Revisiting Musyarakah Contracts in Contemporary MSMEs: A Critical Fiqh Muamalah Analysis

Abstract

This study aims to investigate how the practice of musyarakah contract among Micro, Small, and Medium Enterprises (MSMEs) in Pandan Jaya Village is implemented from the perspective of fiqh muamalah (Islamic jurisprudence on worldly transactions). This study employed a descriptive qualitative approach with in-depth interview techniques conducted with three grocery MSMEs as the research objects, namely Toko Arwin, Toko Olip, and Toko Marni. The results indicate that all three shops substantively fulfill the fundamental pillars of the musyarakah contract, including the presence of contracting parties, oral ijab and qabul (offer and acceptance), explicit cash capital, and a jointly managed business venture. No elements of riba (usury) or maysir (gambling/speculation) were found, as the entire capital originated from the personal funds of the partners. The profit-sharing mechanisms vary across the shops and are permissible under fiqh as long as they are based on mutual consent. However, the primary weakness lies in the formality of the contract; all agreements were made entirely orally without written documentation or witnesses, thereby creating a potential for gharar (uncertainty) that could trigger future disputes. Furthermore, the business owners' understanding of fiqh muamalah principles remains highly limited. This study concludes that partnership practices among MSMEs in Pandan Jaya Village have met the core substance of the musyarakah contract, yet they are not fully aligned with the standards of fiqh muamalah in terms of contractual formalities and Sharia awareness.