Contemporary Primary Sources :: Fatwās - Contemporary :: 16 Muḥarram 1426 / 25 February 2005
National Shari'a Board - Indonesian Council of Ulama Fatwa No. 49 of 2005 on Conversion of Murabahah Agreements
Dewan Syari'ah Nasional MUI, Posted by Daniel Peterson, 09 March 2016
This fatwa states that a shari'a financial institute may perform a conversion (i.e. make a new agreement) for a customer unable to make a repayment by the agreed upon date, provided the following conditions are met:
- the murabahah agreement is concluded with the object of the agreement being sold by the customer to the shari'a financial institute at market rate, the customer repaying the remaining debt with the proceeds of the sale; and
- the shari'a financial institute and ex-murabahah customer drafting a new agreement that is either an ijarah (rental) agreement, mudharabah agreement, or musyarakah agreement.