We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Analysing Collateral Execution in Islamic Banks: A Perspective on Indonesian Law in Light of Islamic Finance Principles.
- Authors
Wulandari, Ratih Agustin; Azheri, Busyra; Yaswirman; Fauzi, Wetria
- Abstract
The purpose of this article is to analyse Shari’ah compliance in the execution of collateral in Islamic banking financing in Indonesia. The execution of collateral in Indonesia is based on the Mortgage Rights Law, (UUHT - reflecting the abbreviation of its title in the Indonesian language) provisions for land and the Fiduciary Guarantee Law for movable objects. However, the analysis conducted in this article indicates that the execution of collateral based on these laws does not embody the Islamic law principles of ridhaiyyah (willingness) and ta’awun (mutual help). The execution activities involve elements of riba (usuary), maisir (betting or gambling), gharar (risk or deception), haram (prohibited), and zalim (injustice). To align the practice of collateral execution with Islamic law, the principles of transparency, justice, and tawazun (balance) must be incorporated into the law dealing with the execution of collateral in Indonesia.
- Subjects
INDONESIA; ISLAMIC finance; ISLAMIC law; JUSTICE; COLLATERAL security; INDONESIAN language; ISLAMIC bonds
- Publication
Manchester Journal of International Economic Law, 2024, Issue 1, p216
- ISSN
1742-3945
- Publication type
Article