Modification Finance of Salam and the Implications for Salam Accounting Treatment in Indonesia

Abstract

Bank Indonesia has set standardization of Salam and PSAK No. 103. The theoretical study result showed that the non-application of Salam contract in the Islamic Banking includes: fear of the banks on dishonesty or farmers' harvest failure, the risk that brought by Salam contract and the lack of socialization of Salam contract to the farmers.