THE ROLE OF SHARIA PURCHASING INSTITUTIONS IN

IMPROVING THE ECONOMY IN TERBANGGI BESAR DISTRICT

By :
Nino Khlolek Khurniawan
(20190730020)

Department of Islamic Economics Faculty of Islamic Religion

MUHAMMADIAH UNIVERSITY YOGYAKARTA
2020/2021
 PIG

PRELIMINARY

A. Background

Society is a group of people who live in various places and make small or large colonies,
depending on the geographical location where they live. People who live in strategic areas such
as on the island of Java will find it easier to progress in various fields, including faster economic
growth, while those living in rural areas will be slower to accept economic progress, including
the lack of jobs and capital. Terbanggi Besar is one of the sub-districts in Central Lampung
Regency that does not yet have many job opportunities, so it takes a lot of capital to help the
community create micro businesses. In this case, the role of pawnshops is very much needed to
help people get capital to open micro-enterprises by pawning land certificates, vehicles,

Pawning itself is a liability for debts that are made if the debtor fails to fulfill his
obligations and all goods that are suitable as merchandise can be used as collateral. The collateral
may only be sold if within the time agreed upon by both parties the debt cannot be repaid by the
debtor. With the existence of sharia pawnshop institutions in areas that lack jobs, it is hoped that
they will be able to help move the economy of people who want to open businesses and do not
have capital and only have assets in the form of land and vehicles or jewelry. Sharia pawnshops
themselves have a motto to help, therefore in the sharia pawnshop system no interest is charged,
apart from avoiding usury, this is also in accordance with the motto of helping each other.

B. Problem Formulation

1. What is the role of sharia pawnshop institutions in improving the economy in the sub-district
of the Greater Banggi?

2. The role of sharia pawnshop institutions in carrying out the principle of help

C. Purpose
1. To find out the role of sharia pawnshop institutions in improving the economy in the sub-
district of Banggi Besar

2. to find out the role of sharia pawnshop institutions in carrying out the principle of mutual help

D. Theoretical benefits

Kuganan in this discussion is.

These proposals are:

1. theoretically

Hopefully it can provide more knowledge and insight to introduce the public to sharia
pawnshops and to know the laws, methods and systems of sharia pawnshops, this proposal report
can also be a reference for agencies who want to know more about sharia pawnshops.

2. practically

Hopefully the public can understand the sharia pawnshop institution, the laws in it and the
system in it so that people know more and are expected to be motivated and able to participate in
participating in it.
 CHAPTER II

LITERATURE REVIEW AND THEORY BASIS

A. LITERATURE REVIEW

Several explanations about sharia pawnshop institutions have been extensively examined and
discussed by scientific works, journals, theses, and journals that have addressed this issue,
among others, namely.

1. 2015. Andi irfan

In research that has been carried out by Andi Ilham in a journal entitled a review, Islam:
the practice of ''boroh'' (pawning) (overcoming problems with problems) shows that the results of
research conducted in the Rokan Hilir area, the community always sells and pawns gardens in
order to get money instantly and people tend not to think about the negative effects in the future.
will come.

2. 2016. Lucky andariesta ismail

In the journal created by Lucky andariesta ismail entitled "the influence of sharia
pawnshops on the economy of the community" in this study proves that sharia pawnshops
participate in the implementation and government policies in the economic and development
fields by distributing loan money on the basis of the law of pawning.

3. 2013. Randi Sapetra and Kasyful mahalli

In the SWOT analysis conducted by Randi Sakutra and Kasyfull mahali in the city of
Medan in the journal "Analysis of the potential and obstacles to the development of sharia
pawnshops in the city of Medan" which shows the results that there is strength in Muslims in the
city of Medan, easy requirements, and fast and simple procedures. As for the weaknesses, there
are limited pawnshop branches in Medan City, employees who hold concurrent duties are not
effective, and not all human resources in Medan City understand sharia pawnshop institutions.

4. 2009. Eli Suryani

 In a journal entitled "Sharia pawning in theory and practice in Indonesia," the work of Eli
Suryani said that the sharia pawnshop is one of the most effective funding alternatives because it
does not require complicated requirements and processes

B. Theoretical foundation

1. sharia pawnshop institutions and their elements

Pawn in Arabic is called ar rahn, the language meaning is ats-tsubut wad dawaam, which
means permanent and lasting.Rahn can also mean linguistically al habs (detained). Meanwhile,
according to the syar'i term, ar rahn means to become property as collateral for a debt (loan) so
that it can be paid in part or for the value of the property when it fails to pay off the debt earlier.
Meanwhile, according to the Civil Code (Burgenlijk Wetboek) Book II Chapter XX Article
1150, a pawn is a right obtained by a person who owes a debt to a movable property, which is
handed over to him by someone who owes it or by another person on his behalf and who gives
power to the person who is in debt. the debtor is to take payment from other debtors, with the
exception of the cost of auctioning the item and which costs should take precedence (Usman,
1995:357).

Meanwhile, according to Subagyo, (1999: 88) states that pawnshops are non-bank
financial institutions that provide credit to the public with a special style, namely legally
pawning. financial institutions in the form of payments in the form of channeling funds to the
public on the basis of the law of pawning. The principle of pawning in Islam is to help fellow
human beings by holding on to the laws that have been stated in the Qur'an and the Sunnah of the
Prophet Muhammad SAW.

pawnshop sharia in its role to become a non-bank financial institution that aims to
provide loans or fresh funds with the guidance of please help and only make collateral goods as a
marker of the occurrence of a rahn contract, and if the borrower is unable to pay money to
redeem the goods then an agreement is made to sell the item. In several verses in the Qur'an,
several surahs about rahn have been explained to facilitate human affairs, including:

ِ َّ‫اؤتُ ِمنَ انَتَھُ ْلیَت‬

‫ق اللَّھَ َواَل ا ال َّشھَا َدةَ یَ ْكتُ ْمھَا لُونَ اللَّھُ ا‬ ْ ‫ض ُك ْم ا ْلیُ َؤ ِّد الَّ ِذي‬ ٌ ‫لَى لَ ْم ا اتِبًا‬
ُ ‫ان بَ ْع‬
"If you are on a journey (and do mu'amalah not in cash) while you do not find a writer, then let
there be collateral held (by the debtor). But if some of you believe in others, then let the one who
is trusted fulfill his mandate (debt) and let him fear Allah his Lord; And do not (witnesses) hide
your testimony” (Surah Al Baqarah: 283).

In Surah Al-Baqara above it explains that if we are on a trip or in a state of urgency and
do not have money we can pawn the things we have with money provided we have to trust each
other and be able to fulfill the mandate. by fearing Allah SWT, in the verse listed above it is
clear that the purpose of the sharia pawnshop is to help and for the benefit of all people for the
sake of economic prosperity.

From 'Aisha radiyallahu 'anha, she said,

‫ ا ْشتَ َرى طَ َعا ًما لَى ٍل ا‬- ‫ لى اهللا لیھ لم‬- ‫ى‬
َّ ِ‫النَّب‬

"The Prophet sallallaahu 'alaihi wa sallam once bought food from the Jews for cash (debt), then
he sallallaahu 'alaihi wa sallam gave a mortgage in the form of armor" (HR. Bukhari no. 2068
and Muslim no. 1603)

In the hadith it explains that the existence of rahn can be used by everyone including non-
Muslims and that rahn also has many uses in very urgent matters such as what Rasulullah SAW
did when giving blessings.iron juice to be pawned with food because there is no money, in this
case the concept of helping in sharia pawnshops is highly emphasized.

2. The role of sharia pawnshop institutions in improving the economy

As a non-bank Islamic pawnshop institution, it has a role as a provider of cash capital on

the condition that there are goods that must be guaranteed to start the contract. The role of sharia
pawnshop institutions in improving the economy in an area is indeed in line with their principle,
namely to help fellow human beings. In its role in rural areas, the role of pawnshops is very
much needed by the community, one of which is in the sub-district of Bernggi Besar, with the
lack of employment opportunities, people have to choose to try to make their own business, but
the biggest obstacle faced by the community is lack of capital.
 In this case, the role of financiers such as sharia pawnshops is very necessary to help
move the community's economy on a micro basis with a debt ceiling that can be obtained by
customers of a maximum of 90% of the estimated value of the mortgaged property Meanwhile,
for a maximum period of four months, the capital obtained from 90% of the pawned goods can
be used to start a small business or for other urgent needs such as paying tuition fees, hospitals,
and other urgent matters. The role of sharia pawnshop institutions in improving welfare and
economic improvement is indeed very large considering the main principle is to help.

To improve the economy more effectively, sharia pawnshop institutions can also make
many products to make it easier for customers to choose the products they want to choose
according to their needs, with many products it is easier to achieve the role of sharia pawnshops
as an economic improvement.

a. Rahn products / sharia pawns (loans on the basis of pawn laws) are pawn services products
that are based on sharia principles by requiring the provision of loans on the basis of the delivery
of collateral by the customer.

b. ARRUM's product is financing to micro and small entrepreneurs for business development
with BPKB and gold guarantees with sharia principles.

c. MPO (Multi Payment Online) products, payment services such as: Electricity Payments, Cable
TV, Electricity Credit and Mobile Phones, Internet, Telephone Payments, Train Tickets

d. Estimating the Value of Service Goods to people who care about the price or value of their
property. 5. Safekeeping of goods in the form of rental (ijarah), namely sharia pawnshops that
provide adequate storage of movable goods, which in the banking world is called a save deposit
box.

e. Gold Counter / Precious Metals (Murabahah Precious Metals for Perpetual Investment) is a
quality and safe Precious metal sales service provided by Sharia Pawnshops to the public. Gold
counter is a kind of gold shop gallery 24 which consists of several choices, namely 5 grams to
1000 grams (1 kg).
3. The role of sharia pawnshop institutions in carrying out the principle of help

The principle of helping in sharia pawnshops has indeed been practiced since the time of
Rasulullah SAW, this is explained in a hadith from 'Aisyah radhiyallahu 'anha which contains
"The Prophet sallallaahu 'alaihi wa sallam once bought food from the Jews for no cash (debt),
then he sallallaahu 'alaihi wa sallam 'alaihi wa sallam gave a mortgage in the form of armor"
(HR. Bukhari no. 2068 and Muslim no. 1603)" which indicates that the role of helping to help
has indeed been taught by Rasulullah SAW in carrying out sharia pawning in the past and in the
present era

In its role in sharia pawnshops, please help applied in helping someone in getting funds
for urgent matters such as paying hospital fees, paying for college, starting a business, and other
things. The application of mutual assistance must be used by Islamic financial institutions
because it is indeed one of the most important things that distinguishes between sharia
pawnshops and conventional pawnshops.

C. Formation of Hypotheses

1. Sharia pawning system for economic improvement

Sharia pawnshops in fulfilling their role as providers goods-based pawnshop funds have a
payment system, management, and utilization of resources in accordance with what is needed.
The customer will go to the sharia pawnshop with the intention of mortgaging the goods to get
cash for urgent needs, then the pawnshop will process the pawned goods and will give 90% of
the money from the selling price of the goods. The new money will be submitted if the customer
has agreed and fulfilled the requirements applicable in the sharia pawnshop.

As a sharia-based pawnshop, the main role of this institution is to help, in the course of
its activities many products are made to assist in facilitate the establishment of a pawnshop by
not forgetting the aspect of helping to expand its role as a provider of funds. In line with the
development of sharia pawnshops, it will directly affect economic growth which will gradually
move forward.

2. Supporting factors and constraining factors

Supporting factors to make sharia pawnshop institutions as one of the institutions that
drive the economy in micro and macro circles based on providers of funds, supporting factors
include; Sharia pawnshop institutions exist in Islam and have been practiced in the time of
Rasulullah SAW with an Islamic background it will be easier to enter the community because the
majority of the people of the great age are Muslims, then other supporters are that the sharia
pawn system is mutual help and not usury, and the latter to get funds is not difficult and only
requires minimal requirements.

The constraint factor is people who don't know much about the difference between sharia
pawnshops and conventional pawnshops, and also many people who are afraid to go forward by
pawning their goods unless forced

3. The advantages and disadvantages

Sharia pawnshop institutions in carrying out their roles as providers of Funds have many
advantages and disadvantages. The advantages include that the sharia pawnshop is based on
Islamic law and is definitely halal, and the system in its pawnshop is to help and not usury. As
for the shortcomings, there are not many sharia pawnshop institutions in various places and they
don't have many high-quality and only modest employees.
 CHAPTER III

RESEARCH METHODS

A. Research Method

The type of research used is qualitative research, using qualitative descriptive methods,
namely by describing data and information based on the facts obtained and using theories as
supporting materials. As a guide in conducting studies on sharia pawnshops, in writing this
proposal we also use references from books, journals, theses, and other media to obtain
information about sharia pawnshops. In searching for sources, we also consider the facts and
information content in the reference content that we took in preparing this proposal.

The data sources that we use are original, namely data obtained from research locations
related to the research object in the form of interview data and research observation data. In
conducting this research what is needed by the author is about information about sharia
pawnshop institutions, namely about what roles are carried out by sharia pawnshops including.
In carrying out the principle of helping and looking for the causes of obstacles and advantages,
there are sharia pawnshops. The author also collects secondary data related to the topic of sharia
pawnshop institutions sourced from magazines, websites, and books and journals related to the
topic of sharia pawnshops.

The author also collects data by using the literature way by reading and grouping the
relevant parts to the discussion chapter. Then the author describes the data about the syriah
pawnshop and describes all the data that has been collected, so that the author can more easily
analyze data in the future. After analyzing the data qualitatively, the writer then writes through
the scientific method with the existing provisions and uses documents and texts as written
material and to draw conclusions.
 BIBLIOGRAPHY

Eli Suryani, “SHARIA PURCHASING (Theory and practice in Indonesia)”,:Al-Hurriyah,2009

vol 10 no 1

Andi Irfan, “An overview of Islam: The practice of 'BOROH'(Pawning)(solving problems with
problems)”,:UIN Suka Semarang, 2015

Maria Ulfa KN, "Analysis of Syaria's pawning authority according to financial services authority
regulation number 31/POJK.05/2016 concerning pawnshop business",: Az Zarqa UIN Suka
Yogyakarta,2019 Vol 11 no 2

Surepno, "Study on the implementation of Rahn (Sharia Pawn) contracts in Sharia financial
institutions",: Tawazun Joernal IAIN Kudus, 2018 Vol 1 no 2

Luky Andariesta Ismail, "INFLUENCE OF SHARIA PURCHASING ON THE COMMUNITY

ECONOMY",: Universitas Muhamadiyah Sidoarjo, 2016

Rokmat Subagiyo, "Overview of sharia on sharia pawnshops (Rahn)" An-Nisbah IAIN

Tulungagung, 2014 Vol 1 no 1

Randi Saputra and Kasyful mahalli, "Analysis of the potential and constraints of developing
sharia pawnshops in the city of Medan",: University of SUMUT Vol 2 no 4