Syari’ah Appraisal On Bay’ Murabahah (Mark Up Sale) Product In Islamic Banking And Financial Institutions In Indonesia

Abstract

This study is designed mainly to assess the Syar?’ah compliance on bay’ murbahah (mark up sale) product offered by Islamic banking and financial institutions in Indonesia. This study employs the descriptive analysis based on syari’ah perspective. As a result, the study found that the product of bay’ murabahah (mark up sale) offered by Islamic banking and financial institutions were problem and not totally Islamic. The most reasonable arguments of the problem were derived from the operating system of Islamic banking and financial institutions which is parallel with the conventional counterparts that prohibited by Islam. The problem are as follows: 1) the purchased items needed by the customers are not bought and not exist at the time of contracting; 2) mark-up price method to determine the profit margin faces problem; 3) and the Islamic banking and financial institutions have involved in mandate sale (bay’ al-fuduli) element that is prohibited by Islam; 4) the presence of fines for the late fee installment. Therefore, to overcome the significant problem, it is necessary to reform the current operation of Islamic banking and financial system. Besides that, the optimalization of the Shar?’ah supervision (al-raqabah Shar’ iyyah) aspect should be taken positively and seriously by the National Syar?’ah Council of the Indonesian Ulama’ Council in order to prevent the Islamic banking and financial institutions from breaking the Syar?’ah principles and values