The Using of Murabahah, Mudharabah and Musyarakah Agreements in Sharia Micro Financing for Micro Small, Medium Entreprises (MSMEs): A Case Study of PT. Bumi Artha Sampang Sharia People's Financing Bank, Cilacap

Abstract

Liquidity is a major issue for MSMEs when it comes to growing their businesses. This is due to a lack of knowledge about MSMEs' access to accessible funding. In fact, numerous institutions, including the Islamic People's Financing Bank, are willing to route their capital to MSMEs (BPRS). BPRS offers a variety of appealing financing options. One is a finance product based on the Murabahah, Mudharabah, and Musyarakah contract systems. These contracts can essentially be arranged as a win-win situation between BPRS and MSMEs as consumers. The goal of this study was to find out why and how PT. Bumi Artha Sampang Sharia People's Financing Bank in Cilacap uses Murabahah, Mudharabah, and Musyarakah contracts in sharia microfinance transactions for MSMEs. This study employs a case study methodology and employs a qualitative research method. Data from BPRS Bumi Artha Sampang were obtained in the form of interviews, observations, documentation, and document data, which were processed using data reduction, data presentation, and conclusion drawing techniques, before testing the validity of the data in this study using triangulation methods, triangulation techniques, and triangulation source. The findings show that Murabahah contracts are chosen based on capital expenditure transactions, MSMEs with no experience in bookkeeping, and long tenors, whereas Mudharabah and Musyarakah contracts are chosen based on MSME customers with bookkeeping experience, project-based contracts, and short tenors. In terms of financial gain, the Murabaha contract is more profitable for the bank, but the Mudharabah and Musyarakah contracts benefit both the bank and the customer.

Keywords: MSMEs, Murabahah Agreement, Mudharabah and Musyarakah