THE RECONSTRUCTION OF THE REGULATION OF THE OBJECT OF MURABAHAH FINANCING CONTRACTS IN ISLAMIC BANKING IN INDONESIA

Abstract The type of research in this study is normative legal research (legal research) with statutory, conceptual, philosophical, and comparative approaches. This study aims to determine the nature of the object of murabahah financing contracts in Islamic banking, to analyze the regulation and implementation of the object of murabahah financing contracts in Islamic banking in Indonesia, and to identify a reconstruction of the regulation of the object of murabahah financing contracts in Islamic banking in Indonesia. Research findings: 1). The object of a murabahah contract must exist at the time of the contract, be lawful (halal), clearly specified, capable of delivery, known to the contracting parties, and free from riba, while reflecting the principles of justice, transparency, and accountability. 2). Normatively, banks are required to own the object first through wakalah (as regulated by DSN-MUI, OJK, KHES, and PPPMPS 2023); however, in practice, implementation still deviates from sharia principles. 3). Legal reconstruction is required through strengthening juridical ownership (qabdh hukmi), simplifying proof of ownership, and reformulating a more transparent and objective pricing mechanism. Recommendations: 1). The Financial Services Authority (OJK), Sharia Supervisory Boards (DPS), and Islamic banking institutions must consistently implement PPPMPS 2023 and strengthen supervision of wakalah arrangements. 2). Regulatory harmonization is needed (POJK, KHES, PPPMPS 2023), along with strengthening the legal status of PPPMPS 2023. 3). The establishment of supporting institutions such as PWM, LPHM, and OKPS is necessary to ensure compliance and fairness in sharia financial transactions.