ABSTRACT
This research aims to determine the reason why BMT decided to discontinue the linkage program with Islamic Bank. This study used a qualitative approach and single-case study strategy. Primary data was collected by in-depth interview, while secondary data was obtained from the annual financial statements of BMT. Explanation building was used as the analytical technique: explaining the results of in-depth interviews, in order to know the reasons of BMT to stop the linkage program. The results showed that the BMT option to stop the linkage program is not just because of the expensive rate of return and other operational aspects only. The biggest point of decision is because there is a difference of aqad applied to the linkage program, which was not in accordance with the mudharaba system contract. The factors that caused BMT to discontinue the linkage program will be explained qualitatively in this research.
