Point of View in Islam

Shariah Compliance Sales and Riba Based Transactions: A Comparison June 28, 2010

Posted by informationmedia in Economics, finance.
Tags: economic, ekonomi, finance, islam, islamic, keuangan, shariah, syariah
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SHARIAH COMPLIANCE SALES AND RIBA BASED TRANSACTIONS: A COMPARISON

Rhesa Yogaswara[1]

rhesayogaswara@yahoo.com

Certified Islamic Finance Professional (CIFP) Candidate
INCEIF – Kuala Lumpur – Malaysia

Abstract

In the business activities within an economic system nowadays, there are have many violations occur in which each transaction contains riba, which is called the interest. Islam has been revealed by God, with one of the purpose is to regulate economic affairs.

There are many assumptions which the interest is perceived allowed in some cases. But in Shariah rules, the usage of interest in the transaction is not allowed. Riba is part of the prohibited transaction in the terms of the way we do the transaction. There is no strong reason to assumed that the prohibition is only applies for the debt in consumptive purpose and not for commercial loan.

Therefore, there several aqads in the business transaction, which are allowed and do not violate the Shariah rules. We can compare the transactions between transaction which comply with Shariah rules and transaction with interest based, in the aspect of law, transaction process, and also the impact after the implementation. We can see that the implementation of Shariah in every transaction, economic stability can be achieved accordance with the Maqasid Shariah, where protect the Religion, Life, Knowledge, Inheritance, and Treasure.

Finally, we can conclude that with the elimination of riba from economic system, not only affected the positive impact in the economic side, but also social justice, and economic condition with good moral and ethical environment.

1. BACKGROUND

Business is an activity that has been being implemented since the first. Various activities have been varies the business activities. These business activities occur naturally in realizing the economic situation, continue growing and stable. Economics is a system made by residents of an area, or commonly called the state, which includes labor, capital, resources, and economic actors, who participate in the production, distribution, consumption, and exchange of goods and services in the State.

Economics is divided into two branches of economic, which there are micro-economic and macro-economic. Micro-economics is the economic activity which concentrates on the market behavior, companies, and individuals themselves. While macro-economic branches of the economy concentrated on the economic performance of the country as a whole, such as investment, consumption levels, monitoring the money supply by central banks, and also interest rates. In every activities, individual has a role through every single business transactions with one of the motive is, to meet the human needs.

With the development of Islamic economics, economic concepts that is coming from the west, are called conventional economic. Conventional economics has adopted capitalism theory. In the Islamic perspective, conventional economics has many weakness, where there are many assumptions that has been proved inconsistently, such as (1) The desire of human being in consumption can be limited; (2) The value of a goods and services considered to have the same level of urgency; (3) Equitable distribution will occur naturally; (4) The economy will always be in equilibrium; (5) Social cost will always be counted in determining the price.[2]

The conventionalist assumed that consumptive level for every individual could be limit by themselves without any rules and regulation that needs government intervention. The actual, the consumptive level is unlimited, since human is always doing anything to fulfill their needs and also their wants.

The value (price) of goods or services is assumed as the urgency level. However, the price is consisting of many variables that could not assume as urgency level.

The wealth distribution is assumed happen naturally. While in fact, the distribution is never happen automatically without any government intervention. The huge gap between rich people and poor people is still happened.

To help the poor, social expense assumed has been included in the price of the goods and service, which in fact, that condition is never happen. The social expense needs to be realized with government support, to make it happen.

However, the conventional economic system is considered failed, Islam revealed by God as a balanced system between material needs and spiritual needs. Some Islamic economic concepts are (1) The moral-based of economic mechanism; (2) Strong economic motivation to direct each individual in providing the best, both for themselves and also for the community; (3) Economic and Social restructuring by considering resources scarcity.[3]

With the economic growing in many countries today, the economic system has high reliance on financial resources, economic transactions, and economic efficiency, which are also the efficiency in financial institutions. So that every single transaction which is carried out both by individuals and by financial institutions is essential, in order to distribute funds through intermediation from people who have the funds, to the people who lack in funds, can running well-balanced. Currently, the role of intermediation conducted by financial institutions, such as banks, insurance, stock brokers, multi-finance, capital markets, etc.

In practical, the process of every single transaction has much variation transaction forms. So that, it needs to be determined in details, which transaction is permitted according to Islam, and which transactions are prohibited by Islam.

2. SALES TRANSACTION

There are several basic motives behind the process of making profit from every business transaction is conducted, there are (1) There are some efforts to add value to in the product or service (Al-Kharaj); (2) There is a risk in doing business (Al – Ghurm); (3) and the third is the cost in selling product or service (Al-Dhaman).[4]

In its development, every transaction is within the monetary system by using money as a commodity that serves as a standard to facilitate trade value. Is is indicated as standard of wealth such as land, animals and buildings. Those developments are accompanied by the practice of lending, where rich people lend the money to individuals or other companies that could utilize their excess funds.

But in the implementation of borrowing process, there are some deviations occur, which is not complying with Islamic rules. These irregularities have occurred in many countries and have occurred since the Rasulullah saw era, which was the riba in each transaction. There is some misunderstanding of riba in various circles, where the perception that interest in banking industry is not riba because it is not excessive. Next perceptions are, interest is needed because of inflation, riba is irrelevant to commercial loans, and the final perception is riba allowed in dharurah conditions.

These assumptions are wrong because Islam revealed by God to manage all affairs in the world, including the economic field. Rules about riba were governed in some verses of the Quran, and Sunnah.

3. SHARIAH RULES

Shariah is a rule in Islam, where Islam is closely associated with the concept of Tawheed. Tawheed is a relationship between man and Allah SWT as the Creator of the universe, where humans have a commitment to Allah SWT to follow all the rules given by Allah SWT.

Islamic law (Shariah) covers all aspects of life. For clarity of understanding one has to distinguish between laws related to ibadat (worship, prayer) and laws relating to muamalat (transactions, worldly affairs). [5]

In terms of economics, Islam have several objective which covered in the Shariah that have five goals which need to be protected for the achievement of Maslahah, ie Religion, Life, Knowledge, Inheritance, and Treasure. These goals has been known as Maqasid Shariah. So in business transactions, the achievement of Maslahah can be reached by applying the Shariah.

In the Al-Quran, it found that 12 Quranic verses dealing with Riba, which occurs 8 times, 3 times in 2:275 and one time each in 2:276, 2:278, 3:130, 4:161 and 30:39. Here are quotes from Qur’anic verses that had been mentioned above

Al-Baqarah (2:275) “… And Allah has justifies the trades and forbids the Riba….”

Al-Baqarah (2:276) ” Allah destroy usury and cultivating charity. And Allah does not love everyone who remain in unbelief, and always doing sin. “

Al-Baqarah (2:278) – “… and leave the rest of Riba (who have not collected)…”.

Ali-’Imran (3:130) – “… do not eat Riba with the multiply… “

An-Nisaa (4:161) – “and because they eat riba, but in fact they have been banned from it, and because they eat the wealth of people with a wrong path….”

Ar-Ruum (30:39) – “… and riba (additional) that you gave to her property only grew for human’s wealth, then the riba does not give additional value for Allah. …”

From the verses mentioned above, Islam has provided rules in transactions. Which transaction is prohibited, and which one will be allowed. The explanation regarding that statement will be described in the next section.

4. PROHIBITED TRANSACTIONS

There are several things that must be observed to see which transaction is prohibited or not. There are the objects in the transaction, the way we do the transaction, and the uncomplete transaction. From the object side, some transactions became forbidden because the objects in transactions were prohibited by Shariah Rules, i.e. alcohol, pork, carrion, and blood.

The second is the prohibition transaction from the way we do the transaction, which is considered unlawful. Each human activity, including the economic field, it is strongly associated with shariah laws that should not be violated. For example are tadlis, taghrir (gharar), ikhtikar, ba’inajasy, riba, maisir, and risywah.

And the last is the prohibition of uncomplete akad in a transaction. All transactions were done by two people or more, based on the pleasure of each side, that must meet the Shariah rules. A transaction can be said to be illegal or uncomplete akad if not fulfilled the terms, there has been ta’alluq, and the last is would happen shafqatain fi al-shafqah.

In the following discussion, this paper will focus on the prohibition of transactions performed by way we do the transaction. In conventional practice, one of people do the transactions are carried the application of interest. Interest in Islamic perspective is prohibited transaction because it violates the rules of Shariah, which known as riba.

Literally, riba means “to increase, to grow, to rise, to swell”.[6] In Shariah perspective, Hanafi’s School has explained, which riba is a surplus of commodity or an excess in return without counter value. It means that riba is a predetermined excess or surplus over and above the loan received by the creditor conditionally in relation to a specified time period. Riba was also made forbidden in the 8th or 9th year after the Rasulullah saw Hijrah (flight from Makkah). In the Al-Quran, it found that 12 Quranic verses dealing with Riba. The word riba occurs 8 times, 3 times in 2:275 and one time each in 2:276, 2:278, 3:130, 4:161 and 30:39.

5. THE PRACTICE OF RIBA

Riba in every transactions nowadays, riba can be categorized into several types include Riba Fadl, Riba Nasiah, and Riba Jahiliyah.[7] Riba Fadl has also known as Riba Buyu’. It occurs as a result of Riba from the exchange of similar goods that do not meet several criteria. The violated criteria are the qualities of goods which are not equal (mistlan bi mistlin), the quantity of goods exchanged are not equal (sawa-an bi-sawa-in), and the last is, the time of delivery is not in the same time (Yadan bi Yadin).

Riba that we mentioned above can affect the oppression either for one of the party, both parties, and possible also for other parties. In banking, Riba Fadl is found in terms of buying and selling in a foreign exchange, which is not in cash (spot transaction).

The next category of riba is Riba Nasi’ah. Riba Nasi’ah can be referred as Riba Duyun. It happened as a result of debts that do not meet the criteria for taking profits in the transaction. These criteria consist of the profit is not taken because of the risk (al ghunmu bil ghurmi), profit is not taken because of the effort to give the additional value, and then the criteria which is not taken align with the expense (al-kharaj bi dhaman).

In practice, Riba Nasi’ah occurred because there is a difference, changes, or addition of goods delivered today with the goods delivered later. In every business activity, there is always a possibility of gains and losses. So that might be happened and it is also not certain (uncertain). But in this Riba Nasi’ah, everything is always considered to be certain. These exchanges can cause oppression for one party, both parties, as well as other parties.

For the case of conventional banking, Riba Nasi’ah is found in many credit interest payments and interest payments from deposits, savings, current accounts, and others. The conventionalist’s opinion on the application of interest is that applies the principle of time value of money, which is defined where “A dollar today is worth more than a dollar in the future because a dollar today can be Invested to get a return” (Aswath, 2001).[8]

The argument is not accurate, because in every investment there is always the possibility to get return (positive return), loss (negative return), or zero (no return and no loss). Thus in conventional economic theory, uncertainty returns converted into a certainty returns. Almost no strong reason for the assumption that the prohibition is only applies to debt for the consumptive purpose, and not for business loans.

And the last is Riba Jahiliyah, which Riba came as repayment activities carried out by providing a greater return than the principal loan. The returns greater than the principal because the borrower is not able to return the loan at the agreed date (Usmani, Muhammad Taqi. 2001)[9]

The violation from the Shariah rules has occurred in the case of Riba Jahiliyah, where the loan is a transaction on the basis of goodness (tabarru ‘), while asking for compensation or reward is a business transaction (tijarah). It means that, there was happened that the goodness transaction intended to be a transaction for business purpose. In the conventional banking example, Riba Jahiliyah is found in many loan transactions such as credit cards, loans without collateral, interest payment savings, deposits, etc.

Not only banks, but also in the modern financial system, it has now occurred business activities that do not have a positive impact on the real sector. What happened was the collection of money by the banks to open savings services, and take advantage from the loan disbursed.

When a bank provides business loans, the bank did not provide financial advice to the borrower to increase profits. What happens is where the borrower must pay the loan on time, regardless of ability to make payments to the borrower.

The main thing from the application of the riba from the economic side is the exploitation of social and economic. This has violated the core of Islamic teachings in terms of social justice.

6. SHARIAH COMPLIANCE SALES

It has been mentioned in Qur’an in the verse of Al-Baqarah (2:275) that “Allah has permitted trade and forbidden Riba”. In business transactions, buying and selling is allowed since there is not any oppressed party. Sharing of risks and uncertainties is an important characteristic of Islamic Contract.

Shariah emphasized the distribution of gains and losses fairly. So that an uncertainty is not only for one party, but also all parties have the uncertainties. From these uncertainties, the contract/aqad of the transaction can be categorized into two major groups, namely Natural certainty Contracts and Natural Uncertainty Contracts.[10]

Natural Certainty Contract is a form of contract or business co-operation which provides certainty in the payment, both in terms of quantity and also the payment time. In this transaction, there is an agreement about certainty in the beginning of the transaction between both parties. Some certainty criterias are the certainty in terms of the object exchange, the amount, quality, price and delivery time. As an example of these transactions, there are transactions about trade, pay-paid, and lease transaction. From these types of contracts, business transactions are conducted, do not have the capital to build business ventures to share profits and risks.

From the object side of the exchanged, there are two general types of exchange. The first is the exchange with goods and services as the object (‘Ayn), which is a real asset. And the second is the exchange of money and securities, which are financial assets (Dayn).

From those two types, there will be able to be identified for several types of exchange. The first is the exchange of real assets (‘Ayn) with real assets (‘Ayn), and the exchange of real assets (‘Ayn) with financial assets (Dayn), and the last is the exchange of financial assets (Dayn) with financial assets (Dayn).

In the exchange of real assets (‘Ayn) with real assets (‘Ayn), if the types of asset are different, the transaction would be allowed. But if it is in the same type, it should consider the quality of the assets exchanged. If the quality of visible asset can be distinguished, then this transaction according to the rules of shariah is allowed.

For the cases where tangible assets are indistinguishable in the terms of the quality, it must meet several criteria which the asset have same amount, and the time of the exchange, is performed simultaneously.

For transactions that conduct the exchange in real assets (‘Ayn) with financial assets (Dayn), it needs to be identified by the asset type. When the real assets (‘Ayn) is a goods, then the exchange of real assets (‘Ayn) with financial assets (Dayn) called as a trade (Al-Bai‘). Meanwhile, if the eschange asset (‘Ayn) is in the form of services, then this type of transaction can be said as the rental transaction or wage-paid (Al-Ijarah).

Payment method that became a medium of exchange in the form of financial assets (Dayn) can be categorized into several types of trading which comly with Shariah rules. These types of payment include cash (now for now), Bai’Naqdan or deferred payment (Bai ‘Muajjal), delivery of goods or services are deferred (Bai’Salam)

Bai’Muajjal category consists of two types of deffered payment. The first is a payment made in full payment (Muajjal), and the second is how to make a payment through installments (Taqsith).

While the category of deffered goods or services delivery (Bai’Salam), it is consists of two types. The first was carried out full payment at the beginning (Bai’Salam), and the second is a payment made through installments, but the payments must be paid before the goods are full delivered (Bai ‘Istishna).

In the form of contract where assets (‘Ayn) is a service (Al-Ijarah), can be categorized based on the benefits gained. Ijarah to get the benefit from goods is called lease, and Ijarah to get the benefit from the service is called the wage-paid.

From the category of wage-paid, Ijarah can be subdivided into two categories, based on the performance of the services. For the performance that reflected to the payment directly is called Ju’alah or success fee. However, for the performance that does not reflect the payments is called salary or rental.

In the exchange between financial assets (Dayn) and financial assets (Dayn), it can distinguish between the Dayn in money with Dayn not in money (bonds). For Dayn in money, the exchange is allowed to meet the criteria where the exchanged is done for the same amount (Sawa-an bi Sawa in), and exchanges made at the same time (Yadan bi Yadin). In Dayn in securities must meet the condition, where the payment of debt must be certain (Mustaqir).

Back to the main group of contracts, Natural Uncertainty Contracts is a mixing theory based on the mixing object and the time of the mixing activities. Where the real asset (‘Ayn) is in goods and services, and financial assets (Dayn) is the form of money or securities, as the difference in natural uncertainty contracts.

In the terms of time, mixing theory distinguishes between the period of delivery, which is done at the time of the aqad, and the delivery time is done in the future. From the grouping based on the object and the mixing time, there are three types of mixing that can be identified. First is the mixing of real assets (‘Ayn) with real assets (‘Ayn), and then mixing of real assets (‘Ayn) with financial assets (Dayn), and the last is the mixing of financial assets (Dayn) with financial assets (Dayn).

In mixing between real assets (‘Ayn) with real assets (‘Ayn), mixing occurs between the two parties to mix the owned product or service in order to create a single product or service that can be used as a source of income. It is usually called Shirkah ‘Abdan.

Next is the mixing of real assets (‘Ayn) with money (Dayn), which is divided into two kinds of contracts, namely Shirkah Mudaraba and Shirkah Wujuh. Shirkah Mudaraba is mixing the money with the services expertise, where the money invested by the owners of capital and services expertise by the party who will run the business. While Shirkah Wujuh is a contract where the owners of capital invest in money (Dayn) and others contributed the good name or reputation.

For the mixing of money (Dayn) with money (Dayn), it can be grouped based on the amount of funds. If the amount is provided by two sides equally, then the aqad is called the Shirkah Mufawadhah. If the money by two parties is not equally, then the aqad is called the Shirkah ‘Inan.

In terms of payment methods, the mixture of money (Dayn) with money (Dayn) in accordance with Shariah rules, if the transfer was made during aqad. For the delayed delivery of the money would violate the rules of Shariah.

7. COMPARISON

With the availability of Shariah rules, businesses transactions are not allowed if the transaction contains the prohibited content, such as riba, while trade is allowed in Islam as mentioned in Al-Quran verse Al-Baqarah (2:275). The detail explanation on the previous section about Riba and Shariah compliance Sales, then we can compare between them, which will be described in the following table:

Interest (Ar-Riba)	Profit Margin from Trade (Ar-Ribh)
Platform: Positive Law	Platform: Shariah Law
Source: Capitalism Ideology	Source: Al-Quran, Sunnah & Ijtihad Ulama
Money as a commodity. Bank lend the money	Goods as an object. Bank use goods as a commodity
Relationships: Debtor-Creditor	Relationship: Partnership
Interest may be changed unilaterally	The agreed price cannot be changed
Not associated with the real sector (Monetary Real Sector is separately)	Monetary and Real Sector related strong, so encourage the acceleration of the flow of goods, production and employment.
If non performing loan was getting higher, then the interest will be a compound interest	Margins and selling prices unchanged
No trade transaction	Fulfill buying and selling principles
Determining the interest is not considering the profit and loss	Determination of the profit sharing ratio in aqad, based on the profit and loss
The percentage of interest previously determined, based on the lending amount	The profit sharing is accordance with the agreed ratio
Interest payment amount is not increased align with the increment of profits	The number of profit-sharing increases align with the increment of the income
If loss heppened, it is only covered by the Borrowers, based on fixed interest payment as promised in the agreement	If loss happened, both parties will covered the loss
The interest paid by the borrower must be received by the bank	The success of the business is going to be both parties’s concern

Tabel.7.1. Comparison Tablei[11]

We can explain the above table. The first is the platform side, which the transaction could comply with the Shariah if the platform of the transaction is coming from Shariah Law, which Al-Quran, As-Sunnah, and also Ijma threated as the sources.

In business activities, transaction between two parties could have the relationship types. In interest based transaction, the relationship between both parties is called as debtor-creditor. While the deptor is the party who borrow the modey for rich people who lend the money, and expect get the return as an interest, which is not comply with Shariah rules.

However, the relationship between both parties in transaction which comply with Shariah is called partnership. There are several types of partnership that has been described in the previous section. There are Shirkah Mudaraba, Shirkah Wujuh, Shirkah Mufawadhah, and Shirkah ‘Inan as the sample aqad which comply with Shariah rules.

Since interest based transaction is using money as a commodity, the real business sector would not be reflected in the interest rate that used as a benchmark in determining the profit margin. While in Shariah transaction, goods and services used as a commodity that can implies the positive return. Money is used as a tool of exchange. Therefore, monetary and real sector related very strong, that can encourage the acceleration the flow of goods, production and employment.

In Shariah transactions, the margin and the selling price would not be changed as the agreed in the aqad. Whereas in interest based transaction, interest could be a compound interest when the borrower could not pay the installment timely. It means that higher non performing loan; the amount of interest could be higher.

In the interest based transaction, the determination of the interest rate is not reflecting the profit and loss rate. Lender tends not to care the ability of the borrower. Nevertheless in Shariah transaction, profit sharing was determined based on the profit and loss.

Shariah transaction has to fulfill buying and selling (trade) principle in every single transaction. Contrary with interest based transaction; there is no need to do trade transaction money has been used as a commodity.

In uncertainty contracts, there are three posibilities that could happen. While the loss happened, the loss must be covered by the borrowers, based on fixed interest payment as promised in the agreement. And the lender still received the principal with additional margin which called as interest. Different with Shariah contracts, if loss happened, both parties will cover the loss.

8. CONCLUSION

In the business activities within an economic system nowadays, there are have many violations occur in which each transaction contains riba, which is called the interest. Islam has been revealed by God, with one of the purpose is to regulate economic affairs. The prohibition of riba has been explained in Al-Quran surah Al-Baqarah (2:275).

There are many assumptions which the interest is perceived allowed in some cases. But in Shariah rules, the usage of interest in the transaction is not allowed. There are several things that must be observed to know which transaction is prohibited, and which transaction is allowed. There are the objects of the transaction, the way we do the transaction, and the completeness of the aqad in the transaction.

Riba is part of the prohibited transaction in the terms of the way we do the transaction. In practice of Riba, it can be categorized into several types include Riba Fadl, Riba Nasiah, and Riba Jahiliyah. Riba could affect the oppressed for one of the party, both parties, as well as another parties which could get the impact from the implementation of riba. There is no strong reason to assumed that the prohibition is only applies for the debt in consumptive purpose and not for commercial loan.

Therefore, there several aqads in the business transaction, which are allowed and do not violate the Shariah rules. Those types of transactions can be categorized into two major groups. There are Natural Certainty Contracts and Natural Uncertainty Contracts. Those two major groups is described by aqad with exchange theory, and also aqad with mixing theory.

We can compare the transactions between transaction which comply with Shariah rules and transaction with interest based, in the aspect of law, transaction process, and also the impact after the implementation. We can see that the implementation of Shariah in every transaction, economic stability can be achieved accordance with the Maqasid Shariah, where protect the Religion, Life, Knowledge, Inheritance, and Treasure.

Finally, we can conclude that with the elimination of riba from economic system, not only affected the positive impact in the economic side, but also social justice, and economic condition with good moral and ethical environment.

9. REFERENCE

Agustianto. Riba Empiris. Presentation Slide in Muamalah Bank. Indonesia. 2006

Chapra, M Umer. The Need For A New Economic System. Review of Islamic Economics. Journal of the Islamic Economic Association published from Leicester, UK. Vol. 1, No.1, 1991 pp.9-47

Dewi, Miranti Kartika. Introduction to Islamic Financial Management. Presentation Slide in Pramadina University, Master of Islamic Business and Finance. Jakarta. 2008

Dusuki, Asyraf Wajdi. Islamic Banking System and Operation. Lecture Material. International Islamic University Malaysia

INCEIF. Islamic Financial Institutions and Markets. INCEIF Module

Karim, Adiwarman. Islamic Bank: Fiqih and Financial Analysis. Rajagrafindo Persada. Third Edition. Jakarta. 2006.

Rosly, Saiful Azhar. Critical Issues on Islamic Banking and Financial Markets. Dinamas. Malaysia. 2007. Pg 49

Siddiqi, Mohammad Nejatullah. Riba, Bank Interest And The Rationale of Its Prohibition. IDB-IRTI. Jeddah-Saudi Arabia. 2004

Wibisono, Yusuf. Islamic Economics. Presentation Slide in Pramadina University, Master of Islamic Business and Finance. Jakarta. 2008

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[1] Certified Islamic Finance Professional (CIFP) Candidate. INCEIF – Kuala Lumpur – Malaysia

[2] Chapra, M Umer. The Need For A New Economic System. Review of Islamic Economics. Journal of the Islamic Economic Association published from Leicester, UK. Vol. 1, No.1, 1991 pp.9-47

[3] Ibid

[4] Karim, Adiwarman. Islamic Bank: Fiqih and Financial Analysis. Rajagrafindo Persada. Third Edition. Jakarta. 2006. Pg 38

[5] Siddiqi, Mohammad Nejatullah. Riba, Bank Interest And The Rationale of Its Prohibition. IDB-IRTI. Jeddah-Saudi Arabia. 2004

[6] Rosly, Saiful Azhar. Critical Issues on Islamic Banking and Financial Markets. Dinamas. Malaysia. 2007. Pg 49

[7] Karim, Adiwarman. Islamic Bank: Fiqih and Financial Analysis. Rajagrafindo Persada. Third Edition. Jakarta. 2006. Pg 36

[8] Karim, Adiwarman. Islamic Bank: Fiqih and Financial Analysis. Rajagrafindo Persada. Third Edition. Jakarta. 2006. Pg 39

[9] Ibid. Pg 40

[10] Karim, Adiwarman. Islamic Bank: Fiqih and Financial Analysis. Rajagrafindo Persada. Third Edition. Jakarta. 2006. Pg 51

[11] Agustianto. Riba Empiris. Presentation Slide in Muamalah Bank. Indonesia. 2006