this reason that Islamic financial institutions have had to approach regulatory authorities like AAOIFI in order to obtain specific dispensations that relate to
them.
More focus should be given on practical implementation and auditing the Shariah compliance of all finance transactions to ensure that all the relaxed
rules are adhered to stringently. As for now the Islamic modes of financing in vogue is purely based on
the „‟lesser of the two evils”.
3. University
The Faculty of Shariah and Law of UIN Syarif Hidayatullah University of Jakarta has a well structured Islamic Banking degree program that combines both
the theoratical and practical aspects of Islamic Banking. My recommendation for the faculty would be a comparative course study on Islamic Banks locally and
internationally in order that students may learn the differences in the practice of Islamic Banking such as murabaha, mudharabah, ijarah and musharakah etc,
because although Islamic banks base their practices on the same fundamental principles, it would be interesting to analyse external factors affecting Islamic
banks their operations and practices.This will also broaden their pespective on the study of Islamic economics.
4. Bank Muamalat Indonesia
Bank Muamalat Indonesia is a well established bank in Indonesia and is growing at a consistent rate. Most of the financial transactions is based on
murabaha and this one of the reasons of the development and growth of the bank. Murabaha is probably the best suited module in this economic setup, as problems
have arisen when trying to implement other financing tools such as mudharabah and musharakah. I think its essential for Bank Muamalat Indonesia to be more
innovative and create more financial tools and products in order that the bank do not rely heavily on the murabaha financial module.
5. Al Baraka Bank South Africa
Al Baraka Bank South Africa is the only fully established Islamic bank in South Africa. Although it has recorded good growth over the last decade, I feel as
long as their are no laws in place to regulate not only the double tax payment on murabaha but other Islamic banking issues, Islamic banks will not be able to
compete with other banks whether it be Islamic banks or the conventional counterpart and thus may hinder the growth of the bank.
INTERVIEW
Name : Mr Ahmad Fauzi
Position : Financing, Supporting Division
Company : Bank Muamalat Indonesia
TimePlace : 05 November 2010, Bank Muamalat
1. What is your understanding of Murabaha?
