Philosophy and Basic Principles of Sharia Banking in Indonesia

Abstract

The philosophy of Islamic banking is in line with the philosophy of Islamic economics, which includes several elements, including monotheism, balance (equilibrium), freedom, productivity, justice, having ethical and business morality, and responsibility. The concrete manifestation of the principles of Islamic banking is in the form of the principle of profit sharing (mudharabah), financing based on capital participation (musyarakah), the principle of buying and selling goods to obtain profits (murabahah), or financing of capital goods based on the principle of pure rental without options (ijarah) or with the option of transferring ownership of goods rented from the bank to another party (ijarah wa iqtisna).