The PMH lawsuit that canceled the Al-Murabahah financing contract (Sharia contract) at the North Jakarta District Court was annulled by the Supreme Court

On September 9, 2021, the Supreme Court of the Republic of Indonesia based on Decision Number 497 PK/PDT/2021 has tried and won the Islamic Financial Institution (LKS) at the Review Level (PK) of the Lawsuit against the Law submitted by the guarantee owner to the LKS in the Court Negeri North Jakarta Number 732/Pdt.G/2018/PN.JKT.UTR, (North Jakarta District Court), the reason for the PMH lawsuit is that the Plaintiff has never guaranteed his land and building assets, but suddenly by the LKS burdened as a guarantee object Murabahak contract, so that the worksheet does not meet the principle of prudence banking (prudential banking) in providing financing to customers (partners).

That previously on January 28, 2020 North Jakarta District Court had issued Decision Number 732/Pdt.G/2018/PN.JKT.UTR, where the issuance of the decision was very detrimental to the LKS as a financial institution operating with sharia principles, because the panel of judges had dropped the verdict By stating that the Al Murabahah Financing Deed was null and void (neitig), then punished the worksheet to submit the certificate of guarantee object to the plaintiff.

The decision of the North Jakarta District Court which assessed that the enactment of the Sharia contract was clearly detrimental because it had deviated the guidelines in the procedural law of sharia economic dispute resolution, which confirmed that all sharia economic disputes became the authority of the judiciary in the environment of the Religious Courts. (Vide the Constitutional Court Decision Number 93/PUU-X/2012, Article 55 of the Sharia Banking Law and Perma No. 14 of 2016 concerning Procedures for Settlement of Sharia Economic Cases).

Furthermore, against the North Jakarta District Court's decision, the Sham & Partners Council as the power of the LKS immediately submitted an PK effort without appeal and cassation. PK efforts with register number 497 PK/Pdt/2021, which in the PK decision basically MA canceled decision number 732/Pdt.G/2018/PN.JKT.UTR on January 28, 2020, with the consideration that the lawsuit filed by other parties ( In addition to customers) on the grounds of an illegal act (PMH) must first have a criminal decision, and as long as it has not been proven to be a criminal act, the Sharia contract remains in force and binds to the parties, so that the District Court does not have absolute competencies.