Bai' as-Salam and Bai' al-Istishna': Definition, Difference, Basics Laws, Pillars, Terms and Applications in Banking Products Sharia

Abstract

In general, this writing will discuss trading in the order system or Bai’ as-Salam and Bai’ al-Istishna’, specifically addressing; Definitions, Differences, Legal Basis, Pillars, Conditions, and Implementation in Islamic Banking Products. Methodologically, this research draws from written sources such as books and scientific journals or academic magazines. Regarding data analysis, the researcher employs data reduction, which involves summarizing, selecting essential elements, focusing on crucial aspects, and identifying themes and patterns. The findings of this writing are as follows: Bai’ as-Salam is not significantly different from Bai’ al-Istishna’, with the distinction lying in the payment of the price and the nature of the contract. Payment for Bai’ as-Salam can be made at the time of agreement or at the beginning, while in Bai’ al-Istishna’, payment can be made at the beginning, middle, or end, according to the agreement. The nature of the contract in Bai’ as-Salam binds all parties from the outset, whereas Bai’ al-Istishna’ serves as a binding force that protects the producer from irresponsible consumers.