INDONESIA - BANKING - MUI: Credit is Not Halal Riba

REPUBLIKA.CO.ID, Soreang - Questioned on the issue of halal haram in the process of buying and selling on credit, Chairman of the MUI Regency Bandung, KH Safiuddin Anwar Kamil asserts that the credit is allowed and certainly not unlawful. Credit is not permitted and usury when through certain requirements.

"Credit different from the name of usury," he said in a discussion held at the RM FIF. Rice Village, Soreang, Tuesday (24 / 1). Anwar added that credit is the process of buying through a gradual manner. Credit is allowed when the distance between the seller and buyer are not mutually harmed. (source)

BANKING - TAWARRUQ - Tawarruq in Islamic banking is usury: IDB - ongoing controversy

Islamic banks which enforce Tawarruq in their financial and investment operations are involved in usury, which is prohibited in Islam, a senior scholar from the Islamic Development Bank (IDB) has said.

Sheikh Mohammed Mukhtar Al Salami, Head of the Sharia (Islamic) Panel in the Jeddah-based IDB, said many Islamic banks have been involved in such an investment tool in the Islamic banking industry.