Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia

Research Article

Consumers Protection on the Musyarakah Mutanaqisah Contract of Indonesian Islamic Banking

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  • @INPROCEEDINGS{10.4108/eai.26-9-2020.2302642,
        author={Indah  Purbasari and Murni  Murni and Encik Muhammad Fauzan},
        title={Consumers Protection on the Musyarakah Mutanaqisah Contract of Indonesian Islamic Banking},
        proceedings={Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICETLAWBE},
        year={2020},
        month={12},
        keywords={consumers protection musyarakah mutanaqisah products standard sharia standard},
        doi={10.4108/eai.26-9-2020.2302642}
    }
    
  • Indah Purbasari
    Murni Murni
    Encik Muhammad Fauzan
    Year: 2020
    Consumers Protection on the Musyarakah Mutanaqisah Contract of Indonesian Islamic Banking
    ICETLAWBE
    EAI
    DOI: 10.4108/eai.26-9-2020.2302642
Indah Purbasari1,*, Murni Murni1, Encik Muhammad Fauzan1
  • 1: University of Trunojoyo Madura, Telang Kamal Bangkalan, East Java, Indonesia
*Contact email: indah.purbasari@trunojoyo.ac.id

Abstract

This paper aims to clarify the fulfilment of Islamic banking consumers’ rights in Indonesia based on the Islamic banking Products Standard of Financial Services Authority and the shariah standard. The research is conducted through doctrinal studies of musyarakah mutanaqisah (diminishing partnership) contract and its applications in Indonesia. The study results that the drawback of the Financial Services Authority Standard focuses only on administrative procedures and less attentions is devoted to the consumer protection towards the guarantee of shariah compliance in the legal standing and its implementations, such as the existence of hybrid contract and less guarantee for the consumers facility to obtain a risk sharing of the financing object. Therefore, this research promotes the urgency of stipulating shariah coverage standard in the consumer protection clause.