Ziyadah from an Islamic Perspective (Case study at BMT Al-Rifa’ie)

Dyatri Utami Arina Absari () and Isa Kholili ()
Additional contact information
Dyatri Utami Arina Absari: STIE Widya Dharma
Isa Kholili: STIE Widya Dharma

Journal of Economics and Business Letters, 2024, vol. 4, issue 2, 78-84

Abstract: Islamic banking principles emerge primarily from the unequivocal prohibition of riba (usury) in the Quran. The Indonesian government has bolstered Islamic banking with legal frameworks, beginning with Law No. 7 of 1992, later replaced by Law No. 10 of 1998, providing a robust legal basis for its operations. The evolution of Islamic banking in Indonesia started with the establishment of Bank Muamalat Indonesia (BMI) on November 1, 1991, which catalyzed the rise of Islamic financial institutions such as Baitul Maal Wa Tamwil (BMT). Interest (riba) is forbidden in Islam due to the additional or ziyadah interest charged on loan transactions. BMT, operating as an Islamic financial institution, eschews interest in favor of profit-sharing systems. The Indonesian Ulema Council (MUI) has issued several fatwas related to ziyadah, including MUI Fatwa No. 1 of 2004. This research, conducted at BMT Al-Rifa’ie, adopts a qualitative approach with a historical hermeneutic analysis. Informants include seven individuals from management, customers, and the MUI. The study concludes that the ziyadah practices at BMT Al-Rifa’ie align with Islamic principles.

Keywords: ziyadah; historical hermeneutics; Islamic perspective (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.privietlab.org/download.php?id=791 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prv:jeblpv:314

Ordering information: This journal article can be ordered from
https://journal.priv ... EBL/article/view/314

DOI: 10.55942/jebl.v4i2.314

Access Statistics for this article

More articles in Journal of Economics and Business Letters from Privietlab Research Center
Bibliographic data for series maintained by Mochammad Fahlevi ().