Implementation of the Ijarah Muntahiyah Bittamlik Contract in Islamic Banking: Benefits and Challenges (Case Study on Bank Syariah Indonesia)

Abstract

The Muntahiyah Bittamlik Ijarah Contract (IMBT) is a strategic hybrid financing product to diversify the Islamic banking portfolio which has been dominated by buying and selling contracts (Murabahah). This study aims to analyze the implementation mechanism, accounting treatment, and operational challenges of IMBT contracts with a case study on Bank Syariah Indonesia (BSI). The research method uses a descriptive qualitative approach through literature studies and secondary data analysis of financing practices at BSI. The results of the study show that theoretically, IMBT offers flexible asset ownership solutions for customers. However, its implementation in the field faces significant technical obstacles, especially related to the implementation of PSAK 107 on Ijarah Accounting which imposes asset depreciation obligations on banks, as well as the issue of double taxation. Empirical findings at BSI reveal that the implementation  of ijarah contracts is  dominated by fee-based products such as BSI Hasanah Card (60%) and Gold Pawn (30%), while IMBT financing for productive assets is still minimal due to administrative complexity and asset risk. This study recommends the need to digitize the asset management system and harmonize tax regulations so that IMBT products can compete competitively.

Keywords: Ijarah Muntahiyah Bittamlik, Bank Syariah Indonesia, PSAK 107, Ijarah Accounting, Risk Management.

DOI: 10.7176/RJFA/16-10-01

Publication date: December 30^th 2025