Samarah: Jurnal Hukum Keluarga dan Hukum Islam Volume 8. No. November 2024 ISSN: 2549 Ae 3132. E-ISSN: 2549 Ae 3167 DOI: 10. 22373/sjhk. The Strategic Role of Local Political Parties in the Legislative Process Qanun for Sharia Financial Institutions in Aceh Wais Alqarni Universitas Syiah Kuala. Banda Aceh Rahmat Saleh Universitas Syiah Kuala. Banda Aceh Titi Anggraini Universitas Indonesia Tunjung Sulaksono Universitas Muhammadiyah Yogyakarta M Nur Akhyar Universitas Syiah Kuala Email: waisalqarni@usk. Abstract: According to the 2019 Election data, the Aceh Party secured 18 out of the 81 seats in the Aceh DPR (Legislative Assembl. The Speaker of the DPR is appointed from the Aceh Party, which holds the majority of seats in the legislature as the winners of the election. Furthermore. Commission I is responsible for overseeing matters related to Law. Politics. Government, and Security, is headed by a member of the DPR representing the Aceh Party. The Aceh DPR Legislation Body is led by a member of the Aceh DPR who belongs to the Aceh Party. This study employs a qualitative-normative approach, utilizing role theory for analysis. Data is gathered through in-depth interviews and literature review. The participants interviewed consisted of individuals affiliated with the DPR, the Islamic Sharia Service, and Academics. The material studied encompassed journal papers, books, news media reports, and research relevant to the topic under consideration. The findings suggest that local parties play a significant influence in the enactment of the LKS Qanun. The Aceh Party, a local political organization, emerged victorious in the election and secured the majority of seats in the Aceh parliament. This is evident through the participation of the chairman of the Aceh DPR legislative body who originates from the Local Party. This is an important part of the Political Party's contribution to the development of local democracy in Aceh as well as supporting the implementation of Islamic law in Aceh based on law within the framework of the unitary state of the Republic of Indonesia. Keywords: Political parties, local party, functions, qanun of Islamic financial institutions, sharia ic Submitted: December 29, 2023 ic Accepted: November 05, 2024 http://jurnal. ar-raniry. id/index. php/samarah icPublished: November 16, 2024 The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. Abstrak: Berdasarkan data Pemilu 2019. Partai Aceh memperoleh 18 kursi di DPR Aceh dari 81 kursi yang tersedia. Sehingga Ketua DPR diisi oleh perwakilan dari Partai Aceh dan mayoritas anggota legislatif sebagai pemenang pemilu. Selain itu. Komisi I yang membidangi Hukum. Politik. Pemerintahan dan Keamanan diketuai oleh anggota DPR dari Partai Aceh. Badan Legislasi DPR Aceh juga diketuai oleh anggota DPR Aceh dari Partai Aceh. Penelitian ini menggunakan metode kualitatif-normatif yang dianalisis dengan teori peran, sedangkan data dikumpulkan dengan melalui wawancara mendalam dan studi Informan yang diwawancarai adalah anggota DPR. Dinas Syariat Islam dan akademisi, sedangkan literatur yang dianalisis adalah artikel jurnal, buku, berita pada media dan kajian yang terkait dengan pembasan. Hasil penelitian menunjukkan bahwa partai lokal memiliki peran penting dalam meloloskan LKS Qanun. Partai lokal adalah Partai Aceh yang memenangkan pemilu dan memenangkan kursi terbanyak di parlemen Aceh. Hal ini juga terlihat dari keterlibatan ketua badan legislasi DPR Aceh yang berasal dari Partai Lokal. secara teoritis bahwa sebagai anggota Dewan Perwakilan Rakyat. Partai Aceh telah menjalankan fungsi legislasi yaitu menyusun dan membahas rancangan undang-undang, menetapkan dan menyetujui Qanun Lembaga Keuangan Syariah. Hal ini merupakan bagian penting dari kontribusi Partai Politik terhadap pengembangan demokrasi lokal di Aceh serta mendukung implementasi syariat Islam di Aceh berdasarkan undang-undang dalam kerangka negara kesatuan republik Indonesia. Kata Kunci: Partai politik, partai lokal, peran, qanun lembaga keuangan syariah, syariat Islam Introduction Aceh is a territory that has been granted the ability by the Central Government to regulate and rule its own affairs and protect the interests of its people, which makes it unique and distinctive. The regulation is governed by the Republic of Indonesia Law Number 44 of 1999, which was subsequently approved by Law Number 18 of 2001, and later replaced by Law Number 11 of 2006, specifically addressing the Government of Aceh. 1 The aforementioned article elucidates that Aceh is considered a province within the jurisdiction of the Unitary State of the Republic of Indonesia, yet with distinctive attributes. accordance with the 1945 Constitution, the government system of the Republic of Indonesia acknowledges and respects the existence of special regional Arskal Salim. Challenging the Secular State: The Islamization of Law in Modern Indonesia. Honolulu: University of Hawaii Press, 2008. Mursyid Djawas, et. AuHarmonization of State. Custom, and Islamic Law in Aceh: Perspective of Legal Pluralism,Ay Hasanuddin Law Review 10. No. Ridwan Nurdin and Muhammad Ridwansyah. AuAceh. Qanun and National Law: Study on Legal Development Orientation,Ay Samarah: Jurnal Hukum Keluarga dan Hukum Islam 4. No. http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. The acquisition of special autonomy or regional autonomy by Aceh from the central government is intricately linked to the historical and sociopolitical dynamics of the Acehnese people. Consequently. Aceh enforces stricter regulations regarding the execution of its government in Qanun. The regulations pertaining to Qanun are outlined in Law Number 11 of 2006, which deals with the Government of Aceh. Article 1, number 21, provides a clear description of Aceh Qanun as a type of provincial regulation that governs the implementation of government and governance regarding the livelihoods of the people in Aceh. According to Article 1. Section 22, the Regency Qanun is a legislative measure that governs the administrative processes and daily lives of the inhabitants of the districts within the Aceh province. The term Qanun refers to a specific type of regional regulation. It is explicitly mentioned in the Explanation of Article 7 paragraph . letter F of Law No. 12/2011. According to this law. Qanuns are included in the Provincial Regional Regulations that are applicable in Aceh Province. Additionally. Special Regional Regulations (Perdasu. and Provincial Regional Regulations (Perdas. are included in the regulations that apply in Papua Province and West Papua Province. Moreover. Article 7, paragraph . , letter G explicitly states that the Regency/City Regional Regulations encompass the Qanuns that are applicable in the Regencies/Cities of Aceh Province. In January 2019, the Aceh Government enacted a Qanun about Sharia Financial organizations, which mandates that all financial organizations, including both banks and non-bank institutions, must adhere to Sharia standards. Aceh is the sole province in Indonesia that has transitioned conventional banks into Sharia banks. Amrizal J Prang, as Director of the Legal Bureau of the Aceh Regional Secretariat, represented the Aceh Regional Secretary in a discussion on "Preparation of Sharia Financial Institutions in the Banking Sector in Aceh in the Framework of Qanun Implementation" held by Bank Indonesia and Tempo on September 23, 2019. The Governor of Aceh Province stated that the establishment of the LKS Qanun in Aceh Province was based on three factors. Philosophically, the "Qanun" draws its foundation from the Qur'an and Hadith, which provide a comprehensive understanding and framework for the Acehnese people to implement Islamic law and establish their way of life. Furthermore, from a sociological standpoint, in order to have a thriving and successful economy in Aceh that adheres to Islamic law, the involvement of Islamic financial institutions Muhammad Amin Suma, et. AuThe Implementation of ShariAoa in Aceh: Between the Ideal and Factual Achievements,Ay Ahkam: Jurnal Ilmu Syariah 20. No. Irhamna Utamy and Basri Ahmad Hasan. AuKonsep Keadilan Pada Qanun Aceh Nomor 11 Tahun 2018 Tentang Lembaga Keuangan Syariah,Ay Al-Mabsut: Jurnal Studi Islam dan Sosial 14. No. , p. Bambang Antariksa. AuKedudukan Qanun Aceh Ditinjau Dari Aspek Sejarah. Pengaturan. Fungsi. Dan Materi Muatan Qanun,Ay Jurnal Ilmiah Advokasi 5. No 1 . http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. is crucial. Furthermore, given that the Aceh Government has been granted the jurisdiction to develop and oversee the implementation of the Islamic law in accordance with Law Number 11 of 2006 about the Aceh Government, it is legally feasible to formulate the Qanun. Dr. Munawar A Djalil MA, the Head of the Aceh Islamic Sharia Service (Dinas Syariat Islam/DSI), stated that the Aceh government is presently formulating the Qanun on Islamic Financial Institutions (Lembaga Keuangan Syariah/LKS) to enforce Article 21. outlined in Qanun Number 8 of 2014 regarding Sharia Principles. He emphasized the importance of adhering to the legal regulations specified in the Qanun when operating Islamic financial Accordingly, we have presented the preliminary Qanun LKS to the DPRA and the deliberation process has now transitioned to a plenary meeting (Rapat Dengar Pendapat Umum/RDPU). Sulaiman Abda disclosed that the DPRA deliberated on the proposed Qanun on Islamic Financial Institutions (LKS) put forth by the executive. This proposal, in accordance with Qanun Number 8 of 2014, mandates that financial institutions in Aceh must adhere to sharia In order to implement this Qanun, regulations are necessary, despite the existence of National Law Number 21 of 2008 on Islamic Banking, stated Sulaiman Abda. According to the previous explanation, the Aceh Regional People's Representative Council (Dewan Perwakilan Rakyat/DPR) has collectively deliberated on the draft LKS Qanun. As a result, it has been officially approved and put into effect today. The Aceh Party, a local political party, secured the biggest number of seats in the Aceh DPR for the 2019-2024 term. Below is the data regarding the procurement of seats in the Aceh DPR for the period of 20192024: Tempo. Qanun Lembaga Keuangan Syariah untuk Memajukan Ekonomi Aceh. Diakses dari https://nasional. co/read/1251653/qanun-lembaga-keuangan-syariah-untukmemajukan-ekonomi-aceh, . Israk Ahmadsyah. Book Section: Jalan Terjal Menghapus Riba. Banda Aceh: Yayasan Warisan Aceh Nusantara, . http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. Figure 1. Summary Chart of Legitimate Votes for Political Parties in the 2019 Aceh Regional Representative Council Election (Source: Aceh Regional Election Commission, 2. According to the above data, the Aceh Party secured 18 seats out of 81 in the Aceh DPR. Therefore, the Speaker of the DPR will be chosen from the Aceh Party. Furthermore. Commission I is responsible for the supervision of Law. Politics. Government, and Security, is headed by a member of the Aceh Party. The Aceh DPR Legislative Body is presided over by a member of the Aceh Party. The Nanggroe Aceh Party, like with other local parties, possesses the capability to establish factions. The Aceh Regional Party and the PKB party merged to create a unified faction. The authority to create regional rules in accordance with Article 20 paragraph . of the 1945 Constitution is derived from the DPRD, but the power to create regional regulations in accordance with Article 18 paragraph . of the 1945 Constitution also originates from the DPRD. As a component of the local Political parties play a crucial role in the political system as stated in Article 22E paragraph . of the 1945 Constitution. They are considered as election participants who select members of the People's Representative Council and the Regional People's Representative Council. Consequently, political parties have significant influence in the enactment of regional regulations or Qanun (Regional Regulations in Ace. , leading to their ratification. Hence, it is crucial to conduct study on the "Significant Contribution: The Strategic Role of Local Political Parties in Aceh in Initiating and Passing Qanun on Islamic Financial Institutions. Laporan Kinerja Dewan Perwakilan Rakyat Aceh Tahun 2022. http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. Studying political parties is crucial in contemporary times, particularly within the context of democracy. Notable research on political parties in the international context and in Indonesia includes the works of L. Epstein, 7 Krauss, and Pekkanen,8 Fox, and Menchik,9 Kodiyat, et. 10 Fossati. 11 On the other hand, research focused on the role of political parties has been conducted: Hess & Renner,12 Salihu & Yakubu,13 Meijers & Zaslove,14 Gauja,15 and Zain. Previous research indicates a scarcity of studies examining the involvement of local parties in the implementation of regional regulations that incorporate local content in Aceh, such as the enforcement of sharia regulations. Most research focuses on the effectiveness of political education in political parties and the internal and external challenges they face. Nevertheless, there are only a few individuals that observe and carry out study on the aspect of enacting regulations, also known as Qanun, in Aceh. Furthermore, there has been minimal or no discussion regarding the laws or Qanun of Islamic financial institutions in Aceh in relation to the involvement of local political parties. This research is particularly intriguing as it offers a fresh perspective. This study employs a qualitative-normative approach, utilizing role theory for analysis. Data is gathered through in-depth interviews and literature The informants interviewed consisted of individuals affiliated with the DPR, the Islamic Sharia Service, and academics. The material studied encompassed journal papers, books, news media reports, and research relevant to the topic under consideration. Similarly, the paper examines the influence of local Leon D Epstein. Political Parties in Western Democracies. Routledge, . James Dennison and Andrew Geddes. AuA rising tide? The Salience of Immigration and The Rise of AntiAa Immigration Political Parties in Western Europe. The Political Quarterly 90. No. Ellis S. Krauss. Ellis and Robert J. Pekkanen. The Rise and fall of Japan's LDP: political party organizations as historical institutions. Cornell University Press, . Colm A Fox, and Jeremy Menchik. Islamic political parties and election campaigns in Indonesia. Party Politics 29. No. Benito Asdhie Kodiyat, et. The Effect of Centralistic Political Party Policies in Selection of Regional Heads in Medan City. Indonesian Journal of Education. Social Sciences and Research (IJESSR) 1. No. Diego Fossati. AuElectoral Reform and Partisan Dealignment in Indonesia,Ay International Political Science Review 41. No. David J. Hess, and Madison Renner. Conservative political parties and energy transitions in Europe: Opposition to climate mitigation policies. Renewable and Sustainable Energy Reviews 104 . Mustapha Salihu, and Yahaya Yakubu. AuElection Violence and Voter Turnout in 2019 General Elections: What Role for Political Parties?Ay European Scientific Journal 17. No. Maurits J. Meijers and Andrej Zaslove. Measuring Populism In Political Parties: Appraisal of A New Approach. Comparative political studies 54. No. Anika Gauja. AuPolitical Parties: Private Associations or Public Utilities? Comparative Election Law, . Omar Farooq Zain. AuParadox of our political parties,Ay South Asian Studies 25. No. http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. parties in Aceh in enacting the qanun on Islamic financial organizations in the By employing a qualitative research methodology that involves analyzing documents, researchers can investigate and present a comprehensive analysis of the involvement of local parties in Aceh in the enactment of the LKS Qanun. Legislation on Islamic Financial Institutions and Its Implementation in Aceh Qanun is a form of regional legislation that governs the administration, government, and community affairs in Aceh Province, as stated in Article 1 of Law Number 11 of 2006 about Government. 18 In the comprehensive Indonesian dictionary, the term "qanun" is defined as a legal principle or guideline that encompasses laws, statutes, and rules. 19 Qanun Number 11 of 2018, which pertains to Islamic Financial Institutions, encompasses 12 chapters and 67 articles that comprehensively govern all facets of Islamic financial institutions in Aceh. The initial chapter comprises of 6 articles that encompass general Article 1 provides a comprehensive definition of words associated with Islamic financial institutions. Article 2 stipulates that financial institutions operating in Aceh are required to utilize financial contracts that adhere to sharia Article 3 delineates the fundamental principles of Islamic financial institutions, while Article 4 outlines the goals of establishing such organizations. Additionally. Article 5 further elucidates the purposes of implementing Islamic financial institutions, while Article 6 specifically focuses on the objectives of implementing Qanun. The second chapter explores the many classifications, formation, ownership, and licensing. Article 7 of the document outlines the various categories of Islamic financial institutions. Moving on to article 8, it details the necessary criteria for establishing such institutions. Article 9 then delves into the legal structure that these institutions must adopt. Article 10 sheds light on the different sources of capital that Islamic financial institutions can utilize. The third part of the document focuses on ownership, with article 11 specifically addressing ownership of these institutions. Lastly, the fourth part covers the licensing process, with article 12 explaining how Islamic financial institutions can obtain licenses in accordance with applicable laws and regulations. Sugiyono. Metode Penelitian Kuantitatif. Kualitatif dan R & D. Bandung: Alfabeta: Zuchri Abdussamad. Metode Penelitian Kualitatif. Makassar: Syakir Media Press, 2021. Mizaj Iskandar, et. AuFrom the Public Space to the Prison Space: Regulation Polemic and the Implementation of Caning Law in Aceh,Ay al-Ihkam: Jurnal Hukum dan Pranata Sosial 17. No. Muzakkir Muzakkir. AuDawn of Justice: Evaluating the Alignment of Women and Children in Aceh's Qanun Jinayat,Ay Ahkam 32. No. Mulizar Mulizar, et. AuMaqashid Sharia Perspective of Legal Sanction for Khalwat Actors in Aceh,Ay Istinbath: Jurnal Hukum Islam 7. No. Sakhowi Sakhowi. AuTaqnn Method of QAnn JinAyah and Problems of Its Implementation in Aceh. Indonesia,Ay Journal of Islamic Law 3. No. http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. The third section elucidates the correlation among Islamic banks. The initial section encompasses the responsibilities, commercial operations, and roles of Islamic banks. Article 13 outlines the primary obligations of Islamic banks, while article 14 details the commercial operations undertaken by Islamic banks. Article 15 elucidates the many functions performed by Islamic banks, and article 16 elucidates the collaboration involved in providing affordable finance. Article 17 elaborates on the aspects of education, research, and product development within Islamic financial institutions. Article 18 of the third part focuses on the coordination among Islamic banks. Article 19 of the fourth part stipulates that the Aceh Government has a responsibility to ensure the establishment of fundamental infrastructure for Islamic banks. Article 20 outlines the Aceh Government's authority to provide incentives. Section 4 encompasses Islamic non-bank financial institutions. The initial segment elucidates the concept of Islamic insurance. Article 23's second section provides an explanation of the Islamic capital market. Article 24's third section provides a detailed explanation of Islamic pension funds. Article 25's fourth section pertains to Islamic venture financing. Articles 26 and 27's fifth section pertains to Islamic pawnshops. Article 28's sixth part pertains to Islamic financial cooperatives and similar entities. Article 29's seventh section encompasses Islamic finance institutions. Section eight of the document covers Islamic Article 30 provides an explanation of factoring and its associated Article 31 elaborates on factoring transactions. Article 32 outlines the charges associated with factoring. Lastly, article 33 details the procedures related to receivables. Article 34's ninth section pertains to Islamic microfinance Articles 35 and 36, namely the ninth section, provide an explanation of Islamic financial technology. Article 37, section eleven, pertains to further Islamic non-bank financial institutions20. From a comprehensive analysis of the articles and verses contained in the LKS Qanun, it becomes evident that there are numerous favorable aspects associated with it. However, there are also drawbacks to the implementation of the LKS Qanun. One of the notable downsides is the hasty nature of its enactment, which renders it distinct since it was swiftly passed. Moreover, the distinctiveness is seen in the sharia brand, since Aceh prioritizes Sharia in its banking industry, gradually implementing sharia procedures thereafter. One primary obstacle in deploying LKS Qanun is the insufficient funding. The number of financial institutions offering financing has reduced due to the implementation of the LKS Qanun. Previously. Aceh had several major banks such as BNI. BRI. Mandiri, and others. However, currently only Bank Aceh and Bank Syariah Indonesia Dian Muzerika. Tantangan Dan Solusi Implementasi Qanun Nomor 11 Tahun 2018 Tentang Lembaga Keuangan Syariah di Aceh. Doctoral Dissertation. UIN Ar-Raniry Pascasarjana Ekonomi Syariah, . http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. remain, resulting in limited access to financing for the community. Furthermore, the Sharia Bank in Aceh has not been functioning at its maximum capacity. It is preferable for the bank to offer financial support to the community rather than solely benefiting from the community's income. The participation of academics in the development of the LKS Qanun is crucial and time-sensitive, since it enables them to offer input in the most optimal manner to facilitate the community. The objective is to challenge the prevailing capitalist economy in the society by implementing a sharia-based economic This is necessary because the capitalist economy prioritizes profit, whereas the sharia economy not only prioritizes profit but also emphasizes social The academic revision of LKS Qanun is superfluous. The presence of two sharia banks. Bank Aceh and Bank BSI, can have a significant impact on the community when they adhere to proper processes and prioritize social welfare in addition to profit-making. The amendment of the Qanun is not a solution in itself, but rather a means to refine the implementation of the Qanun in order to better serve the community. Prior to the establishment of the LKS Qanun, it is necessary to have regulations pertaining to Islamic economics that elucidate the underlying principles and trajectory of the economy in the times ahead. Moreover. Islamic financial organizations are subject to laws that stem from Islamic economics. one side, the existence of this Islamic economy facilitates our ability to avoid usury and operate in accordance with Islamic regulations. The execution of the LKS Qanun in Aceh is underway, but its effectiveness has not been fully realized. The goal of this Qanun is to establish a fair and flourishing economy in Aceh that is in accordance with the Islamic law. If the implementation of the Qanun is effective, it is inconceivable for Aceh to be categorized among the most impoverished provinces in Sumatra. The Qanun serves as a prime illustration of the application of Islamic law in Aceh, as it effectively prohibits the operation of Conventional Banks in the region. addition to that, there are several deficiencies that must be addressed, including the suboptimal state of Islamic Banking services. Examples include server interruptions and frequent application downtime. The implementation of this LKS Qanun in Aceh is suitable since its objective is to establish a fair and flourishing economy within the framework of Interview with Muksal, the Lecturer of the Universitas Islam Negeri Ar-Raniry Banda Aceh, 2024 Interview with Muksal, the Lecturer of the Universitas Islam Negeri Ar-Raniry Banda Aceh, 2024 Interview with Muksal, the Lecturer of Universitas Islam Negeri Ar-Raniry Banda Aceh, 2024 Interview with Muliani A. Bakar, the Staff of Dinas Syariat Islam Provinsi Aceh. Technical analyst of the Policymaking, 2024 http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. the Islamic law. Currently, the implementation of the Islamic law in Aceh does not extensively address the topic of Islamic economics. Indeed, it can enhance the enforcement of the Islamic law in Aceh by facilitating financial transactions that adhere to sharia principles, so bolstering public confidence in the sharia financial Observing the culture of the Acehnese people, which is deeply influenced by the Islamic law. Legislation and Political Process of Islamic Financial Institutions The development of Qanun Number 11 of 2018, which pertains to Islamic Financial Institutions, has been a lengthy process. It began in 2015 with the preparation of an academic manuscript, followed by its submission to the Regional Government in 2016. In 2017, the DPR (Regional People's Representative Counci. conducted the initial discussion, and in 2018, further discussions were held involving various stakeholders involved in the preparation of Qanun Number 11 of 2018. Finally, on January 4, 2019. Qanun Number 11 of 2018 concerning Islamic Financial Institutions was officially enacted. According to an interview with the Deputy Speaker of the Aceh DPR during the 2014-2019 period, it was discovered that the emphasis on Islamic financial institutions was initially focused more on the legislative members themselves rather than on local parties or religious prayers of significant For instance, the establishment of Islamic banking in Aceh may be traced back to the transformation of Aceh Islamic Banking from a regular or a conventional bank to an Islamic bank. In addition. Islamic financial institutions first took part in the excitement and had to comply with sharia principles. While the existence of Islamic financial institutions does not necessarily entail the complete elimination of conventional financial institutions, it is imperative for Islamic financial institutions to exert dominance. According to the Aceh DPR website, the Aceh DPR Legislation Body (Badan Legislasi/Banle. has addressed the request to revise the Qanun . he Islamic la. on Islamic Financial Institutions (LKS) as stated in the introductory letter from the Governor of Aceh. Number 188. 34/17789. This letter contains the proposed amendments to Aceh Qanun No. 11 of 2018, which deals with Islamic Financial Institutions. The statement was made by Mawardi, the Chairperson of Interview with Muliani A. Bakar, the Staff of Dinas Syariat Islam Provinsi Aceh. Technical analyst of the Policymaking, 2024. Dian Muzerika. Tantangan Dan Solusi Implementasi Qanun Nomor 11 Tahun 2018 Tentang Lembaga Keuangan Syariah di Aceh. Doctoral Dissertation. UIN Ar-Raniry Pascasarjana Ekonomi Syariah, 2024. Siti Romlah, et. AuMerger of Indonesian Islamic Banks: Business Competition Law and Protection of CustomerAos Rights,Ay Kanun: Jurnal Ilmu Hukum 26. No. Interview with Drs. Sulaiman Abda. Si. Vice of Head of DPR Aceh Period 20142019, 2024. http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. the Aceh DPR Banleg, following a meeting held on. May 12, 2023, at the Aceh DPR Banleg office, which was attended by Banleg members and experts. perspectives were shared, with some supporting or opposing the need for revision due to the recent implementation of this qanun. Despite several events impacting the Aceh economy, its effectiveness has yet to be demonstrated. Another issue that has arisen is the interruption of BSI services in recent days, resulting in disruptions to Aceh's commercial transactions. Nevertheless, it is imperative to prevent the monopolization of banks in Aceh by Bank Aceh Syariah and Bank Syariah Indonesia. This is crucial to mitigate the potential significant consequences that may arise from service disruptions. Tgk Adek, the chairman of Banleg, states that other members believe that Sharia Banks currently functioning in Aceh, such as CIMB Syariah. Maybank Syariah. BTN Syariah. BCA Syariah, and others, should be allowed to establish operational offices in all regencies and cities. Tgk. Mawardi, the chairman of Banleg of the Aceh People's Representative Council, agreed to conduct a study and consultation involving various stakeholders, including scholars, students, economists/sharia economists. Bank Indonesia. OJK, and others, in response to the Governor of Aceh's request for the Amendment of the LKS Qanun. It is expected that this multi-stakeholder gathering will involve a collaborative examination of the emerging difficulties, with the aim of reaching consensus on effective and strategic measures to enhance the sharia economic system in Aceh in the future. Furthermore, there is ongoing discussion regarding the revision of Qanun Number 11 of 2018, which pertains to Sharia Financial Institutions (LKS), by the Aceh People's Representative Council (DPRA). The objective of this revision is to enhance the legal products held by the Aceh Government and DPRA. The concept of implementing alterations must also be approached judiciously, as the subject of change is a product created by The Chairman of the Aceh DPR. Saiful Bahri (Pon Yay. , states that the LKS Qanun is a legislation created by the Aceh Government and DPRA. It has undergone multiple processes before being ratified and enforced in Aceh. However, over time, there have been identified weaknesses in the implementation and policies of this legislation. Therefore, it is not inappropriate for the DPRA and the Aceh Government to make several changes in order to improve it and enhance the well-being of the people. There has been a recent negative discussion among many parties in Aceh on the proposed changes to the LKS Qanun, and some have even diverged from the original discourse. According to Saiful Bahri, the discussion about modifying the LKS Qanun does not aim to eradicate or even have the intention to eradicate the Islamic sharia system in Aceh's financial system, as mentioned in various articles in the legal domain. Thus far, numerous individuals from Aceh have opted to utilize Bank Syariah Indonesia (BSI) as a financial institution to deposit their funds, following http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. the departure of several conventional banks from Bumi Serambi Mekkah. The residents of Aceh appear to believe that once traditional banks cease to exist, their only options for saving money are BSI and Bank Aceh Syariah (BAS). According to Saiful Bahri. Aceh still has several other banks that adhere to the sharia system and are still functioning even after the implementation of Qanun Number 11 of 2018, which pertains to Sharia Financial Institutions (LKS). He provided illustrations of many Islamic banks, including BCA Syariah. Bank Muamalat. Bank Maybank Syariah. Bank Danamon Syariah. Bank BTN Syariah. Bank CIMB Niaga Syariah. Bank BTPN Syariah, and Bank Mega Syariah. Saiful Bahri, a lawmaker affiliated with the Aceh Party, also contends that the lack of readiness by traditional banks to adopt the LKS Qanun has resulted in a prolonged consequence of redirecting their customers to BSI. The client transfers that took place at that time appeared to be a monopolistic control over banking services in Aceh. Consequently, when BSI had issues similar to those in the past several days, the people of Aceh suffered as they had no alternate means to access financial institution services, unlike residents in other areas. Saiful Bahri acknowledged that the adoption of Islamic Sharia in Aceh was the result of a protracted endeavor initiated by the Acehnese population since the independence of Indonesia. Conventional banks do not incorporate Sharia principles in their In the event of a malfunction or unavailability of BSI ATM and mobile banking services, it is advisable for the community to utilize other Islamic banks such as Bank Aceh Syariah. Following the server disruption that occurred yesterday, there was indeed a minor effect on the community, albeit it was not long-lasting. In my view, it is imperative to enhance server security and choose for alternative Islamic banks instead of revising the LKS Qanun to allow conventional banks to resume operations in Aceh. The LKS Qanun emerged as a result of a challenging process driven by the Acehnese people's strong aspiration to fully enforce the Islamic law. Nevertheless. Saiful Bahri emphasizes the need of acknowledging that the LKS Qanun was not created with the intention of allowing specific banks to have a monopoly over financial institution services in Aceh. Saiful Bahri emphasized that Aceh, as an area aspiring for development and growth, should actively explore options for attracting investors. This includes considering regional rules pertaining to financial services. Several prospective investors have lodged objections regarding their inability to invest in Aceh due to the absence of Interview with Muliani A. Bakar, the Staff of Dinas Syariat Islam Provinsi Aceh. Technical analyst of the Policymaking. June 2024. http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. conventional banks in the area, which hinders their ability to carry out The Strategic Role of Political Parties in The Legislative Process of The Sharia Financial Institution Qanun The Sharia Financial Institution (LKS) Qanun has been officially approved and adopted as a definitive framework for the application of the Islamic law in Aceh. 30 The role of the Aceh DPR, which includes legislative tasks and functions, cannot be detached from this. Over the course of time, the LKS Qanun has garnered both significant support and opposition, leading many parties, such as the Aceh government, to express their desire to amend the Qanun. Undoubtedly, this situation has led the people of Aceh to perceive that the government is not supportive of sharia law. Consequently, numerous political groups in Aceh offer their individual perspectives and reactions. The Democratic Party in the Aceh DPR, as reported by the online daily Radio Republik Indonesia, has expressed its opposition to the Revision of the LKS Qanun. Despite the agreement between the Aceh Government and the DPRA leadership to promptly amend the LKS qanun and reinstate the presence of conventional banks in Aceh, the DPRA Democracy Faction deems this measure as unneeded at present. The Chairman of the DPRA Democratic Party stated that his party opposes the proposal to reinstate traditional banks in Aceh. He believed that there were insufficient justifications and immediacy to revoke the decision that had been established through the execution of the LKS Qanun, which sprang from the desires of the ulama and the broader community. Furthermore, his political party wholeheartedly endorses the distinctiveness and exclusivity of Aceh, including its unique application of the Islamic law. The General Treasurer of the Aceh Democratic Party reiterated his party's unwavering support for the distinctiveness and uniqueness of Aceh, a cause that has been championed by Acehnese intellectuals and scholars thus far. Nevertheless. Nurdiansyah urged Islamic banks in Aceh to enhance their services to the community, including improving the service system to ensure that the community's everyday economic operations are not hindered. Results of the Aceh DPR Meeting. Perubahan Qanun LKS Bukan Untuk Menghapus Substansi Syariat Islam. https://dpra. id/berita/kategori/pimpinan/perubahan-qanunlks-bukan-untuk-menghapus-substansi-syariat-islam . EMK Alidar, et. AuThe Shared Values of Sharia Banking: Non-Muslims Under the Qanun on Islamic Financial Institutons in Aceh,Ay Ahkam: Jurnal Ilmu Syariah 24. No. Mursyid Djawas, et. AuThe Position of Non-Muslims in the Implementation of Islamic Law in Aceh. Indonesia,Ay Ahkam: Jurnal Ilmiah Syariah 23. No. Azhari Yahya, et. AuLegal Study of Building Sharia-based Investment in Aceh: The Challenges After the Enactment of the Qanun of Sharia Financial Institution,Ay Samarah: Jurnal Hukum Keluarga dan Hukum Islam 7. No. http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. In addition to the national party, the local Aceh Nanggroe Party (PNA) also expressed their response to the amendment of the LKS Qanun. According to a report by dialectics, it was discovered that this party declined the amendment of the LKS Qanun. The adjustment of the LKS Qanun has generated significant inquiries regarding the disparity in perception. Particularly following the agreement between the Aceh Government and the Aceh DPR to reassess Qanun No. 11 of 2018 and consider the potential for making revisions. The Aceh Nanggroe Party, a local political party known for its unwavering support for the distinctiveness and exceptionalism of Aceh, believes that there is now no need to alter the Qanun, even if the intention is to reintroduce conventional banks in Aceh. The Chairman of the Central Leadership Council. PNA, declared that the legal statement in the article in the LKS Qanun encompasses universal qualities. emphasizes that all financial institutions, regardless of their form, should adhere to the principles of economic justice as prescribed by Islam. The Prosperous Justice Party (PKS) also responded to the news. Nova Zahara, a member of the Aceh DPR from PKS, expressed her opposition to the amendment of the LKS Qanun on the official website of the Prosperous Justice Party. Nova Zahara, a member of the Aceh DPR from the PKS Faction, vehemently opposes the present movement to rewrite the LKS Qanun. This revision is being advocated by multiple parties, citing concerns about the inadequate infrastructure of Sharia Banks and other related issues. Nova, a member of the Aceh DPR representing Electoral District 7 (Langsa and Aceh Tamian. , emphasized the need for enhancing the infrastructure of financial institutions in Aceh. Nova urged BSI. Bank Aceh, and all financial institutions presently operating in Aceh to promptly undertake strategic measures to ensure the smooth implementation of the LKS Qanun, in accordance with expectations. In an interview conducted in 2018 with the Chairperson of the DPRA Special Committee (Panitia Khusus/PANSUS), it was discovered that the transition of all banks in Aceh from conventional to sharia will result in economic instability in Aceh. Aceh is a territory that enforces Islamic sharia law, but it does not necessarily require a complete transition to sharia-compliant banking. The present state of the LKS Qanun is harmful to Aceh, and the Aceh government has not completely executed the LKS Qanun, resulting in significant financial losses for institutions. The qanun mandates that the Aceh government, as well as the municipal and district governments, have a responsibility to provide and support LKS facilities and infrastructure. Given the aforementioned issues, it is imperative to update the LKS Qanun. 32 Nevertheless, there are certain parties who PKS. ID. Nova tolak Revisi Qanun LKS. https://pks. id/content/nova-tolak-revisiqanun-lks, . Interview with Dr. Jamaluddin T. Muku, the Chairman of the Special Committee (PANSUS) of the DPRA in 2018. March 2024 http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. do not anticipate the revision of this Qanun to be undertaken with several Aceh is a province that possesses distinct advantages and characteristics pertaining to the Islamic law. This Islamic financial institution already possesses a commendable objective. nonetheless, the execution of this qanun necessitates enhancemen. Local parties play a crucial role in the enactment of the LKS Qanun. The Aceh government has not adequately prepared for the debate of Islamic financial At first, they only created 4 articles consisting of 8 out of 16 verses. However, these were later expanded upon by the Special Committee. During the RPDU, all businesspeople in Aceh anticipated that all banks would establish their own Islamic banking branches, such as BRI Syariah. BNI Syariah, and others. As the majority party, the Aceh Party has an important role in ensuring the successful implementation of Qanun LKS. Then the Qanun LKS has great potential to encourage sharia economic growth in Aceh. However, the success of its implementation is highly dependent on the ability of economic actors to adapt to changes, a good understanding of sharia principles, and support from various parties, especially local governments. The Aceh Party places great importance on the function of local parties, as it seeks support from the ulama. As a moderate ulama, he asserted that Aceh is part of the Republic of Indonesia, which adheres to Pancasila as its guiding principle rather than Islamic law. Therefore, in its execution, not all aspects of sharia law are applied. The evolution of Sharia is influenced by the prevailing age. Arabia has both conventional banking and international banking, in addition to sharia banking. The operation of Sharia banking is primarily influenced by countries like Qatar, which are likewise free from conventional banking. examining the current situation in Aceh, it can be inferred that Aceh is too Overall, the LKS Qanun is an important step in realizing a sharia economy in Aceh. However, successful implementation requires commitment from all parties, including the government, financial institutions and society. The Aceh Party, as the majority party, has an important role in maintaining the continuity and implementation of the LKS Qanun. There are several challenges in implementing Qanun LKS, such as legal uncertainty, differences in views between regional leaders, and a lack of understanding among council members. Interview with Drs. Sulaiman Abda. Si. Vice of head of DPR Aceh Period 20142019. March 2024. Interview with Dr. Jamaluddin T. Muku, the Chairman of the Special Committee (PANSUS) of the DPRA in 2018. March 2024. Interview with Ermiadi Abdul Rahman. Member of the Aceh DPR from the Aceh Party Fraction for the 2009-2019 Period. March 2024. Interview with Dr. Jamaluddin T. Muku, the Chairman of the Special Committee (PANSUS) of the DPRA in 2018. March 2024. http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. Whatever the conditions, the presence of local Acehnese political parties, especially the Acehnese party, must be recognized and their existence is very important in maintaining the integrity of the implementation of Islamic law in Aceh, one of which is Qanun LKS. Thus, it can be concluded that the Aceh Party as the winner of the elections in Aceh and placing the most members in the Aceh Representative Council has played a role in the legislative process of Qanun on Sharia Financial Institutions. As a member of the People's Representative Council, the Aceh Party has carried out legislative functions, namely preparing and discussing draft laws, establishing and approving Qanun for Sharia Financial Institutions. This is an important part of the Political Party's contribution to local democracy in Aceh. Furthermore, this qanun also made a major contribution to the development of the community's economy and the implementation of Islamic law in Aceh. Conclusion The introduction of the LKS Qanun (Regulation of Islamic Financial Institution. in Aceh has sparked significant discussion regarding its completion. Although the Qanun was created to enforce the Islamic law in the realm of financial services, its execution has proven to be difficult. Certain political parties advocate for the amendment of the Qanun in order to permit conventional banks and enhance the current Islamic banking framework. Some individuals contend that the Qanun is a manifestation of Aceh's Islamic character and should be To enhance the Islamic economic system in Aceh, it is imperative to use a multi-stakeholder strategy engaging scholars, economists, and government officials. This method will ensure that realistic solutions are developed while taking into account the specific demands of the Acehnese people. Related parties should prioritize the community's interests and well-being in a thorough and quantifiable manner to prevent any adverse effects on the community as a whole. As a member of the People's Representative Council, the Aceh Party has carried out legislative functions, namely drafting and discussing draft laws, establishing and approving Qanun for Sharia Financial Institutions. This is an important part of the Political Party's contribution to local democracy in Aceh. Interview with Prof. Dr. Shabri. Ec. Professor of Islamic Economics at Syiah Kuala University. Macrh, 2024. Wais Alqarni, et. AuUpaya Membangun Public Trust terhadap Partai Politik di Provinsi Berbasis Syariat Islam Aceh,Ay Politea: Jurnal Pemikiran Politik Islam 6. No 2 . Wais Alqarni, et. Dynamics of Asymmetric Decentralization on the Implementation of Regional Autonomy in Aceh. Journal of Governance and Public Policy 9. No 3 . http://jurnal. ar-raniry. id/index. php/samarah The Strategic Roles of Local Political Parties Wais Alqarni, et. DOI: 10. 22373/sjhk. Acknowledgments The authors would like to express their sincere gratitude to the Lembaga Penelitian dan Pengabdian Kepada Masyarakat (LPPM) Universitas Syiah Kuala (USK) for their invaluable support and funding for this research. This work would not have been possible without the guidance, resources, and encouragement provided by LPPM USK. Their commitment to advancing academic research and community service has been instrumental in the successful completion of this We also extend our appreciation to all the individuals and institutions that contributed to this project. References