Implementation of Hardship Principles on Financing Agreements Islamic Bank Due to Corona Virus Disease 2019

Authors

  • Ashar Sinilele Universitas Islam Negeri Alauddin Makassar
  • Suriyadi Suriyadi Universitas Islam Negeri Alauddin Makassar
  • Syahrul Alim King Mongkut’s Institut of Technology Ladkrabang

DOI:

https://doi.org/10.26555/novelty.v13i2.a22274

Keywords:

Contract, Hardship, Covid-19

Abstract

Introduction to The Problem: This research analyzes covid-19, designated a disaster by the Indonesian government, especially its correlation to finance agreements in Islamic banks. The determination of disaster raises the question of whether covid-19 is a force majeure or hardship. According to Financial Service Authority (OJK), non-performing financing in Islamic banks is increased. Implementation of Force majeure principle to finance agreement in Islamic bank as a government policy is not right decision.

Purpose/Objective Study: this legal research aims to analyze the effects of the coronavirus disease 2019 on finance agreements in Islamic banks and how is the implementation due covid-19 to renegotiation of finance agreement force majeure principle or hardship principle.

Design/Methodology/Approach: This legal research is a normative legal study with two approaches: statute and conceptual approaches. Primary sources from Finance agreements in Islamic banks and statutes/rules. Secondary sources are books, journals, research, and dictionary. The legal analysis is carried out by classification of primary and secondary sources using the statute and conceptual approaches.

Findings: The spread of the covid-19 virus has had many impacts on the ability of Islamic bank debtors to carry out their achievements due to the difficult conditions experienced due to restrictions by the government. The determination of the status of covid-19 as a disaster has implications for the occurrence of forced circumstances, so it is necessary to make adjustments to the situation based on the principle of hardship for financing agreements with Islamic banks. The occurrence of hardship for sharia bank customers provides an opportunity for customers to apply for contract renegotiation in the context of adjusting problematic contracts in the form of rescheduling, reconditioning, or restructuring

Paper Type: Research Article

Author Biography

Ashar Sinilele, Universitas Islam Negeri Alauddin Makassar


References

Adi, D. P. (2015). Absorbsi Prinsip ‘Rebus Sic Stantibus’ dalam Kerangka Pembaharuan Hukum Perjanjian Nasional. Jurnal Hukum Jatiswara, 30(1), 71–91.

Alderman, R., De Franceschi, A., Giancaspro, M., Howells, G., Lei, C., Lete, J., Micklitz, H. W., Miscenic, E., Naude, T., Pichonnaz, P., Poillot, E., Ramsay, I., Terryn, E., Twigg-Flesner, C., & Wilhelmsson, T. (2020). Consumer Law and Policy Relating to Change of Circumstances Due to the COVID-19 Pandemic. Journal of Consumer Policy, 43(3), 437–450. https://doi.org/10.1007/s10603-020-09463-z

Amrani, O., & Najab, A. (2020). COVID-19 and Islamic Banking Services: Digitalization as a Post-Crisis Solution (Case of Morocco). European Journal of Islamic Finance, 16, 1–10. https://doi.org/10.13135/2421-2172/4913

Arifin, M. (2017). Penyalahgunaan Keadaan Sebagai Faktor Pembatas Kebebasan Berkontrak. Universitas Muhamadiyah Sumatera Utara, 3(2), 15.

Bonell, M. J. (2018). The law governing international commercial contracts and the actual role of the U NIDROIT Principles. 23(March), 15–41. https://doi.org/10.1093/ulr/uny001

Djuniarti, E. (2019). Perlindungan yang Seimbang Para Pihak dalam Pembuatan Akad Murabahah. Jurnal Penelitian Hukum De Jure, 19(2), 247. https://doi.org/10.30641/dejure.2019.v19.247-257

Elnahass, M., Trinh, V. Q., & Li, T. (2021). Global banking stability in the shadow of Covid-19 outbreak. Journal of International Financial Markets, Institutions and Money, 72, 101322. https://doi.org/10.1016/j.intfin.2021.101322

Hernoko, A. Y. (2006). “Force Majeur Clause” Atau “Hardship Clause” Problematika Dalam Perancangan Kontrak Bisnis. Perspektif, 11(3), 203. https://doi.org/10.30742/perspektif.v11i3.276

HR, R. (2014). Hukum Administrasi Negara. Raja Grafindo Persada.

HS, S. (2019). Hukum Kontrak Teori dan teknik Penyusunan Kontrak (Cetakan 19). Sinar Grafika.

Ichsan, R. N., Suparmin, S., Yusuf, M., Ismal, R., & Sitompul, S. (2021). Determinant of Sharia Bank’s Financial Performance during the Covid-19 Pandemic. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(1), 298–309. https://doi.org/10.33258/birci.v4i1.1594

Jamaruddin, W. N., & Markom, R. (2020). the Application of Fintech in the Operation of Islamic Banking. Syariah and Law in Facing COVID-19: The Way Forward, 3(1), 31–43.

Marzuki, P. M. (2005). Penelitian Hukum. Kencana Prenada Media Group.

Mohammed, K. (2022). The Moderating Role of Covid-19 on Determinants of Bank Spread. Pakistan Social Sciences Review, 6(II), 538–553. https://doi.org/10.35484/pssr.2022(6-ii)46

Nugraheni, D. (2010). Asas Kesetaraan dalam Akad Pembiayaan Musyarakah pada Bank Syariah di Yogyakarta. Mimbar Hukum - Fakultas Hukum Universitas Gadjah Mada, 22(1), 127–139. https://doi.org/10.20303/jmh.v22i1.305

Pratomo, E. (2016). Hukum Perjanjian International. Elex Media Komputindo.

Purwanto, H. (2011). Keberadaan Asas Rebus Sic Stantibus dalam Perjanjian Internasional. Mimbar Hukum - Fakultas Hukum Universitas Gadjah Mada, 0(0), 102–121. https://doi.org/10.22146/jmh.16160

Shaharuddin, A. (2020). Do Islamic Banks Act ‘Islamic’ During COVID-19 Pandemic? The Journal of Muamalat and Islamic Finance Research, 17(March), 3–12.

Tjoanda, M. (2021). The Outbreak of Covid-19 as an Overmacht Claim in Credit Agreements. Fiat Justisia: Jurnal Ilmu Hukum, 15(1), 75–92. https://doi.org/10.25041/fiatjustisia.v15no1.2195

Twigg-Flesner, C. (2020). A comparative perspective on commercial contracts and the impact of COVID-19 : change of circumstances, Force Majeure, or what? In Law in the Time of COVID-19 (Issue June, pp. 155–165).

Downloads

Published

2022-12-24

How to Cite

Sinilele, A., Suriyadi, S., & Alim, S. (2022). Implementation of Hardship Principles on Financing Agreements Islamic Bank Due to Corona Virus Disease 2019. Jurnal Hukum Novelty, 13(2), 202–215. https://doi.org/10.26555/novelty.v13i2.a22274

Issue

Section

Articles