Contemporary Primary Sources :: Fatwās - Contemporary :: 15 Jumādā I 1428 / 30 May 2007
National Shari'a Board - Indonesian Council of Ulama Fatwa No. 56 of 2007 on Shari'a Financial Institute Ujrah Review Provisions
Dewan Syari'ah Nasional MUI, Posted by Daniel Peterson, 09 March 2016
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:
- there is a change to the term of the ijarah agreement;
- there is a strong indication that if a review is not conducted one of the parties will suffer a loss; and
- both parties accede.
A review of the quantum of the ujrah after a certain period is permitted, provided that:
- the ujrah agreed to for one term of the ijarah agreement may not be increased;
- the quantum of the ujrah may be monitored for the next term pursuant to a formula of which both parties are aware;
- the review is conducted after a certain agreed-upon period of time has passed, as provided in the agreement; and
- 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.