Murabaha as an Islamic Financial Instrument for Agriculture
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Date
2019-10-11Author
Puspitasari, Novi
Hidayat, Sutan Emir
Kusmawati, Farida
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This study aims to explore the application of Murabaha contracts in agricultural sector. The study was conducted at Islamic microfinance institution namely Islamic Financial Services Cooperative (IFSC) Al-Hikmah located in Paleran Village, Umbulsari District, Jember Regency, Indonesia. This paper employs qualitative research with a case study approach. The method used for the informant’s determination is snowball method. This paper found four important points: Firstly, there are three models of the application of Murabaha, namely goods-based
Murabaha; cash-based Murabaha; and business capital-based Murabaha. Goods-based Murabaha is in accordance with sharia compliance, but the cash-based Murabaha is still not suitable because the Murabaha contract is not equipped with wakalah contract. Secondly, there are two risks namely goods expiring on goods-based Murabaha concept and the risk of late payment due to failed crops on cash-based Murabaha. Thirdly, the provided amount of funding is only 30% of the estimated agricultural output. Fourthly, Al-Hikmah requests collateral for Murabaha financing