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This fatwa acknowledges the Indonesian public's need for financial insurance, but notes that shari'a-friendly insurance agreements must not contain anything that is deliberately misleading, or that pertains to gambling, interest (riba), mistreatment, bribery, non-halal items or immorality.

The fatwa stipulates that two types of contract between a customer and insurance-provider are permissible:

1. tijarah (mudharabah - sale-purchase), whereby the insurance-provider acts as a manager and the customer is the policy-holder; and
2. tabarru' (hibah - gift), whereby a customer provides a bequest to be used to assist another affected customer.

The fatwa also stipulates that a tijarah agreement may be amended to become a tabarru' agreement if the party whose rights are denied voluntarily relinquishes those rights, thereby absolving the party who is yet to execute their obligations. A tabarru' agreement, however, may not be amended to become a tijarah agreement.

This fatwa defines a parallel istishna' sale-purchase agreement as an istishna' agreement between a customer and a shari'a financial institute where, in order to meet its obligations to the customer, the shari'a financial institute sub-contracts those obligations out to another party. Despite the sub-contracting arrangement, the shari'a financial institute remains liable to the customer for the fulfilment of the terms of the agreement.

The fatwa permits the execution of such agreements provided the following conditions are met:

1. the conditions of the first istishna' agreement are in no way contingent on those of the second agreement;
2. the shari'a financial institute is not permitted to glean the margin during construction from the customer because such a practice is contrary to shari'a principles; and
3. all conditions that apply to istishna' agreements apply to parallel istishna' agreements.

This fatwa acknowledges that the murabahah agreements facilitated by shari'a financial institutes are generally repaid in instalments within a term agreed upon by the shari'a financial institute and customer. In the event that a customer repays their arrears within the agreed upon term or sooner, customers often request that their shari'a financial institute provide them with a discount on the total amount owing. The fatwa permits the provision of such a discount, acknowledging that it is permissible in Islam. How much of a discount the shari'a financial institute grants, however, is at the institute's discretion.

This fatwa defines shari'a bank account financing as the financing of a bank account purusant to shari'a principles. Such an account is financed via an agreement or commitment by a shari'a financial institute to a customer to implement something (wa'd) and the transferral of authority from the shari'a financial institute to that customer to conduct a transaction pursuant to the wishes of the customer (wakalah). This entails either the purchasing of something sought by the customer and sold in a murabahah fashion to the customer, or the hiring of an object or service sought by the customer and rented to that customer. The quantum of the profit requested by the shari'a financial institute is provided for in the agreement between the parties.

This fatwa permits shari'a financial institutes financing the hajj for its customers to obtain a service dividend (ujrah) pursuant to the principle of al-Ijarah, per Fatwa No. 9 of 2000 on Ijarah Financing. If necessary, a shari'a financial institute can also provide a customer with an advanced payment to finance their hajj, pursuant to the prinipcle of al-Qardh, per Fatwa No. 19 of 2001 on al-Qardh. Such an advanced payment, however, may not be made a condition of such an agreement. Moreover, the quantum of the al-Ijarah dividend may not be based on the al-Qardh advanced payment given by the shari'a financial institute to the customer.

This fatwa defines a shari'a import letter of credit as a declaration, issued by a bank, that an importer will pay an exporter, in accordance with shari'a principles. Shari'a import letters of credit may be implemented pursuant to the following agreements:

1. Wakalah bil Ujrah;
2. Qardh;
3. Murabahah;
4. Salam/Istishna';
5. Mudharabah;
6. Musyarakah; and
7. Hawalah.

This fatwa acknowledges that a conventional export letter of credit does not accord with shari'a principles. It defines a shari'a export letter of credit as a declaration, issued by a bank, to pay an exporter, in accordance with shari'a principles. Shari'a export letters of credit may be implemented pursuant to the following agreements:

1. Wakalah bil Ujrah;
2. Qardh;
3. Murabahah;
4. Musyarakah; and
5. Al-Bai'.

This fatwa states that, for the purposes of shari'a-friendly monetary control, and as a way of overcoming excessive shari'a banking liquidity, the central bank (Bank Indonesia) needs to issue a certain type of shari'a-friendly monetary instrument. The fatwa refers to this instrument as Sertifikasi Wadi'ah Bank Indonesia (Bank Indonesia Certificate of Deposit). This type of certificate may not make the provision of a dividend to the bank a condition, unless that dividend comes in the form of a voluntary contribution from Bank Indonesia. Such a certificate may not be bought or sold.

This fatwa acknowledges that shari'a banks can experience a lack of liquidity due to either a difference in timeframe between receipt and depositing of funds, or collated funds not yet being able to be distributed to the relevant parties. Therefore, the fatwa states that, in order to improve fund management efficiency, banks that conduct activities pursuant to shari'a principles require an interbank financial market.

The fatwa specifies that an interbank financial market based on shari'a principles is one that conducts inter-participant short-term financial transactional activities based on shari'a principles. Eligible participants are shari'a banks as lenders or borrowers, or conventional banks as lenders.

Contracts that may be used in interbank financial markets based on shari'a principles are:

1. Mudharabah (Muqaradhah)/Qiradh;
2. Musyarakah;
3. Qardh;
4. Wadi'ah; and
5. Al-Sharf.

This fatwa states that the sale and purchase of currency, in principle, is permissible, provided the following conditions are met:

1. no speculation is involved;
2. there is a transactional need, or a need to protect one's finances;
3. if a transaction is made with regards to the same currency, the value thereof must be the same and in cash (at-taqabudh); and
4. if a transaction is made using another currency, the current exchange rate must be applied and in cash.

The fatwa permits spot transactions, but prohibits forward, swap, and option transactions.

This fatwa states that interest-bearing interbank investment certificates are contrary to shari'a. Investment certificates based on a Mudharabah agreement (Sertifikat Investasi Mudharabah Antarbank - Interbank Mudharabah Investment Certificate), however, are not. An Interbank Mudharabah Investment Certificate may only change hands once after it has been purchased. Interbank Mudharabah Investment Certificate transactors may be:

1. shari'a banks as lenders and borrowers; and
2. conventional banks as lenders.

This fatwa permits shari'a financial institutes to conduct settlement of murabahah transactions for their customers who are unable to fulfil their financial obligations therein within the agreed upon time, provided that:

1. the customer sells the object of the murabahah transaction or other guarantee through the shari'a financial institute at an agreed upon market rate;
2. the customer uses the proceeds of the sale to fulfil its existing financial obligations to the shari'a financial institute;
3. if the proceeds of the sale exceed the debt remainder, the shari'a financial institute returns the excess funds to the customer;
4. if the proceeds do not cover the debt in its entirety, the debt remainder remains that of the customer; and
5. if the customer is unable to pay the debt remainder, the shari'a financial institute may release the customer from any existing financial obligation.

This fatwa states that shari'a financial institutes may reschedule upcoming payments for their customers who are unable to make payment by the agreed upon date, on the following conditions:

1. the shari'a financial institute does not increase the amount owing;
2. the imposition of costs in the rescheduling process are real costs; and
3. a time extension for payment must be based on an agreement between the two parties.

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:

1. 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
2. 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.

This fatwa permits the usage of Mudharabah Musytarakah agreements to underpin insurance policies.

This fatwa states that a tabarru' agreement is an agreement that must be attached to all insurance (life, damage, and reinsurance) products. An insurance tabarru' agreement is all forms of agreement executed between policy-holders. The fatwa defines a tabarru' agreement as an agreement executed in the form of a gift (hibah) for the purposes of prosperity and cooperation between participants, not for commercial purposes.

This fatwa defines an ijarah as a benefit-transfer agreement pertaining to an object for a certain term, with a rental (ujrah) cost, that does not transfer ownership of the object itself. It also defines an ujrah review as a review of the quantum of the ujrah in the ijarah agreement between the shari'a financial institute and customer after a certain period. The fatwa states that an ujrah review may be conducted between the parties to an ijarah agreement provided that:

1. there is a change to the term of the ijarah agreement;
2. there is a strong indication that if a review is not conducted one of the parties will suffer a loss; and
3. both parties accede.

A review of the quantum of the ujrah after a certain period is permitted, provided that:

1. the ujrah agreed to for one term of the ijarah agreement may not be increased;
2. the quantum of the ujrah may be monitored for the next term pursuant to a formula of which both parties are aware;
3. the review is conducted after a certain agreed-upon period of time has passed, as provided in the agreement; and
4. in the event there is a change to the rental cost, the rental cost for the first term must be explained, and the rental cost for the next period must be based on a clear formula that does not generate conflict between the parties.

This fatwa defines a shari'a bond as a long-term security based on shari'a principles issued by a public company to an investor (bond-holder) that obliges the company to pay to the investor a fee and repay investment funds at a maturity date. A convertible mudharabah shari'a bond is a shari'a bond issued by a public company based on mudharabah principles for the purpose of complementing its work capital requirements, with the option that the investor can convert bonds into shares in the public company at the maturity date. A shari'a share is a certificate showing proof of ownership of a portion of a company, issued by the company whose business activities and mode of management are not contrary to shari'a principles.

The public company issuing convertible mudharabah shari'a bonds is the mudharib (manager of funds), while the bond-holder is the shahibul mal (investor). In the event the bond-holder exercises its right to convert its bonds into shares in the company, it will do so pursuant to a musyarakah agreement, where the bond-holder becomes a share-holder.

This fatwa acknowledges that shari'a financial institutes require guidance on how best to serve their customers by resolving existing export transaction-related arrears. The fatwa states that a Wakalah bil Ujrah is the appropriate type of contract for factoring accounts receivable, which can be complemented by a qardh. The fatwa also states that the party owed money is to deputise a shari'a financial institute to arrange the relevant export documents and recoup the accounts receivable from the debtor or party appointed by the debtor. The shari'a financial institute may provide its customer with the amount sought (qardh) and then recoup the money it provides its customer from the debtor it is chasing on its customer's behalf. The fatwa permits the shari'a financial institute to charge a fee for its service.

This fatwa defines 'import-related debt resolution' as the transfer of debt from a debtor to a shari'a financial institute, the shari'a financial institute then paying the debt to the party owed, or another party appointed by the party owed.

The fatwa states that the appropriate contract for resolving import-related debts is a Hawalah bil Ujrah. The shari'a financial institute, acting as the muhal 'alaih (financier), accepts the transfer of debt from the debtor (at the value of the import debt owed). The transfer of the debt is also conducted voluntarily by the relevant parties.

The fatwa states that a shari'a financial institute may charge a fee in consideration of incurring the debt, the fee being nominal in nature, rather than a percentage of the principal debt. The parties' offer and acceptance is shown by their willingness to enter into contractual relations. Once a hawalah transaction has been executed, the right of the muhal (creditor) to recoup shifts to the muhal 'alaih.