A Fiqh Muamalah Perspective on the Practice of Musyarakah Contracts in Micro, Small, and Medium Enterprises
This study addresses the issue of limited access to capital faced by Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, particularly in Pandan Jaya Village, which necessitates alternative financing models aligned with principles of justice and Islamic law. The primary objective is to analyze the concept of musyarakah contracts from the perspective of fiqh muamalah and applicable sharia regulations, while identifying opportunities, challenges, and prospects for their implementation as financing alternatives for MSMEs. Employing a qualitative case study approach, data were collected through in-depth interviews, direct observation, and documentation involving three grocery MSMEs engaged in partnership-based musyarakah. The findings reveal that the practice of musyarakah among these enterprises fulfills the substantive requirements of Islamic contracts, including the presence of contracting parties, clear consent, transparent capital contributions, and joint business operations, while avoiding elements of riba and maysir. However, the absence of written agreements and witnesses highlights a significant weakness in formalization, raising the potential for gharar. The study contributes theoretically by expanding the discourse on fiqh muamalah through empirical insights at the grassroots level and practically by offering recommendations for MSME actors, Islamic financial institutions, and policymakers to strengthen legal awareness, improve documentation practices, and design adaptive regulations that support sustainable sharia-based business partnerships.
