Case Note: Constitutional Court Decision No 93/PUU-X/2012 on Shari’a Banking Dispute Resolution

Abstract

This case note discusses a 2013 decision of Indonesia’s Constitutional Court (Mahkamah Konstitusi) and a series of lower court judgments issued following that decision. In that decision, the Court ruled that, notwithstanding the statutory right to freedom of contract, parties to an Islamic banking contract may nominate only Indonesia’s religious courts (Pengadilan Agama) or Indonesia’s National Shari’a Arbitration Body (Badan Arbitrase Syariah Nasional – Basyarnas) as their dispute resolution forum of choice.