Evaluating the application of DSN-MUI fatwas in sharia-based gold pawn services: A case study of a sharia gold pawn service

Abstract

Background: The development of the Islamic economy in Indonesia requires strict adherence to shariah principles, particularly in gold pawning (Rahn) which serves as a vital financial inclusion tool for MSMEs. However, a discrepancy often exists between normative Fatwas and their practical implementation, raising public concerns about hidden usury (riba) and uncertainty (gharar) in the fee structure. This study aims to evaluate the strict application of DSN-MUI Fatwas in Pegadaian Syariah to identify compliance gaps and analyze the legal validity of its fee determination mechanism. Methods: This research employs a normative juridical method with a case study approach, utilizing secondary data from Fatwa DSN-MUI No. 25/2002, Fatwa No. 26/2002, and Pegadaian’s operational reports from 2020 to 2024. The data is analyzed using prescriptive analysis to compare the "Das Sollen" of the Fatwas with the "Das Sein" of operational practices. Findings: The findings reveal that Pegadaian Syariah demonstrates high compliance by implementing a hybrid contract scheme that separates the loan (Qardh) and storage (Ijarah) agreements. Crucially, the maintenance fee (Mu’nah) is determined based on the collateral's estimated value and weight, not the loan principal, thereby strictly distinguishing it from prohibited interest. Conclusion: In conclusion, while the operational mechanism is legally compliant with the National Sharia Council’s Fatwas, Pegadaian Syariah requires enhanced transparency regarding digital contract execution to ensure sustainable financial inclusion; it is noted, however, that as a normative-juridical study, this research evaluates the compliance of institutional regulatory design rather than conducting empirical field audits or surveying actual customer and employee behavioral compliance. Novelty/Originality of this article: This research contributes a specific legal evaluation model focusing on the implementation of hybrid contracts in the post-pandemic digital era, providing a counter-narrative to the skepticism regarding shariah-compliant fees.