Pawning Gold in Sharia Banking: Challenges and Opportunities for Fair Financial Development

Abstract

This research uses an empirical approach with the object of study covering the provisions of Sharia and legislation (in abstract) as well as the application of law (In concrete) with an analytical descriptive research type, which explains the rules of legislation related to legal theories and the implementation of law in mortgage agreements. sharia gold in Sharia banking. The results of the research show that the legal protection of Sharia gold pawn customers in Sharia banks is an implementation of the Sharia economy that regulates Sharia principles, especially the principle of helping each other (tawaun), and the principle of Islamic pawnshops that the pawned goods belong to the customer from the beginning, a statement in the pawnshop field gold has deviated from the principles of sharia such as the prohibition of the practice of riba, may, gharar, tadlis, risywah. In practice, customers are disadvantaged when the gold matures because they are burdened with the payment of the initial loan difference. However, the customer obtains legal protection through insurance coverage for lost or damaged gold. Practices that have harmed customers have never received reprimands from the National Syariah Council (DSN) as an institution that oversees the activities of Sharia banks and the Sharia Supervisory Board (DPS) which is tasked with overseeing the business activities of Sharia financial institutions following the provisions and principles of sharia.