Currently, many Indonesians have started to switch to sharia economic principles that are in accordance with economic rules regulated by Islam, especially in conducting economic transactions in general and through the financial system. banking.
The increasing public interest in starting to implement sharia-based economic principles has made the government make special regulations governing the sharia economic system.
In addition, many conventional banks have adopted a sharia economic system, especially in terms of banking transactions that are in accordance with Islamic law.
Sharia economics literally has an economic meaning that is in accordance with the principles or path approved by Allah SWT which was also practiced by the Prophet Muhammad SAW as one of the sunnah in economic activities regulated in the holy book of the Qur’an.
In particular, the practice of sharia economics is aimed at making the economic activities of the community in accordance with Islamic principles which are carried out in a lawful way and are blessed by Allah SWT.
Terms in Islamic Economics
There are at least 8 terms commonly used in conducting transactions that are in accordance with sharia economics which include transactions in general as well as transactions through the banking system through Islamic banks.
These terms stipulate in detail about each transaction and business activity carried out both by companies and individually for halal purposes and in accordance with Islamic teachings.
This term has also been specifically regulated in Law No. 10 of 1998 concerning Amendments to Law No. 7 of 1992 concerning banking, one of which regulates the procedures for transactions carried out by sharia-based banks.
This regulation has also been adapted to the guidance contained in the holy book Al-Qur’an as well as the hadith and sunnah of the Prophet Muhammad SAW.
Here are 8 terms commonly used in Islamic economics:
Ijab Qabul
This term is usually used in a special agreement regulated in sharia principles which is agreed upon by both parties to the agreement.
Bai’al Dayn
Bai’al Dayn is a contract regarding the provision of transaction processing or financing in terms of buying and selling activities that are regulated through the issuance of special debt securities in this case trading. Generally, this contract is carried out for a period of no more than one year.
Hiwalah contract
This term is commonly used as a form of agreement to transfer or transfer customer receivables to the bank from other customers. In this case, the customer who submits the receivables will ask the Islamic bank to pay the receivables to other customers first.
Muaajir contract
This term refers to the rental agreement of an item between the tenant and the bank which is limited by time and when the rental period ends, the item will automatically be returned to the Islamic bank.
Ijarah wa iqtina contract
This contract is the opposite of the Muaajir contract, where when the rental period of an item ends, the bank will give the item to the lessee.
istishna’ contract
This contract is a kind of sale and purchase agreement between the seller and the buyer of the goods that have been agreed upon process payments are made in stages.
Mudharabah contract
This contract takes place when the owner of the capital and the manager of the capital who runs the business agree to share the sales or profits equally or it can be based on an agreement.
Murabaha contract
The last is a murabahah contract which means a sale and purchase transaction agreement between the customer and the bank, with the process of the bank bailing out the purchase of an item that the customer needs then the customer paying the bailout plus the profit from the sale based on deal.