Optimization of the Musyarakah Mutanaqisah Contract in Islamic Home Ownership Financing at Bank Syariah Indonesia Darmo Branch Office

This study aims to analyze the implementation of the Musyarakah Mutanaqisah contract in home financing at Bank Syariah Indonesia (BSI) KC Darmo, identify the challenges encountered during its implementation, and formulate optimization strategies for MMQ-based home financing. This study employed a descriptive qualitative approach. Data were collected through in-depth interviews, observations, and documentation. The research informants consisted of the Branch Manager, Consumer Business Staff, Account Officer, and customers utilizing MMQ-based home financing at BSI KC Darmo, selected using purposive sampling techniques. Data were analyzed using the Miles, Huberman, and Saldaña interactive model, comprising data condensation, data display, and conclusion drawing. The findings reveal that the implementation of MMQ financing at BSI KC Darmo has generally complied with Sharia principles and Fatwa DSN-MUI No. 73/DSN-MUI/XI/2008 through a joint ownership mechanism and gradual transfer of ownership. The primary challenges identified include limited customer understanding, contractual complexity, inadequate human resource competencies, and competition from conventional mortgage products. Optimization strategies implemented by the bank include enhancing customer literacy, strengthening employee competencies, accelerating service digitalization, promoting product innovation, and reinforcing Sharia governance. This study provides practical implications for Islamic banking institutions in improving the effectiveness and competitiveness of MMQ-based home financing products.