Accounting Practices of Ijarah in Indonesia

Abstract

The development of the Islamic economy in Indonesia shows a significant increase in various financial instruments, including the ijarah contract as a form of financing based on sharia principles. Ijarah is a contract for the transfer of usufructuary rights over an asset for a specified period of time with the payment of ujrah without transferring ownership of the asset. The legal basis for ijarah has been affirmed in the Qur'an, Hadith, and fatwas of the National Sharia Council (DSN-MUI), making this contract valid for implementation in the Islamic financial system. Operationally, ijarah has pillars and conditions that include the contracting parties (mu'jir and musta'jir), the leased object, sighat ijab qabul, and clear and agreed ujrah payments. In practice, ijarah has various forms, namely regular ijarah, Ijarah Muntahiyah Bittamlik (IMBT), and sale and leaseback transactions, each of which has different characteristics, especially regarding the transfer of asset ownership.

In the accounting context, PSAK 107 is used as a guideline for the accounting treatment of ijarah transactions, both from the perspective of the asset owner (mu'jir), the lessee (musta'jir), and the service provider ('ajir). The revised PSAK 107 in 2021 broadens the scope, adapts to developments in the DSN-MUI fatwas, and regulates the recognition, measurement, presentation, and disclosure of ijarah assets and ujrah income. Through case studies of ijarah and IMBT transactions, this paper systematically explains the financing process, accounting records, asset depreciation, and transfer of ownership at the end of the contract. The discussion shows that the application of PSAK 107 provides clarity and accountability in the ijarah recording process and ensures that transactions are conducted in accordance with sharia principles and financial reporting standards. Overall, ijarah plays a strategic role in supporting the growth of the sharia economy in Indonesia, particularly in the asset-based and service-based financing sectors.

Keywords: Ijarah, Sharia Accounting, PSAK 107, IMBT, Sharia Financing