DIVISION OF ASSETS OF THE AHMADI & Co UNION AFTER BANKRUPTCY FROM THE PERSPECTIVE OF ISLAMIC BUSINESS LAW

Abstract

This study examines the distribution of assets of the Ahmadi & Co Association from the perspective of Islamic business law. Ahmadi & Co was the first indigenous trading association in Indonesia, established in 1906 on Midai Island, Natuna. The association once experienced its golden age in the trade of copra, cloves, and rubber, but since 1985 it began to decline and eventually ceased operations in the early 2000s. Part of its assets was taken by the heirs through a share withdrawal mechanism; however, the distribution was carried out without deliberation and without official documentation. The research employs a qualitative approach using interviews with the descendants of the founders, community leaders, and local economic actors. The findings reveal that the asset distribution was not in accordance with the principles of syirkah in Islam, which emphasize justice (‘adl), trust (amanah), consultation (syura), and public interest (maslahah). The distribution also did not comply with the principles of Islamic business law. Therefore, a reconstruction of asset distribution is required through family deliberation among the heirs, involving religious leaders, and ensuring proper legal documentation