Abstract
Sharia-compliant pawn transactions are conducted between the rahin (pawn giver) and the murtahin (pawn receiver) through a rahn contract. This contract involves holding assets as collateral for a debt. The loan must be accompanied by collateral of economic value with legitimate ownership, in accordance with DSN-MUI Fatwa No. 25/DSN-MUI/III/2002. In addition to the rahn contract, Pegadaian Syariah also uses the ijarah contract for the maintenance and storage of the collateral items. Debt repayment at Pegadaian Syariah is limited to 120 days, with the option to extend the contract. This study aims to understand the execution of pawned collateral and identify the challenges and their solutions. An empirical juridical method is used, employing conflict and stratification approaches. The results show that the execution is carried out through auctions in three stages, with five identified challenges and corresponding solutions, in accordance with the regulations at Pegadaian Syariah Cabang Babakan Surabaya.
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