Phenomenon of Injustice in Profit Sharing Ratio of Indonesia Islamic Banks' Mudarabah Contract

DOI

10.2991/icigr-17.2018.4How to use a DOI?

Keywords

fairness; partnership; agreement; negotiation; Islam; Bank; Indonesia

Abstract

This paper aims to find out the phenomenon of injustice experienced by Islamic banks consumers in dealing with the profit sharing ratio of the mudarabah contract. The method opted for an exploratory study using the phenomenological approach which covers consumers of Indonesia Islamic banks. The data were triangulated and complemented by documentary analysis, official website resources, and annual reports of the banks. In the findings, the paper provides empirical data about the consumers' familiarity of unfairness in the profit sharing ratio of the partnership contract of Indonesia Islamic banks based on interview with the banks' consumers. The consumers feeling of injustice occurred when the Islamic banks did not perform the execution of the mudarabah contract strictly to its requirements which based on Islamic jurisprudence. Other findings, there are gaps between the conventional and Islamic banks in terms of pricing standardization and also within the Islamic banks themselves in determining the profit sharing ratio which then create the injustice in the mudarabah contract. The finding of these phenomena would inform the policy maker and banks' manager to regulate a juster profit sharing ratio.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Kumara Adji Kusuma
PY  - 2018/01
DA  - 2018/01
TI  - Phenomenon of Injustice in Profit Sharing Ratio of Indonesia Islamic Banks' Mudarabah Contract
BT  - Proceedings of the 1st International Conference on Intellectuals' Global Responsibility (ICIGR 2017)
PB  - Atlantis Press
SP  - 15
EP  - 19
SN  - 2352-5398
UR  - https://doi.org/10.2991/icigr-17.2018.4
DO  - 10.2991/icigr-17.2018.4
ID  - Kusuma2018/01
ER  -