Utilizing Temporary Employment Decrees (SK THL) as Collateral in Islamic Financing: Legal and Practical Insights from PT. BPRS Carana Kiat Andalas

This thesis explores the use of casual employee decrees (Surat Keputusan Tenaga Harian Lepas, or SK THL) as collateral in murabahah financing, with a specific focus on practices at PT. BPRS Carana Kiat Andalas Padang Panjang. The primary aim of this study is to examine and explain the procedures involved in utilizing SK THL as collateral in murabahah contracts, to assess the legal and practical framework of such collateral within Islamic banking, and to identify the potential risks faced by the bank in applying this financing model.The research adopts an empirical juridical approach, employing qualitative methods through field research, including interviews and direct observations. Primary data were collected from key informants, including the branch manager and account officers (AO Lending) of PT. BPRS Carana Kiat Andalas. The data analysis was conducted using triangulation techniques to ensure reliability and validity.The findings reveal three key insights. First, the procedure for utilizing SK THL in murabahah financing involves a thorough evaluation of the prospective customerÔÇÖs creditworthiness, income consistency, and employment status. Coordination with the employerÔÇÖs finance department is essential, and prior credit history (via BI Checking) is assessed to minimize default risk. Second, while SK THL can attract new customers and enhance institutional cooperation, it also introduces significant risk due to the temporary nature of the employment and the lack of severance pay, which can increase the likelihood of installment defaults. Third, from the perspective of Sharia economic law, SK THL may serve as collateral only when the bank verifies key contractual elementsÔÇösuch as the validity and term of the employment agreementÔÇöto ensure financial security and mitigate financing risks.Overall, the study concludes that while SK THL may be accepted as a non-traditional form of collateral in murabahah contracts, its use necessitates a more rigorous debtor assessment process. It recommends enhancing risk analysis procedures and aligning collateral acceptance policies with both regulatory compliance and shariah principles to ensure sustainable and responsible financing.