ABSTRACT
Banks are financial institutions that play a vital role in the economic system. In Indonesia, ‘bank’ may refer to a conventional bank or a sharia bank. There are a number of legal issues associated with the implementation of murabahah financing, which in certain cases are deemed to be no longer in accordance with the sharia principles. This situation has prompted this research, with the following topics as its main focus: 1) what is the murabahah concept and principles of sharia in murabahah financing? 2) what are the murabahah financing arrangements in Indonesia? 3) how does murabahah financing apply consistently in accordance with sharia banking principles in the Greater Jakarta area? The research method employed in this paper was the legal normative review. Implementation of murabahah financing still shows non-conformities with the sharia principles. These measures include the following: 1) the State through the Bank Indonesia-Central Bank/Otoritas Jasa Keuangan-Financial Service Authority) has made improvements to various regulations and enhanced external supervision of sharia banks; 2) sharia banks should self-evaluate to improve themselves and enhance the Dewan Pengawas Shariah (Sharia Supervisory Board); 3) the public as customers have to take the public as customers have to take on the responsibilities of their payment obligations, and become a part of social control on murabahah financing.
