Implementation of Musyarakah Agreement In Profit Sharing Cooperation of Investor In Syariah Finance Business

Abstract

In the era of global economic development, the Islamic financial
system has emerged as an alternative for various groups who wish
to conduct economic activities in accordance with Islamic
principles. This study aims to explore how musyarakah contracts
are implemented in investment partnerships between investors and
businesses in the Islamic financial sector and identify the factors
that influence their successful implementation. This research uses a
descriptive qualitative approach to understand and analyze the
implementation of musyarakah contracts in profit-sharing
partnerships in the Islamic financial sector. Primary data was
obtained through semi-structured interviews with Islamic business
actors, investors, and Islamic finance practitioners. Secondary data
were obtained from relevant literature, such as scientific journals,
books, and annual reports of Islamic financial institutions. The
results show that musyarakah contracts based on the principles of
profit sharing and risk sharing provide benefits for both parties.
Investors can actively participate in business management with
better transparency, while business actors get additional capital to
support business expansion. The implementation of musyarakah
contracts has shown positive developments in the Islamic financial
sector, especially in Indonesia, where regulations and policies have
supported the development of sharia-based businesses. However,
there are still challenges related to investors' and businesses'
understanding of the agreement mechanism, as well as the need for
strict supervision to ensure compliance with sharia principles. This
research is expected to contribute to the further development of
musyarakah contracts in the Islamic finance sector and strengthen
the position of Islamic finance in the global market.