DEFAULT IN MURABAHAH FINANCING CONTRACTS AND DISPUTE RESOLUTION EFFORTS IN INDONESIAN ISLAMIC BANKING

Murabahah financing occupies the most dominant position among the contracts offered by Islamic banks operating within the Indonesian financial system, a circumstance that renders the legal relationship between the bank and the customer vulnerable to default in the form of delayed payment, inability to fulfil obligations, and breach of contractual clauses. This article examines the juridical qualification of default within murabahah contracts and the dispute resolution efforts available to the contracting parties under Indonesian positive law. Normative legal research is employed, combining the statute approach and the conceptual approach, supported by materials drawn from legislation, fatwa, judicial decisions, and peer-reviewed literature. The findings demonstrate that default in murabahah financing may be classified into four juridical forms recognised under Article 1243 of the Indonesian Civil Code, each carrying distinct consequences for compensation, contract termination, and risk allocation. Resolution efforts extend along a spectrum commencing with deliberation (musyawarah) and financing restructuring, proceeding to mediation through the Alternative Dispute Resolution Institution for the Financial Services Sector, arbitration before the National Sharia Arbitration Board, and culminating in litigation before the Religious Courts, whose absolute competence was reinforced by Constitutional Court Decision Number 93/PUU-X/2012. The article argues that dispute settlement must harmonise legal certainty, sharia compliance, and the protection of both institutional and customer interests, guided by the maqashid al-shari'ah framework and the civil law principle of pacta sunt servanda.