Islamic Economic Law Perspectives of Profit-Sharing Systems (Teseng) in the Cultivation of Rice Fields in Bugis-Makassar Community, South Sulawesi, Indonesia

Andi Herawati

Zainuddin

Syarifa Raehana

 

Abstract: This article examines the Islamic legitimacy of teseng (profit-sharing systems) in the Bugis-Makassar community. Two interrelated issues are evaluated: 1) What is the concept of teseng as a profit-sharing system; and 2) Is the teseng system in accordance with the permissible form of muzâra’ah (profit-sharing based partnership in agriculture) in Islamic economic law system? The article finds that the adoption of teseng in the Bugis-Makassar community is motivated by the reciprocal interest and necessity between proprietors and cultivators. A consensual agreement forms the basis of the contract to promote a spirit of mutual assistance. The two parties enter into a verbal agreement based on reciprocal trust, and the ratio of sharing the agricultural product is deliberated upon at the inception of the contract. Numerous elements contribute to ensuring of trust between the two parties, for example, an extended period of acquaintance, the parties’ integrity, a foundation of established trust, and robust fraternal ties. The article further finds that the use of teseng agreement in Bugis-Makassar community is consistent with muzâra’ah because, it is primarily based on integrity and trust between parties, which are fundamental characteristics of commercial conduct in Islamic economic law.