An Analysis of Administration Fees in Murabâha Financing Case Study: Muamalat Bank of Indonesia, Sragen Branch in 2015

Abstract

Administration fee is commonly used for operational activities, which its rate is
charged to customers depends on each bank. It is charged for several products and
services that require certain administrations. Hence, Muamalat Bank is pioneer of Islamic
bank in Indonesia founded in 1992 has contributed to the development of product and
service for customers. It has many branches in all districts such as branch Sragen in east
java. In relation with administration fee, Muamalat Bank, branch Sragen has produced
many contracts by imposing administration fees with in them such as in murâbaha
financing. Finding of the study are that murâbaha financing is imposed for operational
and survey fee. The administration fee in branch Sragen is determined by tiered pricing
structure on murâbaha financing, which is not permissible in Islamic principles because
it contains element of ghârar and ghaban