Legal Analysis of the Application of Sharia Principles in Sharia Pawnshops

Listy; Vania  Kylaemery; Raisya Castra Anggraini; Zahdina Udy

Authors

Listy universitas muhammadiyah surakarta Author
Vania Kylaemery Faculty of Law and Political Science, Muhammadiyah University Surakarta Author
Raisya Castra Anggraini Faculty of Law and Political Science, Muhammadiyah University Surakarta Author
Zahdina Udy Faculty of Law and Political Science, Muhammadiyah University Surakarta Author

Keywords:

Rahn Contract, Islamic Finance, Pawnshops, Sharia Principles, Financing Alternatives

Abstract

Pegadaian Syariah is a sharia-based financial solution that offers pawn services in accordance with Islamic principles, particularly the rahn contract. In practice, the application of sharia principles aims to provide fair and transparent financing alternatives that are free from riba, gharar, and maysir. However, the implementation of sharia principles in Sharia Pawnshops faces various challenges, especially in managing financing risks that can affect the financial stability of these institutions. This study aims to analyze the application of sharia principles in rahn contracts and their impact on financing risks in Sharia Pawnshops. The method used is qualitative with a literature study approach, collecting data from journals, books, and related regulations. The results of the study indicate that the application of sharia principles can minimize moral hazard risks and increase public trust in the sharia financial system, but still requires optimal risk management.

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