) of the mediation process and reaffirming the roles, duties and accountability of professional mediators or non-judge mediators so that it is expected that the role of non-judge mediators can active in resolving Islamic banking disputes both in procedures in the court or outside the courts applied at the Indonesian Religious Court. The contribution of this paper will be the revision of the curriculum of legal studies and Islamic Economic Law. The importance for researchers of the study is to develop and improve the capability of researchers for developing the law study program called Islamic Economic Law