Examining a distinctive loan contract “Pagang Gadai” practiced in a Muslim society: an Islamic finance perspective

Author:

Putriana Vima Tista

Abstract

Purpose This study aims to examine a distinctive loan contract widely practiced in a Muslim society. Design/methodology/approach This research adopts a qualitative research approach. The study was divided into two main stages. Stage I research relied on documentary analysis of pagang gadai contracts. Hence, Stage II research was an in-depth study in a selected nagari, adopting an ethnography approach. The study was conducted in the district of Tanah Datar, West Sumatera, from 2020 to 2023. Findings The findings of this study show that the distinctive mode of contact breaks some basic rules of Islamic finance (the practice contains riba and gharar). The practice however is prevalent in the society studied due to the influence of the customary law namely the communal ownership of lands. The practice brings impacts on the society both positives and negatives. Research limitations/implications This study focuses on the traditional mode of pagang gadai contract, which involves the transfer of right to cultivate productive agricultural lands for an exchange of loan measured in gold measurement system and excludes other modes of pagang gadai. Practical implications Revision(s) of the contract mode is an urgent matter if the society to be rescued from practicing this type of contract that contains element of exploitation and oppression. Social implications The revision(s) is needed if the society wants to follow the teaching of Islam comprehensively, as claimed in the philosophy adopted. Originality/value To the best of the author’s knowledge, this is the first study on pagang gadai that focuses on impacts of the practice on the society studied.

Publisher

Emerald

Reference30 articles.

1. Adat and Islam: an examination of conflict in Minangkabau;Indonesia,1966

2. Preferensi publik terhadap wakaf uang di Sumatera Barat;Al Muzara'ah,2021

3. Settlement of land pawn disputes through courts in West Sumatra;International Journal of Multicultural and Multireligious Understanding (IJMMU),2020

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3