Risk and Fairness Analysis of Mudharabah Contracts in Fishing Vessel Financing by Islamic Microfinance Institutions in East Tanjung Jabung

Abstract

The marine sector in East Tanjung Jabung possesses significant potential but faces high uncertainty regarding catch yields. This study aims to analyze risk management and the implementation of fairness principles in fishing vessel financing using mudharabah contracts at Islamic Microfinance Institutions (LKMS). A descriptive qualitative method with a case study approach was employed. Data were gathered through in-depth interviews with LKMS officials and partner fishermen, as well as field observations. The results indicate that the primary risks in this financing include market risk (fish price fluctuations), technical risk (vessel damage), and moral hazard in profit-sharing reporting. The implementation of fairness is reflected in the profit-sharing ratio (nisbah) agreed upon at the outset; however, challenges arise during loss sharing, which often burdens one party due to a lack of transparency. Risk mitigation strategies by LKMS include technical assistance and flexible profit-sharing systems, though strengthening supervision remains essential to ensure Sharia compliance and substantive fairness