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VOL. 11, ISSUE 1 (2025)
Legal certainty provisions for the distribution of profit sharing based financing in Qanun Aceh number 11 of 2018 concerning Sharia financial institutions
Authors
Muhardi, Yusri, Muhammad Insa Ansari
Abstract
Aceh Qanun No. 11 of 2018 concerning Sharia
Financial Institutions (LKS) is a manifestation of the application of Islamic
Sharia values in the sharia financial sector in Aceh Province. This
regulation is prepared in the form of regional regulations (Qanun) as a legal
basis for the operation of sharia-based financial institutions. Based on the
LKS Qanun, all transactions carried out by sharia financial institutions must
be in line with the principles of Islamic law, including the implementation of
Maqashid Syar'iyah values which are the main objective of every sharia
regulation. Article 14 of the LKS Qanun requires sharia banks to channel
financing to micro, small and medium enterprises using profit sharing based
contract. This provision also regulates the minimum percentage of financing
distribution, namely 10% in 2020, 20% in 2022, and 40% in 2024. The main
objective of this policy is to encourage regional economic growth and increase
Aceh's Original Regional Income (PAD). However, the effectiveness of its
implementation is still a challenge because Qanun LKS does not provide clarity
regarding legal sanctions for financial institutions that do not comply with
these provisions. This research aims to examine and analyze
profit sharing-based financing arrangements and identify challenges in their
implementation. The research results, Aceh Qanun No.11 of 2018 has provided an adequate legal basis to support profit
sharing-based financing arrangements. However, its implementation is faced with
various challenges, such as lack of uniform understanding among sharia
financial institutions, minimal outreach to the community, and technical
obstacles in implementing profit sharing-based contracts. In addition, the
legal uncertainty arising from the ambiguity in Article 14 of Qanun LKS makes
it difficult for banks to implement these regulations effectively. Therefore, to
increase legal certainty and effectiveness in the implementation of Qanun LKS,
it is necessary to revise or refine regulations that clarify the legal consequences
for financial institutions that fail to comply with profit sharing-based
financing provisions. In addition, strategic steps such as increasing human
resource capacity, intensifying outreach, and strengthening supervision by
relevant authorities are important factors in supporting the successful
implementation of Qanun LKS.
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Pages:58-62
How to cite this article:
Muhardi, Yusri, Muhammad Insa Ansari "Legal certainty provisions for the distribution of profit sharing based financing in Qanun Aceh number 11 of 2018 concerning Sharia financial institutions". International Journal of Law, Vol 11, Issue 1, 2025, Pages 58-62
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