The Consistency of Sharia Principles Application in Murabaha Contracts During the Covid-19 Pandemic

Abstract

The aim of this article is to investigate and thoroughly assess the consistency of Islamic financial institutions in adopting Sharia principles. It compares the standard operating procedures and company regulation which adopted by the Sharia Rural Bank (BPRS) with the fatwa issued by the National Sharia Council of Indonesian Ulema Council (DSN-MUI). It also explores particularly on the procedure and mechanism of Murabaha financing products application by the customer. The paper used a normative-empirical research method with employing statutory and conceptual approach. The análisis of data is described in qualitative-descriptive approach with comprehensive and systematic manner. The study reveals that the practice of Murabaha contracts at BPRS are carried out in conformity with the DSN-MUI Fatwa on Murabaha. Nevertheless, some aspects are considered to be in contravention of the DSN-MUI fatwa on Murabaha, particularly on the application of the Murabaha contract, which is accompanied by a wakalah contract.

The Principle of Reciprocal Justice in Murabahah Financing at Sharia Rural Financing Banks

“…The amount of margin is one of the factors that need to be agreed upon by both parties, BPRS and customers when making a murabaha contract. (Hamsin et al, 2022). The determination of the margin on the murabaha contract at BPRS depends on the cost of funds (CoF), overhead costs, allowance for receivables and the desired profit.…”

“…In general, the margin rate is determined by the bank's ability and includes demand deposits, deposits, and other factors. (Hamsin et al, 2022). The amount of the margin is also agreed upon by both parties, BPRS and the customer when making a murabahah contract.…”