ABSTRACT THE ROLE OF OMBUDSMAN INSTITUTION ON DISPUTE RESOLUTION OF ISLAMIC FINANCE INSTITUTION BASED ON MASLAHAH MURSALAH (CASE STUDY OF THE OMBUDSMAN INSTITUTION OF YOGYAKARTA SPECIAL REGION, 2018) Resi Handayani 362015320688 Conflict or dispute is a natural occurrence in a social relation. Conflicts or disputes can happen to anyone and in any relationship. Conflict or dispute is caused by differences of opinion or thoughts between the two parties. Conflicts or disputes can be resolved in two ways, namely through litigation institutions (courts) or non-litigation institutions (outside the court). The complexity of the dispute resolution process through litigation institutions (courts) can make many disputing parties resolve conflicts or disputes in non-litigation institutions. Many of the benefits are obtained when resolving disputes in non-litigation institutions are win-win solutions. One of the institutions for resolving non-litigation disputes is the Ombudsman Institution of Yogyakarta Special Region. Various conflicts or disputes that have been received thus considering the researcher to conduct the research at the Ombudsman Institution of Yogyakarta Special Region. The location used in this study is The Ombudsman Institution of Yogyakarta Special Region which handles government and private, conventional and sharia disputes in the Yogyakarta Special Region. Therefore, the purpose of this research is to find out the role of the Ombudsman Institution of Yogyakarta Special Region as a facilitator of dispute resolution of Islamic Finance Institutions and the legal basis used to resolve Islamic finance institution dispute. The type of research is descriptive qualitative. The method used in this study is descriptive field analysis (field research) at the Ombudsman Institution of Yogyakarta. The method of data collection is by conducting interviews with the Head of Research, Development and Institutional Relations. The disputes examined in this study are devoted to disputes from Islamic Financial Institutions in 2018, then analyzed based on Maslahah Mursalah as a secondary rule after the Qur’an and Hadith to answer realistically and in accordance with sharia. The results of the research on the role of the Ombudsman Institute in providing solutions to disputes through several reporting processes, investigation, clarification, mediation, and the existence of the process of judging and legal opinion. Therefore, when there is an evidence of an administrative action, the Ombudsman Institution of Yogyakarta can issue a recommendation. In every action taken by the Ombudsman Institution of Yogyakarta always consider the rights and obligations that must be fulfilled by both parties, thus or dominant to one party. This makes a win-win solution or victory for both parties. This is the implementation or manifestation of the concept of Maslahah Mursalah, which is highly beneficial for many people. Recommendations which are obtained from the Ombudsman Institution of Yogyakarta Special Region has no power of sanction. The function of The Ombudsman Institution of Yogyakarta Special Region is only as a facilitator that facilitates the parties to resolve disputes. Because the Ombudsman Institution of Yogyakarta Special Region has functions to maintain the public justice, it should have full authority to anyone who does not allow recommendation from the Ombudsman Institution of Yogyakarta Special Region. Keywords: Dispute Resolution, the Ombudsman Institution, Islamic Financial Institution, Maslahah Mursalah