The Principle of Rahn Utilization in Non-Cash Transactions of Gold at Islamic Banks

Abstract

Non-cash gold transactions are one type of service provided by Islamic banks. Non-cash gold transactions using contracts as a binder between Islamic banks and customers. The contract consists of either murabahah and rahn contracts, as outlined in a Proof of Ownership of Gold (SBKE). In the rahn contract, there is a stipulation that gold, which is the object of non-cash, is used as collateral for Islamic banks. This study aims to analyze the validity and suitability of the rahn contract, and future concepts of non-cash, gold trading transactions using the principle of benefit. The results showed that the rahn contract does not meet contract validity standards detailed in KHES (Compilation of Economic Sharia Law) Article 21, because there were provisions that contradicted Article 18 (1) H of Law No. 8 of 1998 on Consumer Protection. Rahn in non-cash gold transactions is generally the same as pawning; however, in non-cash gold transactions, there is an initial transaction in the form of murabahah. Also, there is a guarantee used no longer in the form of gold but in the form of proof of gold ownership, otherwise known as a gold certificate, as provided for in MUI DSN fatwa No. 68 of 2008 concerning tasjily.