Legal Consequences of Side Streaming in Mudharabah Financing in KSPPS BMT Prima Insani

Abstract

This thesis was conducted to analyze the legal consequences of side streaming practices carried out by Mudharib in mudharabah financing at KSPPS BMT Prima Insani. KSPPS BMT Prima Insani is an Islamic financial institution that aims to help members and the community, especially the lower middle class, by providing facilities such as financing. One of the financing facilities provided by KSPPS BMT Prima Insani is mudharabah financing. In practice, mudharabah financing faces several obstacles in its implementation. One of these obstacles is side streaming. Side streaming as one of risks that occur in Mudharabah Financing iis one of the obstacles in the implementation of mudharabah financing, where the capital provided by the Shahibul Maal is used by the Mudharib for his own purposes. In this case, the mudharib has violated the terms of the contract and faces several legal consequences. This research was normative research by conducting literature studies through collecting articles, documents, and news. The data was analysed by qualitative method by describing the data from journal, law, and experts’ opinion. This research was also supported by secondary data such as interviews. This study analyses two problem formulations, namely legal consequences of side streaming by Mudharib in mudharabah financing in KSPPS BMT Prima Insani and legal actions by Shahibul Maal to overcome side side streaming in KSPPS BMT Prima Insani. The result shows there are legal consequences of side streaming which are divided into three aspects, namely according to Indonesian Civil Law, according o sharia law, and in terms of collateral. Therefore, the author provides solutions by analyzing the legal actions to Shahibul Maal to overcome side streaming in mudharabah financing based on regulations and other data.