Prohibitions on trading in Islam

One, Don't sell haram goods.

Selling haram goods is clearly not permitted in Islam, and the Prophet never did that either. Therefore, stay away from trading in goods that are not clearly halal, such as liquor, cigarettes, statues and so on. The Prophet said: "The trade in khamr is forbidden" (HR. Bukhari). "Indeed, if Allah has forbidden a people to eat something, He will also have forbidden the proceeds from its sale." (HR Ahmad)

Two, don't force it.

This is a phenomenon that occurs quite often in our society, where farmers are forced to sell their crops to grain traders just because they owe them fertilizer previously. The Prophet's hadith states that sellers and buyers have the right to khiar, namely the opportunity to think while they are not separated. This is to suppress dishonesty.

Three, don't pretend to buy

A hadith narrated from Ibnu Umar R.A said, in fact Rasulullah SAW has prohibited buying and selling using the najshi method, namely pretending to pay a higher price so that other buyers will be deceived.

Four, transactions outside the market are prohibited

It was narrated from Ibnu Umar R.A. he said: "Indeed, Rasulullah S.A.W forbade holding merchandise before it arrived on the market. This is a statement from Ibn Numair. Meanwhile, according to other narrators, the Prophet S.A.W actually prohibited the purchase of merchandise before it was marketed."

Five, Do not hoard goods

It was narrated from Abdullah bin Mas'ud R.A. He said: From the Prophet SAW that the Apostle forbade holding back the purchase (hoarding) of merchandise. The issue of hoarding is a bit complicated, so various accusations are ultimately difficult to prove. The government panicked when the price of beef hit Rp 120,000 per kilogram. Feedlot operators were raided on suspicion of deliberately withholding their cattle from slaughter, even though the animals had not yet reached the necessary weight; the police were left empty-handed. Hoarding is the practice of purchasing goods in large quantities, storing them for a period, and releasing them only when prices have skyrocketed. It is an unjust act. Its consequences are manifold, including the disruption of market trading mechanisms, the display of selfishness, and the destruction of other merchants' livelihoods. It is narrated by Ma’mar bin Abdullah that the Messenger of Allah said: “No one hoards but a sinner.” (Reported by Muslim).

Six, Do not be a broker

The main difference between real traders and "brokers" is that "brokers" do not pay cash for merchandise and also do not mention the price when picking up the goods. This often happens in livestock. Belantik often brings the farmer's cows or goats to market without leaving any money behind. The new price will be decided later after the item is sold.

Narrated from Ibnu Abbas RA he said: Rasulullah S.A.W forbade middle people (become brokers?) to take the opportunity to buy merchandise to sell to village people. It was narrated from Anas bin Malik RA that he said: We are prohibited from selling merchandise to middle people (as brokers) to sell to village people, even if that person is their brother or father. In trading science they are called middlemen, but they do not behave in the sense of true traders.

Or, recently we heard about a system for selling goods using the dropshipping method. Here, someone sells a product to buyers (consumers) without buying the product first. The buyer is looked for first, and if there is already a buyer who has ordered and paid, then contact the official agent. Then the wholesaler will send the goods directly to the buyer's address in the name of our shop. The Prophet reminded us not to sell goods that do not belong to us, because this could harm other parties.

Hakim bin Hizam once asked Rasulullah sallallaahu'alaihi wa sallam: "O Rasulullah, there is someone who comes to me and asks me to sell him something that I don't have yet, by first buying it for him from the market?" The Messenger of Allah answered: "Do not sell something that you do not have" (HR Abu Daud, Ibn Majah, Tirmidhi and Nasai).

Seven, Pay in cash, don't go into debt

Delayed payments are so common in traditional trading, they call them “debts”. However, the situation sometimes goes too far. My studies with traders reveal just how many suffer losses—or even go bankrupt—because their receivables remain unpaid for months or years. This is often referred to as "defaulting" or "absconding with the money." For traders dealing in commodities like mangoes or coconuts—who often operate with limited capital—having tens or hundreds of millions in receivables go unpaid can destroy their businesses. This happens frequently.

In reality, this is not debt in the conventional sense. A standard loan involves a clear agreement to lend money for future repayment. In trade, however, what occurs is a delayed payment—often forced upon the seller by the buyer’s dominant position within the trading system and supply chain.

Islamic law regarding debt is very strict; dozens, perhaps hundreds, of Hadiths address this issue. In trade, debt would actually be unnecessary if every transaction were conducted on a cash basis—an immediate exchange of goods for money. A Hadith narrated by Usamah bin Zaid (may Allah be pleased with him) states, "Indeed, riba (usury) lies in the deferment of payment." The Prophet (peace be upon him) said, "Exchanging silver for gold constitutes riba unless the exchange takes place on the spot. Exchanging wheat for wheat is riba unless the exchange takes place on the spot. Exchanging dates for dates is also riba unless the exchange takes place on the spot."

The key point is that value changes due to the factor of time. One Hadith deserves special emphasis: "...indeed, the best among you is the one who is best in repaying debts."

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Those Who Spread Islam to Indonesia Were Skilled Merchants

Consistent with the narrative above, combining economic activity with the propagation and development of the faith was a lifestyle adopted by many of the preachers who introduced Islam to the archipelago. They were simultaneously merchants, preachers, and religious teachers. The “Wali Songo” (Nine Saints) also followed this practice; their economic activities were not driven solely by profit but were oriented toward dakwah (religious outreach). Conducting business ethically and profitably was also among the lessons they imparted to the community at the time.

It was merchants who spread Islam throughout the archipelago—specifically, knowledgeable merchants who acted as religious teachers (ustadz) alongside their trade. Muslim merchants arrived and conducted business at coastal trading hubs. Malacca and its surrounding ports—such as Perlak and Samudra Pasai—served as key transit points for merchants during that era. They would reside in these locations for extended periods, waiting for the seasonal winds to change. It was during these waiting periods that intermingling occurred among merchants of diverse nationalities and with the local population. This fostered an exchange of customs, cultures, and even religions—facilitated not only through trade but also through assimilation via marriage.

Among these merchants were individuals from Arabia, Persia, and Gujarat, the majority of whom were Muslim. Consequently, settlements of Muslim merchants began to flourish along the coast. These ports served as gateways and centers for the dissemination of Islam across Indonesia. This explains why the major cities of Islamic kingdoms were typically situated along the coast or at river estuaries—examples include the kingdoms of Perlak, Samudra Pasai, Palembang, Banten, Sunda Kelapa, Cirebon, Demak, Jepara, Tuban, Gresik, Banjarmasin, Gowa, Ternate, and Tidore. History records that since the beginning of the Common Era, traders from India and China have maintained trade relations with the people of Indonesia. Many historians, relying on Chinese accounts from the Tang Dynasty era, believe that Islam arrived in Indonesia during the 7th century. There are varying opinions regarding exactly when Islam entered Indonesia—with some citing the 7th century, others the 11th, and some the 13th—each supported by different forms of evidence.

Some argue that Islam came to Indonesia from India, others from China, and still others from Arabia; however, the vast majority of historians agree that the bearers of Islam to the archipelago were traders. This conclusion stems from the fact that, prior to the arrival of Islam, trade connections already existed involving Arabs, Persians, Indians, and the Chinese in Aceh, Sumatra, and the surrounding regions. Evidence of the presence of Gujarati (Indian) traders includes Gujarati-style tombstone carvings and traces of Indian Islamic cultural influence. The presence of Persian traders is evidenced by the use of the title "Shah" among Indonesian kings.

One theory, known as the "Mecca Theory," posits that Islam arrived in Indonesia directly from the Middle East via Arab-Muslim traders around the 7th century CE. This is supported by the fact that many Arab traders settled along the coasts of the Indonesian archipelago. As early as 916 CE, Al-Mas’udi encountered Arab communities from Oman, Hadhramaut, Basra, and Bahrain in Sumatra, Java, and Malacca. The emergence of "Arab Quarters" (Kampong Arab) and the presence of Arab traditions within local society are also considered strong evidence.

Meanwhile, the role of Chinese traders is evidenced by the accounts of merchants and naval figures—such as Ma Huan and Admiral Cheng Ho—who introduced Islam to the coastal and inland areas of Java and Sumatra.

A different manifestation of the role played by local merchants in the development of Islam can be seen in the Sarekat Dagang Islam (SDI)—or Islamic Trading Association—which later evolved into Sarekat Islam (SI). Indigenous batik merchants felt marginalized and disadvantaged by the overwhelming dominance of overseas Chinese traders in the sale of batik materials. To address this, batik merchants from Solo, led by H. Samanhudi, established the SDI in 1911. Its objectives were to advance trade, counter the monopoly held by Chinese merchants, and promote Islam.

The organization grew rapidly due to its nationalist and religious character, as well as its support for improving economic networks. The groundwork for the organization had been laid as early as 1909, with Muslim merchants uniting to compete against foreign traders—such as those of Chinese, Indian, and Arab descent. However, the organization subsequently weakened after being infiltrated by groups harboring ulterior motives and engaging in politics.

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