Presenter: Abdul Wahab
Affiliation: Muhammadiyah Surabaya University
Room: 5
ICIES News- At the 4th International Conference on Islamic Economics Studies (ICIES) 2024, Abdul Wahab from Muhammadiyah Surabaya University presented an insightful study titled “The Application of Tawatu’ in Musharakah Mutanaqishah Agreement in Home Ownership (KPR) Financing at Bank Muamalat Indonesia Surabaya Mas Mansur.” This research addresses the critical issue of housing backlog due to high population growth outpacing the availability of homes and offers Islamic banking solutions through the Musharakah mutanaqisah contract.
The Musharakah mutanaqisah contract is based on the musharakah principle, specifically Shirkah al-‘inan, where the share of one partner’s capital gradually decreases due to commercial transfers to the customer. This study focuses on the practical challenges encountered with the application of this contract, particularly the naming of the property certificate solely in the customer’s name, despite joint ownership with the bank.
Abdul Wahab’s research, conducted through fieldwork involving interviews and document reviews, was analyzed descriptively and qualitatively using the Huberman and Miles model. The findings reveal that the decision to name the certificate in the customer’s name is made to simplify the process at the National Land Agency (BPN). To address this, Islamic banks and customers enter into a new agreement that aligns with Shari’ah principles, ensuring the contract is justified and fair.
The study highlights the concept of Tawatu’, which refers to the mutual agreement and understanding between parties, ensuring that the contract fulfills both Shari’ah law and civil code requirements. This approach allows for a harmonious integration of Islamic and positive law, facilitating the development of Islamic banking practices.
The application of Tawatu’ in the Musharakah mutanaqisah agreement provides a solution to the naming issue, ensuring that the rights and responsibilities of both the bank and the customer are clearly defined and upheld. This agreement encompasses multiple pre-existing contracts and promises, aimed at achieving mutual goals.
Abdul Wahab concluded that the integration of Tawatu’ in home ownership financing not only aligns with Shari’ah principles but also complies with civil laws, offering a robust framework for the further development of Islamic banking. This innovative approach ensures that Islamic banks can effectively address housing needs while maintaining compliance with both religious and legal standards.