Implementation of Anti-Usury Practices in Islamic Finance: A Case Study at PT. Kredit Tanpa Usury (KRTABA) East Lombok Penerapan Praktik Anti Riba Dalam Keuangan Islam: Studi Kasus Di PT. Kredit Tanpa Riba (KRTABA) Lombok Timur
Article Sidebar
Main Article Content
Abstract
This study aims to analyze the implementation of anti-usury principles in the financing practices of PT. Kredit Tanpa Riba (KRTABA), an Islamic financial institution operating in East Lombok Regency. This research uses a qualitative approach with a case study method. Data were collected through in-depth interviews, direct observation, documentation, and literature review. Key informants include management, staff, customers, and Islamic economic scholars. The main focus of the study is to evaluate whether KRTABA’s financing practices are genuinely free from usury elements and aligned with Islamic principles, particularly regarding murabahah contracts, price transparency, and interest-free policies. The results show that KRTABA consistently avoids usury in all aspects of its operations. The institution applies fixed pricing without additional interest, eliminates down payments, and offers free services without hidden fees. All contracts are based on principles of fairness, honesty, and mutual assistance. The financing concept has had a positive impact on society by enhancing Islamic financial literacy and providing an alternative solution to the dominance of the conventional interest-based system. Therefore, KRTABA can be regarded as a model of inclusive, just, and practical Islamic financing institutions.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
References
Adhariani, D. (2022). Microfinance and the role of accounting in supporting family-resilience-based women's empowerment. The Qualitative Report, 27(2), 366-384.
https://doi.org/10.46743/2160-3715/2022.4249
Ahyani, H., & Slamet, M. (2021). Building the values of Rahmatan Lil'Alamin for Indonesian economic development at 4.0 era from the perspective of philosophy and islamic economic law. Al-Ihkam: Jurnal Hukum & Pranata Sosial, 16(1), 111-136.
https://doi.org/10.19105/al-lhkam.v16i1.4550
Alwi, Z., Parmitasari, R. D. A., & Syariati, A. (2021). An assessment on Islamic banking ethics through some salient points in the prophetic tradition. Heliyon, 7(5).
https://doi.org/10.1016/j.heliyon.2021.e07103
Azmat, S., & Subhan, M. (2022). Ethical foundations of the Islamic financial industry. Journal of business ethics, 180(2), 567-580.
https://doi.org/10.1007/s10551-021-04882-5
Conti, E., & Chiarini, A. (2021). Design-driven innovation: exploring new product development in the home appliances and furniture industry. The TQM Journal, 33(7), 148-175.
https://doi.org/10.1108/TQM-12-2020-0313
D’Hauwers, R., Van Der Bank, J., & Montakhabi, M. (2020). Trust, transparency and security in the sharing economy: what is the government's role?. Technology Innovation Management Review, 10(5).
https://doi.org/10.22215/timreview/1352
Dewi, M. K., & Ferdian, I. R. (2021). Enhancing Islamic financial literacy through community-based workshops: a transtheoretical model. Journal of Islamic Accounting and Business Research, 12(5), 729-747.
https://doi.org/10.1108/JIABR-08-2020-0261
Ghlamallah, E., Alexakis, C., Dowling, M., & Piepenbrink, A. (2021). The topics of Islamic economics and finance research. International Review of Economics & Finance, 75, 145-160.
https://doi.org/10.1016/j.iref.2021.04.006
Hagawe, H. M., Mobarek, A., Hanuk, A., & Jamal, A. (2023). A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF). Cogent Business & Management, 10(1), 2135202.
https://doi.org/10.1080/23311975.2022.2135202
Herianingrum, S., Widiastuti, T., Hapsari, M. I., Ratnasari, R. T., Firmansyah, F., Hassan, S. A., ... & Muzakki, L. A. (2024). Muzakki and Mustahik’s collaboration model for strengthening the fundraising capacity of Islamic social finance institutions during COVID-19. International Journal of Ethics and Systems, 40(1), 175-188.
https://doi.org/10.1108/IJOES-05-2022-0091
Herijanto, H. (2022). Al amanah in al qur’an vs trust: a comparative study. International Journal of Ethics and Systems, 38(4), 549-575.
https://doi.org/10.1108/IJOES-03-2021-0064
Huang, K. P., Lo, S. T., & Sutthiphisal, D. (2023). From data transparency and security to interfirm collaboration-a blockchain technology perspective. ABAC Journal, 43(3), 12-25.
https://doi.org/10.59865/abacj.2023.27
Iqbal, J., Ahmad, I., Anwar, M. I., & Anjum, G. M. (2024). Islamic Economic Principles and Their Relevance to Modern Business Practices in Pakistan. International Research Journal of Management and Social Sciences, 5(2), 118-126.
Izmuddin, I., Amalia, E., Nasir, M. A., & Muttaqin, F. (2023). The Legitimation of Religion in Profit Seeking: The Role of National Shari ‘āh Division of The Indonesian Muslim Council (DSN-MUI). Samarah: Jurnal Hukum Keluarga Dan Hukum Islam, 7(2), 781-800.
https://doi.org/10.22373/sjhk.v7i2.15835
Javaid, O., Shamsi, A. F., & Hyder, I. (2020). Religious entrepreneurial communities as a solution for socioeconomic injustice. Journal of Enterprising Communities: People and Places in the Global Economy, 14(3), 415-446.
https://doi.org/10.1108/JEC-03-2020-0023
Kasdi, A., Karim, A., Farida, U., & Huda, M. (2022). Development of Waqf in the Middle East and its Role in Pioneering Contemporary Islamic Civilization: A Historical Approach. Journal of Islamic Thought and Civilization, 12(1), 140-153.
https://doi.org/10.32350/jitc.121.10
Kumar, A., Liu, R., & Shan, Z. (2020). Is blockchain a silver bullet for supply chain management? Technical challenges and research opportunities. Decision Sciences, 51(1), 8-37.
https://doi.org/10.1111/deci.12396
Liu, J., Liu, Z., Yang, Q., Osmani, M., & Demian, P. (2022). A conceptual blockchain enhanced information model of product service systems framework for sustainable furniture. Buildings, 13(1), 85.
https://doi.org/10.3390/buildings13010085
Mergaliyev, A., Asutay, M., Avdukic, A., & Karbhari, Y. (2021). Higher ethical objective (Maqasid al-Shari’ah) augmented framework for Islamic banks: Assessing ethical performance and exploring its determinants. Journal of business ethics, 170(4), 797-834.
https://doi.org/10.1007/s10551-019-04331-4
Miftahorrozi, M., Khan, S., & Bhatti, M. I. (2022). Waste Bank-Socio-Economic empowerment nexus in Indonesia: The stance of Maqasid al-shariʻah. Journal of Risk and Financial Management, 15(7), 294.
https://doi.org/10.3390/jrfm15070294
Muhammad, R., & Nugraheni, P. (2022). Sustainability of Islamic banking human resources through the formulation of an islamic accounting curriculum for higher education: indonesian perspective. Sage Open, 12(1), 21582440221079838.
https://doi.org/10.1177/21582440221079838
Muhoza, P., Saleem, H., Faye, A., Gaye, I., Tine, R., Diaw, A., ... & Marx, M. A. (2021). Key informant perspectives on the challenges and opportunities for using routine health data for decision-making in Senegal. BMC health services research, 21, 1-15.
https://doi.org/10.1186/s12913-021-06610-1
Naceur, S. B., Candelon, B., Elekdag, S., & Emrullahu, D. (2023). Is FinTech Eating the Bank's Lunch?. Journal of International Financial Management & Accounting.
https://doi.org/10.5089/9798400258107.001
Riaz, U., Burton, B., & Fearfull, A. (2023). Emotional propensities and the contemporary Islamic banking industry. Critical Perspectives on Accounting, 94, 102449.
https://doi.org/10.1016/j.cpa.2022.102449
Roose, J. M. (2020). The New Muslim Ethical Elite:“Silent Revolution” or the Commodification of Islam?. Religions, 11(7), 347.
https://doi.org/10.3390/rel11070347
Siddique, M. Z. (2022). Modern money and Islamic banking in the light of Islamic law of riba. International Journal of Finance & Economics, 27(1), 993-1008.
https://doi.org/10.1002/ijfe.2196
Solarino, A. M., & Aguinis, H. (2021). Challenges and best‐practice recommendations for designing and conducting interviews with elite informants. Journal of Management Studies, 58(3), 649-672.
https://doi.org/10.1111/joms.12620
Thalgi, M. J. (2024). Altruism and Social Cohesion: An Islamic Perspective of Charitable Acts for Sustainable Development. Journal of Islamic Thought and Civilization, 14(2), 42-62.
https://doi.org/10.32350/jitc.142.04
Wanner, J., Herm, L. V., Heinrich, K., & Janiesch, C. (2022). The effect of transparency and trust on intelligent system acceptance: Evidence from a user-based study. Electronic Markets, 32(4), 2079-2102.
https://doi.org/10.1007/s12525-022-00593-5
Widjajanti, R. S., & SS, M. S. (2021). Pemikiran Rizieq Syihab Tentang Islam Dan Pancasila (Bachelor's thesis).