This document discusses the importance of teaching Islamic contract law in Indonesian law schools. It notes that Indonesia has experienced rapid growth in Islamic banking and finance, but lacks professionals with expertise in Islamic contract law. While some Indonesian universities have begun offering courses in Islamic banking law, most still do not offer dedicated courses in Islamic contract law. The document argues that integrating Islamic contract law into law school curricula would help address this shortage of experts and bridge the gap between theory and practice in Indonesia's growing Islamic economic sector. It maintains that understanding Islamic contract law principles is crucial to support Islamic financial institutions and resolve disputes in accordance with Shariah.

1. 1
THE IMPORTANCE OF ISLAMIC CONTRACT LAW IN LAW
TEACHING AT INDONESIA’S LAW SCHOOLS TO
ANTICIPATE THE GROWTH OF ISLAMIC ECONOMICS
ACTIVITIES AND GLOBALIZATION ERA.1
By:
Dr. Gemala Dewi,SH,. LL.M ( gemaladw@yahoo.co.id),
Wismar Ain Marzuki,SH., MH ( wismar.ain@ui.ac.id) and
Faculty of Law, University Of Indonesia
Depok, West Java – 16424, Indonesia
Telp: +62 7863442
Abstract
As the growth of Islamic economics activities in international business
relations, nowadays many banks, insurance and other financial institutions in
Indonesia follow the trend of using Islamic system which is called as “Shariah based
principles”. However, the human resource who can support the system are not
available enough due to the lack of education, especially in legal base on Islamic
contract law. The curriculum on contract law in state and private universities in
Indonesia, most of them do not have course on Islamic contract law. On the other
side, the need for contract drafting and dispute resolution on Islamic banking and
financial sector is necessary to maintain the growth of the sector activities. By using
normative and comparative research method, this paper will lead to the conclusion
that the country needs to regulate the legal education on Islamic Contract Law in law
school curriculum as a solution to bridge the gap between Theory and Practice in
Law and Economic sectors.
I. INTRODUCTION
Islamic business development today is progressing very rapidly, particularly
those working in the financial sector, such as banking institutions, insurance, capital
markets, mutual funds, and Baitul Mal wat Tamwil (BMT). Those financial
institutions work in the system which is called as as “Shariah based principles”or
“Sharia system”. Accordingly, the concepts of muamalah jurisprudence becomes
important, since it becames operational guideline in the financial institutions.
However, the human resource who can support the system are not available enough

2. due to the lack of education, especially in legal base on Islamic contract law. The
curriculum on contract law in the state and private universities in Indonesia, most of
them do not have specific course on islamic contract law.2 On the other side, the need
for contract drafting and dispute resolution on islamic Banking and financial sector is
necessary to maintain the growth of the sector’s activities. In this extend, the country
needs to regulate the legal education on Islamic Contract Law in law school
curriculum as a solution to bridge the gap between Theory and Practice in Law and
Economic sectors.
During last decade the faculty of law’s curriculum, become part of a global
system of law school educations. Such example is in ASEAN (Association of South
East Asia Nations) region. The curriculum response to globalisation is the
introduction of specialised courses such as International Trade Law, International
Finance Law, Comparative Law, International Dispute Resolution, International
Human Rights Law and Private International Law. Globalisation calls for the need to
prepare the lawyers of ASEAN countries for complex transactions for raising capital,
locally and internationally, regulating the flow of capital and securing investors’
guarantees. Courses like Mergers and Acquisitions, Project Finance, Credit
Transactions or Corporate Rehabilitation will have to be introduced.3 However, those
courses most of them only based on Common law system, which are conventional,
none of them based on “sharia principle” or using Islamic contract law system.
Moreover, The curriculum on contract law in state and private universities in
Indonesia, most of them do not have course on Islamic contract law. So in this case
the legal education system does not meet the need on the market for the Islamic
economics movement in Indonesia.
Based on the description above, the authors present (put) a few question
(problem) items, namely:
1. In addressing of the challenges of the development on the Globalisation era, how
important to study / learning on Islamic Contract Law (Muammallah) course in a law
school education?
2. Is the higher legal education in Indonesia has already accommodate the need for
exspert (Scholar) in Islamic Contract Law (muammalah)?
3. What do the academicians believe regarding the regulation of contractual
arrangements in Shariah law in Indonesia is enough to support the implementation of
Islamic contract law in globalization era in Indonesia?
4. In the field of legislation, whether legal materials on Islamic contract law
(muammalah) for “Shariah businesses” needs to be made in the form of a separate Act
or become part of the national contract law?
According to those questions, the authors and team did a research during March
until October 2014 In searching the data done by distributing questionnaires to the
respondents. Were taken from 10 provinces in Indonesia which has a number of
Islamic banking financing based on statistical data by Bank Indonesia in December
2013. The ten provinces are: DKI Jakarta, West Java, East Java, Central Java, South
Sulawesi, North Sumatra, Banten, West Sumatra, South Sumatra and East
Kalimantan. This writing is based on normative method of research, using legal
2

3. materials and legislation. However, to analyze the problems, the authors use
qualitative methode.
II. THE HISTORY OF THE IMPLEMENTATION OF ISLAMIC LAW IN
3
INDONESIA AND THE INFLUENCE OF GLOBAL ORDER
Since the 13th century, Islamic teaching have entered to Nusantara (Indonesia in
the past) and has been embraced by people. Before Dutch colonial rule, Islamic law
has prevailed in society in several sultanate, among others the Sultanate of Aceh, and
Deli in North Sumatra, Bugis and Bone in Sulawesi, and Jayakarta in Java. When
VOC come for trade, they acknowledge they recognizes enactment Islamic Law; and
in the era of Dutch regime the first the recognation confirmed in the Law of the
Dutch Government (Regeering Reglemen no 152 year 1854.4 Called Receptio in
complexu theory. The continuous effort of the Dutch domineer sultanate and the
struggle conducted by our nation leaders caused (effect) Indonesia laws much
influenced by colonial law.5
According to Singgih Tri Sulistyono, study at Law Faculty during the pre-colonial
period, education in Indonesia was very much influenced by religious teaching:
Buddhism, Hinduism, and Islam.6 Secular higher education was firstly introduced by
the Dutch since the early of the 20th century. At that time the development of higher
education in colony Indonesia had close connection with “global market” demands on
technician and professional which had to be trained at higher education institutions.
This tightly connected with the fact that since the 19th century the Dutch colony in the
Indonesian archipelago had been opened for modern business investments in the field
of plantation (coffee, tea, rubber, tobacco, sugar cane, cacao, etc.), industry (sugar,
cigarette, cement, etc.), mining (gold, coal, oil, tin, etc), transportation (railways and
shipping), etc.7 In this context, the Dutch colonial administration in the Indonesian
archipelago had to provide not only infrastructures and facilities but also skilled
human resources who had to be educated at schools and higher education institutions.8
This means that from the early time of its development, higher education had close
connection with the interacting process between local needs and global market
demands. For this reason the early of the 20th century witnessed the significant
development of higher education institutions. The STOVIA (School tot Opleiding van
Inlandsche Artsen) or medical school for indigenous doctors was established by the
Dutch colonial government in 1902 by using the Dutch as medium of instruction.
Latter on in 1924, Dutch colony also develop higher education in law which is called
as “Rechts Hooge School” or Law School.
After Indonesian independence, seems (look) civil law which brought by the
Dutch be serve as guidelines in the transaction activity, whereas in the field of many
rules of law of land taken from Indigenous law. Different from islamic Family Law,
which continue to apply during the colonial era. and the era of independence, the law
on muammalat (civil relations or transactions) not too entrenched in the lives of
Muslims, at that time. 9 The views of a controlled substance, especially in business
transactions there are rules (regulations) were taked from Dutch colony regulations in
trade (Wetboek van Coophandle) and Civil Code or Burgerlijk Wetboek (BW). Even
though there are similarities between the engagement law of former Dutch Civil
Code (BW) with Islamic law of muammalat, however, only little can be applied,

4. because there are also some differences in many ways. However, based on positivist
principle then of the former Dutch Civil Code (BW) were applied.
During the New Order into force, in this country, of the Acts based on the
principle of Pancasila, but in practice lead to inequality, and conflicts of interest from
the theory of law, the issue of regulation originated in the agreement, and the
implementation of the agreement. On the other hand the public questioned whether
the activities of commercial and savings are implemented through the (or) with the
use of conventional bank interest has been in accordance with the principles of
Shari'ah. In anticipation of the problems encountered, the New Order period in
community growing economic activity rests on treaty law and economic law of Islam,
among others, the establishment of Sharia Rural Bank. In line with that of the experts
(scholars) pioneered the establishment of Bank Syari'ah (Bank Muammalat) (first
established in Jakarta in 1991.
After the establishment of the first Shariah bank in Indonesia, the efforts to
establish and develop the Shariah business activities being conducted until now,
which is important also to conduct the research and assessment in Islamic contract
law in University base. The establishment of Sharia Rural Banks, and the growth of
Sharia Banks, Insurances and Financial Institutions is a challenge for leaders,
scientists to examine and investigate the science, in this science Jurisprudence of
Muammalah as basic knowledge of transaction. On the side (among/ in the
perspective of) university experts to probe, to learn the basics, the coverage of science
that will fill the needed skills by studying, researching and providing courses in
Islamic law of engagement (Islamic Contract Law) or Islamic Economic Law to the
students in the faculty of law become necessity. Since doing an intense study of the
experts expressed the opinion (ijtihad solution brainchild) will show the growth and
development of the activities of Islamic civil law practice in Indonesia.
4
III. THE STUDY ON ISLAMIC CONTRACT LAW IN A UNIVERSITY
It is not surprising then that the legal education objectives changed and it is
even less surprising that they moved towards producing graduates that have not only
the courage to throw off the shackles of Dutch Colonial law but also Possessed the
Necessary skills to continue the revolution from colony to independence.10 Legal
education objectives changed again when the Sukarno government was replaced by
that of the Soeharto government. Legal education in this period was designed
primarily to ensure that graduates were able to support the process of development in
Indonesia.
Law students were expected to know just enough of the theory and the
prevailing laws and regulations. Students were also expected to be sensitive to the
operation of the law in the community. Mochtar Kusuma-Atmadja who at that time
was the Chairperson of the Legal Sciences Consortium (KIH) was stringent in his
promotion of the importance of sociology in legal education and law studies.11
Therefore, a direct consequence of this is that law in Indonesia - both in theory and
practice - is always related to the very latest of socio-economic problems
development.12 A note to this period, in 1993 in response to the needs of graduate
employers, who considered that the graduates that were coming out of law Faculties
were not fit for practice, the law curriculum was amended (hereinafter Referred to as
1993 curriculum).13 Reviews These Amendments were designed to know ensure that

5. graduates not only just enough of the theory but also possessed legal skills. In this
instance it is clear that both academic and professional legal education came together
as one-in-one curriculum.14
In the era of curriculum reform, Several Law Faculty, begin to promote a
course Shariah Contract Law, and Islamic Economic Law. According to Satjipto
Rahardjo, on the stages of the post-Suharto democratization process governments, an
intention that produce progressive legal education graduates has come to the fore.15
According to Rahardjo progressive legal education Represents an opponent to the
educational status quo. This idea of progressive legal education came about as a
reaction to the unresponsiveness of the law to the fundamental changes that were
occurring in Indonesia in this period. The law was continuing to amble along its path
and was rather dogmatic essentially considered to be insensitive to the process of
transition being experienced in Indonesia. In any event the National Law Commission
(KHN)-rated legal education as being inclined to be monolithic.16
The program of higher education reform in Indonesia is of strategic and
futuristic. It reflects, and in the same time accommodates, the demands of the global
external and internal changes advancements Relating to Reformation spirit of post-
Suharto era. The prospective substance of the reform can be seen from its elements:
autonomy, quality, access and equity. The reform in autonomy includes: (1)
decentralizing the authority from the central government and providing more
autonomy as well as accountability to institutions; and (2) facilitating legal
infrastructure, financing structure, and management processes that Encourage
innovation, efficiency, and excellence.
By the innitiative of Proffessor M. Daud Ali, SH. in 1992, in the Faculty of
Law University of Indonesia begin to open the course on Bank, Insurance and Islamic
law and then soon followed by the course on Islamic law of engagement. In the
beganing, these lectures l exist as part of the Islamic law courses. Although the
position of this course is the elective courses, students are excited to present the two
courses are in demand by students. By the changing of the curriculum into
Competence based curriculum, this lectures become obligatory, however its bound to
become part of a biger area Islamic Civil Law and Islamic Economic Law lectures,
thouched together with other areas of Islamic law.
III. ISLAMIC LAW ON CONTRACTS AND ENGAGEMENTS IN
REGULATION.
After Indonesia's independence, base on Articel 29 UUD 1945 Islainc law on
Engagement or Islamic Contract law become part of “ibadah” then applied and should
be protected by the government. This part of the muamalah apply based on position
alone. However in that era, there are not regulation applies on the Islamic law of
contract, because there are different opinion among the scholars. According to M.
Tahir Azhary, Islamic contract law is a regulation which (from) a whole act, based on
the prinsiples of law derrived from the Qur'an, the Sunnah (Hadith) and Ar-Ra'yu
(Ijtihad), to regulate the relation (connection) between (among) two or more parties
make-who's halal (good) transaction. 17
5

6. Huge Collins on his book, “The Law of Contract”, said that, any legal system
plays an important role in the principle underlying its legal doctrines. That the legal
system operates in compliance with, or as a consequence of cultural order. In other
words, any legal system is limited to a certain environment and subject to cultural
influence.18 Culture and law, operate in conjunction. Within the interaction between
review these spheres, multiple disciplines play, but subsequently another equally
important contribution to any distinct legal system. Politics and economy are, among
others, the major disciplines that the legal system affecting including the law of
contracts.
Cultural order in Anglo-Saxon systems built on the principle of liberty,
emphaszing the freedom of the individual as one of the ultimate object to review their
national legal systems.19 Hence, a weave of scholarly contribution began go a long
time to implement the principle of individual freedom thorough multidisciplinary
different institutions. Capitalism as a political and an economical idea emerged to
serve the object of liberalism optimal system. On the application of this cultural order
to its legal system, freedom of the individual is an undisputed pillar to private / public
laws including the law of contracts. Unsurprisingly, then, freedom of contract is the
major principle of the doctrine of contract in English common law.
Islam takes a different stand. Its legal system, although conceptually shares the
same values (liberty, justice, and equality) of most legal orders, it has its own
interpretation through different multidisciplinary institutions. So the principle of
permissibility instead of freedom of contract is the meaning of liberty. It is that the
individual is free to enter into a contract if that contract is not prohibited under
Islamic law. To politics and economy are limited, to some extent, to the same
principle in order to serve both public and private interests and not only the interests
of either. The law of contracts, is a question of what role does it play in allocating
resources. In other words what is the normative justice of contract? Corrective or
distributive justice? 20
Modern debate in the normative justice theories of contract law divides into
with private whether it legal rules (contract law) should be based on right (corrective)
or welfare distribution with increasing support to the later.21 While the theory of
justice in the common law of contract emphasizes the importance of exchange,22
Islamic law emphasizes the importance of right (Haqq) and rule (hukm). In reflecting
the theory of justice, the Islamic law of contract is focused on the subject, and issues
relate to balance / discloser, of contract.23 This is to say, illegality, for example, of
usury and uncertainty. The theory of justice then becomes about validity, based on
moral (religious) values, rather than enforceability. To interpret this approach in
commerce activities, it means "a faire distribution of wealth, greater support for the
poor and needy, and less corruption and dishonesty" .24 The theory of justice in
Islamic contracts constitutes a substantive (social) justice "through a correct
distribution of legal entitlements ".25 Hence, Justice in Islamic contract is normally
interpreted as a right.26
The normative justice of Islamic contract, therefore, is distinctive. Illegality
truncations such as usury fall in the zone of distributive function whereas the defect is
dealt by corrective measures. In other words social (moral) obligations (eg zakat or
alms) are set to be distributed within the society.27 The function of Reviews These
6

7. moral obligations is to Prevent accumulation and exploitation Because The very
purpose of wealth is circulation.28 The defect of contract, on the other hand, would be
solved through the contractual sanctions. In addtitions, contract in Islamic law means
a tie or bind in Arabic language. Legally, there is an abstract definition indicates that a
contract compromises a legal offer and acceptance in a way that affect the contract
subject.29 Therefore, Islamic scholars have not distinguished between bilateral and
unilateral agreements or obligations pact and promise. They are all called contracts.
Due to the lack of general theory of Islamic contract ('aqd), there is no
comprehensive definition of what does contract mean. Rather a sale of contract ('aqd
bay') represents an archetype or a model of contractual arrangements to other should
conform to. Therefore, as Described Schacht, the sale of contract is the core of
obligation under in Islamic law.30 Accordingly, the law of contracts rather than a law
of contract had developed, by Muslim jurists, under the doctrine of nominated
contracts (al-mu'ayyana'uqd) .31
The very nature of Islamic law contracts is Rida (consent). It is also the
fundamental rule behind investment transactions. The origin of this principle is rooted
in the Qur'anic guidance of Islamic law.32 Therefore, the mutual consent of
contracting parties Allows to rescind or reinstate a contract for as long as they remain
in the contract session.33 This option is once the contract is terminated concluded.34
However, most classical scholars are very strict on this point as they require a price
and a delivery, as in an investment transaction, to be settled immediately after the
conclusion of the contract. Also, they require contract form (sighah) to be the main
element for the validity of the contract. At present, securities transactions cannot be
carried out in the old fashioned way of mutual consent, because the market and legal
orders have implemented different rules to the mutual consent of the parties.
In investment, and commercial generally, transactions certain elements
derived from the fundamental rule, ie mutual consent, that have been affirmed
throughout the Islamic legal history. Reviews these elements include the capacity of
the parties, legality of the subject matter of the contract or generally the rules and
conditions of the contract there which are to some extent out of our concern.
Generally, investment is dealt, by the law, in a combination of property and contract
rules the which in turn result in the transfer of resources by means of property or
service for the sake of profit.35 Therefore, the investment outcomes will be, legally, a
transfer of property or attracting certain legal rights.36 facilities Contract law and
economic interactions eventually Regulate the conduct.37 The motivation of a contract
in investment arrangements is, normally, the return that each party is looking for. The
underpinning of contract is the allocation of future rights and obligations and Thus
Spake, allocation of risks. It is therefore necessarily to shed light to the Islamic rule
regarding the economic and social values for investment transactions. In brief Islamic
economic values of contracts are mainly concerned with the property rights of
individuals and how it is distributed justly.38
The theoretical nature of contracts entered into in Islamic banking and finance
are in the category of exchange contracts (al-muawadat), which are essentially
trading-based. This is quite to the Contrary with the activities in conventional banking
and finance, in which are mainly based lending activities. When the contracts are
7

8. exchange contracts, they necessarily entail the exchange of goods, services, or
usufruct, for a consideration or price.
The most common forms of the contracts of exchange are either buying and
selling (Ai-bay ') roomates Involves the sale of goods, or leasing (al-ijara) roomates
Involves the sale of the usufruct (manfa'ah). In both, the subject matter is the central
focus of the legal effects accruing from the valid conclusion of the contracts. In
Islamic Jurisprudence, exchange contracts require more stringent fulfillment of the
conditions of the subject object (shurut Mahall al-'aqd), particularly subject on the
conditions of certainty, ascertain ability and proprietary value. Because this is,
involve; exchange contracts the exchange of counter values, as opposed to the
unilateral contracts of gratuity (altabarru'at), the which give the one-sided benefit to
the recipient.39
In brief, Vogel and Hayes nominated contracts classified in three major
categories. First, mutually onerous contracts; sale (transfer of lawful, known and
specific ownership for fixed price), a greeting or a forward purchase (full and
immediate payment for fungible goods to deliver at specific time in the future), sarf or
currency exchange (must be immediate contract during the session) , istisna or
commissioned manufacture (a party purchases goods to be manufacture by another
party. the goods must be Described), 'urbun or option contract (a non-refundable
deposit in the which the buyer has a right to rescind the sale, Ijara or lease and hire
(Including sale of usufruct of property leases and hire of a person), reward (for
unknown work), settlement, offset, partition, and rescission. Second, gratuitous
contracts; noble or loan (either loan of fungibles or gift of usufruct of property, wadi
'or a deposit (safekeeping of property), daman or guarantee (must be gratuitous),
kafala or personal surety, and sadaqa or alms. Third; accessory contract; wakala or
agency (can be compensated or gratuitous), rahn or pledge (binding upon delivery)
hawala or assignment (assignment of debt in the which reciprocal obligation must be
identical), and Sharika or partnership (partners agree; to share in the profit percentage
shares and lose is born proportionally to the capital, to be mutually surety and agent at
same time and to Contribute credit, work, or capital, or a combination of all these.44
Fundamental risks attached to the last contract (partnership). All partnership contracts
are revocable at will, lose the falls only in the capital, and profits cannot be fixed but
rather they must be shared in percentage.40
From the elabiration of the Islamic Contract law above, we can see the need
for a regulation that can accomodate the specific terms and conditions of the law in a
National Law to implement it. And for some extent, it needs to be educated to the
faculty of law students to be developed.
IV. THE IMPORTANCE OF THE ISLAMIC CONTRACT LAW IN LAW
TEACHING AT INDONESIA’S LAWSCHOOLS.
8

9. As we have known above, since the growth of Islamic banking and finance in
Indonesia, starting in the year 1992 in the Faculty of Law, University of Indonesia,
initiated from the idea (thought) of Prof. H. M Daud Ali. This Course has lasted untill
now and then followed by some other universities in Indonesia. The Islamic Banking
Course, Islamic Contract Law, etc. hasbeen taught in th curriculum. However, to
answer the problem in the research that we have sated in the introduction of this
paper, we can see the result that the author get derived from the research questionares
below.
Based on the research questions that has been mentioned in the Introduction
section above, whic are 4 (four) question, the explanation to the first question: “In
addressing of the challenges of the development on the Globalisation era, how
important to study / learning on Islamic Contract Law (Muammallah) course in a law
school education?”. The answer is very important. We can see this from the diagram
below that almost all of the respondent says that the course is important to be aducate
in the university level. The diagram of the research result as below :
Question:
With the development of Islamic economics in the era of globalization, whether in the
opinion of Mr. / Ms materials Commitments Islamic law needs to be taught in universities?
Important 56 93%
not important) 0 0%
(did not choose) 0 0%
The answer, for the second question: “Is the higher legal education in
Indonesia has already accommodate the need for exspert (Scholar) in Islamic Contract
Law (muammalah)?” The Anwser is has not really accomodative, since there are
variatives answer from the respondents about the lectures that they teach on the
university. We can see this from the diagram below:
9
Question:
Are in the Law School that the Respondents teach the course on Islamic
Contract Law is being taught ?
taught 32 53%
Not being taught 23 38%
Other 1 2%

10. Islamic Civil Law 8 13%
Islamic-Contract law 8 13%
Islamic Economic Law 16 27%
Comparative Law 1 2%
Others 12 20%
10
Does the material / substance of Islamic law Commitments entered into teaching
materials in other subjects?
Yes 38 63%
No 6 10%
Do not know 4 7%
Incorporated into the course of what material the Islamic Law of Engagement?
The answer, for the third question: “What do the academicians believe
regarding the regulation of contractual arrangements in Shariah law in Indonesia is
enough to support the implementation of Islamic contract law in globalization era in
Indonesia? The Anser is that there is not enogh regulations to support the
implementation of Islamic contract law in this era since the fast growing of syariah
economics activities in Indonesia. We can see this from the diagram below:
Question:
With the growth of Islamic economic activities nowadays, whether in your point of
view the Regulation in Indonesia has been appropriate as the legal basis for
despute setlements in Sharia Contracts cases?

11. Adequate
9 15%
Inadequate 46 77%
Do not know 1 2%
From the answer can be seen that 77 % says that the regulation in Indonesia is not
adequate as a legal basis for Islamic Contract law despute settlements. sholving the
Does it need to be made a form of an Islamic Engagement Law or in an
Act of Indonesia Contract Law Act?
Needed 51 85%
Not necessary 1 2%
Whether the form of codification of the Islamic law of contract which is now in the
Compilation of Islamic Economics (KHES) is appropriate as a legal basis to give the
force of law in the Islamic economic dispute resolution in society?
11
Appropriate 23 38%
In appropriate 32 53%
If it is not right. Does it need to be made in the form of Laws Engagement in
Indonesia?
Needed 38 63%
Not necessary 3 5%

12. The answer, for the forth question: “In the field of legislation, whether legal
materials on Islamic contract law (muammalah) for “Shariah businesses” needs to be
made in the form of a separate Act or become part of the national contract law? “ The
Anwser is variatives. Some say it needs to be in separate individual act and the other
say should be integrated to one national act. We can see this from the diagram below:
If Sharia Codification Contract Law need to be made in the form of the Act, if in the
opinion of Mr. / Mrs matter of contract law (contract) Sharia also need to be made
in the Act of its own (separate) or fused in the Act of the National Contract Law?
12
V. CONCLUSION
Separate 29 48%
Unite 27 45%
Islamic Contract law has been axist and applied normatively and positively in
Indonesia throughout the history of this country. Nowadays the need in the economic
daily activities also shows the overwhelm antusiastics of the usage for the law. Finally
from the findings of this research, by using normative and comparative research
method, this paper has conclude that the country needs to regulate the legal education
on Islamic Contract Law in law school curriculum as a solution to bridge the gap
between theory and practice in law and economics sectors especially in fulfilling the
need of Islamic economic busines transaction in globalization era.
VI. REFERRENCE
1 This paper presented at The 5th KLIBEL Conference, 29-30 November 2014, at The
Faculty of Law, University of Indonesia, Depok -16424.
2. According to this researche that the author done during March to August 2014.

13. 3.See: R. Rajeswaran, “ Legal Education in ASEAN in The 21st Century”, paper
presentation, p. 1.
4. M.Daud Ali, Hukum Islam, Pengantar Ilmu Hukum dan Tata Hukum Islam di
Indonesia, Jakarta:Raja Grafindo Persada, Cet.17,2012 hal.240
Legal Education Reform in Indonesia+
5 Gemla Dewi, Wirdyaningsih dan Yeni Salma Barlinti, Hukum Perikatan Islam di
Indonesia, (Islamic Contract Law in Indonesia) Jakarta: Kencana, Cet. Ke 4, 2013,
page 165.
6 Singgih Tri Sulistiyono, HIGHER EDUCATION REFORM IN INDONESIA AT
CROSSROAD, Paper presented at the Graduate School of Education and Human
Development, Nagoya University, Japan (Nagoya: 26 July 2007). Writer is lecturer at
the Department of History and Secretary of Center for Asian Studies (Pusat Studi
Asia) Diponegoro University Semarang. See for example Said Hutagaol, The
Development of Higher Education in Indonesia, 1920-1979 (Ann Arbor, MI:
University Microfilms International, 1985).
7 Ibid., See John D. Legge, Indonesia (Sydney: Prentice-Hall of Australia, 1977), 90-
119. See also M.C. Ricklefs, A History of Modern Indonesia since ca. 1300 (London:
Macmillan, 1993).
8 Ibid., See S. Nasution, Sejarah Pendidikan Indonesia (History Education of
Indonesia), (Bandung, Jemmars, 1983), 142.
9 Ibid.
10 Ibid
11 Ibid. The curriculum is provided under the Minister of Education and Culture
Decree (Decree No. 17/D/O/1993).
12 Ibid. See to National Law Commission, “Towards a New National Legal
Development Paradgm,” February 2005 may be acessed at
www.komisihukum.go.id/article_opini.php?mode=detil&id=113
13 Ibid., see Satjipto Rahardjo, “Where is Legal Education?”, Kompas 8 April 2004.
14 Ibid.
15 Ibid., Satjipto Rahardjo from Diponegoro University.
16 Peter Hendy, “Business and Higher Education Reform”, paper presented on Higher
Education Symposium: Putting Reforms into Practice (Melbourne: 26 November
2003), 6.
17 Gemala Dewi, Wirdyaningsih and Yeni Salma Barlinti, Hukum Perikatan Islam di
Indonesia (Islamic Contract Law in Indonesia), Cet. Ke 4, Jakarta: Kencana, 2013
hal. 2-3
13

14. 18 Huge Collins, The Law of Contract, 4th edn, London 2013 Lexis, Nexis, London
20013
19 Ibid
20 Ibid.
21Mahmood Baghri, ‘Conflict of Laws, Economic Regulations and
Corrective/Distributive Justice’ (2007) 28(1) University of Pennsylvania Journal of
International Economic Law, pp. 113-150
22 S Atiyah and A Smith, Atiyah’s Introduction to the Law of Contracts (Oxford :
Clarendon Press, 2005).
23 Valentino Cattelan, ‘ From the Concept of hagg to the Prohibitions of riba,
gharar and maysir in Islamic Finance’ (2009) 2 Int .J. Monetary Economic and
Finance, p. 384
24 Frank Vogel and Samuel Hayes, Islamic Law and Finance: religion, Risk, and
Return ( Hague: Kluwer Law International,1998), p 26
25 Valentino Cattelan, ‘ From the Concept of Haqq to the Prohibitions of Riba,
Gharar and Maysir in Islamic Finance’ (2009) 2 Int .J. Monetary Economic and
Finance, p. 384
26 The Qura‘n 5:58 “…Allâh commands that you should render back the trusts to
those to whom they are due; and that when you judge between men, you judge
with justice…”
27 The Qura ‘n 51:19 “And in their properties there was the right of the
Sâ’il (the beggar who asks) and the Mahrûm (the poor who does not ask others)”
28 Hartley Dean and Zafar Khan, ‘Muslim Perspectives on Welfare’ Journal of
Social Policy (1997) 26( 2) 193–209
29 Richard A. Posner and Andrew M. Rosenfield, ‘Impossibility and Related
Doctrines in Contract Law: An Economic Analysis’ (1977) The Journal of Legal
Studies 6(1) pp. 83-118
30 Randy E Barnett, ‘The Sound of Silence: Default Rules and Contractual
Consent’(1992) 78 Virginia Law Review 821-911. In the Qura 'n 31:34, there is
also an indication to this notion ; "Verily Allâh, with Him
31 Mahmood Baghri, ‘Ex Ante and Ex Post Allocation of Risk of Illegality:
Regulatory Sources of Contractual Failure and Issues of Corrective and Distributive
Justice’ (2002) European Journal of Law and Economics 13: 5–26
32 Abd al-Razza q al-Sanhu,¯ rı¯, Nazariyya¯ t al-‘aqd (Cairo, 1934), 63.
33 Hussein Hassan, ‘Contracts in Islamic Law: The principles of
Commutative Justice and Liberality’ (2002) 13:3 (Oxford) Journal of Islamic
Studies pp. 257–297.
14

15. 34 Parviz Owsia (ed), Formation of Contract ‘ A comparative Study Under
English, French, Islamic and Iranian Law’ (London: Graham & Trotman
1994)160
35 Joseph Schacht, An introduction to Islamic Law (Oxford : Clarendon Press,
1982)151
36 The Qur'an 4:29 “O you who have believed, do not consume one another's
wealth unjustly but only [in lawful] business by mutual consent…”
37 Mahmoud A El- Gamal, Islamic Finance Law, Economics, and Practice
(Cambridge: Cambridge University Press 2006)65
38 The option known as ‘khiyar al Majis’ in Arabic. The Prophet said, "The
buyer and the seller have the option to cancel or to confirm the deal, as
long as they have not parted or till they part…) Narrated by Hakim
bin Hizam, Sahih AL Bukhari, Volume 3, Book 34, Number 296
39 A listair Hudson, The Law on Investment Entities (London: Sweet & Maxwell,
2000)32
40 Ibid.
15