Dela Jannatul Imania, Mohammad Firmansyah

Negotiating Value and Faith: The Practice of Scrap-for-Goods Exchange in Sukowono, Indonesia, through the Lens of Fiqh Muamalah

Introduction

Negotiating value and faith: the practice of scrap-for-goods exchange in sukowono, indonesia, through the lens of fiqh muamalah. Explore the scrap-for-goods exchange in Sukowono, Indonesia, analyzed through Fiqh Muamalah. Discover how weighing systems align with Islamic principles of justice and transparency, while estimation systems introduce uncertainty.

Abstract

The practice of exchanging scrap materials for new goods in Sukowono District represents a form of community economic activity that has become a local habit and carries social and economic benefits, particularly among housewives. This system is preferred because it is more practical and provides direct benefits for meeting household needs. This study aims to describe the practice of scrap-for-goods exchange conducted by the community and to analyze it from the perspective of Islamic economic law (fiqh muamalah), particularly in terms of justice, mutual consent (taradhi), and transparency. This research employs a socio-legal approach with qualitative methods through observation and interviews with scrap traders and participants in Sukowono District, Jember Regency. The findings show that the exchange practice is carried out through two systems: the weighing system and the estimation system. The weighing system is considered more in line with Islamic principles because it is clear, measurable, and transparent. Meanwhile, the estimation system contains elements of gharar (uncertainty) since the value of goods is determined by approximation without exact measurement. Overall, this exchange practice is deemed valid under fiqh muamalah as it fulfills the elements of mutual consent and clear transaction objects; however, price transparency needs to be improved to better reflect the principles of justice and honesty in Islamic transactions.

Review

This paper offers a timely and insightful exploration into the unique practice of scrap-for-goods exchange in Sukowono, Indonesia, highlighting its significance as a local economic activity providing direct benefits, particularly for housewives. The study effectively bridges socio-legal inquiry with Islamic economic law (*fiqh muamalah*), aiming to describe the practice and analyze it through the critical lenses of justice, mutual consent (*taradhi*), and transparency. Employing a qualitative socio-legal approach, the researchers conducted observations and interviews to uncover the nuances of both weighing and estimation systems in these exchanges. A key finding delineates the two systems, identifying the estimation method as potentially problematic due to elements of *gharar* (uncertainty), contrasting it with the more transparent weighing system. The strength of this research lies in its specific focus on a grassroots economic phenomenon and its rigorous analysis using *fiqh muamalah*, which provides a valuable ethical and legal framework often overlooked in studies of informal economies. By applying principles like *taradhi* and transparency to a local habit, the paper makes a significant contribution to understanding how Islamic legal norms can inform and guide community practices for greater fairness. The clear identification of *gharar* in the estimation system is particularly commendable, offering practical insights into how such practices might be refined to better align with Islamic principles of justice and honesty. This localized case study offers broader implications for similar informal exchange systems in other Muslim-majority contexts. While the study concludes that the exchange practice is generally valid under *fiqh muamalah*, the caveat regarding the need for improved price transparency, especially within the estimation system, signals an important area for further development. The full paper would benefit from elaborating on concrete mechanisms or recommendations to mitigate the *gharar* inherent in estimation, perhaps exploring community-led standards or educational initiatives for both traders and participants. Furthermore, a deeper discussion on the practical implications of "mutual consent" when one party (e.g., housewives) might be in a less informed or negotiating position could strengthen the analysis of justice. Investigating the socio-economic factors that lead to the preference for these systems, beyond mere practicality, could also enrich the understanding of the context and potential pathways for more equitable economic engagement.

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