ANALYSIS OF THE MUTANAQISAH MUSYARAKAH CONTRACT AS A SOLUTION FOR HOME OWNERSHIP FINANCING IN ISLAMIC BANKING

The need for residential houses is currently increasing. Islamic financial institutions, especially Islamic banking, offer a variety of products and services to face the needs of the community. Murabahah contracts are still a prima donna product in Indonesia, but it has many weaknesses in its implementation. The presence of musyarakah mutanaqisah can be the best solution for property ownership for the community. The research method used is a qualitative approach with descriptive analysis and literature. The study aims to analyze the implementation and advantages of musyarakah mutanaqisah contracts in financing home ownership in Islamic banking. The results of the analysis show that the implementation of MMQ can be a solution for the community in fulfilling their prerequisites, but there are many things in musyarakah mutanaqisah that must be understood so that the product can run well in Indonesia. The benefits of musyarakah mutanaqisah contracts for customers are financing with relatively longer terms and additional spare parts that are more affordable.


INTRODUCTION
Public interest in Islamic banking is currently getting higher. With the increasing public energy for the presence of Islamic banking in Indonesia, the progress of Islamic banking in Indonesia is increasing experience with a very rapid increase. In 2019, there were 184 Regional Development Bank BUS and 1721 National Private Bank BUS (Badan Pusat Statistik, 2019). One of the efforts of Islamic institutions in creating a higher market share is by providing several banking products which are more variative and competitive.
Islamic banking is expected to be able to guarantee about the things implemented aim to and meet sharia guidelines so that they can be a differentiator between Islamic banks and conventional banks.
Efforts and trial in implementing matters related to Islamic finance require special skills and a difficult process because they must combine and unify several knowledge disciplines (Shinkafi & Ali, 2018). Limited human resources resulted differences understanding between Islamic banks in implementing their products. Islamic banks must have standard products that are capable of being a reference and able to guarantee favorable operational term and customer protection and so platform to develop and provide product innovations that are increasingly varied in order to be able to grow better. The effort is very important considering how Islamic banks have recently experienced a very sharp degradation and slowdown in the portion of general business compared to conventional.
The superior product in Islamic finance today are partnership-based products, such as mudharabah and musyarakah (ojk.go.id).
The issue concerned by government today is the need for home ownership. Vice President Ma'ruf Amin said that general experts have a lot of work to do in housing needs today. The reason is that there are still many people who do not own a house. In 2020, the number of families in Indonesia owning a house is 80.10%. For the time being, the remaining 19.90% are still living by renting a house, staying at a relative's house, or maybe choosing to live abroad (bps.go.id) Meanwhile, a house can be livable with the hope of meeting 4 (four) sizes, such as: a) (BPS-RI, Susenas 2016-2020); b Adequate living space at least 7.2 m2 per capita; c) Access to proper drinking water; d) Access to appropriate disinfection.
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 5. No. 1 January 2021e-ISSN: 2621 Analysis of the Mutanaqisah Musyarakah ….. 392 Public interest is increasing for the fulfillment of residential houses, even the ongoing development is still not able to meet the current demands of society today, especially when someone who wants to claim a house but has not been able to pay it in cash (de Nichilo, 2021). Home loan products offered by conventional banks still use the usury system clearly forbidden in Islamic law. Besides that, the special need for ownership of a house is increasing every year. As written by Mayang Sari in the book on housing and settlement statistics by BPS data in 2019, 1 of 10 families with their personal structure obtains a house by buying, 3 of 10 families buy a house with a sharing agreement, and the percentage of people who want to own a house but does not have a money is at 36.94% (Sari, 2020).
Islamic banking provides one more innovation in response to these problems by providing Musyarakah Mutanaqisah (MMQ) contract products. The implementation of musyarakah mutanaqishah is expected to be able to solve community problems in housing ownership and can help the environment get a decent life.

Musyarakah Contract
Musyarakah (syirkah) comes from the word syaraka-yusyriku-syarkan-syarikansyirkatan, which means company or group cooperation. Musyarakah or syirkah is a collaboration between capital and profit (Hosen & Jihad, 2009). In fiqh, there are three terms regarding the understanding, namely al musyarakat, syirkah, and syarikat. However, in Islamic banking regulations, the term musyarakah is used more often (Hakim, 2011).
The basic guideline that underlies the completion of the musyarakah contract is the principle of cooperation between participants planned to achieve the goal of helping everyone. The pillars of syirkah itself are: (Tokopedia dictionary) a) Ijab Qabul, which is an agreement between two parties; b) Two meetings that have an agreement and have the ability to manage assets; c) The object of the agreement, including capital or work; d) Proportion of profit sharing.
The participation of all partners in work is the basis for the implementation of musyarakah. It is inconsistent with the notion that one of the partners is not related to the business created by the affiliate. The work section between one and the other not be Certainty of profit sharing must be agreed before the underlying agreement to avoid the danger of disputes. If there is a change in profit sharing, it must be based on mutual agreement. Partners are not allowed to determine their own share of profits by disclosing actual special characteristics, as this is same to usury and is contrary against the value guidelines in musyarakah (Kamilatur, 2015).
Sayyid Sabiq in Fiqh al Sunnah book mention 2 kinds of syirkah (cooperation) (M. Syafii. Antonio, 2001): a) Syirkah Al-Milk or Amlak Partnership, Amlak partnership is a joint ownership that arises due to the presence of two or more people who get joint ownership rights over something. The amlak partnership has ijbari or coercive nature. b) Syirkah Uqud means that there are two or more people who work together to achieve the same goal, contribute funds or energy, and share losses and profits. This syirkah has the nature of ikhtiari or choice. The cooperation contract can be divided into several things, as follows: 1) Syirkah Abdan, which is a form of syirkah between two or more parties from among workers or professionals where they agree to work together on a job and share the income received. The syirkah is permitted by Malikiyah, Hanabilah and Zaidiyah scholars on the grounds that the purpose of the collaboration is to gain profit this cooperation is not only in property but also in work. Meanwhile, the Syafi'iyah, Imamiyah and Zafar scholars from the Hanafiyah group stated that this type of syirkah was invalid because the syirkah was devoted to assets (capital) and not to work; 2) Syirkah Wujuh, namely cooperation between two parties where each part does not include any capital and runs its business  Continuous Musyarakah (permanent contract) is musyarakah with the provisions that the share of funds for each partner is determined at the time of the contract and the amount remains until the end of the contract period (PSAK No. 106 par 04). For example: Between partner A and partner P who have entered into a musyarakah contract, each initial amount of capital is 20 million, so until the end of the syirkah contract their respective capital remains 20 million.
Musyarakah mutanaqisah is musyarakah with the provision that part of the funds of one partner will be transferred gradually to another partner so that the share of the funds will decrease and at the end of the contract period the other partner will become the full owner of the musyarakah business. For example: Partner A and partner P enter into a musyarakah contract, partner P invest 100 million and partner A invests 200 million. As the musyarakah contract collaboration progresses, partner P capital of Rp 100 million will be transferred to partner A through gradual repayments made by partner A.

Musyarakah Mutanaqisah Contract
Musyarakah Mutanaqisah according to language comes from two words Musyarakah and Mutanaqisah. Musyarakah comes from the word syaraka-yusrikusyarkan-syarikan-syirkatan-syirkah, which means to share, cooperate, or partner and mutanaqisah comes from the word yatanaqishu-tanaqishan-mutanaqishun which means to reduce gradually or to diminish (Husein, 2019). Thus, Musyarakah Mutanaqisah is a partnership/cooperation contract in which the ownership of assets (goods) or capital of one party (syarik) is decrease and moved gradually due to gradual purchases by the other party (Ascarya, 2013).
Musyarakah mutanaqisah occurs between the customer and the bank who share in the procurement of goods that are jointly owned, where initially the bank's ownership is larger than the customer, but over time the bank's ownership will gradually decrease and the customer will increase or it is also called a shrinking partnership (Muhammad Syafi'i Antonio, 1999). There are two stages, the first, between the customer and the bank carrying out the musyarakah contract through productive business administration, and second, the

Transfer of Assets Ownership
In financing using a musyarakah mutanaqisah contract, the assets ownership by the new bank will be transferred to the customer after the installment payment period has expired, because the bank's share of ownership will decrease in line with the installments purchased by the customer. Whereas in financing using a murabahah contract, the asset ownership by the bank will automatically switch when there is a deed of sale and purchase by including the customer's name in it.

Agreement Characteristic
The financing of home ownership with a musyarakah mutanaqisah contract includes 3 contracts: a musyarakah (cooperation) contract, a deferred bai'/sell-buying contract, and an ijarah contract (lease). Meanwhile, in financing home ownership by using a murabahah contract, there is only one contract in it, namely a sale and purchase contract with payment in installments.

Nisbah (Sharing Profit)
Musyarakah mutanaqisah and murabahah, both of which are included in the type of ijarah contract, a contract that aims to gain profit. In musyarakah mutanaqisah contracts, the return offered is not fixed or uncertain. The nisbah for both parties are determined at the rental price (ijarah). Therefore, it can be said that if the house rental price is high, the return for both parties also higher. On the other hand, if the rental price is low, then the return for the bank and customers also relatively less. Whereas in a murabahah contract, the return offered is fixed/definite.

Installment Payment
In financing home ownership using a musyarakah mutanaqisah contract, the installments may change or will be evaluated annually or in several years in accordance with the initial agreement. Whereas in financing using a murabahah contract, the installments are more fixed during the financing period. In musyarakah mutanaqisah financing, the amount of payment is calculated according to the amount of financing issued by the bank. Whereas in financing with a murabahah contract, installment payments are calculated from the bank's purchase price for the house plus a profit margin for the bank. For customers who want to pay off their installments before maturity on a musyarakah mutanaqisah, the customer simply pays off the remaining installments. However, in a murabahah contract, the customer is required to pay the total installment payments plus the profit installments for the bank.

Ulama's View According to The Musyarakah Mutanaqisah Contract
M. Ridwan and Syahruddin explained in their journal, Wahbah al-Zuhaily explained that this musyarakah mutanaqisah is justified legal in sharia, because like ijarah muntahiyah bi al-tamlik, it relies on promises from banks to partners (customers) if the bank wants to sell to partners. allotment of ownership in syirkah if the partner has paid to the bank the portion price owned by the bank (Bakar, 2017;Khairul Hafidzi & et.all, 2017).
When it processes, the musyarakah mutanaqisah is seen as syirkah 'inan, because both parties provide capital donations (ra'su al-mal), and the bank delegates to customers to manage business activities. After the end of syirkah, the bank then sells all or part of its portion to partners, provided that this sale contract is carried out separately and is not linked to the syirkah contract (Ridwan, 2013) Regarding this musyarakah mutanaqisah, until Ibn Qudamah said that if one of the two partners (syarik) buys a share (part, hishah) from another partner, then the law is allowed, because (in fact) he is buying what belongs to the other party (Ibn Qudamah, chapter 5).
In the DSN Fatwa Number 73 of 2008, it is stated that what is meant by musyarakah mutanaqisah is ownership of assets (objects) or capital of one party (syarik) decreases due to gradual purchases by other parties.

Legal Basis Musyarakah Mutanaqisah
The Islamic legal basis for financing musyarakah mutanaqisah contracts, basically there are two elements, namely the syirkah element (partnership) and the ijarah element (lease).

Legal Basis of Musyarakah
"Allah SWT says: "I am the third party of two people who are in association as long as one of the parties does not betray the other. If one of the parties has betrayed, I am out of them" (Narrated by Abu Dawud, authenticated by al-Hakim, from Abu Hurairah) (Shohih & Setyowati, 2021). Referring to the Fiqh rules, it can be concluded as follows: a) Basically, all forms of muamalah are allowed unless there is evidence that forbids it; b) Avoiding mafsadat (destruction, danger) must be prioritized over providing benefit. In Fiqh, the musyarakah mutanaqisah contract basically uses several hybrid contracts. With a mixture, the agreements used in Islamic banking can be consolidated in contemporary business muamalah, but in the merger they must meet 2 (two) conditions, namely: (Abdullah, 2006). There is no sharia prohibition in the merger (there are two hadiths that prohibit the merging of two contracts). There is no wasilah (hilah) to those who are prohibited (usury) in merging these contracts.

Mechanism of Musyarakah Mutanaqisah Contract
There are 4 (four) joint contracts contained in musyarakah mutanaqisah, namely: a)

Syirkah 'inan (musahamah); b) Ijarah; c) Representative (wakalah) in rental management; d) Purchase in stages.
It is also important to emphasize several things that must be fulfilled in order for There is an authoritative arrangement where one party will buy the other party's share in stages.

Issues Related to Musyarakah Mutanaqisah Contract
In the application of the musyarakah mutanaqisah contract, there are many issues related to it that need attention. These issues include:

Indent Property Financing
Property indent financing is financing made by banks for customers who need a house where the bank will get a share from the customer even though the house has not been completed. In conventional banking, this portion should be possible considering that conventional banks apply payments so they don't think it is difficult to collect quotas from customers. The association is called Interest During Construction (IDC).
Obviously, Interest During Construction cannot be applied to Islamic money which deducts point income. For this reason, basically Islamic banking has the opportunity to get a profitable portion of the customer even though the house is still under construction.

The agreement that can be used is Ijarah Mausufah Fi al-Zhimmah (IMFZ).
The agreement is also called a forward lease or salam fi al-manafi' as is the case with a sale and purchase with a salam contract (forward deal). Unlike salam, IMFZ is an installment of profits that will be obtained in the not-too-distant time. In buying and selling with salam contracts, there is a shortage of al-'ain, while at IMFZ there is a sale and purchase of excess/administration (bai' al-manfa'ah) where the cost is paid first, while the excess product is obtained later. As in the sale and purchase of salam, the value (cash) is paid in advance, while the product is frozen and becomes the obligation (zimmah) of the merchant.
Judging from the number of legal experts from Malikiyah, Syafi'iyah and Hanabilah, the IMFZ agreement may be finalized. They see it as salam fi al-manafi' (service). The recommendation to accept IMFZ is istihsan. In addition, according to Hanafiyah, IMFZ is not allowed (Nashshar, 2009). Take-over financing is financing that applied by banks for clients who take home loans to ordinary banks and then want to move to Islamic banks. In cases like this, customers occasionally also need additional assets (top up) to Islamic banks.

Musyarakah Mutanaqisah in Take Over Financing
To be able to resolve this, the MMQ agreement is used with the following details: a) For example, the size of the assets that must be deposited by an Islamic bank to a conventional bank is Rp. 450 million, then Islamic banks provide assets of Rp. 550 million. That means, Rp100 million is intended for clients. (The expenditure of Rp. 550 million was the purchase of shares (hishah) by the bank for some (hishah) customers. By assets of Rp. 550 million, there was syirkah between the bank and the customer); b) The next stage, the client rents a house which is paid month by month, after the client agrees the bank to handle the house ijarah activities or vice versa, the bank approves the client to supervise it, so that the bank maintains a strategic distance from fees; c) Profit from month to month rental portion is split in half between bank and client depending on the agreed proportion; d) The allotment/share obtained by the customer is used step by step purchase the bank's ownership segment, while the other portion is for the bank. It runs until the end of the ijarah period; e) When the ijarah period ends, the financing and all goods become the property of the customer.
Interestingly, takeovers between Islamic banks are also possible with musyarakah mutanaqisah contracts. Basically, takeovers between Islamic banks are not allowed, but if they have to be carried out, for reasons of need or damage, on the grounds that the aim is to avoid the risk of difficulty, the customer is allowed to take over financing (Ramli et.all, 2016). Therefore, there must be an explanation that is smart and quite reasonable, then take over from fellow Islamic banks is allowed.
The assumption of control over the system is: a) The client takes a house loan from Islamic bank X, due to crisis reasons he comes to Islamic bank Y asking to take control of his home financing; b) Islamic bank Y buys part of the client's assets with the approval of Islamic bank X so that the assets become joint property (syirkah/value) between Bank Y and the client; c) The client then, at that time, rented out the house to an Islamic bank. The results are divided depending on the proportion of benefit sharing as agreed. The client portion is used to gradually buy the bank's share, as a result of which the bank's segment continues to decrease; d) At the end of the lease, the resource is automatically turned into the full property of the client.

Issues in the Mutanaqisah Musyarakah Contract Application
In the implementation of financing using Musyarakah and Musyarakah Mutanaqisah contracts, Islamic banks must ensure that the financing application is in accordance with sharia as specified in various legal actions according to Islam including the DSN fatwa. However, some issues that often arise are identified with the consistency of sharia (Basyariah, 2008;Ridwan & Syahruddin, 2013). Several things that distinguish the use of Musyarakah and Musyarakah mutanaqisah in Islamic banking in Indonesia are divided into 3 problems, namely specific sharia issues, legitimacy issues, and functional issues.
Some of these problems include: Firstly, the issue of sharia which is identified with the standard "two agreements in one item" is when a lease and purchase contract is agreed simultaneously. Secondly, the issue of legitimacy is identified with the difference between Fiqh rules and Indonesian positive law in terms of recording ownership authentication. And thirdly, the functional problem which is identified with the problem of price freedom when musyarakah financing is combined with the transfer of ownership (Husein, 2019). Intiqal al milkiyyah, for example, every deposit of money by a customer to a Islamic bank whose value is equivalent to the value of the hishah unit, in sharia it is declared as a business transfer of the hishah unit of a sharia bank, while for a value that is more than the value of the hishah unit it is referred to as profit sharing which is a right for Islamic banks.

Musyarakah
The musyarakah mutanaqisah product can be applied as a productive financing. In Analysis of the Mutanaqisah Musyarakah ….. 406

The Advantages of Financing Musyarakah Mutanaqisah Contracts
The use of musyarakah mutanaqisah contracts has several benefits, including: a) The child and the client both own the goods/assets which are jointly owned. Since this is a joint ownership, the bank and the client will deal with each other over the item; b) There is a division of profits between the two parties from the rental that has been determined for the goods; c) Both parties are able to complete the rental fee adjustment according to the agreed time by following the market price; d) Able to limit the dangers of monetary spending in terms of expansion and increase in market borrowing costs in conventional banking; e) Not affected by fluctuations in market borrowing costs at commercial banks, and also changes in value when expansion occurs.
The shortcomings in the musyarakah mutanaqisah contract when applied as a type of sharia financing are: a) The risk of the formation of delegation of the burden of the transaction budget and payment of taxes, both taxes on mortgages or taxes on buildings, and other costs that may be able to become a burden on the goods; b) There is a reduction in the income of the Islamic bank on the rental proceeds charged to the goods that are the object of the contract. Installments expenses in the early years will feel burdensome for customers, but will be lighter in the following years.

CONCLUSION
From the problems that have been described previously, conclusions can be drawn including: firstly, MMQ products can be used as a solution in financing the fulfillment of housing needs that depend on sharia standards, but still require coordinated and comprehensive administrative assistance. In practice, Islamic banking is still not ideal in utilizing MMQ due to various variables, including the status of human resources and information innovation, regulations and public understanding which is still minimal.
Secondly, the guidelines that are valid reasons to advance MMQ items are still half way through and not strong yet. There are still many conventional regulations that are touted as a valid rationale, but over time they contradict the characteristics of MMQ.