Mudharabah financing in Islamic banking (case study of Islamic banks in Indonesia)

Mudharabah is one of the most widely quoted operating principles in Islamic banking. For Islamic financial institutions, mudharabah is a partnership agreement between at least two parties, that are a lender (sahib al-mal) and an agent manager (mudharib). This contract has great benefits and play an important role for human life. Mudharabah role in the development of Islamic economics is very important because it can improve the economic welfare of the people by empowering them. Mudharabah also connect the surplus unit who act as financier with the deficit unit who act as the manager. The surplus unit is the parties excess funds but do not have the expertise to develop such funds, while deficit unit is the parties who need funding but has expertise or access to business development