This study is designed mainly to assess the SyariÔÇÖah compliance on mudharabah (profit and risk sharing) product offered by Islamic banking and financial institutions in Indonesia. This study employs the descriptive analysis based on syariÔÇÖah perspective. As a result, the study found that the product of mudharabah (profit and risk sharing) offered by Islamic banking and financial institutions were problem and not totally Islamic. The most reasonable arguments of the problem were derived from the operating system of Islamic banking and financial institutions which is parallel with the conventional counterparts that prohibited by Islam. The problem are as follows: (1) conflict in dual system of funding and financing based on the concept of real mudharabah and mudharabah musytarakah; (2) Islamic banking and financial institutions do not have real business; (3) Islamic banking and financial institutions are not able to bear losses; (4) Islamic banking and financial institutions customers are given profit sharing, whereas some of the cutomersÔÇÖ funds have not yet been invested; (5) and profit sharing calculation method is convoluted or complicated. Therefore, to overcome the significant problem, it is necessary to reform the current operation of Islamic banking and financial system. Besides that, the optimalization of the ShariÔÇÖah supervision (al-raqabah syarÔÇÖiyyah) aspect should be taken positively and seriously by the National SyariÔÇÖah Council of the Indonesian UlamaÔÇÖ Council in order to prevent the Islamic banking and financial institutions from breaking the SyariÔÇÖah principles and values
https://ojs.diniyah.ac.id/index.php/pdp/article/view/1467