Musyarakah Finance Prospect in Islamic Bank in the Face of ASEAN Economic Community (Mea)

In the era of Dutch colonial, the majority of entrepreneurs in Central Java and Yogyakarta come from the students. But after Indonesian independence, the students did not show up in the business world because of political policy. Nowadays the entrepreneur students bounced back with Islamic banks that one of its products is a Musharakah finance. Musharakah finance deal with the birth of the free market, namely the ASEAN Economic Community so that the question arises how the prospect Musharakah finance in Indonesian Islamic banks of facing the ASEAN Economic Community (AEC). This paper aims to describe the prospect of Musharakah finance to face AEC. The results showed that the Musharakah finance has a lot of prospects such as financing products that can be performed well and have a competitive value because it has a solid legal basis. From the network side, Islamic banks have been supported by a network offices that much better at home and abroad with excellent quality customer service. In addition, the presence Bank Indonesia blueprint of the Islamic banking institution can strengthen the Musharakah finance products so that can be applied in the ASEAN Economic Community (AEC).


A.
Prosperity and welfare are always yearning to every human being including the nation of Indonesia, because country's prosperity is shared ideals. Country is like a big family which has hundreds of millions of human beings as members, then the prosperity and welfare of a family neither be achieved by itself, nor a gift that falls from the sky freely, but they must be reached by cooperation, hard work and effort in earnest and persevering of all components of family members or public.
The hard work and effort in gaining prosperity and welfare depend very much on partnership or Musyarkah and work ethic. A research by Sunyoto Usman about the link between IXOO FRPSUHKHQVLRQ DQG H[FLWHPHQW LQ HFRQRPLF OLIH ÀQGV WKDW WKHUH LV D VLJQLÀFDQW FRUUHODWLRQ EHWZHHQ WKHP &HUWDLQ JURXSV who run Islamic Sharia more earnestly in their social life and personality seem capable of adapting more in economic life. The historical record shows that in the colonial Netherlands era, cigarettes businessmen in Central Java generally came from the circle of Islamic students, so did businessmen of batik and silver in Yogyakarta. 1 According to Sunyoto Usman, now this inclination is no longer exist because political policies have changed the economic order of our society since Indonesia's Independence Day. Especially since the early of 1970s, the government system appeared as an agent of economic development that made the possibility for all members of society to engage in economic activities open widely. As a result, the correlation between depth of religious comprehension and excitement in economic life now lives as a mere stereotype. 2 This correlation effects some fundamental questions related to work ethic, why did the groups that ran Islam Sharia seriously at that time seem capable of adapting better in the colonial economic life? Did this tendency happen by chance? If not, is there any thing in the religion that makes them formidable in overcoming Netherlands colonial economic? 3 The Questions by Usman Sunyoto are answered with the products of Musyarkah in Islamic banking in Indonesia. The ADDIN, Volume 10, Number 2, August 2016 previous businessmen succeeded because they had implemented Sharia principles in running their business. Although it could not be said to be Sharia, Islamic values have been running and ÁRZLQJ LQ HYHU\GD\ WUDGH Nowadays, the Islamic values that have been inserted into legislation in Indonesia will certainly be implemented well and Indonesians in the face of ASEAN Economic Community (AEC) will be more capable and able to be active LQ YDULRXV ÀHOGV WKURXJK WKH 0XV\DUDNDK EDQNLQJ SURGXFWV 7KHUHIRUH WKLV SDSHU LV ZULWWHQ WR XQFRYHU 0XV\DUDNDK ÀQDQFH prospects in Islamic banking in the face of ASEAN Economic Community (AEC).

B.
0XV\DUDNDK ÀQDQFH LQ ,VODPLF EDQN LV RQH RI WKH EDQNLQJ products that is intended for the customers who will develop or expand their business to be more advanced. Because of this ELJ EHQHÀW IRU WKH FRUSRUDWH ZRUOG LW QHHGV WR EH H[SODLQHG LQ detail about Musyarakah.
The word "musyarakah" is derived from the root word syaraka which means participation or partnership that is an alliance of capital to be managed together. 4 According to Abdurrahman al-Jaziri, Musyarakah is often called syirkah, property joint between two parties that cannot be separated. 5 $V VWDWHG E\ =DLQXO $ULÀQ 0XV\DUDNDK LV a partnership between two or more parties to run a certain business where each party contributes capital funds with the DJUHHPHQW WKDW WKH EHQHÀWV DQG ULVNV ZLOO EH ERUQH DORQJ based on the amount of capital contribution. 6 According to Saad Abdul Sattar Al-Harran, Musyarakah is a covenant of partnership between two or more parties to undertake certain business in which each party contributes funds with the terms; EHQHÀW DQG ULVNV ZLOO EH ERUQH DORQJ LQ DFFRUGDQFH ZLWK WKH amount of contribution or agreement. 7 0XKDPPDG 6\DÀ·L $QWRQLR LQWHUSUHWV 0XV\DUDNDK DV syarikah, which means cooperation contract between two or more parties to establish certain business, where each party FRQWULEXWHV IXQGV ZLWK WKH WHUPV WKDW EHQHÀWV DQG ULVNV ZLOO EH borne by the joint contributions of the fund included. 8 Abdul 6DHHG GHÀQHV 0XV\DUDNDK DV SDUWQHUVKLS 9 Musyarakah can EH GHÀQHG DV LQFOXVLRQ RU HTXLW\ SDUWLFLSDWLRQ ZKLFK PHDQV the joint venture cooperation contract between two parties or PRUH RI FDSLWDO RZQHUV WR ÀQDQFH D EXVLQHVV ZKLFK SURÀWV DUH divided in accordance with the agreed ratio. 10 Mahsin According to M. Nejatullah Siddiqi, Musyarakah is cooperation agreement between two or more persons in running a certain business by entering a number of capitals that has been established because of an agreement, as for sharing RI SURÀWV DQG ORVVHV DUH GHWHUPLQHG LQ DFFRUGDQFH ZLWK WKH capital included. 14 The conclusion of the various understandings about the Musyarakah is legal relationship between two or more people to perform a certain business based on Sharia principles by entering certain amounts of capital within a certain period, as IRU SURÀWV DQG ORVVHV DUH VKDUHG LQ SURSRUWLRQ WR HDFK SDUWQHU·V share of capital. Therefore the staple elements contained in cooperation Musyarakah are: the presence of two or more allies a.
the presence of certain business based on b.
Sharia principle each of the allies enters a venture capital in c.
certain amount the existence of the alliance objects exchanged within a d.
According to Abdullah Saeed, the basic law of Musyarakah principle can be found in the Qur'an from the word syaraka 170 times, although none of them means cooperation in banking business. 15 The principles of the Qur'an about Musyarakah can be used as guidelines in conducting business in Islamic banking, it is said in Shaad and An-Nisa'.

Musyarakah Types 3.
According to Saad Abdul Sattar al-Harran, Musyarakah is divided into two parts: 17 Syirkah al-milk or non-contractual partnership and Syirkah al-uqaad or contractual.
Syirkah al-milk (non-contractual partnership) is formed due to the natural factor that makes the parties have ownership rights of an asset. For example, syirkah which is formed because of inheritance. A will causes one asset can be owned by two or more persons. They share in a real asset and the SURÀW DV ZHOO 7KLV GHÀQLWLRQ RI Syirkah al-milk is taken from the economic point of view, but from the juridical stand point all syirkah starts with agreement.
While Syirkah al-uqaad is syirkah that is formed because of a treaty or agreement in which two or more persons agree that each of them gives musyarakah capital and they also agree WR VKDUH SURÀWV DQG ORVVHV 15  According to the Fiqh, the contract of Musyarakah is divided into: 18 a. Syirkah mufawadhah (full authority and obligation) Syirkah mufawadhah is a partnership contract between two or more persons in which each of the parties gives one part of the overall fund and participates in the work.

b. Syirkah inan (restricted authority and obligation)
Syirkah inan is a contract between two or more persons in which each party gives a part of the overall fund and participates in the work. Each part is not always the same, it depends on the agreement. For example, the share ownership in a Limited Liability Company (PT).

c. Syirkah al-abdan (labour, skill and management)
Syirkah al-abdan is a partnership contract of two or more people who have the same job and then they work together DQG VKDUH WKH EHQHÀWV IURP WKH ZRUN IRU H[DPSOH VRPH architects who work on the same project. d. Syirkah wujuh (good will, credit worthiness and contracts) Syirkah wujuh is a contract between two or more persons who are expert in the business. They buy items by credit and then sell them in cash. Furthermore they share the SURÀWV DQG ORVVHV EDVHG RQ WKH JXDUDQWHHV WR VXSSOLHUV provided by each partner. The implementation of Musyarakah in Islamic bank to shares purchasing of the company, Islamic bank, is allowed to invest in ownership by giving capital or purchasing some shares RZQHG E\ D FRPSDQ\ ,QYHVWLQJ LV FDUULHG RXW IRU D VSHFLÀF period and after that he (the owner) can divest or sell his own VKDUHV HLWKHU EULHÁ\ RU JUDGXDOO\ %\ XVLQJ WKLV 0XV\DUDNDK scheme, clients can be business partners for the company by HQWHULQJ WKH FDSLWDO VKDULQJ SURÀWV DQG ORVVHV DJUHHG E\ WKH parties.
to customer of partner company.
Companies have considerable leeway in the payment b.
to Islamic bank, because they do not have to pay every month, but it is adjusted with income or corporate business results, so that the company will never experience a negative spread. Islamic banks with the Musyarakah products offered in the real sector give visible impact, that is to encourage economic growth. The economy will be more passionate and able to compete when AEC is performed because the real economy is capable of moving the economic sectors of all aspects and directions, so that the society become more prosperous.
There is no speculative nature for Islamic bank in running its products. So that the Islamic banks in the resilience of economy will be stronger than conventional banks that run their credit in speculative venture.
3URÀW VKDULQJ V\VWHP RZQHG E\ ,VODPLF EDQN SURGXFWV LV 0XV\DUDNDK ÀQDQFH 7KLV ÀQDQFH HPSKDVLV PRUH RQ VKDULQJ SURÀWV DQG ORVVHV VR WKDW WKH FXVWRPHUV ZKR DUH JRLQJ WR WDNH ÀQDQFH GR QRW IHHO ZRUULHG DERXW PRQWKO\ SD\PHQW 21 &OLHQWV ZKR XWLOL]H WKLV 0XV\DUDNDK ÀQDQFH DUH QRW RQO\ personal or company but also state, because of its characteristic clients do not have to pay every month by credit, but they could also make a payment agreement to pay it in the end of 20 Customer and Islamic bank make an agreement with the a.
statement of offer and acceptance with attention to: 1) Offer and acceptance should indicate the contract purpose explicitly 2) Offer and acceptance are done at the time of the contract 3) Contract is written, by correspondence or by using modern means of communication. Partners who make a legal agreement should be good at b.
law and pay attention to: 1) They are competent in giving or being given powers of representation. 2) Each partner should provide funds and jobs, and undertake the work as representative 3) Each partner has the rights to set up Musyarakah asset in the process of normal business 4) Each partner authorizes another partner to manage asset and each is considered to have been given the authority to implement Musyarakah without doing a deliberate omission and error. 5) A partner is not allowed to withdraw or invest funds for his personal interest. 3URÀW VKDULQJ c.
( 7KH SURÀW VKDULQJ DJUHHPHQW ZLWK WKH UHJXODWHG Musyarakah principle is about business organization, the contribution of each is determined by the amount of capital given. Each party is free to contribute in the capital. 23 Musyarakah has special characteristics that usually begin with an agreement to make a legal entity to run business or project which is agreed upon in written or notaries act (Act No. 1 year 1995 article 7 verse (1) about Limited Liability Company (PT)) and according to Abdullah Saeed, there is a term that the shareholders could sell their shares to others or company. 24 7KH PDLQ WKLQJV GLVFXVVHG LQ SURÀW VKDULQJ ÀQDQFH EDVHG on Musyarakah principle are: 25 Finance type a.
,W LV SURÀW VKDULQJ ÀQDQFH EDVHG RQ 0XV\DUDNDK principles. b. Business type Businesses type includes business' place, products, characteristics and quality. c. Venture business $ EXVLQHVV WKDW LV ÀQDQFHG E\ ,VODPLF EDQN PXVW PHHW the full requirements of among others: ,W GRHV QRW FRQÁLFW ZLWK ,VODPLF 6KDULD 1) It is not prohibited by law, general provisions and 2) decency The business is productive and grows steadily.

3) c. Capital amount
Each party gives capital based on will and agreement of the parties. Capital could be movable items for instance cars in transportation business or ground with the building as a business place.

H 1LVEDK 3URÀW 6KDULQJ
Nisbah regulation, each party will get nisbah as the capital given as shared possession. 24 Ibid. 25  The percentage of capital that must be inserted into the shared possession in an alliance is free. It depends on the will of the parties. Usually the total assets owned by the customer DQG WKH VKRUWDJH RI FDSLWDO IRU WKH EXVLQHVV DUH WRWDOHG ÀUVW )RU WKH VKRUWDJH EDQN SURYLGHV ÀQDQFH E\ LQYHVWLQJ IXQGV RQ the business that has run. Here, each of the capital owners has the rights to participate in deciding the policy of the business which is run and can transfer ownership or be replaced by another party. Owner of capital is considered terminating partnership if: withdraw from alliance a.
pass away b.
become incapable of law or in a state of bankruptcy c. In management with Musyarakah principle, the bank is represented by an executive board appointed by bank director. Because the capital amount entered by allies is free as the level and willingness of each, so that the risk of losses is borne in accordance with the contribution of capital.
0XV\DUDNDK supervision of sharia principles in banking operations (both instruments and associated agency); Minimize people's complaints concerning the c) application of sharia principles in each transaction. To implement the Sharia principle of prudence in Islamic 2) banking operations marked with: The realization of arrangement framework and risk-a) based supervision that suit its character and supported by reliable human resources; The Implementation of the good corporate governance b) concept in Islamic banking operations;

7KH LPSOHPHQWLQJ HIÀFLHQW H[LW DQG HQWU\ SROLFLHV c)
The Realization of real time supervision; d) The realization of self-regulatory system. e) ADDIN, Volume 10, Number 2, August 2016 7R FUHDWH D FRPSHWLWLYH DQG HIÀFLHQW ,VODPLF EDQNLQJ 3) system which is characterized by: The creation of competent businessmen globally; a) The realization of an effective strategic alliance; b) The realization of cooperation mechanism with the c) supporting institutions. 7R FUHDWH V\VWHPLF VWDELOLW\ DQG WR UHDOL]H WKH EHQHÀW IRU 4) society, which are characterized by: Making the safety net which is unity with a careful a) banking operations concept; Satisfying the needs of a society who wants Islamic b) banking services in all areas of Indonesia with market share target of 5% of the total national banking assets; Realizing of the c) kaffah Islamic banking functions and being able to serve all segments of the community; ,QFUHDVLQJ WKH ÀQDQFH SDWWHUQ SURSRUWLRQ ZLWK d) SURÀW VKDULQJ Based on the development targets of Islamic banking determined by Bank Indonesia until 2011, there are four things: (1) satisfying the Sharia principles in banking operations (2) implementing Sharia principles of prudence in Islamic banking RSHUDWLRQV FUHDWLQJ FRPSHWLWLYH DQG HIÀFLHQW ,VODPLF banking system (4) creating of systemic stability and realizing EHQHÀW WR WKH ZLGHU FRPPXQLW\ 29 If the target is connected WR 0XV\DUDNDK ÀQDQFH ÀQDQFH ZLWK WKH 0XV\DUDNDK ÀQDQFH is attempted to meet the Islamic principles, the principle of SUXGHQFH DQG KDYH EHQHÀWV YDOXH DQG FRPSHWLWLYH IRU VRFLHW\ at large.
7KLV 0XV\DUDNDK ÀQDQFH IRU $6($1 (FRQRPLF Community (MEA) is a product of Islamic banks in Indonesia which becomes pre-eminent and competitive, because it has DOUHDG\ VDWLVÀHG DOO IRXQGDWLRQV UHTXLUHG E\ FRPPXQLW\ ,W FDQ be seen from the strategic initiative built by Bank Indonesia in order to achieve progress for Islamic banking and could compete in MEA, among others: 6WUDWHJLF ,QLWLDWLYH 3KDVH , b.
Strategic initiative phase I is focused on the establishment of basic framework of setting system suited to the characteristics of healthy Islamic banking operations, as follows: Compliance with Sharia principles: 1) ,PSURYLQJ WKH XQGHUVWDQGLQJ RI ,VODPLF ÀQDQFH a) concept; Encouraging and facilitating the preparation of Islamic b) ÀQDQFH QRUPV Conducting a study about mechanism, setting system c) and integrated supervision. economy are realized by encouraging the realization of the kaffah ,VODPLF ÀQDQFH V\VWHP Based on the description above, it is understood that Islamic banking in the face of ASEAN Economic Community (MEA) has been prepared by Bank Indonesia with the blueprint so that its products, especially Musyarakah product, can be applied to the maximum because there has been a strong foundation both in the laws namely Sharia principles and also in the Act No. 21 of 2008 about Islamic banking which UHJXODWHV WKH 0XV\DUDNDK ÀQDQFH IRU FXVWRPHUV 0XV\DUDNDK ÀQDQFH SURVSHFWV IURP WKH WRWDO SRSXODWLRQ of Indonesia even ASEAN countries, they are predominantly muslims. At least judging from the composition of the ASEAN countries there are three countries that the majority of the population is muslim, namely Indonesia, Malaysia and Brunei Darussalam, then the implementation Musyarakah product for customers in ASEAN will be able to exist and can be utilized by the nations in ASEAN countries.
0XV\DUDNDK ÀQDQFH SURVSHFWV LQ $6($1 FRXQWULHV from the side of Islamic banking numbers also have a competitive because there are some in country members of ASEAN: Indonesia, Malaysia, Thailand, Singapore, and Brunei Darussalam. 31 Seeing the existence of the many Islamic banks LQ $6($1 FRXQWULHV WKHQ WKH SURGXFW RI 0XV\DUDNDK ÀQDQFH has very good and competitive prospect.

Conclusion C.
0XV\DUDNDK ÀQDQFH SURVSHFWV LQ ,VODPLF EDQNV LQ facing ASEAN Economic Community (AEC) is one of the ÀQDQFH SURGXFWV LQ ,VODPLF EDQNV WKDW FDQ EH LPSOHPHQWHG well because it has competitive values as follows; ÀUVW: It has strong legal basis in the running of Sharia principles which are based on Qur'an and Hadith and a fatwa institution that centralized in Indonesian Ulama Council (MUI) so that there is no difference in the application of the Sharia principles in all ,VODPLF EDQNLQJ LQVWLWXWLRQV LQ ,QGRQHVLD 0XV\DUDNDK ÀQDQFH has also been stated in Act No. 21 of 2008, so there is no doubt in the implementation of it. Second, It is supported by network RI ,VODPLF EDQN RIÀFHV WKURXJKRXW ,QGRQHVLD DQG DEURDG Third, There have been education and socialization intensively that done by Islamic banking program for community. Fourth, There are some efforts to improve the quality of Islamic banking service to the customer. Fifth, There is a big support from Indonesians who are mostly Muslims. Sixth, There is a big support from the blueprint of Bank Indonesia for Islamic EDQNLQJ LQVWLWXWLRQV VR WKDW LW VWUHQJWKHQV 0XV\DUDNDK ÀQDQFH product and can be applied for facing ASEAN Economic Community (MEA).