Contribution of the National Sharia Arbitration Board (Basyarnas) in Resolf of Sharia Financial Institution Disputes

Abstract

The National Sharia Arbitration Board (Basyarnas) plays a critical role in the resolution of disputes within the Islamic financial sector of Indonesia. Nevertheless, the academic community has yet to investigate Basyarnas's contributions. Based on field observations and document analysis, this study provides a detailed examination of the role of Basyarnas in resolving Islamic finance disputes, with a particular emphasis on the impact it has had on Islamic Financial Institutions. This study employs a content analysis approach to data analysis to examine the role of Basyarnas in resolving disputes between Islamic financial institutions via a descriptive approach. Researchers employed Nvivo 14 software to process data, employing cluster analysis and word clouds. By adhering to sharia principles, Basyarnas has ensured the impartiality and professionalism of arbitration in financial institutions, thereby contributing to dispute resolution. Basyarnas' contribution to the establishment of a sharia-compliant and expeditious resolution mechanism is manifest, thereby bolstering the overall confidence in the Islamic financial institution system. However, Basyarnas encounter numerous challenges in resolving disputes between Islamic financial institutions, which encompass a variety of factors. This study demonstrates the necessity of electronic-based arbitration administration. Additionally, the limited operation of representative offices in numerous regions serves as an impediment to the provision of equitable and effective arbitration services.