MUSYARAKAH MUTANAQISHAH CONTRACT CONCEPT: REVIEW OF PRODUCT REFINANCING AND TAKE OVER (KONSEP KONTRAK MUSYARAKAH MUTANAQISHAH: REVIEW REFINANCING PRODUK DAN TAKE OVER)

Musyarakah mutanaqishah is a modified contract from a musyarakah contract that is implemented in Islamic financial institutions as one of their financing products. As for one of the products that accompany it, namely refinancing and transfer of debt (take over). This paper aims to review the musyarakah mutanaqishah concept and its concept in Islamic financial institutions and examine briefly related to refinancing and take over products, these two products are products that cannot be separated from the musyarakah mutanaqishah contract whose implementation in Islamic financial institutions is currently widely used. The approach used in this paper is a normative juridical approach, then the type of research used is qualitative and the method chosen is descriptive analysis research method while the data is collected by literature study. Musyarakah mutanaqishah implemented in Islamic Financial Institutions is in accordance with sharia principles, this is supported by the existing DSN MUI fatwa and refinancing and take over products are also one of the conveniences in applying a musyarakah mutanaqishah contract.

Musyarakah mutanaqishah is a modified contract from a musyarakah contract that is implemented in Islamic financial institutions as one of their financing products.As for one of the products that accompany it, namely refinancing and transfer of debt (take over).This paper aims to review the musyarakah mutanaqishah concept and its concept in Islamic financial institutions and examine briefly related to refinancing and take over products, these two products are products that cannot be separated from the musyarakah mutanaqishah contract whose implementation in Islamic financial institutions is currently widely used.The approach used in this paper is a normative juridical approach, then the type of research used is qualitative and the method chosen is descriptive analysis research method while the data is collected by literature study.Musyarakah mutanaqishah implemented in Islamic Financial Institutions is in accordance with sharia principles, this is supported by the existing DSN MUI fatwa and refinancing and take over products are also one of the conveniences in applying a musyarakah mutanaqishah contract (;).

INTRODUCTION
Al-Musyarakah, also known as syirkah, is a contract of collaboration between two or more parties for a specific company in which each party contributes capital with the understanding that the profits and risks would be divided according to the agreement.This kind of contract is also known as a syirkah (Faizal, 2017, p. 59).Cooperation between two or more individuals in terms of money, expertise, or trust in a specific company, with profit sharing depending on a ratio agreed upon by the involved parties, is known as syirkah (Takdir, 2019, p. 85).Compliance among partners in the execution of business ethics is one of the most important factors determining the existence of a partnership.When seen in this light, the parties directly participating in the partnership are the ones who are directly responsible for ensuring that they have the fundamentals of good business ethics, which are mutually understood and shared as a starter in the execution of the partnership (Taufiqulhakim & Hendratmi, 2020, p. 2148).Economic activity in Islamic teachings is part of muamalah (Shalihah, 2016, p. 144).Islam as a religion that is very perfect in regulating matters of worship to Allah SWT has also regulated matters relating to the rules of interacting with fellow human beings (Dinata, 2021, p. 22).Partnership-based products with profit sharing such as musyarakah as a competitive superior product for Islamic banking have not experienced growth like other products (Husein, 2019, p. 80).
Scholars of the four schools of thought divide syirkah into two parts namely; syirkah amlak and syirkah 'uqud.The two types of syirkah are divided into seven types of syirkah.
Syirkah amlak is split to 2 distinctive types: which are syirkah ikhtiariyah and ijbar, while syirkah 'uqud is divided into five, namely syirkah 'inan, mufawwadhah, wujuh, abdan, and mudharabah (Yarmunida, 2014, p. 61).All of these syirkah in concept and implementation in general are still basic and limited to cooperation in managing assets.
In contemporary developments, syirkah is not limited to collaboration between individuals, furthermore, syirkah includes collaboration between individuals and an institution, institutions and companies, and so on.The current development of the Islamic economy demands a modification of this contract.One that is used in Islamic banking as a form of product modification is the emergence of a musyarakah mutanaqishah contract in some financing.The practice of musyarakah in Islamic banking has undergone many modifications, some are even considered to deviate from the basic concept of musyarakah in classical muammalah fiqh.Bank Syariah Indonesia as one of the largest BUS in Indonesia implements a musyarakah mutanaqishah contract in two financing, namely refinancing and retail financing or procurement of goods and take over.
In the context of implementing musyarakah mutanaqishah contract-based financing products that comply with sharia principles, provisions and standards, a comprehensive and consistent product operational standard framework is needed in line with sharia principles.On that basis, this paper aims to review the concept of musyarakah mutanaqishah and a simple study of refinancing and take over products.

RESEARCH METHODS
The approach used in this paper is a normative juridical approach, which is an approach based on the main legal material by examining the theories, concepts, legal principles and laws and regulations related to this research.The type of research used is qualitative, namely research that is descriptive in nature and tends to use analysis.While the method chosen is a descriptive analytical research method that functions to describe or give an overview of the object under study through data or samples that have been collected as they are.In collecting data, the authors use literature studies from articles and scientific works that contain elements that can be used in studying musyarakah mutanaqishah.The data analysis technique used is data condensation, data presentation, and drawing conclusions (Miles & Huberman, 1984;Miles, Huberman, & Saldaña, 2014).

Musyarakah mutanaqishah (MMQ) concept
In Indonesian, the term Al-Musyarakah is interpreted as a partnership or partnership or alliance, and in economics, it is related to the theory of mixing.Where the musyarakah theory concerns two pillars: the object of mixing and the time of mixing ('Ainul Imronah,

2018, p. 35).
The science of fiqh distinguishes mixing objects into 2 types, first, mixed objects of 'ain (real assets) in the form of goods and services, consisting of a mixture of 'ain and 'ain or real assets with real assets, then mixing real assets with financial assets.Whereas in terms of the time when the mixing occurred, fiqh grouped it into two times, namely the time of delivery right away and the time of postponed delivery or muajjal (Hakim, 2011, p. 244).So, a musyarakah contract is part of banking products which is "a financing/investment of funds from two or more owners of funds and/or goods to run a certain business in accordance with sharia with the distribution of business results between the two parties based on an agreed ratio, while the distribution of losses is based on the proportion of each capital" (Aziz, 2015).
A musyarakah contract is a kind of cooperation agreement that may include two or more parties.A musyarakah mutanaqishah is a derivative product that comes from a musyarakah contract (Solihin & Suarsa, 2019, p. 139).The musyarakah mutanaqishah (MMQ) is considered to be either a continuation of the musyarakah contract or an integral element of that contract (Ascarya, 2008, p. 49).The word syirkah is more widely used in Islamic fiqh; however, the term musyarakah, which is used in sharia finance schemes, has a limited meaning ('Ainul Imronah, 2018, p. 35).In the terminology of Islamic fiqh, there are two different types of syirkah: syirkah al-milk, also known as syirkah of ownership, refers to the joint ownership of a property by two or more parties, and syirkah al-uqud, also known as syirkah akad, refers to a partnership that develops as a result of a joint contract or business venture.
The development of MMQ is inextricably linked to the advent of subsidized house purchases made available by the government at the same time (Agustiar, 2021, p. 28).The term "Musyarakah" is used in Islamic banking, and it refers to a type of business that is both legitimate and fruitful, and it entails an agreement that the profits from a collaboration or mixing between two or more parties to carry out something will be shared according to the agreed ratio, and that the risks will be borne according to the portion of the cooperation that each party will be responsible for (Andriani, 2019, p. 104).In musyarakah applications, Islamic banks offer musyarakah certificates comparable to mudharabah bonds.In order to ensure the distribution levels that are needed by the project, these certificates range in both price and term.Even though it is common knowledge that musyarakah and mudharabah are not interchangeable in terms of the amounts given (Hasanah & Ichfan, 2021, p. 6).
While the term mutanaqishah derives from the phrase yatanaqishu-tanaqish-tanaqishanmutanaqishun, which may be translated as "to progressively diminish."A musyarakah mutanaqishah is a kind of musyarakah or syirkah in which the ownership of assets (goods) or Because, similar to ijarah muntiyah bi-al-tamlik, musyarakah mutanaqishah is based on a promise from the bank to its customer partner that the bank will sell to the partner its share of ownership in syirkah if the partner has paid the bank the price of the bank's portion, musyarakah mutanaqishah is permitted by sharia.During this period, the bank considers the musyarakah mutanaqishah to be a syirkah 'inan, and it distributes the responsibility of managing commercial activities to its clients and partners.After the syirkah has been completed, the bank may sell all or a portion of its share to partners, provided that the sales transaction is carried out independently and is not constrained by a syirkah contract (Zuhaily, 2002, pp. 436-437).
According to DSN-MUI No. 73 concerning musyarakah mutanaqishah, this contract consists of musyarakah and bai' contracts, in which the partners have the same rights and obligations as in general musyarakah financing.These rights and obligations include providing capital and work based on agreement at the time of the contract, obtaining profits based on the ratio and agreed upon at the time of the contract, and bearing loss in proportion to the amount of capital The sharia or LKS is required to make a guarantee in the musyarakah mutanqishah contract that they would sell all of their hishah, and the sharik or client is required to purchase it.Therefore, after the sales transaction has been finalized, the whole hishah is considered to be the property of the purchaser.In a musyarakah mutanaqishah, assets may be ijarah'd to syrik or another party with an agreed-upon ujrah value.The ujrah is split according to the agreed-upon nisbah in the will, but if there is a loss, it is distributed according to the percentage of ownership in the asset.

Musyarakah mutanaqishah(MMQ) in Islamic Financial Institutions
Musyarakah (cooperations) is the nexty type of rofit0sharing executed in Islamic banking system (Sa'diyah, 2016, p. 320).Musyarakah mutanaqishah financing is a type of system in sharing profit in partnership financing between the BUS/UUS/BPRS and the customer in terms of collective ownership of some assests in accordance to the syirkah 'inan principle where the bank's hishah degrades and switches to the customer from mechanism of purchase of commercial installments or transfers.
Implementation in Islamic banking operations is a collaboration between Islamic banks and customers for the procurement or purchase of an item (object) (Hosen, 2016, p. Institution is to purchase a new property (Ready Stock), old property (Second) or New Indent Property, then as take-over financing and refinancing.While the objects of financing (type of property) that use musyarakah financing agreements are residential houses, flats, shop houses, office houses, apartments and condominiums.

Scheme in Refinancing
The scheme for refinancing is as follows: Scheme 1: Musyarakah mutanaqishah contract with the following provisions:

Mechanisms in Refinancing
Meanwhile the MMQ mechanism for refinancing is as follows: a. Prospective Customers apply for financing to Islamic Financial Institutions in the context of refinancing.
b. Islamic Financial Institutions conduct an appraisal (taqwim al-'urudh) of the goods or assets of prospective customers to determine a fair price, in order to determine the business capital (ra'sul mal) that the customer includes in syirkah with Islamic Financial Institutions.
c. Islamic Financial Institutions include a certain amount of funds that will be used as syirkah business capital with customers; accompanied by conditions for the Customer to settle obligations and/or debts for previous financing if any.
d. Islamic Financial Institutions give power of attorney (wakalah contract) to customers to do business that is lawful and good, including through ijarah contracts.
e. Customers and Islamic Financial Institutions share business profits according to the agreed ratio or share of included capital (proportional), and losses are divided according to the portion of capital.
f.The customer makes a commercial transfer of hishah owned by an Islamic Financial Institution in stages according to the agreement.

b. Transfer of Debt (Take Over)
In the DSN Fatwa No. 31/DSN-MUI/VI/2002 concerning debt transfers, it is stated that debt transfer is the transfer of customer debt from conventional banks/financial institutions to Islamic banks/financial institutions.Financing based on take over itself is a form of Islamic bank financial services in helping the community to transfer non-sharia transactions that have been running into sharia-compliant transactions (Karim, 2010, p. 249).
Islamic banks in handling take over financing take over customer debt by providing hiwalah services or can also use qard, adjusted for the presence or absence of an interest element in customer debt to conventional banks.After the customer pays off his obligations to conventional banks, the transactions that occur are transactions between customers and Islamic banks.Thus, what is meant by take over financing is financing that arises as a result of the take over of non-sharia transactions that have been carried out by Islamic banks at the request of customers (Karim, 2010, p. 249).

Contract Provisions
capital of one party (the syarik) gradually reduces as a result of progressive acquisitions.In accordance with what is said in the Fatwa Number 73/DSN-MUI/IX/2008 on Musyarakah.
Scheme 2: Akad al-bai' wa al-istijar with the following provisions: a.All pillars, terms and conditions contained in the Akad al-bai' ma'a al-isti'jar (Fatwa Number: 71/DSN-MUI/VI/2008 about Sale and Lease Back) apply to refinancing.b.All the pillars, terms and conditions contained in the ijarah contract Muntahiyyah bit tamlik (DSN-MUI fatwa Number: 27/DSN-MUI/III/2002 about al-Ijarah al-Muntakiyyah bi al-Tamlik), apply in the case of al-istijar which The contract used is the ijarah Munhitiyyah bi al-tamlik contract.
Related to Debt Transfer (Take Over) In the DSN fatwa No. 31/DSN-MUI/VI/2002 about debt transfers mentions several alternative debt transfer schemes, these alternatives are: Alternative 1 a.LKS offers qardh to clients.With this qardh, the consumer pays off his credit (debt), therefore acquiring complete ownership of the assets acquired with the credit.b.The customer sells the assets described in (a) to the LKS, and then pays off his qardh to the LKS using the revenues from the transaction.c.LKS offers murabahah assets that it already owns to clients in exchange for installment payments.d.The DSN fatwas 19/DSN-MUI/IV/2001 regarding al-Qardh and 04/DSN-MUI/IV/2000 regarding Murabahah also apply to the implementation of Debt Transfer Financing as an alternative.Alternative 2 a. LKS buys some of the client's assets, with LKK's permission; so that in this way, syirkah al-milk occurs between the LKS and the customer for the asset.b.The portion of assets purchased by the LKS as referred to in point (a) is the portion of assets equivalent to the debt (remaining installments) of the customer to the LKK.c. LKS sells a murabahah portion of the assets that belong to it to customers, with payments in installments.d.DSN fatwa number: 04/DSN-MUI/IV/2000 concerning Murabahah also applies to the practicen of Debt Transfer Financing as referred to in this alternative II.Alternative 3 a.Customers may engage into an Ijarah contract with LKS in order to secure complete ownership of assets, in line with DSN-MUI Fatwa number 09/DSN-MUI/IV/2002.b.If required, LKS may assist with customer duties utilizing the al-Qardh principle in accordance with Fatwa 19/DSN-MUI/IV/2001.c.The Ijarah contract mentioned in (a) may not be needed by (must be distinct from) the bailout mentioned in (b).d.The amount of Ijarah service fees referenced in (a) may not be dependent on the amount of bailouts given by the LKS to clients, as referenced in (b).Alternative 4 a.LKS supplies consumers with qardh.Through this qardh, the consumer pays off his credit (debt), therefore acquiring complete ownership of the assets acquired with the credit.b.The customer sells the assets described in (a) to the LKS, and then pays off his qardh to the LKS using the revenues from the transaction.c.LKS leases its acquired assets to consumers under the al-Ijarah al-Muntakiyah bi al-Tamlik contract.d.The DSN fatwas 19/DSN-MUI/IV/2001 regarding al-Qardh and 27/DSN-MUI/III/2002 regarding al-Ijarah al-Muntakiyah bi al-Tamlik also apply to the implementation of Debt Transfer Financing as described in this option IV.
The stages of the MMQ financing process in Islamic financial institutions are as shown in the following table: