Murabaha Commodity, What is it for?

Since 2004 there has been a big issue in Indonesian Islamic banking and finance community with little attention given by the industry. The issue become big not because there is no answer to the problem raised, but because the issue is forwarded by a big-foreign bank which run Islamic window. The bank insists that since the issue is settled by Sharia Board of the bank in their headquarters, then the country in which the bank operate Islamic window also should allow the product to be launched and utilized by the community.

How does National Sharia Board issue a fatwa on product?

It is quite strange that this kind of question is not categorized as FAQ (Frequently Asked Question). In fact the process of issuing a fatwa is a process that become a pillar in governance  system of an organization. For this reason, IFSB (Islamic Financial Service Board) put the question into a clause in its Sharia Governance Standard published recently.