ANALYSIS OF MUDHARABAH CONTRACT IMPLEMENTATION FOR BENTOR BUSINESS FROM AN ISLAMIC ECONOMIC PERSPECTIVE IN KOTAMOBAGU, INDONESIA

Abstract

This study examines the application of the Mudharabah contract in the bentor (motorized pedicab) business in Kotamobagu, North Sulawesi, Indonesia, aiming to comprehensively analyze its implementation, identify motivations, mechanisms, challenges, and opportunities. Utilizing a qualitative approach with a case study design, data was collected through in-depth interviews, participant observation, and document analysis. The research reveals that while the Mudharabah contract shows promise in promoting financial inclusion and job creation, its practical implementation faces challenges such as profit-sharing disputes, income fluctuations, and communication issues between capital owners and operators. However, it also highlights Mudharabah's potential as a tool for economic empowerment, particularly for individuals excluded from formal financial systems. The study concludes that applying Mudharabah in the bentor business has significant potential for driving inclusive economic growth based on Islamic principles, but realizing this potential requires addressing identified challenges through targeted interventions. Recommendations include developing a more flexible Mudharabah model tailored to micro-businesses, implementing comprehensive education programs on Islamic finance principles, and establishing effective conflict resolution mechanisms. This research contributes to the literature on Islamic microfinance and provides practical insights for policymakers and practitioners seeking to implement Islamic financial instruments in informal economic sectors, emphasizing the need for a holistic and contextual approach in developing and implementing Islam.