THE APPROPRIATENESS OF THE IMPLEMENTATION OF AL-UQUD AL-MURAKKABAH IN THE AL MURABAHAH WA ARRAHN CONTRACT WITH THE PRINCIPLES OF SHARIA COMPLIANCE
Bagya Agung Prabowo, SH., MHum., Ph.D
Faculty of Law of Universitas Islam Indonesia
Abstract
There is a strong relationship between product innovation and the development of the Islamic bank market. This means that the more innovative the Islamic banks products are, the faster the market will develop. So the weak innovation of Islamic bank products, however, will significantly impact the slow market development (market expansion). Weak product innovation and market development (market expansion) of Islamic banks must be addressed immediately, so that the accelerated development of Islamic banks is faster. In order to respond to the acceleration of the development of Islamic banking, product innovation is needed in the form of the implementation of al-uqud al-murakkabah in the al Murabahah wa ar Rahn contract, because the form of a single contract is considered to be unable to respond to contemporary financial transactions. The main problem is that the implementation of al-‘uqud al-murakkabah in the Murabahah wa ar Rahn contract is not in accordance with the principles of sharia compliance. To overcome various problems, this study adopted an analytical method based on doctrinal content, by applying four types of legal approaches, namely: (i) historical / historical; (ii) Jurisprudence / philosophy; (iii) comparison; and (iv) analytical and critical. In addition, a harmonized approach is also needed to align sharia banking product innovation with sharia compliance principles.
Keywords: Al-uqud al-murakkabah, al Murabahah wa ar Rahn, Shariah Compliance
Topic: Law