Comparative Analysis of Sharia Financing Case Studies in Indonesia and Malaysia

Abstract

This study aims to analyze the comparative implementation of Islamic financing in Indonesia and Malaysia, focusing on four main contracts: Murabahah, Mudharabah, Qard, and Bai’ Bithaman Ajil (BBA). The research employs a qualitative method with a descriptive-comparative approach, using secondary data from literature, institutional reports, and previous studies. The findings indicate that Indonesia emphasizes strict compliance with Sharia principles under the supervision of the National Sharia Council (DSN-MUI), whereas Malaysia is more advanced in innovation and product diversification within Islamic financing. In the Murabahah contract, Indonesia prohibits Bai’ al-Inah due to its potential riba elements, while Malaysia permits it. In Mudharabah, Indonesia tends to combine contracts to minimize risk, while Malaysia differentiates between Mudharabah Mutlaqah and Mudharabah Muqayyadah. Both countries use Qard for social purposes, but Malaysia integrates it with waqf and crowdfunding initiatives. Meanwhile, BBA serves as a dominant financing mode in Malaysia’s housing sector, while in Indonesia its use remains limited. The study concludes that both countries possess complementary strengths: Indonesia excels in Sharia compliance, whereas Malaysia leads in innovation and financial product development.