Musharakah Mutanaqisah in Indonesia and Malaysia: Fatwa Institution, Regulation, and Recent Practice

Authors

  • Istianah Zainal Asyiqin Faculty of Law, Universitas Muhammadiyah Yogyakarta, Indonesia
  • Muhammad Khaeruddin Hamsin Faculty of Law, Universitas Muhammadiyah Yogyakarta
  • Rizaldy Anggriawan Faculty of Law, Universitas Muhammadiyah Yogyakarta
  • Ahmad Fanani Sultan Omar ‘Ali Saefuddin Centre for Islamic Studies, Universiti Brunei Darussalam

DOI:

https://doi.org/10.54471/iqtishoduna.v13i1.2302

Keywords:

comparative study, fatwa institution, MMQ, islamic financial institution

Abstract

Musha>rakah Mutana>qis}ah (MMQ) is one of the developments of Musyarakah’s contract-based products. MMQ can be applied as an Islamic banking financing product where the portion of the share of one of the partners is diminished due to the gradual purchase or commercial transfer to the other partner. The articles aims to investigate the regulatory frameworks pertaining to MMQ in Indonesia and Malaysia. It also compares the associated institutions with the authority to issue regulations and policies surrounding the practice of MMQ. Furthermore, it analyzes and investigates a number of critical issues concerning the implementation of MMQ in both countries. This study is doctrinal legal research. It comprises on principle of law, legal systematic, synchronization of law, and legal history. The author also used statutory, conceptual, and comparative approaches. The result of the study shows that the regulatory framework in both countries was quite sufficient to accommodate the needs of MMQ costumers and practitioners. Therefore, The study's novelty lies in its comprehensive comparative analysis of the regulatory frameworks and practices surrounding MMQ  in Indonesia and Malaysia.

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Published

2024-04-11

How to Cite

Istianah Zainal Asyiqin, Muhammad Khaeruddin Hamsin, Rizaldy Anggriawan, and Ahmad Fanani. “Musharakah Mutanaqisah in Indonesia and Malaysia: Fatwa Institution, Regulation, and Recent Practice”. IQTISHODUNA: Jurnal Ekonomi Islam 13, no. 1 (April 11, 2024): 1–18. Accessed July 17, 2024. https://ejournal.iaisyarifuddin.ac.id/index.php/iqtishoduna/article/view/2302.

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