Review of Sharia Economic Law on Rahn's Practices at the Surakarta Sharia Pawnshop during the Covid-19 Pandemic

Abstract

The huge impact of COVID-19 on the economy has made it difficult for people to meet their funding needs. The government established a pawnshop institution which is currently growing rapidly. Sharia pawnshops are currently the choice of the Muslim community because in practice there is no usury. The practice of pawning is familiar with the Rahn contract. Pawning activities have existed since the time of the Prophet sallallaahu 'alaihi wa sallam and he has been practicing. The process of pawning is allowed in Islam as long as it is in accordance with Islamic law, there is no interest / usury in the pawn transaction. Pawning / rahn has been regulated in the DSN-MUI fatwa Number 25/DSN-MUI/III/2022. The process of borrowing through pawnshops is much shorter and the terms are relatively simple, causing pawning activities to develop rapidly until now. The purpose of this study is to describe the process of rahn practice at sharia pawnshops during the COVID-19 pandemic and to describe the views of sharia economics regarding the practice of rahn contracts during the COVID-19 pandemic. The method used in this study is a qualitative method sourced from primary data, namely the Sharia Pawnshop which is located at Jl. Captain Mulyadi No.242, Ps. Kliwon, Kec. Ps. Kliwon, Surakarta City. Methods of data collection in this study in the form of interviews and observation methods. The practice of rahn contracts at the Sharia Pawnshop in Surakarta is in accordance with sharia economic law. In Sharia Pawnshops, they use savings services per 10 days, this is different from conventional Pegadaians which use interest per 15 days. During the Covid-19 pandemic, the Sharia Pawnshop in Surakarta provided relief / leeway in payment, the period of pawning / rahn in sharia economic law was 4 months, and reduced to 5 months.