Compilation of Syariah Economic Laws

The Supreme Court of the Republic of Indonesia has recently issued the much anticipated Compilation of Syariah Economic Laws (Kompilasi Hukum Ekonomi Syari’ah / KHES). The basic premise for the KHES is to facilitate the examination and completion of Syariah economy cases that come before the courts as intended in Article 49(i) and the Elucidations to Law No. 3 of 2006 on Religious Courts, Law No. 19 of 2008 on State Syariah Commercial Paper, Article 55 of Law No. 21 of 2008 on Syariah Banking.

The KHES is in essence a series of guidelines for judges on the interpretation and application of Syariah principles as they relate to economic matters. Nevertheless, it is to be noted that the KHES is a series of guidelines and this does not mean that the presiding judges do not have any responsibilities aside from merely applying the guidelines.

On the contrary, the Supreme Court Regulation to which the KHES is annexed is explicit that judges have a responsibility to investigate thoroughly the case with a view to ensuring that the law that provides a decision that is deemed to be just and fair is handed down.

The Supreme Court Regulation, No. 2 of 2008, to which the KHES is annexed was issued on 10 September 2008 and has been in force since that date.