Murabahah Working Capital and Investment Financing in Increasing Business Income Pembiayaan Modal Kerja dan Investasi Murabahah dalam Meningkatkan Pendapatan Usaha Hamid Siti Nur Cholisa sitinur@gmail.com Muis Lidya Shery lidyasherymuis@umsida.ac.id Indonesia Indonesia 25 10 2024 <bold id="bold-6f94b1ff49de0af2873fc707ef592656">INTRODUCTION</bold>

The development of the Islamic banking industry from the past until now continues to show encouraging growth in terms of assets, Disbursed Financing (PYD), and Third Party Funds (DPK). The growth of Islamic banking consists of Islamic Commercial Banks (BUS), Islamic Business Units (UUS), and Islamic Rural Financing Banks (BPRS). Sustainable growth each year can increase the market share of the Islamic financial industry. In 2021, total Islamic bank financial assets reached IDR 1,993.41 trillion, in 2022 IDR 802.2 trillion, in 2023 IDR 656.16 trillion, and in 2024, total Islamic bank assets reached IDR 902.39 trillion as of August 2024. (Dinda Dewi Angraini 2023)

Financing is the provision of capital loans for investment activities, whether by individuals or institutions. In other words, financing is funding disbursed to support planned investments. Based on the type of contract, financing available in Islamic banks includes profit-sharing financing (mudharabah and musyarakah contracts), leasing financing (ijarah contract), hire-purchase financing (ijarah muntahiya bittamlik), sale-purchase transactions (murabahah, salam, and istishna contracts), lending and borrowing transactions (qardh contract), and leasing transactions for multi-service transactions (ijarah contract). (I. Tuti Angraini 2021)

Based on its intended use, financing is divided into three categories: working capital financing, investment financing, and consumer financing. Working capital financing is short-term financing provided to companies to finance their working capital needs based on Sharia principles. Sharia investment financing is short-term or long-term financing for the purchase of capital goods needed to open or establish a new business, project relocation, expansion, or replacement of factory machinery. Meanwhile, Sharia consumer financing is a type of financing provided for purposes outside of business, generally for individuals. This type of savings is required by customers to meet secondary needs.

Working capital financing, investment financing, and consumer financing are the largest sources of funds for Islamic banks to generate revenue. The amount of financing disbursed to the public determines the profits earned by Islamic banks and impacts total asset growth. The greater the profit a bank can generate from financing, the higher the total asset growth reported each period. (Tuti Angraini 2024)

Pension financing is the distribution of consumer financing facilities to retirees, with installment payments made through direct deductions from the bank's monthly pension funds. The contract used in this financing is either a murabahah or ijarah contract, depending on the financing objective. The maximum amount is IDR 200,000,000, with a term of 1 to 15 years. (I. Tuti Angraini 2021)

Working capital and investment financing play a crucial role in increasing the income of micro-enterprises. In this context, the People's Business Credit (KUR) has become a significant instrument in providing access to financing for Islamic micro-enterprises in Indonesia. The impact of KUR on the development of Islamic micro-enterprises encompasses several aspects that require attention.

According to Bank Indonesia regulation No. 9/19/PBI/2007,Financing is the provision of funds or bills or receivables that can be equated with it. According to Law (UU) no. 21 of 2008 on Sharia Banking, Financing is the provision of funds or bills that can be equated with it..

Bank Syariah PT BPRS Puduarta Insani is a sharia microfinance institution with an office at Jalan Besar Tembung No. 13 A, Hutan, Percut Sei Tuan District, Deli Serdang Regency, tasked with collecting and distributing funds to communities in need of capital to run their businesses. The financing provided by Bank Syariah PT BPRS Puduarta Insani is expected to provide financial assistance to lower-income communities who have difficulty accessing banking financing, such as building supply stores, wholesalers, grocery stores, convenience stores, and so on.

Working Capital Financing

A financing company is a business entity outside of banks and financial institutions that is specifically established only to carry out activities that are included in the business field of financing institutions based on PJOK 31/ PJOK 05/ 2014 concerning the implementation of sharia financing businesses, it is stated that the business activities carried out include.

1. Financing for sales and purchases, namely financing the provision of goods through transactions with a financing agreement agreed upon by all parties. 2. Investment financing, namely the provision of capital for a certain period of time by sharing profits in accordance with the sharia financing agreement agreed upon by all parties. 3. Service financing, namely the provision of services in the form of providing, the benefits of a good, providing loans and providing services with payment of compensation for services (ujrah). (Afkar 2018)

Sharia-compliant working capital financing is short-term financing provided to companies to cover their working capital needs based on Sharia principles. The maximum working capital financing term is one year and can be extended as needed. Extensions of working capital financing facilities are based on an analysis of the debtor and the overall financing facility. (Karim 2004)

The objectives of providing working capital financing are: a. Productive financing, namely financing aimed at meeting production needs in a broad sense, namely for business improvement, both production, trade, and investment businesses. b. Consumptive financing, namely financing used to meet consumption needs, which will be used up to meet needs. c. Trade financing, namely financing used to purchase merchandise for which payment is expected from the proceeds from the sale of the merchandise.

Investment Financing

Funds invested in fixed assets, like those invested in current assets, also undergo a turnover process. Although conceptually, there is no difference between investments in fixed assets and investments in current assets, both investments in current assets and fixed assets are made with the expectation that the company will recover the invested funds.

Murabahah

Financing under the murabahah contract is regulated by DSN Fatwa No. 04/DSN-MUI/IV/2000 concerning murabahah financing, which is a transaction to sell an item by confirming the purchase price to the prospective buyer, and the buyer pays a premium as profit for the seller. (Faliha 2023)

The pillars and conditions of murbahah financing are: 1. The parties to the contract are ba'i (Seller, Owner of the goods) and mustarik (Buyer who purchases the goods), 2. The object of Murabahah is mabi' (merchandise) Tsaman (price), 3. Agreement of both parties (Ijab Qabul). Just a comparison between murabahah financing and conventional credit.

Comparison of Murabahah Financing with Conventional Credit

No Description Murabahah Credit
1 Transaction Basis Buying and Selling Goods / Benefits Borrowing and Lending Money
2 Profit Pattern Seller and Buyer Lenders and Borrowers
3 Amount of Debt Amount of selling price: fixed amount until the end of the term The principal amount plus interest is an amount that can change until the end of the term.
4 Profit In the form of margin which includes the selling price In the form of interest that must be paid together with the return
5 Accelerated Repayment Settling off receivables (selling price) and can be given muqasah / discount on selling price Pay off the remaining principal only plus fines (if any)
6 Sharia Compliance Of No

The conditions for a murabahah contract are: 1. The seller informs the buyer of the capital costs, 2. Profits can be determined based on the agreement of both parties, 3. The contract is free from usury, 4. The seller explains if there is a defect in the goods, 5. The seller explains matters related to the purchase, for example if the purchase is made on credit. (Aswan 2024)

In keeping with the nature of the business (ijarah), murabahah transactions offer several benefits, as well as risks that must be anticipated. Murabahah offers numerous advantages to Islamic banks. One of these is the profit generated from the difference between the purchase price from the seller and the selling price to the customer. Furthermore, the murabahah system is very simple, simplifying administrative processes within Islamic banks.

Increased Business Income

According to the Complete Indonesian Dictionary, "increase" comes from the word "tingkat," meaning a layer of something that then forms a structure. "Increase" means progress, generally speaking, an increase in efforts to increase quality or quantity. Etymologically, "increase" means raising the standard of living, etc., increasing production, etc., and the process of increasing efforts and activities. (Alamsyah 2019)

BPRS specific case study for the 2020-2024 period (OJK, 2024)

1.Positive Total Asset Growth During the 2020-2024 Period

a. BPRS's total assets show a consistent positive growth trend.

b. The highest growth point occurred during the COVID-19 pandemic, namely in 2022 at 18.2%.

c. As of December 2023, total assets were recorded at IDR 23,177 billion with an annual growth of 15.0%.

2.Continuously Increasing Financing Distribution

a. BPRS financing distribution has experienced an upward trend over the past five years.

b. The highest growth in financing disbursement also occurred in 2022, reaching 20.6%.

c. At the end of 2023, outstanding financing reached IDR 17,025 billion, a 17.8% increase compared to the previous year.

3.Consistent Increase in Fundraising

a. BPRS's third-party funds (DPK) showed a positive growth trend during the 2020-2024 period.

b. The peak of DPK growth occurred in 2021 with an increase of 18.1% year-on-year.

c. As of December 2023, total third party funds reached IDR 15,270 billion, an increase of 13.6% from the previous period.

4.Dominance of Mudharabah Deposits in the Composition of Third Party Funds

a. The composition of BPRS DPK is dominated by mudharabah deposits, which is 67.3% of the total DPK.

b. This pattern is similar to the conventional BPR industry, indicating a preference for fundraising in sharia-based deposit products.

In a study conducted by Linda Novita, it was explained that murabahah financing implemented by BPRS Amanah Ummah has a significant role in supporting the development of MSMEs in Leuwiliang District. The implementation process follows general Islamic banking procedures, with the financing approval rate influenced by the customer's track record. This financing has been proven to increase the net income of MSMEs from an average of IDR 12,373,000 to IDR 18,852,000 per month, as well as encourage labor absorption, albeit on a limited scale. Statistical analysis shows that the contribution of murabahah financing to MSME development reaches 96.4%, while the remainder is influenced by other factors such as management and equity. Although musyarakah and mudharabah contracts are more ideal for MSMEs, murabahah remains the dominant choice due to its ease of implementation and the tangible benefits felt by customers.

Revenue is the amount of money earned by a company for the creation of goods or services during a certain period. Meanwhile, Dwi Suwiknyo explains that revenue is money received by individuals and companies in the form of salaries, rent, profits, and others. In microeconomic analysis, the term revenue is specifically used in relation to the flow of income in a period of time that comes from the provision of production factors of natural resources, labor, and capital, each in the form of rent, wages, and profits, respectively. (Fitriyani 2019). The fund distribution activities carried out by Bank Syariah PT BPRS Puduarta Insani are channeled in the form of financing, one of which is working capital financing and investment financing with a murabahah contract.

In addition to collecting and distributing funds to the public, Bank Syariah PT BPRS Puduarta Insani also plays a vital role in developing and increasing the income of both customers and the bank itself. Financing is provided not only to small businesses but also to all business sectors deemed promising, with the aim of generating profits and improving customer businesses. (T. Angraini 2023)

There are several issues that cause low income in the community, one of which is limited capital, which makes it difficult to develop a business. With the existence of working capital financing distributed by banks to customers, it is hoped that it can influence and increase customer business income, as is the initial goal of the financing transaction. The development of the customer's business can be seen through the customer's income, whether the customer's business income is increasing or decreasing. These customers choose to apply for working capital financing.

Based on the background presented, the author is interested in conducting research with the title "Analysis of Working Capital Financing and Investment Financing in Murabahah Contracts in an Effort to Increase Business Income of the Medan Tembung Community. Case Study of Sharia Bank PT BPRS Puduarta Insani "

 <bold id="bold-105a8e6ef8ffeead455fa9898881d70d">METHOD</bold> A.Types of Research Approaches

1.1)The method used in explaining this research is a qualitative method with a type of field research that uses a case study approach. The researcher conducted sampling using the techniquePurposiv Sampling namely the technique of sampling data sources and certain considerations, (Compiler 2015) For example: The person is considered to have the best understanding of what is being researched, the resource person and expert in Islamic banking in this research are employees or staff of the Islamic Bank PT BPRS Puduarta Insani Medan Tembung.

 B.Data source

Primary Data Sources are data sources that are taken directly, primary data is data that researchers obtain from sources/respondents or first sources in the form of information from the results of interviews with sources.

Secondary data is data obtained or collected by the person conducting the research from existing sources. This data is used to support primary information, where this data can be obtained from library materials, literature, previous research, books, and so on. (Sugiyono 2018)

 C.Data Collection Techniques

1.2)In this research, source triangulation is used, which means to test data from various sources of information from which data is taken. By carrying out source triangulation, researchers try to compare data obtained from each source to find and analyze the truth of the information that has been obtained. Therefore, in this research, data collection can be done by:

1)Interview is a meeting of two people or exchange of ideas with information and issues through questions and answers so that meaning can be constructed in a particular topic by Mr. Sodiq (Head of Savings at Bank Syaraih PT BPRS Puduarta Insani Medan Tembung), Mr. Ahmaluddin (Marketing Supervisor). After the interview process and the initial transcript were compiled, the researcher sent a summary of the interview results to the source (for example, Mr. Sodiq) to ask for clarification or correction of the data interpretation by the researcher. This helps ensure that there is no misinterpretation of the source's statements.

2)Documentation is a record of past events in the form of writing, pictures and monumental works by someone.

 D.Data Analysis Techniques

In this research, the data analysis technique used is descriptive analysis, data analysis which is the most important step in obtaining findings from research results starting from the data collection process, then compiling and categorizing data, looking for themes so that they can be interpreted. Researchers discussed with their supervisors or other research colleagues the clarity, consistency, and potential bias in interpreting data on asset growth and BPRS financing strategies. (Yusuf 2014)

Research Table

Data Types Data Collection Techniques Instrument Data analysis
Data Primer Interview Interview guidelines, Q&A with key informants (BPRS employees/staff) Descriptive analysis: Collection, arrangement, categorization, theme search, data interpretation
Data Seconds Documentation Written documents, books, literature, reports, previous research Supporting primary data analysis, verification, data triangulation
Triangulation Data Comparison of various data sources Combination of interview and documentation instruments Data validation by comparing results from various sources to test the accuracy of the information
<bold id="bold-7edbe5eac11eb4efbd44b901203fd835">RESULT AND DISCUSSION</bold> A.Working Capital Financing and Investment Financing

Working capital is a measure of the security of short-term creditors. Working capital can be thought of as funds available to invest in current assets or to pay non-current liabilities. Every company needs capital for daily operational expenses, such as purchasing raw materials, paying wages, employee salaries, and so on. The money spent is expected to be returned to the company within a relatively short period of time through sales proceeds.

According to Mr. Ahmaluddin, the marketing supervisor of PT BPRS Puduarta Insani Medan Tembung, Sharia Bank, customer data for working capital and investment financing applications has remained stable throughout 2020, 2021, 2022, 2023, and 2024. This has enabled the bank to operate smoothly, despite several shortcomings in the processes it collects and implements. Revenue growth has been significant, with all types of businesses run by customers with murabahah financing. This is driven by the financing provided, which helps customers meet business needs previously unmet due to a lack of capital.

 B.Murabahah in working capital financing and investment financing

Murabahah was originally a sales concept that had nothing to do with financing. However, this form of sale and purchase was later adopted by Islamic banking, incorporating several other concepts, thus becoming a form of financing. However, the validity of such transactions depends on several conditions that must be strictly adhered to for them to be accepted according to Sharia law.

In the implementation of this contract, Bank Syaraiah PT BPRS Puduarta Insani Medan Tembung authorizes its customers to purchase goods needed for the customer's business on behalf of the bank. Furthermore, Bank Syaraiah PT BPRS Puduarta Insani Medan Tembung sells goods to customers where the selling price of the goods is the cost price of the goods plus a profit margin, the total of which will be paid by the customer within a certain period, in accordance with the agreement between the bank and the customer (de jure).

In this process, the contract used is the murabahah bi al-wakalah contract, where the bank delegates the purchase of goods to the customer completely and the bank only provides funds for the purchase of goods desired by the customer. In this case, the initial contract used by the bank to achieve funds is the murabahah contract which is then accompanied by a wakalah contract (de facto), however, when the murabahah contract takes place, the object of the goods to be murabahahed is not yet owned by the bank.

Working capital financing is financing to meet various needs, including increasing production, both quantitatively (amount of production results) and qualitatively (increasing the quality or quality of production results). In the activity of distributing funds to customers, one of the contracts used in financing is the murabahah contract. Financing products that use the murabahah contract are efforts made by Bank Syariah PT BPRS Puduarta Insani Medan Tembung in order to help customers obtain convenience in running and developing customer businesses. The application of the murabahah contract for the distribution of working capital financing at Bank Syariah PT BPRS Puduarta Insani Medan Tembung is carried out with a murabahah contract accompanied by a wakalah contract to customers to purchase goods, in this case the bank only acts as an intermediary institution or financing distributor. Provisions in submitting prospective customers.

This aligns with research conducted by Dian Ferlina (2025), which explains that implementing murabahah financing in accordance with Sharia principles provides significant benefits for customers, including increased income and business development. The main contribution of this product is its ability to improve customer economic well-being through flexible, Sharia-compliant capital access. These findings confirm that murabahah financing at the BPRS (School Based Remittance) has significant potential as an effective Sharia-compliant economic empowerment instrument for improving the welfare of the Donomulyo village community (Ferlina et al., 2025).

Application requirements for individual candidates: 1. Application form for individuals, 2. Photocopy of Resident Identity Card and Family Card, 3. Photocopy of Marriage Certificate(if married)4. Photocopy of NPWP, 5. Original pay slip and employment certificate(For Employees), 6. Financial/Business Report for the Last 2 Years, 7. Photocopy of savings book account mutations or latest statements, 8. Photocopy of telephone and electricity bills for the last 3 months, 9. Open the Legality of the guarantee(SHM/SHGB/BPKB/Deposit Certificate), 10. Proof of purchase order or Work Order Letter (SPK) if any.

Application requirements for institutions or companies: 1. Financing Application Letter from management or administrators, 2. Valid Institution NPWP, 3. Legality of Establishment and its changes (if any) and its ratification, 4. Valid business permits: SIUP, TDP, SITU and others (if needed), 5. Company management data, 6. Financial/Business Reports for the Last 2 Years, 7. Photocopy of savings book account mutations or current statements for the last 6 months, 8. Open Legality of Guarantee(SHM/SHGB/BPKB/Deposit Certificate), 10. Proof of purchase order or Work Order Letter (SPK).

In applying for working capital and investment financing with murabahah, the procedures that have been prepared as provisions in applying and verifying financing must be followed with the following procedures: 1. Financing Application, 2. Verification of Prospective Customers, 3. Approval of financing application, 4. Financing and Guarantee Increase, 5. Payment of Fees before disbursement, 6. Disbursement from the facility, 7. Payment of Obligations by Customers, 8. Monitoring and Settlement of Financing. (Kasmir 2010)

 C.Working Capital Financing and Investment in improving community businesses

Economic growth in Medan continues to increase. One of the efforts undertaken by the Medan City Government is to become a primary consumer of Micro, Small, and Medium Enterprises (MSMEs). The policies enacted by the Mayor of Medan during this period have proven fruitful. MSMEs, previously impacted by the pandemic, have successfully recovered and are now growing. Economic growth data in 2021, 2022, and 2023 did not show a negative growth, but rather a 2.62% growth rate. The following year, it increased to 4.72%, and in 2023, it increased to 5.04%. A key factor that can slow economic growth is relatively low inflation, which encourages economic growth. Over the past five years, customers at Bank Syariah PT BPRS Puduarta Insani have had the following number of applications for working capital and investment financing:

Number of Customers Financing Application

Number of Platforms Financing Application

Source: Interview with Mr. Ahmaluddin.

Murabahah financing provided by Bank Syaraih PT BPRS Puduarta Insani Medan Tembung is expected to play a role in improving business development and member welfare. This is relevant to the Indonesian government's strategic target to increase the national market share of Islamic banking, which is currently still below 10%. Optimizing working capital and investment financing through murabahah contracts, as carried out by PT BPRS Puduarta Insani in Medan Tembung, demonstrates the real contribution of Islamic banking in driving economic growth in the MSME sector. This is very important in the context of national efforts to strengthen Islamic financial inclusion and encourage sustainable economic growth based on Islamic principles. As stated by Mr. Sodiq, Head of the Deposit Department at Bank Syaraih PT BPRS Puduarta Insani Medan Tembung"The first hope is that transactions that are usually carried out by people without understanding the contract, become an Islamic sharia. The second hope is to improve the economy of people from the lower middle class to be more productive in achieving their economy in order to build their future, that the income of MSMEs after receiving murabahah financing has increased compared to before receiving murabahah financing. Murabahah financing can not only increase income, but can also reduce unemployment." (Interview with Mr. Sodiq, Head of Savings).

The profit-sharing ratio is a unique pillar of the mudharabah contract, which is not present in a sale and purchase agreement. This ratio reflects the rewards that both parties are entitled to receive in the mudharabah. The mudharib receives compensation for his work, while the shahibul maal receives compensation for his capital contribution. The profit-sharing ratio is crucial in mudharabah financing. In determining the ratio, PT. BPRS Puduarta Insani Medan Tembung strives to attract members and comply with sharia principles. As the results of the author's interviews, in discussing the analysis of factors in determining the nisah in mudharabah financing, the author explores by mentioning the factors that determine the BPRS Puduarta Insani Medan Tembung, including the following:

1.Members' bargaining power is crucial in determining the profit-sharing ratio because they are the ones with the needs and desires. To fulfill those needs and desires, they are also the ones who make choices and decisions.

2.Estimated net profit from the mudharib's business The estimated net profit of the mudharib's business is also a consideration in determining the profit-sharing ratio, because the size of the profit earned by the BPRS and mudharib depends on the size of the mudharib's business results. Profit forecasting can be done by analyzing the profitability of the business that the member will run.

3.Market interest rates: If an Islamic financial institution truly implements a profit-sharing system, market interest rates will not be a factor in determining the profit-sharing ratio. This is because Islamic financing is essentially interest-free. However, BPRS Puduarta Insani Medan Tembung still uses market interest rates as a factor in determining the profit-sharing ratio.

4.Member Personal Characteristics In the business world, a person's character as a business actor greatly determines the continuity of the business being run. In terms of maintaining relations between members and BPRS, assessing member characteristics is very important. BPRS Puduarta Insani Medan Tembung tries to apply assessments to determine the size of the ratio distribution in mudharabah financing with business partners or members. Good member characteristics will be a consideration or added value for BPRS Puduarta Insani. In determining the ratio, without intending to offend members, this assessment can be done by:

a.How disciplined are members in running their business.

b.If you have ever had a loan at another bank or BPRS, was the repayment smooth?

c.The seriousness of members in running their business, because this will affect the income that BPRS will receive.

d.The business prospects run by members in every business certainly expect progress in their business. Selecting a good type of business and good management are the right ways to develop a business to be better. BPRS Puduarta Insani expects each member to pay attention to this, this is intended to have a positive influence between the BPRS and members. Therefore, the prospect of business activities has become a serious concern for BPRS Puduarta Insani in determining the size of the Mudharabah financing ratio. BPRS Puduarta Insani is confident that the good prospects of members' business activities will also have a positive impact on business income.

e.Member loyalty to BPRS Puduarta Insani is also a consideration in determining the amount of profit sharing ratio.

5.Length of effort carried out by members

In theory, the length of time a member has been running a business is not a factor in determining the profit-sharing rate. However, in practice, BPRS Puduarta Insani Medan Tembung considers it a crucial factor in determining the mudharabah financing ratio. The BPRS assumes that the longer a business has been established, the more established the member's business will be. However, BPRS Puduarta Insani Medan Tembung does not refuse to finance businesses that have just been established or are less than two years old. BPRS is also ready to finance all types of businesses as long as they are halal and do not cause harm to various groups, and of course, based on several surveys conducted by BPRS Puduarta Insani Medan Tembung.

Types of financing

The type of financing is also a determining factor in determining the profit sharing ratio percentage of BPRS Puduarta Insani Medan Tembung. For example, the percentage of daily mudharabah financing is 15% per month and monthly mudharabah financing is 2% to 2.5% per month and seasonal mudharabah financing is 2.5% per month. 7. Contract period In the theory written by Drs. Muhammad, M.Ag, in his book entitled Management of Islamic Banks, profit sharing (nisbah) can also vary from time to time in a sharia financial institution. This is also done by BPRS Puduarta Insani Medan Tembung which makes the contract period a factor to consider in determining the amount of profit sharing ratio because the longer the contract period is considered to be able to contribute profits for both parties.

Of the various factors in determining or determining the amount of profit sharing ratio above are the factors used by BPRS Puduarta Insani Medan Tembung as a reference system in using the percentage of the amount of capital issued, as we have known that in determining the profit sharing ratio is by percentage of the results of the business run by mudharib not from the amount of capital issued this is reinforced by (FATWA NATIONAL SHARIA COUNCIL NO: 07/DSN-MUI/IV/2000) and in his book Prof. Dr. H. Veithzal Rivai, M.B.A entitled Islamic Financial Management, said that the conditions related to the profit sharing system, that the profit sharing must be clear percentage such as 60%: 40%: 50%: 50% and so on according to mutual agreement.48 In determining or determining the amount of profit sharing ratio BPRS Puduarta Insani still uses the market interest rate in determining the amount of profit sharing ratio in mudharabah financing.

The use of these factors is still considered inappropriate considering that the FATWA DECISION OF THE INDONESIAN COUNCIL OF ULAMA Number 1 of 2004 concerning INTEREST (INTERSAT/FA’IDAH) decides “Interest (Interest/fa’ida) is an additional charge in money loan transactions (al-qardh) which is calculated from the principal without considering the utilization/results of the principal, based on the time period, calculated with certainty in advance, and generally based on a percentage. The practice of using these is haram, whether carried out by banks, insurance, capital markets, courts, cooperatives, and other financial institutions or carried out by individuals. Basically, if a sharia financial institution has truly implemented a profit-sharing system, then, the interest rate in the market will not be a factor in determining the profit-sharing rate.

Because Islamic financing is essentially interest-free, the various factors mentioned above differ from the theories of Drs. Muhammad, M.Ag., and Adiwarman A. Karim. However, the author found that the theories of BPRS Puduarta Insani are nearly identical, although there are factors that differ from the existing theories in determining the profit-sharing ratio. (Antoni 2001)

Practical Implications: Increasing Customer Income on Bank Risk Management

1.Reducing Default Risk

a. Practical significance: Customers with increasing business income tend to be better able to meet their installment obligations on time.

b. Impact: Reducing the potential for problematic financing (Non-Performing Financing/NPF) and maintaining the health of the bank's financing portfolio.

2.Strengthening Customer Risk Monitoring

a. Practical significance: Revenue increase data is a key indicator in monitoring business performance and evaluating customer risk.

b. Impact: Enables banks to detect potential problems early and take prompt and appropriate mitigation actions.

3.Basis for Further Financing Decision Making

a. Practical significance: Customers who are proven to increase their income after financing are considered more worthy of receiving further financing.

b. Impact: Helps banks distribute funds more selectively and strategically, reducing the risk of financing to unproductive parties.

In Islam, to achieve business growth, business owners are expected to conduct themselves in a proper manner and adhere to Islamic teachings. The strategies employed by MSMEs are crucial for business growth. This can be further clarified through interviews and observations conducted by researchers with MSME owners. Based on data obtained by researchers in the field through interviews and observations, MSME owners develop their businesses by paying attention to consumer conditions, considering the types of businesses that can be developed to increase revenue, assessing their desires and weaknesses, and understanding the types of products preferred by consumers, meaning they continually update themselves on trending products according to current consumer preferences. (Alfarisi 2022)

The results found by researchers through interviews and observations conducted by researchers in the field that in addition to the above strategies, MSME actors apply for financing to PT BPRS Puduarta Insani Medan Tembung, because with the help of loan capital provided by PT BPRS Puduarta Insani, the business of MSME actors is getting smoother because the goods being traded are complete in the sense that what consumers ask for is already available. Another strategy carried out is to provide normal prices in the sense that when buyers come to buy an item, the price is set according to the market price, by not taking a lot of profit so as not to burden the buyer.

 <bold id="bold-22f3dd77dc8762d28d29c238d59d309c">CONCLUSSION</bold>

Based on the research results, it can be concluded that working capital and investment financing distributed by PT BPRS Puduarta Insani Medan Tembung through the murabahah contract has a positive impact on the development of community businesses. This financing is able to help business actors in meeting capital needs, increasing business capacity, and improving operational management, thereby impacting increased income and welfare. In addition, the implementation of the murabahah bi al-wakalah contract provides ease of transactions and certainty of sharia law in the implementation of financing. The success of business actors after receiving murabahah financing is also reflected in the ability to pay installments on time, business expansion, and an increase in the workforce absorbed, which indirectly helps reduce unemployment. Thus, working capital and investment financing through the murabahah contract has been proven to contribute to improving the business performance of the Medan Tembung community and strengthen the role of Islamic banking in driving economic growth of the community.

A.Suggestion

Based on the research results and discussions that have been described, the researcher then provides suggestions based on the results and studies that have been carried out by the author, which are as follows:

1.PT BPRS Puduarta Insani Medan Tembung should pay attention to financing applications, both personal and corporate, because it will affect community businesses in Medan Tembung.

2.PT BPRS Puduarta Insani so that its employees can provide appropriate and targeted services to customers, so that it will have a positive impact on increasing customer satisfaction.