Free of Usurythe Deed of Appropriation Land Mortgage in Sharia Banks

Abstract

Islamic Sharia Banking in Indonesia related to make and sign deed of appropriation land mortgage between Customer and Bank shall refer to the applicable law in Indonesia as stipulated under the law Number 4 years 1996 concerning Land Mortgage, Government Regulation Number 24 Year 2016 on PPAT (PPAT Regulation), Fatwa of the National Sharia Council of the Indonesian Ulama Council (Fatwa DSN MUI), Supreme Court Regulation No. 02/2008 concerning the Compilation of Sharia Economic Law (KHES); The Law of the Republic of Indonesia Number 21 Year 2008 concerning Sharia Banking, Ministry of Agrarian and Spatial Planning/National Land Agency Number 8 Year 2012 concerning implementation regulations of land registration and other related regulation that applies in Indonesia. The most important thing in deed of appropriation of land mortgage is free of usury in accordance with the principle of sharia as stipulated as referred to in the Al-Quran and As-Sunnah and this was reflected in deed of appropriation of land mortgage which regulate provisions about value of land mortgage who do not regulate the total amount of the value of land mortgage that exceeds the loan as referred to in the principle agreement. This paper aims to understand the current sharia banking practices and the state of the sharia banking system in Indonesia.