Sharia Law construction regarding early name change of Ijarah object: A case study of Wakalah in Sharia banking practice
DOI:
https://doi.org/10.15575/socio-politica.v15i2.48713Keywords:
consumer protection, fiduciary, fiqh, Islamic banking, maqasid ShariaAbstract
This article critically examines the issue of premature ownership transfer (early name change) in Ijarah Muntahiya Bittamlik (IMBT) contracts within Indonesian Islamic banking, focusing on both sharia and national legal perspectives. Premature transfer is understood as the transfer of ownership before the lease period ends, which raises concerns of legal certainty, potential tadlīs (disguised contract), and elements of gharar (uncertainty). Using a qualitative juridical-empirical approach, this study analyzes DSN-MUI fatwas, national legal regulations, and operational practices of Islamic banks. The findings reveal that premature ownership transfer contradicts both sharia principles and positive law, as it undermines fiduciary guarantees and weakens consumer protection. The main challenge identified is the persistence of such practices in the field due to administrative efficiency, often at the expense of normative compliance. As an alternative, the study recommends the implementation of the wakalah scheme, whereby dealers authorize banks to process ownership transfer only after all lessee obligations have been fulfilled, thus ensuring both compliance and efficiency.
Contribution: This study contributes to the development of Islamic economic law by integrating classical fiqh, national regulations, and contemporary practices, while also offering practical recommendations for the Islamic banking industry to strengthen legal certainty, consumer protection, and global competitiveness.
References
Abdullah, A. (2017). A comparison between Malaysia and Indonesia in Islamic banking industry. Research Journal of Business and Management, 4(3), 276–286. https://doi.org/10.17261/Pressacademia.2017.705
Ahmad, M. Y., & Khan, M. A. (2022). The Notion of ‘Wakalah’in Pre-Modern Islamic Jurisprudence and Its Applications in Modern Islamic Financial Institutions: A Critical Analysis. Al-Qamar, 5(3), 133–160. https://doi.org/10.53762/d0ww4m06
Al Rahahleh, N., Ishaq Bhatti, M., & Najuna Misman, F. (2019). Developments in risk management in Islamic finance: A review. Journal of Risk and Financial Management, 12(1), 37. https://doi.org/10.3390/jrfm12010037
Alsayed, N., & Kayadibi, S. (2025). Ensuring Fairness and Transparency in Transactions. Journal of the Contemporary Study of Islam, 5(1), 33–86. https://doi.org/10.37264/jcsi.v5i1.02
Amoah, C., & Nkosazana, H. (2023). Effective management strategies for construction contract disputes. International Journal of Building Pathology and Adaptation, 41(6), 70–84. https://doi.org/10.1108/IJBPA-01-2022-0004
Arfan, A., Arfan, I. A., Alkoli, A., & Ramadhita, R. (2024). The implementation of Maqashid Sharia: heterogeneity of scholars’ fatwas towards Islamic banking contracts. Legality: Jurnal Ilmiah Hukum, 32(1), 105–128. https://doi.org/10.22219/ljih.v32i1.32170
Asutay, M., & Yilmaz, I. (2021). Constituting an Islamic social welfare function: an exploration through Islamic moral economy. International Journal of Islamic and Middle Eastern Finance and Management, 14(3), 524–540.
Bahri, A. S. (2022). Legal Status of The Li’an Children Recognition: Comparison of The Mazhab Malikiyah and The Compilation of Islamic Law. Jurnal Mahkamah: Kajian Ilmu Hukum Dan Hukum Islam, 7(1), 67–78. https://doi.org/10.25217/jm.v7i1.2381
Basir, M. A., Prihanto, D., Fahrizal, I., & Imaniyati, N. S. (2022). Legal Consequences And Responsibility of Wa’ad Bonding Power to Sharia Compliance in Akad Al-Ijarah al-Muntahiyah Bi al-Tamlik. Media Syari’ah: Wahana Kajian Hukum Islam Dan Pranata Sosial, 24(1). https://doi.org/10.22373/jms.v24i1.10758
Bhatti, A. B. H., Khan, S., Farooq, M. H., Ishtiaq, W., & Khan, N. Y. (2023). Liver transplantation with interposition saphenous vein conduits for arterial reconstruction: Impact of morbidity and arterial ischemia time. Surgery, 174(5), 1263–1269. https://doi.org/10.1016/j.surg.2023.08.012
Buana, M. S., & Budiman, R. (2022). Indonesia’s minimum wage policy after the Omnibus Law: A comparative analysis from Islamic principles. UUM Journal of Legal Studies, 13(2), 187–214. https://doi.org/10.32890/uumjls2022.13.2.8
Daoud, Y. (2025). Funding, risk and regulatory framework in Islamic banking: Organizational perspectives on an evolving financial landscape. https://doi.org/10.54660/IJMOR.2025.4.3.39-46
Doyle, L., McCabe, C., Keogh, B., Brady, A., & McCann, M. (2020). An overview of the qualitative descriptive design within nursing research. Journal of Research in Nursing, 25(5), 443–455. https://doi.org/10.1177/1744987119880234
Downloads
Published
Issue
Section
Citation Check
License
Copyright (c) 2025 Farid Madani, Oyo Sunaryo Mukhlas, Aulia Nurhikmah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
