The Legality of Motorcycle Pawnbroking Practices in Tarum Village: A Perspective Based on the Rahn Contract and Indonesian Positive Law

Abstract

This study examines the validity of motorcycle pawnbroking practices in Tarum Village from the perspective of the rahn contract and Indonesian positive law. The study employs a qualitative approach using a case study design and an empirical-juridical approach through interviews, observations, and document analysis involving the pawnbroker (rahin), the borrower (murtahin), as well as community and religious leaders. The results show that the pawn practice involves handing over a motorcycle to the murtahin as collateral for a debt. If the rahin is unable to fulfill the repayment obligation, the motorcycle may be auctioned off after prior notification has been given to the pawn provider. From the perspective of the rahn contract, this practice essentially fulfills the elements of the presence of a rahin, murtahin, marhun, marhun bih, and an agreement among the parties, while designating the motorcycle as collateral rather than as an object of direct transfer of ownership. From the perspective of Indonesian positive law, the transfer of the motorcycle—as a movable asset—to the pawnbroker also aligns with the legal framework of pawnbroking as a form of collateral. However, the validity of this practice still requires clarity regarding ownership of the item, the amount of debt, the term, the rights and obligations of the parties, the auction mechanism, and the absence of elements of usury (riba), uncertainty (gharar), and injustice (zulm). This study concludes that the practice of motorbike pawnbroking in Tarum Village can be considered lawful, provided that it complies with the principles of the rahn contract, is conducted fairly and transparently, and ensures legal protection for both the rahin and the murtahin.