Akad bay wafa as a land pawn practice in islamic economy: The Practice of lawn pawn in bay wafa contract

Abstract

One of the muamalah fiqh contracts, bay al wafa, is still up for controversy among Muslim academics today. However, certain nations, including Indonesia, continue to use this agreement as a means of financing their economies, particularly in the agricultural sector. This study aims to determine the extent of bay al wafa practice in Indonesia. The research approach employed in this study was an in-depth interview. According to the study's findings, many Indonesians employ the idea of bay al wafa in conjunction with expressions like pagang pawn, selling pawns, and taxation to finance their everyday necessities using agricultural land as collateral. People utilize this agreement because it is more convenient and adaptable. Bay al Wafa is one of the contracts that this study suggests Islamic banks adopt to finance the agricultural industry since it is simple and adaptable.