The Implementation of Land Pawn Systems in the Perspective of Islamic Economics

Abstract

Land pawning of rice fields has long been practiced and remains prevalent in Bungbaruh Village, Kadur District, Pamekasan Regency. Despite its traditional nature, this practice continues to serve as an economic coping mechanism for villagers who pawn their rice fields to meet both consumption and production needs. However, limited scholarly attention has been given to assessing its compliance with Islamic economic principles, creating a gap in understanding its ethical and shariah implications. Therefore, this study aims to explore the implementation of rice field pawning within the framework of Islamic economics. Employing a qualitative descriptive approach, the research seeks to gain an in-depth understanding of the social realities and economic behaviors underlying the practice. The findings reveal that the existing pawning system contains elements of riba (usury) and injustice, thereby contradicting the Islamic concept of maslahah (public benefit). To realign the practice with Islamic law, several alternative contractual solutions are proposed: (1) adopting a mudharabah agreement allowing the mortgagee (murtahin) to earn returns until the principal is settled; (2) applying a qardh hasan contract to ensure fairness and prevent exploitative lending; and (3) utilizing a murabahah structure to formalize transactions with transparent profit-sharing terms. These recommendations offer a practical pathway for transforming traditional pawning systems into ethically compliant mechanisms consistent with Islamic economic values.