IMPLEMENTATION OF THE MUZARA'AH PROFIT-SHARING SYSTEM AMONG NUTMEG FARMERS IN PULAU TERNATE DISTRICT: AN ISLAMIC LAW PERSPECTIVE

Abstract

This study aims to analyze the implementation of the profit-sharing system in agricultural cooperation (muzara'ah) for the nutmeg commodity in Ternate District, Ternate City, North Maluku, and to review it from the perspective of Islamic Economic Law. As a historically renowned spice-producing region, Ternate District relies heavily on the nutmeg plantation sector. However, the partnership pattern between landowners and tenant farmers is still based on hereditary oral traditions without written contracts, alongside an often disproportionate sharing of production cost burdens. This field research employs a descriptive qualitative method, utilizing data collection techniques such as observation, documentation of the latest periodic statistical data, and in-depth interviews with the contracting parties. The findings indicate that profit-sharing practices in the field substantially align with the muzara'ah contract, wherein the seeds/plants originate from the owners of old plantation lands. However, from the perspective of Islamic Law, there are elements of gharar (uncertainty) regarding the distribution of post-harvest operational costs and losses resulting from market price fluctuations, which are borne entirely by the tenant farmers. The implications of this study emphasize the urgent need for written contracts (kitabah) to realize the principles of justice (al-'adalah) and mutual interest (maslahah) in accordance with maqasid al-shariah.