Examining a distinctive loan contract “Pagang Gadai” practiced in a Muslim society: an Islamic finance perspective

IF 2.5 Q2 BUSINESS, FINANCE
Vima Tista Putriana
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引用次数: 0

Abstract

Purpose

This study aims to examine a distinctive loan contract widely practiced in a Muslim society.

Design/methodology/approach

This research adopts a qualitative research approach. The study was divided into two main stages. Stage I research relied on documentary analysis of pagang gadai contracts. Hence, Stage II research was an in-depth study in a selected nagari, adopting an ethnography approach. The study was conducted in the district of Tanah Datar, West Sumatera, from 2020 to 2023.

Findings

The findings of this study show that the distinctive mode of contact breaks some basic rules of Islamic finance (the practice contains riba and gharar). The practice however is prevalent in the society studied due to the influence of the customary law namely the communal ownership of lands. The practice brings impacts on the society both positives and negatives.

Research limitations/implications

This study focuses on the traditional mode of pagang gadai contract, which involves the transfer of right to cultivate productive agricultural lands for an exchange of loan measured in gold measurement system and excludes other modes of pagang gadai.

Practical implications

Revision(s) of the contract mode is an urgent matter if the society to be rescued from practicing this type of contract that contains element of exploitation and oppression.

Social implications

The revision(s) is needed if the society wants to follow the teaching of Islam comprehensively, as claimed in the philosophy adopted.

Originality/value

To the best of the author’s knowledge, this is the first study on pagang gadai that focuses on impacts of the practice on the society studied.

研究穆斯林社会实行的独特贷款合同 "Pagang Gadai":伊斯兰金融视角
目的本研究旨在探讨穆斯林社会广泛采用的一种独特的贷款合同。研究分为两个主要阶段。第一阶段的研究依赖于对 pagang gadai 合同的文献分析。因此,第二阶段的研究是采用人种学方法对选定的 nagari 进行深入研究。研究结果研究结果表明,这种独特的联系模式违反了伊斯兰金融的一些基本规则(这种做法包含riba 和 gharar)。然而,由于习惯法(即土地公有制)的影响,这种做法在所研究的社会中普遍存在。研究的局限性/意义本研究侧重于传统的 pagang gadai 合同模式,即通过转让生产性农田的耕种权来换取以黄金计量系统计量的贷款,而不包括其他的 pagang gadai 模式。社会影响如果社会想要全面遵循伊斯兰教的教义,就需要对合同模式进行修订,正如所采用的哲学所主张的那样。 原创性/价值据作者所知,这是第一份关于 "pagang gadai "的研究报告,其重点是该做法对所研究社会的影响。
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来源期刊
CiteScore
4.80
自引率
22.70%
发文量
78
期刊介绍: The journal provides a dynamic forum for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society. JIABR publishes articles on the interplay between Islamic business ethics, accounting, auditing and governance, in promoting accountability, socio-economic justice (adl) and everlasting success (al-falah). It seeks to inform, among others, current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. All styles of research, theoretical and empirical, case studies, practice-based papers and research notes that are well written and falling within the journal''s scope, are generally welcomed by the journal. Scope/Coverage Development of accounting, auditing and corporate governance concepts based on Shari’ah Socio-political influence on accounting and auditing regulation and policy making for Islamic financial institutions and organizations Historical perspectives on Islamic accounting, auditing and financial management Critical analysis on issues and challenges on accounting disclosure and measurement, Shari’ah audit and corporate governance Controls and risks in Islamic organizations Financial and non-financial performance measurement and disclosure.
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