THE DIALECTIC OF LOCAL WISDOM BASED ON MUZARA’AH PRINCIPLE: A CONCEPT OF PROFIT SHARING IN ISLAMIC ECONOMIC SYSTEM

Authors

  • Wardah Yuspin, Tommy Adityo Murti

Abstract

This study aims to look at the phenomenon of shifting the concept of profit sharing which is the basic
concept of the Islamic economic system in the Islamic banking system in Indonesia. As we know,
Indonesia as an agricultural country has a distinctive form of local wisdom related to the cultivation of
agricultural land. The concept of profit sharing on agricultural land involves the owner of the land as
shahibul maal and cultivators as mudarib. Shahibul maal will provide full capital in the contract while
mudharib will work on the farmland by devoting all his thoughts and energy. In agricultural land this
concept is called muzara'ah, while in Islamic banking the concept is called mudharabah. This is a
phenomenon of the shift in the concept of profit sharing which is actually part of local wisdom in Indonesia
that can be applied in Islamic banking. This type of research is empirical juridical, in which the data used
were primary data and secondary data. The method of collecting data was done by observation and
interview consisting of two stages. The first, interviews and observations were done in four sub-districts in
Sragen Regency, namely Plupuh, Gondang, Sidoharjo, and Sambirejo. From the two observations, the
result revealed that the mudharabah concept that has been applied by BNI Syariah had similarities with the
concept of muzara'ah in the agricultural sector, but the same concept cannot be fully applied in Islamic
banks due to several factors, one of which was the potential for high risk.

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Published

2020-11-29 — Updated on 2020-11-30

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How to Cite

Wardah Yuspin, Tommy Adityo Murti. (2020). THE DIALECTIC OF LOCAL WISDOM BASED ON MUZARA’AH PRINCIPLE: A CONCEPT OF PROFIT SHARING IN ISLAMIC ECONOMIC SYSTEM. PalArch’s Journal of Archaeology of Egypt / Egyptology, 17(6), 885 - 896. Retrieved from http://mail.palarch.nl/index.php/jae/article/view/795 (Original work published November 29, 2020)