REDESIGNING SHARIA BANK FINANCING CONTRACTS POLICY BASED ON THE PRINCIPLE OF INTENTION IN THE STUDY OF ISLAMIC ECONOMIC JURISPRUDENCE (MUAMALAH JURISPRUDENCE)

Abstract

Designs of sharia contracts entered into by Islamic banks remain a subject matter of debate among economists. Many studies examining this subject matter have been conducted, but instead of aimed at finding a solution, they strengthen the dichotomy between the two conflicting mainstreams. Thus, this study discusses this crucial subject matter to show a solution from the muamalah jurisprudential approach. The data and literatures used in this study found that, so far, the contract designs applied by Islamic banks are formal Islamization of conventional contracts and tend to ignore the normative substances of sharia economy. This is actually due to the fact that inductive-pragmatic reasoning has been more widely used in Islamic economic studies, making the Islamic identity of the Islamic contracts entered into by Islamic bank ambiguous. The solution found in this study is that deductivenormative reasoning needs to be used by Islamic Financial Institutions (LKS) in entering in contracts because this method provides more guarantees to accommodate the substances of Islamic economy and is able to produce pure contract designs without imitating conventional economy, making the basic characters of Islamic economy is clearer and more convincing.