Akad al-Ijarah al-Mausufah fi al-Żimmah in Sharia Banking in Aceh: A Study of Home Ownership Finance

Abstract

This paper aims to analyze the Al-Ijārah Al-Mauṣūfah Fī Al-Żimmah Al-Ijārah Al-Mauṣūfah Fī Al-Żimmah contract model and its application to Islamic Banking. So far, the paradigm that has developed regarding homeownership financing contracts (PPR) is to use Murābahah or Musyārakah Mutanāqisah (MMQ) contracts. In practice, often the results of housing built are not by the previously agreed contract, this is a dilemma for Customers because on the one hand the down payment has been given and the payment process has been carried out. In this conditions, applying Al-Ijārah Al-Mauṣūfah Fī Al-Żimmah (IMFZ) contract is important to protect the rights of Customers which have been neglected. The Al-Ijārah Al-Mauṣūfah Fī Al-Żimmah contract requires the cancellation of the contract from the Customer if the reality and the contract made with the Bank do not match. This research is non-doctrinal with a conceptual approach. The conceptual approach is used to analyze theoretically and practically related the use of the Al-Ijārah Al-Mauṣūfah Fī Al-Żimmah contract. The results of the study show that Islamic Banking in Aceh has not used the IMFZ contract, this is because; of first, the lack of understanding of the contract from both the Bank and the Customer; second, the tendency of the public and Banks to use murabaha contracts than other contracts because Murābahah contracts are easier to understand and commonly used so far; third, Banks and Developers will face greater risks when using Al-Ijārah Al-Mauṣūfah Fī Al-Żimmah contracts than Murābahah and Musyārakah contracts. The IMFZ contract requires collaboration between the Bank, Developer, and Customer for the supervision process in house construction to avoid default, using the Al-Ijārah Al-Mauṣūfah Fī Al-Żimmah contract will minimize fraud and gharar committed by the Developer against the Customer. This article contributes to Customers and Banks in maintaining quality in housing finance which is often overlooked by Developers.