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"One of the factors that affect Indonesia?s economic growth is the existence of business firms. Most business firms in Indonesia are in the form of family-owned firm, and they are considered to constitute the backbone of the economic development. Family firms represent the most enduring business model in the world. The continuing success of family firms through the generations relies on ensuring the next generation. However, the issue of family firms is rarely discussed in particular from the perspective of corporate law. In fact, from legal perspectives, there are some issues dealing with this type of firm, among other, the lack of an overall definition of the term ?family business?. It is because family businesses and small medium enterprises (SMEs) are widely understood synonymously in spite of the fact that they exist in every size class. Other issue is the question of its legal basis or legal framework in terms of its corporate governance. Many Indonesian business players lack the basic understanding of corporate law. It is partly because obligations set out in the corporate law are incompatible with the values and cultures in Indonesia where ?kinship principle? is deeply rooted. This article aims to describe the characteristics and the legal frameworks for family firms in Indonesia. It also recommends the government to take progressive measures by providing clear regulations on family firms in Indonesia. This will reinforce family firms? contribution to economic development of Indonesia in the future.

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Salah satu faktor yang memengaruhi pertumbuhan ekonomi Indonesia adalah keberadaan dari badan usaha. Tidak dapat dipungkiri bahwa badan usaha di Indonesia merupakan usaha keluarga, yang menjadi tulang punggung utama dari pembangunan ekonomi nasional. Perusahaan keluarga memperlihatkan model bisnis yang paling bertahan di dunia. Kelanjutan keberhasilan dari perusahaan keluarga bergantung kepada penerusan kepada generasi selanjutnya. Akan tetapi, permasalahan mengenai perusahaan keluarga merupakan pembahasan yang jarang dibahas dalam perspektif hukum perusahaan. Faktanya, dari perspektif hukum, terdapat beberapa permasalahan dalam bentuk usaha semacam ini, antara lain yaitu kurangnya definisi mengenai istilah ?usaha keluarga? itu sendiri. Hal ini karena perusahaan keluarga dan usaha kecil dan menengah (UKM) dipahami sebagai hal yang sama, meskipun pada kenyataannya perusahaan keluarga terdapat berbagai jenis dan ukuran, tidak hanya UKM. Permasalahan lainnya adalah mengenai dasar hukum atau kerangka hukum dari aspek tata kelola perusahaan. Banyak pelaku usaha Indonesia kurang memahami pemahaman mendasar tentang hukum perusahaan. Hal ini sebagian karena kewajiban-kewajiban tata kelola perusahaan tersebut bertentangan dengan nilai dan budaya di Indonesia di mana prinsip kekeluargaan tertanam dalam. Tulisan ini bertujuan untuk menggambarkan karakteristik dan kerangka hukum untuk usaha keluarga di Indonesia. Tulisan ini juga memberikan rekomendasi kepada Pemerintah untuk mengambil kebijakan progresif dengan memberikan peraturan hukum yang jelas untuk perusahaan keluarga di Indonesia. Hal ini akan menguatkan peranan perusahaan keluarga kepada pembangunan ekonomi Indonseia di masa depan."

"This article considers the general points relating to the application of Sharia law which challenges legislators in the political instability of a number of Middle Eastern countries. The question explored is how governments of these countries who are facing discontent can work towards constitutional governance. As an example comparison is made between the Islamic Republic of Pakistan and Indonesia with the largest Muslim populations. In Pakistan an inherited Westminster Parliamentary system with a common law codified dated at the time of the British rule is supplemented by criminal penalties as present in the Hudood ordinances. These codes enforce punishments for some crimes and these were promulgated in the early 1980s during the reign of the Pakistani conservative military government. These different layers of jurisprudence do not accord with a uniform legal precedence and creates a clash between liberals and the fundamentalists who want an all pervasive Sharia law. The Pakistani legal canon of Islamic law has been restricted by the secular ideology of the state which has parallels in other Asian countries with a Muslim majority. However, there is an issue of compatibility of a secular ideology and the application of Sharia. It needs an exposition of thought that takes account of the enlightenment in Europe which led to the social contract theory in the 18th century. This theory rejects the narrow interpretation of divine authority and presents the jurist with a challenge to make modernize the laws. In recent times Muslim academics have adopted a critical approach against the tenets of conservatism in temporal Islam and called them unrepresentative of the true spirit of the Sharia. The present turmoil in the Arab countries has raised the question of legitimacy and the need arises to evaluate the principles of the Compact of Medina, which was proclaimed by the first Islamic state, and secondly, to enquire if the adoption of Sharia can be made contingent upon a consensus of popular sovereignty in order to make it binding in a contract between the ruler and the governed."