Analysis Implementation of a Joint Liability System in Business Capital Financing Services: A Fiqh Muamalah Perspective

The high poverty rate in Indonesia has prompted the government to establish Sharia Microfinance Institutions (LKMS) to provide business capital financing. However, every financing is vulnerable to the risk of non-performing loans, which can affect the performance of the institution itself. To minimize this risk, LKMS such as BWM Alpen Barokah Mandiri implements a joint liability system. It is important for Sharia based LKMS to ensure that this system is implemented in accordance with Sharia principles, given that there are still practices that are not in line with these principles, such as the existence of usury and ambiguity in its implementation in several other BWM. This study uses a qualitative approach with a case study type. The results of this study indicate that the implementation of the joint liability system at BWM Alpen Barokah Mandiri is permanent; that is, this system is activated only when a customer defaults on a loan. In such situations, all HALMI members collectively and proportionally share the burden of the defaulted installments, thereby safeguarding the financing from risk. From the perspective of muamalah fiqh, joint liability is known as taʻawun. This implementation is considered to be in accordance with the basic principles of muamalah fiqh, namely mubah, based on mutual consent, mutual benefit, upholding justice, mutual assistance, and based on seeking benefits and rejecting harm.