JurnalPost.com - The results of the 2026 National Financial Literacy and Inclusion Survey (SNLIK), announced by the Financial Services Authority (OJK), the Indonesia Deposit Insurance Corporation (LPS), and Statistics Indonesia (BPS), show that the Islamic financial literacy index in Indonesia has reached 43.07 percent, while the Islamic financial inclusion index stands at 13.24 percent.
These figures highlight a gap between public understanding of Islamic finance and the actual use of Islamic financial products and services in daily life.
We may often hear the term "Islamic bank" and immediately assume it is simply a bank that does not use interest. While this assumption is not entirely wrong, it is insufficient to explain how the Islamic banking system actually operates.
One of the fundamental differences between Islamic and conventional banks lies in the akad, which is the contractual agreement that forms the basis of the relationship between the bank and the customer.
So, how do these contracts function in savings and installment products? Why is the system different from conventional banks?
What Is an Akad in Islamic Banking?
Simply put, an akad is an agreement between two or more parties that governs their respective rights and obligations in accordance with Sharia principles.
In Islamic banking, the akad serves as the foundation for every transaction, whether one is opening a savings account, depositing funds, or applying for financing to purchase a home or vehicle.
Clarity in the contract is essential because it determines how the transaction is executed. Key elements such as the object of the transaction, the profit-sharing ratio or profit margin, rights and obligations, and the duration must be clearly defined according to the type of contract used.
To make it easier to understand, an akad can be compared to buying a movie ticket. Before making the payment, we already know the film being shown, the screening schedule, the seat number, and the ticket price.
Thus, both the buyer and the service provider understand what is being agreed upon from the start.
A similar principle applies in Islamic banking. However, each product has different characteristics and contractual terms.
Contracts for Savings: Wadiah and Mudharabah
In Islamic bank savings products, there are two commonly used contracts, namely wadiah (safekeeping) and mudharabah (profit-sharing).
Both have different mechanisms, particularly in how funds are managed and the form of benefits the customer may receive.
1. Wadiah Contract (Safekeeping)
Wadiah is a contract for the safekeeping of money or goods from one party to another who is trusted to guard and return them according to the agreed terms.
Conceptually, wadiah has two forms, namely wadiah yad dhamanah and wadiah yad amanah.
Wadiah Yad Dhamanah
In this contract, the customer deposits money with the bank, and the bank is permitted to utilize those funds in accordance with Sharia principles.
The bank has an obligation to return the deposited funds according to the contract terms. Profits generated from the utilization of these funds belong to the bank.
However, the bank may provide a bonus to the customer as a form of appreciation. This bonus is voluntary and cannot be promised as a fixed return from the outset.
This is the contract commonly used in wadiah savings products in Islamic banking.
Wadiah Yad Amanah
Unlike the previous form, in wadiah yad amanah, the custodian is essentially only responsible for safeguarding the goods or funds deposited and is not permitted to use them without permission.
For certain safekeeping services, the custodian may charge a storage fee as agreed.
However, this contract is not commonly used as the basis for daily savings accounts where funds are managed by the bank.
2. Mudharabah Contract (Profit-Sharing)
While wadiah focuses on safekeeping, mudharabah uses the concept of capital management cooperation.
In mudharabah savings, the customer acts as the capital owner (shahibul mal), while the bank acts as the fund manager (mudharib).
Profits from the management of funds are distributed based on a nisbah or profit-sharing ratio that has been agreed upon.
For example, if the bank and the customer agree on a specific ratio, the profit distribution will follow that percentage based on the results of the fund management, rather than a fixed interest rate.
Mudharabah has two forms, namely mudharabah mutlaqah and mudharabah muqayyadah.
Mudharabah Mutlaqah gives the fund manager the flexibility to conduct business activities in accordance with Sharia principles and contract terms. This form is commonly used in mudharabah savings and deposit products.
Meanwhile, Mudharabah Muqayyadah is a fund management cooperation that includes specific restrictions from the capital owner, such as regarding the type of business or the method of fund placement.
It should be understood that profit-sharing in mudharabah is not always the same each period because it depends on the performance of the fund management. The risk of business loss also follows the applicable contract terms and Sharia principles.
Contracts for Installment Financing: Murabahah
What if someone wants to buy a motorcycle or a house through an Islamic bank?
One of the contracts that can be used is murabahah, which is a sale and purchase agreement with a known acquisition cost and profit margin agreed upon by both parties.
In a murabahah scheme, the bank buys or acquires the goods needed by the customer according to the contract terms, then sells them back to the customer at a price that includes the bank's profit.
For example, someone wants to buy a motorcycle for IDR 20 million.
The bank then provides the vehicle through a mechanism consistent with murabahah principles. Afterward, the bank sells the motorcycle to the customer for IDR 24 million, consisting of the IDR 20 million acquisition cost and a IDR 4 million profit margin.
If a 24-month payment term is agreed upon without other additional costs, the customer will pay installments of IDR 1 million per month.
Through this example, the selling price and the installment amount are known from the start. The selling price agreed upon in the murabahah contract cannot be changed unilaterally during the financing period.
However, this example is just a simple illustration. In practice, administrative fees, late payment provisions, and the mechanism for purchasing goods must still be considered based on the contract and the policies of each bank.
It is also important to understand that not all Islamic financing uses murabahah. There are other contracts, such as musyarakah, mudharabah, and ijarah, which are used according to the needs and characteristics of the transaction.
How Does It Differ from Conventional Banks?
At a glance, Islamic and conventional bank products often look similar.
Both provide savings accounts, debit cards, transfer services, vehicle financing or credit, and home installment facilities.
However, there are differences in the principles and foundations of the transactions used.
In conventional banks, certain savings products provide rewards in the form of interest, while credit is generally based on a loan agreement with an obligation to pay principal and interest according to the terms.
Meanwhile, Islamic banks use contracts tailored to their transaction activities, such as safekeeping through wadiah, profit-sharing cooperation through mudharabah, or sale and purchase through murabahah.
In savings products, conventional bank customers may earn interest according to product terms. In Islamic banks, the benefits received can be in the form of a voluntary bonus in a wadiah contract or profit-sharing in a mudharabah contract.
The same applies to financing.
Conventional banks generally use a loan interest mechanism, which can be fixed or floating according to the agreement. In contrast, murabahah financing uses a selling price and a profit margin that have been agreed upon.
However, this does not mean that all conventional bank installments always change or that all Islamic bank products have fixed installments. Payment terms still depend on the type of product and the contract used.
Therefore, the difference between the two cannot be judged solely by the size of the installments or the profit obtained by the customer.
A more fundamental aspect is how the legal relationship, transaction mechanism, and the rights and obligations of the parties are formed through the agreement.
Choosing an Islamic or Conventional Bank?
Every banking system has its own characteristics, benefits, and provisions.
Choosing a bank should not be based solely on the product name or the amount of profit offered. Customers also need to understand the contract or agreement, administrative fees, payment terms, risks, and the benefits they will receive.
For prospective Islamic bank customers, recognizing the contract is the first step to understanding how funds are managed and how financing is executed.
Meanwhile, for users of conventional bank services, understanding interest calculations, fees, and credit terms is equally important.
Ultimately, an Islamic bank is not just a version of a conventional bank that has removed interest. This system has its own transaction foundation that emphasizes compliance with Sharia principles through agreed-upon contracts.
By understanding these differences, the public can make financial decisions more carefully according to their needs, capabilities, comfort, and individual financial principles.
Bibliography
Aprilia, Z. (2026, August 10). National Islamic Financial Literacy and Inclusion Declines, Here's Why. CNBC Indonesia.
Bank Syariah Indonesia. (2023, August 15). Getting to Know the Best Fee-Free Islamic Savings – Islamic Education.
Nurfazilah, Silfia, A., & Ilham. (2025). Contracts and Products of Islamic Banking. JIESA, 2(3).
Financial Services Authority. (2026, August 11). Joint Press Release: Public Financial Literacy and Inclusion Index Increases. OJK, LPS, and BPS Announce 2026 SNLIK Results.
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