Force Majeure from the Perspective of Islamic Economic Law: A Critical Review of Shari’ah Banking’s Response to COVID 19 in Indonesia

Neneng Nurhasanah

Ahmad Hasan Ridwan

Uus Rustiman

 

Abstract: The discussion on force majeure in the context of Islamic economic law has emerged as a response to recent challenges faced by individuals, companies, and communities in the context of the COVID-19 pandemic. Force majeure is a concept that addresses situations beyond human control that prevent the fulfilment of contractual obligations. This article examines the implications of force majeure in the context of Islamic economic law, focusing on contemporary challenges in Shari’ah banking and the application of this concept in Indonesia. This article argues that the implications of force majeure, particularly regarding contemporary challenges in Shari’ah banking, manifest themselves in the application of Islamic economic law principles such as justice (adl), Maqasid al-Shari’ah (Objectives of Islamic Law), ta'awun (cooperation), and the division of force majeure into absolute and relative types under fiqh muamalah based on the principles of necessity (dharurat) and hardship (mashaqqah). These categorizations offer specific solutions for handling force majeure in Shari’ah banking transactions, addressing its application, execution, and interpretation, while promoting innovation and flexibility in contract structuring.