The Sharia Compliance of Islamic Multi Contract in Islamic Banking [1]

Contract (akad) in Islamic banking transactions differs from the one in conventional banking. Although both produce the same product with the same name, but with certain contracts, it becomes distinct in characteristics. Some products are even a combination of multiple contracts (multi contract). By comparing the Sharia standards specified in the fatwa by the National Sharia Board (Dewan Syariah Nasional/DSN), Indonesian Ulema Council, with multi contract practices in Islamic banking, the results of the study prove to still find prohibited elements in the practices, especially usury. Here, the contract practices do not comply with the provisions mentioned in the fatwa. To avoid such usury, profit sharing system is an alternative to take and to promote.