Legal Analysis on the Policy of Home Ownership Requirements for Foreigners in the Consumer Credit Agremeent of Syariah Bank in Indonesia

Rachmadani Eka Husnul Khotimah

doi:10.21093/mj.v17i1.1033

Rachmadani Eka Husnul Khotimah Universitas Brawijaya

DOI: https://doi.org/10.21093/mj.v17i1.1033

Abstract

The study examines the normative policy on the ownership rules of residential homes for foreigners in the credit agreement consumption of Syariah banks in Indonesia. This policy has existed since 2005. However, it does not make all Syariah banks in Indonesia provide credit facilities to foreigners since there is no specific implementing regulation and legal protection for the banks in the case of finance arrears caused by the practice which can disrupt their liquidity and profitability. Considering this, the article analyses the legal protection for Islamic banks, both in preventive and repressive context, in providing credit facilities for foreigners, so that they all can facilitate loans without any fears and risks. This becomes necessary as it can contribute to Indonesia’s economic growth. It argues that the law should cover this matter, through both preventive and restrictive measures, in which the law should prevent the practice from causing finance arrears through musyārakah contract. The results of this study confirm that there is legal protection that has been regulated by Bank Indonesia for Syariah Bank in giving credit to a foreigner.

Keywords: Legal Policy, Syariah Bank, Foreigners, Consumer Credit Agreement

References

Books
Agus Triyanta, Sharia Banking Law, Regulation, Implementation and Formulation of Compliance with Islamic Principles, (Malang: Cita Intrans Selaras, 2016), 51-66.
Jundiani, Regulation of Islamic Banking Law in Indonesia, (Malang: UIN Malang Press, 2009), 33-34, 115-119.
Mardani, Sharia Business Law, (Jakarta: Prenadamedia Group, 2014), 142.
Muhamad Sadi, Concept of Islamic Banking Law of Relationship Pattern as an Intermediary Institution and Investment Agent, (Malang: Cita Intrans Selaras, 2015).
Maria S.W. Sumardjono, Alternative Policy on Arrangement of Land Rights and Buildings for Foreigners and Foreign Legal Entities, (Jakarta: Kompas, 2008).
Musyarakah Agreement Mutanaqisah Bank X.
Supriadi, Agrarian Law, (Jakarta: Sinar Grafika, 2012).

Legislation

Law Number 5 Year 1960 on Basic Regulation of Basic Agrarian Principles
Law Number 21 Year 2008 regarding Sharia Banking
Government Regulation Number 103 Year 2015 on Ownership of Residential Homes or Shelters by Foreigners Based in Indonesia
Regulation of the Minister of Agrarian Affairs and Spatial Planning / National Land Agency Number 29 of 2016 concerning Procedures for the Provision, Release or Transfer of Right to Ownership of Residential Homes or Occupation of Foreigners domiciled in Indonesia
Bank Indonesia Regulation Bank Indonesia Regulation no. 18/19 / PBI / 2016 concerning Transaction of Foreign Exchange Against Rupiah between Bank and Foreign Party.

Website

http://site.bpn.go.id/o/Beranda/Layanan-Pertanahan/ PELAYANAN-PEMELIHARAAN-DATA-PENDAFTARAN-TANAH/PEMBARUAN-HGB---HP-DAN-PEMBERIAN-HGB---HP- DI-ATAS-/ HAK-PAKAI/ HAK-PAKAI-PERORANGAN-WNA.aspx.diakses tanggal 14 Februari 2018.

Thanks as much as possible to my supervisor, Prof. Dr. Thohir Luth, MA, and Mrs. Hanif Nur Widhiyanti, SH, M.Hum as the main supervisor and second lecturer who has been so good and patiently provide guidance to the author, providing time, energy, and mind to direct the author in completing This journal.