THE CONTRIBUTION OF BUSTHANUL ARIFIN IN LEGISLATING ISLAMIC LAW IN INDONESIA
DOI:
https://doi.org/10.31958/jeh.v2i1.824Abstract
This paper will elaborate the idea and the effort of Busthanul Arifin in the process of formalizing Islamic Law into an Indonesian national law. The heritage of colonial law has hindered the agenda of Islamization of law in Indonesia mostly by the negative reaction of the ruler. This fact consequence to an uneasy relation between Islam and Political ruler as it is shown along the Indonesian independent era. In this ÔÇÖwar of interestÔÇÖ, most of the time Indonesian Muslim should subjugate their interest. Learned from this trouble relation of Islam and political power in the early of independent era, Bustanul Arifin shoud be marked for his effort to melt the tension and tries to persuade the Indonesian new order ruler in order to obtain and fulfill the aspiration of Muslim people.
References
Adam, N. J., & Thomas, A. S. (2004). Islamic Bonds: Your guide to issuing, structuring and investing in Sukuk. Euromoney Books.
Ahmad, N. & Rusgianto, S., (2013). Information Content of Post-Crisis Sukuk Announcement in Malaysia. Middle-East Journal of Scientific Research, 13, pp.50–55.
Alam, N., Hassan, M. K., & Haque, M. A. (2013). Are Islamic bonds different from conventional bonds? International evidence from capital market tests. Borsa Istanbul Review, 13(3), 22-29.
Ashhari, Z.M., (2009). Conventional Vs Islamic Bonds Announcements: The Effects on Shareholders’ Wealth. International Journal of Business and Management, 4(6), p 105.
Abdul Rahim, N. (2012). A Study on the Market Reaction to Hybrid Securities Announcements. (Doctoral Dissertation). University of Stirling.
Amihud, Y., & Mendelson, H. (1986). Asset pricing and the bid-ask spread. Journal of financial Economics, 17(2), 223-249.
Andrews, D. W. (1993). Tests for parameter instability and structural change with unknown change point. Econometrica: Journal of the Econometric Society, 821-856.
Andrews, D. W., & Ploberger, W. (1994). Optimal tests when a nuisance parameter is present only under the alternative. Econometrica: Journal of the Econometric Society, 1383-1414.
Arshanapalli, B, Fabozzi, F, Switzer, L.N, and Gosselin, G, (2004) New evidence on the market impact of Convertible Bond Issues in U.S. Paper presented at annual meeting of the California,Oct 2004
Ariff, M., & Safari, M. (2012). Are sukuk securities the same as conventional bonds? Afro Eurasian Studies, 1(1), 101-125.
Ayub, M. (2005, November). Securitization, sukuk and fund management potential to be realized by Islamic Financial Institutions. In Sixth International Conference on Islamic Economics, Banking and Finance.
Burlacu, R. (2000). New evidence on the pecking order hypothesis: the case of French convertible bonds. Journal of Multinational Financial Management, 10(3), 439-459.
Barclay, M. J., & Smith, C. W. (1995). The maturity structure of corporate debt. the Journal of Finance, 50(2), 609-631.
& Perron, P. (2003). Computation and analysis of multiple structural change models. Journal of applied econometrics, 18(1), 1-22.
Brown, S. J., & Warner, J. B. (1980). Measuring security price performance. Journal of financial economics, 8(3), 205-258.
Caballero, R and Krishnamurthy, A, (2008). Collective Risk Management in a Flight to Quality Episode. Journal of Finance, 63(5): 2195-2236.
Caballero, R and Krishnamurthy, A, (2008). Collective Risk Management in a Flight to Quality Episode. Journal of Finance, 63(5): 2195-2236.
Claessens, S., Djankov, S., & Lang, L. H. (2000). The separation of ownership and control in East Asian corporations. Journal of financial Economics, 58(1), 81-112.
Claessens, S., Fan, J. P., & Lang, L. H. (2006). The benefits and costs of group affiliation: Evidence from East Asia. Emerging Markets Review, 7(1), 1-26.
Corrado, C. J., & Zivney, T. L. (1992). The specification and power of the sign test in event study hypothesis tests using daily stock returns. Journal of Financial and Quantitative analysis, 27(03), 465-478.
Cowan, A. R. (1992). Nonparametric event study tests. Review of Quantitative Finance and Accounting, 2(4), 343-358.
Chen, L., Lesmond, D. A., & Wei, J. (2007). Corporate yield spreads and bond liquidity. The Journal of Finance, 62(1), 119-149.
Chow, G. C. (1960). Tests of equality between sets of coefficients in two linear regressions. Econometrica: Journal of the Econometric Society, 591-605.
Cakir, S. & Raei, F. (2008). Sukuk vs. Eurobonds: Is There a Difference in Value-at-Risk. International Monetary Fund Working Paper No. 07/237
Eckbo, B. E. (1986). Valuation effects of corporate debt offerings. Journal of Financial economics, 15(1-2), 119-151.
Fenn, G. W. (2000). Speed of issuance and the adequacy of disclosure in the 144A high-yield debt market. Journal of Financial Economics, 56(3), 383-405.
Godlewski, C.J., Turk-Ariss, R. & Weill, L., (2011). Do markets perceive sukuk and conventional bonds as different financing instruments?
Godlewski, C.J., Turk-Ariss, R. & Weill, L., (2013). Sukuk vs. conventional bonds: A stock market perspective, Journal of Comparative Economics, Volume 41, Issue 3, August 2013, Pages 745-761.
Harvey, C. R., Lins, K. V., & Roper, A. H. (2004). The effect of capital structure when expected agency costs are extreme. Journal of Financial Economics, 74(1), 3-30.
Hanifa, M.H., Masih, M. & Bacha, O., (2014). Testing Sukuk And Conventional Bond Offers Based On Corporate Financing Theories Using Partial Adjustment Models: Evidence From Malaysian Listed Firms.
Ibrahim, Y. & Minai, M.S., (2009). Islamic bonds and the wealth effects: evidence from Malaysia. Investment Management and Financial Innovations, 6(1), pp.184–191.
Jensen, M. C. (1986). Agency cost of free cash flow, corporate finance, and takeovers. Corporate Finance, and Takeovers. American Economic Review, 76(2).
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
Jobst, A., Kunzel, P., Mills, P., & Sy, A. (2008). Islamic bond issuance: what sovereign debt managers need to know. International Journal of Islamic and Middle Eastern Finance and Management, 1(4), 330-344.
Krasker, W. S. (1986). Stock price movements in response to stock issues under asymmetric information. The Journal of Finance, 41(1), 93-105.
Leitmann, J. (2009). Investing in a more sustainable Indonesia: Country environmental analysis. CEA Series. East Asia and Pacific Region, World Bank, Washington, DC.
Malkiel, B. G., & Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. The journal of Finance, 25(2), 383-417.
Modirzadehbami, S. & Mansourfar, G., (2011). Information content of Islamic private debt announcement: Evidence from Malaysia. World Academy of Science, Engineering and Technology, 77, pp.572–578
Moerland, P. W. (1995). Alternative disciplinary mechanisms in different corporate systems. Journal of Economic Behavior & Organization, 26(1), 17-34.
Miller, N. D., Challoner, J., & Atta, A. (2007). UK Welcomes the Sukuk-How the UK Finance Bill Should Stimulate Islamic Finance in London, Much to the Delight of the City's Banks. Int'l Fin. L. Rev., 26, 24.
Mikkelson, W. H., & Partch, M. M. (1986). Valuation effects of security offerings and the issuance process. Journal of Financial Economics, 15(1), 31-60.
McCulloch, N., Grover, A., & Suryahadi, A. (2013). The Labor Market Impact of the 2009 Financial Crisis in Indonesia. Working through the Crisis, 135.
Pasaribu, R. B. (2009). Non-Synchronous Trading In Indonesia Stock Exchange. Journal of Economics and Business, 3(2).
Rahim, S.A. & Ahmad, N., (2014). Stock Market Reactions Following Sukuk Announcement: An Analysis of Dow Jones Islamic Market Index (2004-2011). IOSR Journal of Economics and Finance (IOSR-JEF), Volume 5, Issue 6. Ver. III, pp.29–35.
Ross, S. A. (1977). The determination of financial structure: the incentive-signalling approach. The bell journal of economics, 23-40.
Solé, J. (2008). Prospects and challenges for developing corporate sukuk and bond markets© International Monetary Fund. Lessons from a Kuwait case study. International Journal of Islamic and Middle Eastern Finance and Management, 1(1), 20-30.
Siddiqui, R. (2008). Contributing to the Development of the Islamic Capital Market: The Dow Jones Citigroup® Sukuk Index. Dow Jones Islamic Market Index Newsletter.
Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. The journal of finance, 19(3), 425-442.
Scholes, M., & Williams, J. (1977). Estimating betas from nonsynchronous data. Journal of financial economics, 5(3), 309-327.
Securities Commission Malaysia (2011), Annual Report of Securities Commission Malaysia 2011.
Safari, M., Ariff, M., & Mohamad, S. (2013). Do debt markets price sukuk and conventional bonds differently? Journal of King Abdulaziz University Islamic Economies, 26(2), 113-149.
Usman, S., Mawardi, M. S., & Marbun, D. (2012). The Role of the Fiscal Stimulus Program in Expanding Labor-Intensive Infrastructure in Response to the Impact of the 2008/09 Global Financial Crisis.
Usmani, M. T. (2007). Sukuk and their contemporary applications. In Translated from the original Arabic by Sheikh Yusuf Talal DeLorenzo, AAOIFI Shari’a Council meeting, Saudi Arabia.
Wilson, R. (2004). Overview of the sukuk market. Islamic Bonds: Your Guide to Issuing, Structuring and Investing in Sukuk, Euromoney Books, London, 6-7.
Wilson, R. (2008). Innovation in the structuring of Islamic sukuk securities. Humanomics, 24(3), 170-181.
Widia Astuty, S. E., Si, M., & Ak, Q. I. A. (2015). The Extraordinary Solution for Indonesia Economic Crisis: Shariah Capital Market. Journal of Finance, 3(2), 47-56.
Zarei, A., Ariff, M., Hook, L. S., & Md Nassir, A. (2015). Identifying Multiple Structural Breaks in Exchange Rate Series in a Finance Research. Pertanika Journal of Social Sciences & Humanities, 23.’
Zawya, T. R. (2015). Sukuk Perceptions and Forecast Study 2015: Beyond traditional markets. Thomson Reuters Zawya, Dubai.
Websites
PEFINDO website: http://www.pefindo.com/index.php (accessed 30 April 2016)
Zawya Website: https://www.zawya.com/ accessed 05 July April 2015
Data. Worldbank, Retrieved from http://data.worldbank.org/indicator/FR.INR.DPST?page=1 (accessed 28 April 2016)
http://www.investopedia.com/terms/b/bond.asp accessed 30/01/2016
S&P Indonesia Corporate Bond Index. Retrieved from http://us.spindices.com/indices/fixed-income/sp-indonesia-corporate-bond-index (accessed 28 April 2016)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2018 Muhammad Iqbal

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:?á
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.






