POTENTIAL APPLICATION OF BAY’ AS-SALĀM CONTRACT IN ISLAMIC BANKING IN INDONESIA

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Muhammad Khairul Anwari
Aiyub Anshor

Abstract

Islamic banking in Indonesia has developed and grown tremendously in recent times. This is proved with the launch of various products, however they have not yet applied a form of Islamic forward contract bay as-salam as a mode of financing due to it being more susceptible to risks than the other Islamic commercial contracts used by Islamic banks in Indonesia. This research attempts to analyze some factors as to why bay as-salam does not seem attractive to the Islamic banks to implement, then to explore the theoretical possibility of its future application as well as to propose a working model. Due attention will be paid to comparision between bay’ as-salām and the future of contract applications in the Islamic finance industry. The methodology approached is focused on library research and conducting interviews with Islamic bank officers. The study proposes a bay‘ as-salam model based on wakālah contract to be applied in Islamic banks in Indonesia.


KEYWORDS: bay as-salam, Islamic financing, wakālah contract, Islamic banking, risk factors, Indonesia.

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