MUHAMA~1

49 3) Third, the principle of 'an taraadhin or like and like; namely a continuation of the principle of equality above. This principle states that every form of muamalat between individuals or between parties must be based on the willingness of each party. This principle is based on the words of Allah in Surah al-An'am verse 152 and AlBaqarah verse 282. 4) Fourth, the principle of 'adamul gharar; namely that in every form of muamalat there must be no gharar, namely deception or something that causes one party to feel disadvantaged by the other party, resulting in the loss of the element of willingness of one party in carrying out a transaction or engagement. This principle is a continuation of the principle of 'an taraadhin. 5) Fifth, the principle of al-birr wa al-taqwa; that is, the principle that emphasizes the form of muamalat which is included in the category of mutual consent, namely as long as the form of muamalat and the exchange of benefits is in the context of implementing mutual assistance between human beings for al-birr wa al-taqwa, namely virtue and piety in its various forms. 6) Sixth, the principle of musyarakah; namely, the principle requires that every form of muamalat be musyarakah, namely cooperation between parties that is mutually beneficial not only for the parties involved but also for the entire human community. This principle gives rise to two forms of ownership: First, personal or individual property, namely property or objects and benefits that can be owned individually. Second, collective property or public property which is called Allah's right or haqqullah. Things or property belonging to God are controlled by the

50 government, such as; water, air and earth content, both minerals and other minerals.” From the presentation above regarding the principles of Islamic law and the principles of muamalat, it can be concluded that the principles of price determination in Islam include and are based on established principles, namely as follows:96 1. First, Ridho Principle. In language, accepting with pleasure, in terms it means the attitude of accepting the gifts and gifts given by Allah accompanied by the attitude of accepting the provisions of Islamic law sincerely and with full obedience, and staying away from bad deeds (maksiyat), both physical and spiritual. Ar-Ridha, namely that all transactions carried out must be based on the willingness of each party. This is in accordance with QS. An-Nisa verse 29. ْن َل أ ِه ِل إ اطِ ِِبلْب ْ ُكم ْْي ب ْ ال ُكم و ْ ُكلُوا أ م ْ ُوا َل َت ن آم ين ذِ ه ا ال ه ُّ أ ي َي ر ْ ُكم ِ ن ب كا ن ا هَّلل ه ِ ۚ إ ْ ُكم ُس ْف لُوا أ ن ُ ت ْ ق َل ت ۚ و ْ ُكم ْ ن ِ ا ٍض م ر ت ْ ن ً ع ة ار ُكو ن ِتِ ت ا ً يم حِ Meaning: "O you who believe, do not consume each other's wealth in a false way, except by means of commerce that is carried out mutually between you. And do not kill yourselves; Indeed, Allah is Most Merciful to you." (QS. An-Nisa: 29) Various Tafsir of Surah An-Nisa' Verse 29 above explains a number of things that are forbidden regarding property and life after previously explaining a number of women who are forbidden to marry or muharramatun nisa', as explained by Abus Su'ud (died 96 Kamariah, K. "Microeconomics: Principles of Price Determination According to Ibn Khaldun." Ats-Tsarwah: Journal of Islamic Economic Law 2.1 (2022). h. 25-26.

51 982 H), a famous commentator from the country Egypt. To be precise, this verse explains two main topics, namely the prohibition of consuming other people's property maliciously or falsely, and the prohibition of committing murder. It is unlawful to consume other people's property in a malicious way. The meaning of it being haram to eat other people's property is that it is haram to take, seize, control and damage other people's property in any unlawful way. Such as by stealing, robbing, occult or using and controlling other people's property without the owner's permission. Likewise, it is included in the instructions in this paragraph to commit corruption in the assets of the people or the state. Everything is haram.97This also includes taking other people's property by gambling, usury and all unlawful activities.98 2. Second, Principle of Openness.Pricing after the ar-ridha principle is the principle of openness. The implementation of this principle of openness means that transactions carried out are required to be carried out correctly in expressing their true intentions and circumstances. So that no party feels disadvantaged by the existing price provisions when making a transaction. 3. Third, Principle of Honesty (Hoesty). Honesty is a very important pillar in Islam, because honesty is another name for truth itself. Islam strictly prohibits lying and deception in any form. Because, this truth value will have a direct impact on the parties carrying out transactions in trade and society at large. This principle is based on QS. Al-Imran verse 77 which reads: 97 Sulaiman bin Umar Al-Jamal, "Futuhatul Divineyah bi Taudhihi Tafsiril Jalalain", [Beirut, Darul Polar Ilmiyah: 2018], juz II, page 42. 98 Wahbah Az-Zuhaili, "At-Tafsirul Munir", [Damascus, Darul Fikr: 2009], juz V, page 33.

52 G o d َ w i l l i n g , َ G o d َ w i l l i n g , َ G o d َ ًًل يَ َ w i l l i n g , َ G o d َ w i l l i n g , َ G o d َ w i l l i n g ِ ل ق ً ًن ُ َل ي ةِ و ر ِِف ا ْْلخِ ْ م ُ ًل ق َل ك َل خ ِ ئ َٰ َG o d َ b l e s s َ y o u ولُأ ٌ يم ِ ٌب أ ل ذا ع ْ م ُ َل و ْ ِّ ي ِهم زكِ ُ َل ي و It means: "Indeed, those who exchange (their promises with) Allah and their vows for a small price, they will have no share (reward) in the Hereafter, and Allah will not speak to them and will not look at them on the Day of Resurrection. and will not (nor) purify them. for them will be a painful punishment."(QS. Ali Imron: 77) The verse above threatens anyone who betrays them and exchanges them for worldly things that have no value before Allah. Indeed, those who trade or exchange promises confirmed by the name of Allah to be fulfilled, and their oaths with worldly things; it's the same as if they exchanged it for a cheap price or a lower value compared to the reward they will receive in the afterlife if they are honest, they actually get no share at all in the afterlife. Not only that, Allah will not greet them, will not look at them with a view of mercy on the Day of Resurrection, and will not purify or forgive their sins. For them there will be a painful punishment in hell, and they will abide therein eternally.99 4. Fourth,principles of justice.Fair comes from Arabic which means being in the middle, honest, straight and sincere. Terminologically, fair means an attitude that is free from discrimination and dishonesty. Thus, a just person is a person who complies with legal standards, both religious law, positive law (state law), and 99NU. On line,https://quran.nu.or.id/ali%20%27imran/77.

53 applicable social law (customary law).100So, when setting prices, you must be fair so that no party is disadvantaged. Because Islam also forbids injustice. In fact, Allah refrains from tending to or supporting unjust acts even if they are committed by other people. As the word of Allah SWT. stated in QS. Hud verse 113 which reads: ْ ا ل كُم م و ُ هار الن ُ هسكُم م ت وا ف ُ ظ ل م ين ذِ ه َل ال ِ ُوا إ كن ْ ر َل ت و و ن ُ ر ْص ن ُ ُُثه َل ت اء ي ِ ل ْ أ و ْ ن ِ م ا هَّللِ ُونِ د ْ ن ِ م It means: "And do not be inclined towards unjust people who cause you to be touched by the fire of hell, and you will never have a helper apart from Allah, then you will not be given help."(QS. Hud: 113) 2.3 Islamic Modern Retail Concept 2.3.1 Introduction to the Modern Islamic Retail Concept David Gilbert defines retail as any business that directs its marketing to satisfy end consumers based on the sale of goods and services through distribution. Retail includes all activities involved in selling goods or services directly to consumers for personal consumption and not for resale. The term "modern" when associated with retail generally refers to retail businesses that operate with a more modern selfservice or self-payment system. David Gilbert in his book "Retail Marketing Management," provides an overview of unique offerings and approaches that combine retail marketing theory with new retail concepts and international retail examples. The book also begins by looking at the nature of retail as an activity, then introduces retail marketing, followed by a discussion of consumer behavior, the retail marketing mix, and other 100 Wikipedia Free Encyclopedia, “Fair,” last modified 2021, accessed May 9, 2022, https://id.wikipedia.org/..

54 important issues such as location strategy, branding, IT application, and ethics. This book is seen as one of the few books that fully integrates retailing and marketing. In short, retail refers to any business that sells goods or services directly to consumers for personal consumption and not for resale.101 In Islam, retail business is a form of modern market where the market plays an important role in the economy of Muslim and non-Muslim communities. The market is a natural mechanism for exchanging goods and services and has been going on since early human civilization. Islam's appreciation for market mechanisms is based on Allah's provisions that commerce must be carried out well with mutual consent and there is no fraud in it.102This is also confirmed in the Word of Allah SWT in QS. AlMuthaffifin verses 1-3 which read: ْي ِ ِّف ِ ط ف ُ ِّلْم ِ ل ٌۭ ٌ ْل ي ُو ن و ١ َ َف ْ و ت ْ س ه ا ِس ي ل ى ٱلن ع ۟ الُوا ْكت ذ ا ٱ ِ إ ين ذِ ه ذ ٱل ٢ َ َا ِ إ و و ن ُ ِسر ُُيْ ْ م ُ ُوه ن وز ه أ و ْ م ُ ك ٣ الُوه Meaning: "Great disaster for those who cheat. (namely) people who, when they receive a measure from someone else, ask for it to be fulfilled. And if they measure or weigh for someone else, they subtract. What is meant by cheaters here are people who cheat in measuring and weighing.”103 Retail business is all activities involved in the sale and purchase of goods, services or both in small quantities or one by one directly from final consumers for personal, family or household consumption and not for business purposes. Where a retail business is a form of retail store whose 101 David Gilbert, "Retail Marketing Management". (United Kingdom: Financial Times Prentice Hall, 2003), p. 6. 102 Yustika, Mayangsari, "The Influence of Indomaret Modern Retail Business on Small Business Income Levels in Malili District, East Luwu Regency," (Thesis, IAIN Palopo). 2018. p. 13. 103Ministry of Religion of the Republic of Indonesia, "The Qur'an and its Translations", (Bandung: CV Publisher J-ART, 2004), p. 587.

55 operations are quite large, low costs, low margins, high sales volume, grouped by product line, self-service, designed to meet consumer needs such as meat, processed products, dry food, wet food, and non-food product items such as toys, magazines, toiletries, and so on. The meaning of modern here is the arrangement of goods according to the same needs grouped in the same section which can be seen and taken directly by the buyer, the use of air conditioning, the presence of professional salespeople.104 In running its business, modern retail has a more structured organization or management that is tailored to the retail size and needs. The majority of retail owners do not carry out direct activities. However, the main task of each retail outlet will be led by a manager who is responsible for the daily implementation of retail. The proliferation of modern retail, especially the minimarket category, has resulted in intense competition. Several modern retail outlets stand close to each other, even side by side. This is a stimulant for these outlets to provide excellent and extra service to attract their respective customers. Referring to retail service quality, retail service quality can be measured using five dimensions, namely physical aspects, policies, reliability, problem solving and personal interaction. These five dimensions are important for modern retail in order to increase income and expand consumer reach.105 Retail trading activities carried out must also comply with the provisions in the Qur'an so that they are worthy of worship. In this way, we obtain material benefits and try to gain the approval of Allah SWT. It is possible that the application of sharia values in modern retail occurred 104 Irwan Sahaja, "Understanding Modern Retail Business", Accessed on August 22 2017 http://irwansahaja.blogspot.co.id/2014/08/pengertian-usaha-ritel-modern.html 105 Rudi Mintarto, "Service Quality Analysis in Retail Using the Retail Service Quality Scale (Rsqs), Customer Satisfaction Index (Csi) and Improvement Gap Analysis (IGA) Approach (Case Study: Super Indo Jl. Menuan No. 1-3 Kel. Brontokusuman, Margansan District, Yogyakarta)”, Thesis, Indonesian Islamic University, Yogyakarta, 2017. p. 12.

56 before the emergence of sharia retail ideas, although it did not explicitly raise Islamic slogans, but implicitly the content of sharia values was already implemented in business processes. Marketing in Islam is a form of muamalah that is justified in Islam, as long as all transaction processes are protected from prohibited things by sharia provisions. Meanwhile, according to Kertajaya and Sula Syariah, marketing is a strategic business discipline that directs the process of creating, offering and changing value from an initiator to its stakeholders, which in the entire process is in accordance with the contract and principles of muamalah (business) in Islam.106 2.3.2 Principles of Modern Retail Business in Islam Islamic economic and business principles aim to improve the welfare of society in a fair and balanced manner because on this basis the parties involved in the economic process will not oppress or exploit each other. The understanding of retail is very closely related to the meaning of retail from large quantities of goods such as dozens or packs to individual quantities of goods. Retail business can be defined as all activities involved in selling goods or services directly to end consumers for personal use and not business use.107To be clearer, the characteristics of Islamic retail business refer to the following muamalah principles: 1. Rabbaniyyah/Divinity. This Rabbaniyah element is a divine element, where in the retail business everything is meant to worship Allah SWT. If we believe in the oneness of Allah SWT and make it our guide for life, God willing, we can prevent us from 106 Hermawan Kertajaya, Muhammad Syakir Sula, "Sharia Marketing". (Jakarta: Mizan Pustaka, 2008). h. 9. 107 Christina Whidya Utami, "Retail Management, Strategy and Implementation of Modern Retail Business Operations in Indonesia". (Jakarta: Salemba Empat: 2010). h. 5..

57 despicable actions in the world of retail business.108In the AlQur'an, Surah An-Nisa verse 29 is also emphasized which reads: ً ة ار ُكو ن ِتِ ْن ت َل أ ِه ِل إ اطِ ِِبلْب ْ ُكم ْْي ب ْ ال ُكم و ْ ُكلُوا أ م ْ ُوا َل َت ن آم ين ذِ ه ا ال ه ُّ أ ي َي ا ً يم حِ ر ْ ُكم ِ ن ب كا ن ا هَّلل ه ِ ۚ إ ْ ُكم ُس ْف لُوا أ ن ُ ت ْ ق َل ت ۚ و ْ ُكم ْ ن ِ ا ٍض م ر ت ْ ن ع Meaning: "O you who believe, do not consume each other's wealth in a false way, except by means of commerce that is carried out mutually between you. And do not kill yourselves; Indeed, Allah is Most Merciful to you."109 Based on the verse above, every Muslim must always adhere to the basic principles of Islamic retail business. Every Muslim lives his social life as if Allah SWT is always present with him 2. Akhlaqiyah/based on good ethics. In historical records, examples have often been given of how the Prophet Muhammad carried out business processes. For example, in doing business, parties are not permitted to cheat or mix merchandise between goods of good quality and goods of poor quality.110 3. Al Waqi'iyyah/In accordance with reality. Do not cover up deficiencies or defects in the goods sold. As instructed by Rasullah SAW, for example, if someone is selling an item that has a defect, then tell the prospective buyer that the item has a defect, instead of covering it up and telling the truth based on the facts. Never deceive people who have good intentions. 108 Buchari Alma and Donni Juni Priansa, "Sharia Business Management". (Bandung: Alfabeta, 2009), p. 259. 109 Al-Quran surah an-Nisa Verse 29, "Foundation for Organizing Translators and Interpreters of the Al-Quran and its Translations", Ministry of Religion of the Republic of Indonesia (Jakarta: .84). 2004. 110 Jaribah bin ahmad al-hartshi, "Umar bin al-Khatab's Economic Jurisprudence", cet I translation: Asmuni Solizan Zamakhsyari (Jakarta: Khalifa Pustaka al-kautsar Group, 2016), p. 56.

58 4. Al Insaniyah/Humanity. This principle teaches that Islamic retail business activities should not actually damage the existing order of life in society or disrupt the order of life in society.111 Marketing is the main approach that will be used by business units to achieve predetermined targets, which include the main decisions regarding market targets, product placement on the market, marketing mix, and the level of marketing costs required.112In the retail business, marketing has a very important function in achieving business success and sustainability. In order to achieve marketing success, every business actor needs to develop an appropriate, effective and efficient marketing strategy by combining the elements in the marketing mix.113 According to Juhaya S. Praja's view, the principles of Sharia Economics including Sharia retail business are:114 1) At-Tauhid Principle. This principle states that all humans are under the same decree, namely the decree of monotheism, as a consequence, the business sector must be based on the oneness of Allah. 2) The principle of al-Adalah (Principle of Justice) Justice is a synonym of the word al-mizan which means balance or moderation. 3) Al-Musawat Principle, This principle has a very strong foundation in the Qur'an and as-Sunnah. Islam opposes slavery and the "sucking of human blood", including in the sharia retail business. 111 Buchari Alma and Donni Juni Priansa, "Sharia Business Management", (Bandung: Alfabeta, 2009), p. 259. 112 Sutrisno Badri, et al, Journal of Management and Business. Vol.1.No.1, July (Postgraduate Program, MM Study Program, Sriwijaya University: 2003), 26. 113 Philip Kotler and ABSusanto, "Marketing Management in Indonesia", Book 2 (Jakarta: Salemba Empat and Pearson Education Asia Pte.Ltd, 2018), p. 62. 114 Nandang Ihwanudin, "Buya Hamka and Sharia Economic Law in Indonesia". (Bandung: P2U, 2020), 33-41.

59 4) The principle of al-Hurriyah (Principle of Freedom) Freedom in a broad sense which includes various things, one of which is freedom of association. This principle is very inherent because economic actors are free to collaborate with anyone, the important thing is that it does not violate other economic principles. At-Ta'awun Principle (Help Principle) This principle is directed in accordance with the principle of monotheism, especially in efforts to increase goodness and devotion to Allah. The principle of ta„awun requires Muslims to help each other in goodness and piety, including piety in business. 5) Principles of Amar Ma'ruf Nahi Munkar. Based on this principle, the Sharia retail business is driven to engineer humanity towards good and true goals that are desired and approved by Allah. In Western legal philosophy studies, amar ma'ruf is usually interpreted as a social engineering function. 25 Meanwhile, nahi munkar means a social controlling function. 6) Al-Tasamuh Principle (Principle of Tolerance). Islamic law requires its followers to live in harmony and peace on this earth regardless of race and skin color. The tolerance that Islam desires is tolerance that guarantees that the rights of Islam and its people will not be violated. Likewise in economic activities. Islam requires tolerance in the field of muamalah. 2.3.3 Products and Promotions that Comply with Sharia Principles Products in the Koran are expressed in two terms, namely altahyyibat and al-rizq. The word al-tahyyibat is used 18 times, while the word al-rizq is used 20 times. Al-Tahyyibat refers to something good, pure and good, something clean and pure, something good and thorough and the best food. al-Rizq refers to food that is blessed by Allah. According to Islam, consumer products are useful, useful consumable materials that have utility value that produce material, moral and spiritual improvements

60 for consumers. Something that is useless and prohibited in Islam is not a product in the Islamic sense.115 In conventional economics goods are goods that can be exchanged and are morally useful. Products include quality, features, design, style, variety, shape, brand, packaging, size, service, guarantee and returns. Quality is defined by the customer. Quality is how well a product meets the specific needs of customers. Specialties are characteristics that complement the basic function of a product. Design is the totality of features that influence the way a product looks and functions in terms of customer needs. Style describes how it looks and feels to customers. Physical or tangible products require packaging to create certain benefits such as protection, convenience, economic benefits and promotion.116 Products can be defined as anything that can be offered to the market (consumers) to fulfill their wants and needs. However, if viewed from a sharia perspective, Islam has certain more specific limitations regarding the definition of products. There are at least three things that need to be fulfilled in offering a product according to sharia principles: 1. The products offered have clarity of goods, clarity of size/measures, clarity of composition, are not damaged/expired and use good ingredients, in this case perhaps not too different from the conventional definition of products. It's just that from a sharia perspective the emphasis is more on the process of making the product. 2. The products sold are halal and hygienic products. So far, public understanding has only been limited to halal products or hygienic 115 Nurhidayatuloh, "Modern Retail Business Marketing Strategy from a Sharia Economic Perspective". (Thesis, Indonesian Islamic University). 2018. p. 54-55. 116 M. Suyanto, Muhammad. "Business Strategy & Ethics (Ethics and Business Strategy of the Prophet Muhammad SAW)", (Yogyakarta: Andi Offset, 2008), p. 263.

61 products, however, the understanding is that halal products must be hygienic or vice versa. 3. Don't lie in promotions or advertisements. This statement is confirmed and also supported by a hadith narrated by Ibn Majah: Meaning: "A Muslim is a brother to another Muslim, it is not halal for a Muslim to sell goods that have defects to his friends, unless he explains it" (HR. Ibn Majah).117 117M. Nashiruddin Al-Albani, "Summary of Sahih Sunan Ibnu Majah", (Jakarta: Pustaka Azzam, 2007), p.335.

62 BAB III COMPANY PROFILE AND RESEARCH RESULTS 3.1 Company profile 3.1.1 Indomaret Fresh Ponorogo 1. History of the Establishment of Indomaret Starting from the idea of making all the basic needs of the local community easier, in 1988 a small retail shop was founded, named Indomaret. People who meet the needs of the community tend to choose to shop at Modern outlets because of the complete selection of products available and of good quality, also supported by fixed prices and a comfortable and not boring atmosphere. Armed with innovation and knowledge about the high consumer needs at that time as well as skills in operating stores, a strong desire emerged to realize all ideas and innovations to further serve the homeland and nation. This intention was realized with evidence of establishing Indomaret, with the legal entity PT. Indomarco Prismatama.118 PT. Indomarco Prismatama or what is known as Indomaret is a national company which has a notarial deed with No. 207, dated 21 November 1988 by Mr Benny Kristianto and SIUP No.789/0902/PB/XII/88 dated 20 December 1988. Which is in accordance with the Deed of Company Establishment No. 207 dated 21 November 1988 above, with the company's aims and objectives as follows:119 a. Collaborating with the community or business entities who wish to open a business in the trade sector using a franchise system b. Engaged in the goods/retail trading business (minimarket), whose merchandise provides: agricultural products (agriculture, livestock, 118Indomaret, "Company History and Philosophy". Documentation of PT. Indomarco Prismatama 2014. https://indomaret.co.id/home/index/histori-visi. 119 Silvia Estefina, "PT Indomarco Franchise Company, Know Its History and Characteristics". Updated On 29, November 2022. https://www.liputan6.com/hot/read/5138896/ptindomarco-prismatama-dengan-usaha-waralaba-ketahui-histori-dan-characteristics?page=5.

63 plantations), medicines, grocery, cosmetics, health equipment and others. Exactly in November 1988 PT, Indomarco Prismatama opened its first outlet located in Jakarta, precisely in the area around Ancol. And continued by opening Indomaret outlets in other places. When initially opening the outlet located in the Ancol area, Indomaret initially had the idea of building an outlet close to residential areas, of course by providing various products and the daily needs of the community. As time goes by and market needs, Indomaret continues to add more outlets in various areas such as housing, offices, tourism, apartments and so on. So with that a learning network emerged to run a large scale retail complete with varied and complex experiences.120 PT. Indomarco Prismatama began to introduce a partnership arrangement for ownership and management of outlets through franchising, the first in Indonesia at that time. Exactly in May 2003, the franchise system from Indomaaret received a direct award from the President of the Republic of Indonesia, who at that time was President Megawati Soekarno Putri, who was a National Franchise Company. Indomaret itself can be found on various sides and places such as roadsides, office complexes, and in other public places. One thing that makes shopping at Indomaret easier is the wide availability of basic necessities and daily necessities, which of course sells more than 3,500 types of products which are classified as food and non-food, and of course with affordable prices on the market, making it easier for consumers to 120 Historical Image of PT. Indomarco Prismatama Indomaret. "Indomaret Outlet". accessed on 20 September 2020. 123doc. - https://text id.123dok.com/document/4zpn20ovy-citra-histori-ptindomarco-prismatama-indomaret.html.

64 meet their needs. daily activities, of course based on the motto "Easy and Economical".121 Currently, Indomaret has many collaborations with more than 500 suppliers. Of course, this makes Indomaret a good position in determining all the products to be marketed. Apart from that, it has a distribution system that is supported by a supplier network that guarantees providing all well-known and quality products and is also supported by experienced human resources. Indomaret's marketing strategy is not only supported by providing complete and high quality products, it is also integrated with promotional activities which are carried out in stages from time to time, so that Indomaret can run regularly in carrying out all promotional programs including prize draws and direct prizes with provide special prices. Of course, it is also supported by all sophisticated technological systems. Like the Information System at Indomaret, which at each Point of Sales outlet includes many systems for receiving goods, data collection and sales. With the aim of using this system, it can be done to meet all current needs and also pay attention to developments in the number of outlets and number of transactions in the future.122 Along with its development, Indomaret is also making a lot of efforts to improve all services and shopping convenience, such as through a check out system that uses a barcode scanner and providing debit payment facilities at each cashier.123Currently, Indomaret is growing very rapidly, seeing the number of outlets often increasing to 21,026. In November 2022, all of them were spread across Java, Madura, Bali, 121 Historical Image of PT. Indomarco Prismatama Indomaret. "Indomaret Outlet". accessed on 20 September 2020. 123doc. - https://text id.123dok.com/document/4zpn20ovy-citra-histori-ptindomarco-prismatama-indomaret.html. 122 Indomaret, "Indomaret Store". PT. Indomarco Prismatama 2017-2023. https://indomaret.co.id/home/index/gerai-indomaret. 123 Historical Image of PT. Indomarco Prismatama Indomaret. "Indomaret Outlet". accessed on 20 September 2020. 123doc. - https://text id.123dok.com/document/4zpn20ovy-citra-histori-ptindomarco-prismatama-indomaret.html.

65 Sumatra and Sulawesi, Maluku, and Sorong - Papua. Each outlet in each region provides more than 5,000 products, both food and non-food, of course with quality and affordable prices and to meet consumers' daily needs.124 2. Indomaret Vision and Mission The vision of Indomaret retail is to become a franchise retail network that excels in global competition and is considered a national asset. Their mission is to focus on improving the best service in order to achieve customer satisfaction as the main priority that must be fulfilled.125 Indomaret's company vision and mission are supported by the motto "Easy and Economical". This motto reflects the ease of access to Indomaret locations and various promotions that provide an economical shopping experience to meet daily needs.126 Apart from that, the company culture is characterized by values in upholding the vision and goals for the future, namely as follows:127 a. Integrity, truth and justice b. Teamwork c. Progress through continuous innovation d. Customer satisfaction In its work, Indomaret prioritizes honesty and integrity, encourages teamwork, strives to continue to innovate economically to achieve progress, and makes customer satisfaction the main focus.128 124 Indomaret, "Indomaret Store". PT. Indomarco Prismatama 2017-2023. https://indomaret.co.id/home/index/gerai-indomaret. 125Hani Subakti, "Revealing 5 strategies of Indomaret, the Dominating Retail Industry". Accessed August 25, 2023. https://bithourproduction.com/blog/mengbesar-strategi-indomaret/ 126Ibid., 127Zafary Gumay, "Indomaret Work Culture". Accessed on 23, October 2023. https://blog.pintarnya.com/lamar-kerja/kultur-kerja-indomaret/

66 3. Indomaret Retail Organizational Structure In managing an organization or company which of course has a lot of various jobs and activities. Of course, it is mandatory for every company or organization to have a good and effective structure, of course. Because with a structure, a company or organization can run properly. Therefore, there needs to be a formal written structure, especially in Indomaret itself. With the aim of being able to create and describe how tasks, division of responsibilities and authority may and may not be carried out within the company so that the company can operate and run efficiently and effectively.129 The organizational structure at Indomaret itself is a series of activities that operate a framework to become a forum for all activities within it which shows the relationship of all respective jobs so that tasks and work within the company organization are effective and maximized. One form of Indomaret company organization itself is vertical direct relationships or responsibilities, where relationships and authority are linked to the duties of each position at superior and subordinate levels. The organizational structure of Indomaret can be seen from the picture below.130 128 Historical Image of PT. Indomarco Prismatama Indomaret. "Indomaret Store" accessed on September 20 2020. 123doc. - https://text id.123dok.com/document/4zpn20ovy-citra-histori-ptindomarco-prismatama-indomaret.html. 129 Puspa Agustin, "Complete Company Organizational Structure that is Good and Correct" Accessed 19. May 2023. https://blog.pintarnya.com/tangan-hrd/exmple-structure-organizationcompany/. 130Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on November 13 2023, at 13.00 WIB.\

67 The details of the duties of each Indomaret Retail section are as follows:131 1) Head of Shop The shop head's duties are a little heavier than other positions, a shop head is fully responsible for the continuity of the shop's operations. In terms of physical work, the shop head is less tired than the clerk and other personnel, but a shop head thinks harder than other employees. He always tries to find ways to make the shop he leads into prime shop status, that is, always achieving the specified targets or even exceeding them and reducing the NBH (value of lost goods) as little as possible. 2) Shop Assistant Based on his duties and responsibilities as an Indomaret employee, the assistant shop head has started to think about basic things such as how to always achieve sales targets, help the shop head make RRAK (cash budget plan for the next month) and ensure promotions run well. 3) MD (Merchandiser) Store MD (merchandiser) is the third highest position of a store employee. There are female and male MDs, both of whom started as cashiers and saleswomen who then rose to become MDs. Their 131Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on November 13 2023, at 13.00 WIB Kepala Toko MD Toko Kasir Pramuniaga Asisten Toko

68 duties are not much different from the work of cashiers and sales assistants in general, but what is different is that when they serve as MD they begin to be responsible for store administration. He also mentioned, What types of administration must an MD master? There are several things he mentioned, including: 1) Process the goods when they arrive. 2) Make a return. 3) Ensure that there are no cash discrepancies in the safe. 4) Give directions to attendants and cashiers while on duty. 5) resolve problems on the shift they lead. Mr. Edi also said that before they were promoted, they had first attended tiered training at the TC (training center) at the branch office. If you have become an MD then your status has become a permanent employee. 4) Cashier What does a cashier do? How do you become a good cashier? How do you focus when you're drooling and not drooling? These are some of the questions I often hear from new students (according to what he said). It's actually simple, just focus when making a transaction is the key. Pay Attention to Details: Make sure to scan or enter each item correctly into the checkout system to avoid price calculation errors. Communicate Clearly: Greet customers in a friendly manner, ask if they have a member card or special discounts, and provide the required information clearly. Speed and Accuracy: Make transactions quickly without sacrificing accuracy. Continuous practice can help you increase speed without sacrificing quality. 5) Saleswoman In general, the salesperson's job is to be responsible for the availability of goods on the display shelves and to keep the shop in a clean and tidy condition according to the soup. 4. Indomaret Retail Facilities and Infrastructure

69 The facilities available at the Indomaret Fresh Ponorogo Retail include transportation used to reach retail locations using two-wheeled and four-wheeled vehicles. Indomaret Fresh Ponorogo's other retail infrastructure includes various facilities and equipment used in store operations. For example, from the results of on-site research, Indomaret Fresh Ponorogo's retail facilities and infrastructure consist of cashier desks, consumer desks, promotion desks, shop head desks, and others.132 3.1.2 Surya Mart Retail 1. History of the Establishment of Surya Mart One of the Muslim retailers that is currently developing rapidly in Indonesia is PT. Daya Surya Sejahtera with the "Surya" brand operates in the retail sector and of course provides a variety of products and daily necessities to meet people's needs. Surya Mart is a MuhammadiyahOwned Business Entity (BUMM) which was founded on November 10 1999. Based on the deed of establishment made by Notary Soetomo, SH in Ponorogo. Furthermore, PT Daya Surya Sejahtera began operating at Jalan Soekarno Hatta 41 Ponorogo for the first time. Along with the development process PT. Daya Surya Sejahtera operates a lot, which was originally only on Jalan Soekarno Hatta, but is now finally able to take part in 18 sub-districts in Ponorogo.133 Looking at the movement and development of PT. Daya Surya Sejahtera has made strides towards a larger market within five years. Apart from that, right at the beginning of March 2005 PT. Daya Surya Sejahtera established a wholesale center with the brand name "Surya Grosir". Furthermore, in 2006 PT. Daya Surya Sejahtera is trusted by partners to be part of and one of the Distributors in the Ponorogo area and surrounding areas. PT. Daya Surya Sejahtera continues to explore its potential and 132Author's observations at Indomaret Fresh Ponorogo, on November 13 2023, at 14.00. 133 PT. Daya Surya Sejahtera. https://swalayansurya.wordpress.com/2012/07/14/32/.

70 quality with the demand to meet broad market demand. Initially, PT. Daya Surya Sejahtera is only involved in the drinking water distributor type of business.134 However, as time goes by, many suppliers gain more trust to redistribute it not only in drinking water but also in snacks and food, oil and cosmetic distributors. All the business perseverance and success achieved certainly cannot be separated from the amount of teamwork in carrying out all the company's vision and mission.135 2. Surya Mart Retail Vision and Mission In an effort to realize the company's vision, mission and values through company strategy, every individual from Surya Mart is required to be able to change their mindset in looking at the business as a whole. The vision of the Surya Mart retail company is "To become a company in the supermarket, wholesaler and distributor sector. Meanwhile, their mission is:136 a. Creating business professionalism by providing high quality products and services. b. Carry out continuous improvements in terms of human resources, systems and quality. c. Providing a forum for driving economic improvement by developing markets in the fields of supermarkets, wholesalers and distributors. d. Always increasing prospective business development through increasing the number of distribution collaborations. The vision and mission of the Surya Mart company is also supported by the motto "Cheap, Islamic Friendly". This motto reflects a 134 PT. Daya Surya Sejahtera. https://swalayansurya.wordpress.com/2012/07/14/32/. 135Ibid., 136 Arif Dwi Septian, "Analysis of Customer Satisfaction with the Quality of Sharia Services at Surya Mart Ponorogo 2019," Muslim Heritage 5, no. 1 (2020): p. 85 - 86, https://doi.org/10.21154/muslimheritage.v5i1.1983.

71 commitment to providing quality services at affordable prices, while also upholding Islamic values in every aspect of interactions and transactions.137 Furthermore, the "Cheap" aspect emphasizes that the aim of this service or business is to provide competitive and affordable prices for all groups, so that it can be accessed by many people regardless of economic background. By prioritizing affordable prices, this motto seeks to provide benefits to the wider community, especially those who need products or services on a limited budget.138 Meanwhile, "Friendly" shows attitudes and behavior that are warm, polite, and respect diversity. Friendly service will create a pleasant environment for customers, providing a sense of comfort and trust in transactions. Apart from that, a friendly attitude also reflects equality and politeness in interactions without distinguishing the customer's background, religion or culture.139 This motto carries Islamic values in all aspects of activities, including integrity, honesty and fairness in business. With the motto "Cheap and Friendly" accompanied by an Islamic spirit, the aim is to become a trusted business partner that provides a positive impact on society and sustainable benefits. The main focus is creating harmonious business and social relationships, in line with Islamic teachings about compassion, mutual respect and kindness for all.140 3. Surya Mart Organizational Structure 137Muhammad Farhanudin, "Surya Mart for the People". Accessed January 30, 2023. https://www.kompasiana.com/farhanud5888/63d7d3a24addee4fe470d872/surya-mart-untuk-rakyat 138Ibid., 139Ibid., 140Yusuf Abdhul Aziz, "Islamic Business Ethics: Definition, Principles and Goals". Accessed on 18, October 2021. https://deepublishstore.com/blog/etika-bisnis-islam/

72 The following is the organizational structure of PT Daya Surya Sejahtera: ORGANIZATIONAL STRUCTURE OF PT. PROSPEROUS SOLAR POWER PONOROGO AGM COMMISSIONER PRESIDENT DIRECTOR DIRECTOR OPERATIONAL & MARKETING ADM DIRECTOR, FINANCE & HR KA. ADMINISTRATION & HR DIVISION SPI TEAM CHIEF KA. FINANCIAL DIVISION KA. S. JUANDA DIVISION WA. S. JUANDA DIVISION TRAIN KA. S. SOEKARNO HATTA DIVISION WA. S. SOEKARNO HATTA DIVISION TRAIN KA. WAREHOUSE DIVISION WA. WAREHOUSE DIVISION TRAIN KA. S. BAYANGKARA OUTLET WA.KA OUTLET S. BAYANGKARA KA. S. CITY OUTLET WA.KA OUTLET S. KOTA KA. S. JETIS II OUTLET WA.KA OUTLET S. JETIS II KA. S. SOMOROTO OUTLET WA.KA OUTLET S. SOMOROTO KA. S. JETIS I OUTLET WA.KA OUTLET S. JETIS I 2. GENERAL PARTNER 1. SURYA MART PARTNERS Information: Line of Command _________ Coordination Line ------------

73 3.2 Comparative Analysis of Modern Retail Business Systems Surya Mart and Indomaret Fresh Ponorogo 3.2.1 Indomaret Fresh Ponorogo Business Competition Strategy Indomaret is one of the modern retail industries in Indonesia. Of course, there are many things that are happening rapidly in terms of location reach and number of shops, especially in the Ponorogo area. In small towns such as Ponorogo, many Indomaret outlets have appeared and there are six Indomaret retailers spread out and the author found them, including Indomaret on Jl Jendral Sudirman, Indomaret Jalan Gajah Mada, Indomaret Jalan Batoro Katong, Indomaret Ahmad Yani Somoroto, Indomaret Jalan Letjend R. Suprapto and Indomaret Jalan Soekarno Hatta.141 The term "business competition" often appears in various articles discussing elements of business competition law. This term comes from English, "competition", which means rivalry, rivalry, or match in terms of competitive activities. Competition in business and economics refers to the process of competition between companies or business entities trying to achieve certain goals. Winning customers, gaining a larger market share, ranking high in customer satisfaction surveys, or competing for the resources needed to remain operational are some examples of such goals.142 Indomaret Fresh Ponorogo Modern Retail includes many indicators of business competition that have been realized, such as the number of business competitions regarding the certainty of products being marketed with the aim of whether there is a realization of sharia values in them, competition in promotional events and discounts in each retail, as well as Of course, this concerns the price competition between the two retailers, 141Ponorogo, "Researcher Observations at Related Retail Locations". 07 August 2023. 142 Mudrajad Kuncoro, Strategy on How to Achieve Competitive Advantage, (Jakarta: Erlangga, 2005), p. 86.

74 both Indomaret Fresh Ponorogo and Surya Mart. Apart from that, access to passing public transportation makes it easy to reach business places, visibility of business locations can also provide great opportunities for carrying out spontaneous transactions.143Of course, by looking at several of the indicators above, with application to business competition in the real world, serious attention is needed in looking at business competition that can integrate sharia values into it. These indicators include: 1. Competing Products Of course, apart from products or services that have advantages, in Islam there is an obligation to consume all products and services that are halal and do not conflict with what has been stipulated in the Shari'a.144Indomaret offers more than just a shop. Indomaret offers a variety of products that are not limited to just basic ingredients or snacks.145 With the large availability and completeness of Indomaret, the head of the Indomaret Fresh Ponorogo store, Mr. Edi, expressed the lack of product guarantees that comply with the principles established by Islam on the grounds that if Indomaret Fresh Ponorogo refers to the center in the capital regarding guarantees for sharia products being marketed, there needs to be coordination. between branches to ensure that the steps for selecting sharia products are actually implemented.146 Furthermore, Indomaret, in its various store arrangement policies, usually tends to place products behind and around the cashier, such as candy, chocolate, snacks, packaged drinks, cigarettes, telephone credit, starter cards and several other products. This certainly triggers questions 143Ponorogo, "Researcher Observations at Indomaret Fresh Ponorogo Retail Locations". 08 August 2023. 144 Ismail Yusanto, Muhammad. Muhammad Karebet Widjajakusuma. "Initiating Islamic Business". (Jakarta: Gema Insani. 2002). p. 92-93. 145Ponorogo, "Researcher Observations at Indomaret Fresh Ponorogo Retail Locations". 08 August 2023 146Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on November 17 2023, at 16.00 WIB.

75 from consumers regarding several products that tend to be placed around the cashier area. This statement was conveyed by the leadership of Indomaret that as a company conducting business in Indonesia, it is subject to applicable laws and regulations. They tend to sell products that comply with local rules and values, avoiding items that are considered illegal or prohibited under existing regulations. So, items placed behind the till are generally not intended to violate the law or societal values.147Although there are some that are considered illegal and prohibited based on established regulations, such as the availability of contraceptive use.148 Apart from that, the head of the Indomaret Fresh Ponorogo store also said that honesty in promoting products is also important. This also aims to maintain customer trust and build long-term relationships, as well as providing a good experience in every shop and consumer interaction. By complying with and implementing operational standards that have been set by the company, such as providing accurate and clear information about products, this ensures that customers receive the right information and in line with their expectations. The combination of these two strategies helps in retaining loyal customers and building a good reputation in the long run.149 In conventional economics goods are goods that can be exchanged and are morally useful. Products include quality, features, design, style, variety, shape, brand, packaging, size, service, guarantee and returns. Quality is defined by the customer. Quality is how well a product meets the specific needs of customers. Specialties are characteristics that 147Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on December 24 2023, at 14.15 WIB 148Interview with Muhammad Fajri (Student at the Faculty of Economics and Business, Muhammadiyah University of Ponorogo), on December 24 2023, at 16.00 WIB. 149Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on November 17 2023, at 17.00 WIB

76 complement the basic function of a product. Design is the totality of features that influence the way a product looks and functions in terms of customer needs. Style describes how it looks and feels to customers. Physical or tangible products require packaging to create certain benefits such as protection, convenience, economic benefits and promotion.150 2. Indomaret Fresh Promotion and Discount Events Indomaret Fresh Ponorogo regularly holds various promotions, discounts and special events as part of their strategy to compete in the retail market. These promotions can be in the form of price discounts, such as buy 2 get 1 free, offers of more affordable and cheap packages, purchases with bonuses and so on. In promoting it, Indomaret announces these promotions through social media, advertisements, or around their stores. Apart from that, some of the programs or promotions they adopt with sharia principles can be in the form of product offers, special discounts on certain products that comply with sharia principles.151 Apart from that, the Indomaret Fresh Ponorogo promotional catalog usually has various discounts containing various products in each edition that comes out. Indomaret Fresh promotions are not only limited to certain moments, such as before big days, the beginning of the month, even the end of the year. The following are several promo catalogs that are present at Indomaret Fresh:152 1) SUHE or usually called Super Saving. This promotion is usually available every Wednesday and provides a variety of very interesting product choices. The catalog from the Indomaret Fresh promo usually provides many household products, bath soap, 150 M. Suyanto, Muhammad. "Business Strategy & Ethics (Ethics and Business Strategy of the Prophet Muhammad SAW)", (Yogyakarta: Andi Offset, 2008), p. 263. 151Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on November 20 2023, at 17.00 WIB 152Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on December 24 2023, at 17.00 WIB

77 washing powder, and many other necessities that can be found in the catalog. 2) End of Year Fun. Exciting year-end promotions at Indomaret usually offer various big discounts, economical packages, direct prizes, or attractive loyalty programs for customers. These promotions can include special offers for certain products, shopping discounts with special cards, or even quizzes and raffles with attractive prizes as part of a series of end-of-year celebrations. 3) Special Prices for Members. Special price promotions for members at Indomaret Fresh usually include additional discounts, exclusive offers, or other benefits that are only available to members of their membership program. In this series of promotions, Indomaret uses discounts, prizes and special benefits as a tool to attract customer attention, encourage purchases and build loyalty. The overall strategy aims to create an engaging shopping experience for customers while maintaining healthy business growth and profits. Promotion is a marketing function that involves all activities to inform, offer, and/or remind consumers about the products and services used by the company to inform the public about consumer products and services, and to influence people's purchasing decisions.153In this case, the aim is to achieve sales of a product or service temporarily by increasing the basic value offered, such as offering "buy one get one free" to consumers or "buy twelve cases get a 10 percent discount" to wholesalers, retailers, or distributor. Among the elements in the promotional mix or implementation of promotions, which include personal or group sales 153 Agustinus Yanuar B. H, "The Influence of Promotions and Prices on Purchasing Decisions at Alfamart and Indomaret," Science: Journal of Management and Business 13, no. 1 (2020): p. 75.

78 include advertising, sales promotions, direct marketing, publicity, word of mouth promotions, event marketing and so on.154 3. Indomaret Fresh Pricing Strategy On the issue of price, the leader of Indomaret Fresh said that in its operations, Indomaret is consistent in following the price policy that has been set by the company center. However, the price difference is slightly different from other retailers, including Surya Mart retail.155Regarding the price difference. The head of Indomaret Fresh Ponorogo said that explaining aspects of price differences with other retailers sometimes requires more in-depth clarification which may be difficult to convey directly to consumers. However, retailers continue to be committed to increasing transparency and providing consumers with a better understanding of applicable price policies.156 In implementing the pricing strategy in the marketing strategy, Indomaret Fresh's leadership said that it uses product prices that end in the number 9, such as Rp. 4,999 or Rp. 14,999, rather than Rp. 5,000 or Rp. 15,000. Even though the price difference is only small, psychologically, the number 9 is more attractive to consumers because it looks cheaper. Apart from that, Indomaret also combines pricing strategies with discounts for certain products. This makes the product price look more attractive and tempting for consumers. In implementing this strategy, Indomaret Fresh also pays attention to the added value of the products offered. For example, Indomaret provides discounts for certain products that are of 154 Wikipedia, "Promotional Marketing". This page was last edited on 04 August, at 12:05 (UTC). https://en.wikipedia.org/wiki/Promotion_(marketing). 155Interview with Oksahidha Ulil Restyoningtyas (Student of the Faculty of Economics and Business, Ponorogo State Islamic Institute), on November 28 2023, at 13.00 WIB. 156Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on November 24 2023, at 16.00 WIB

79 better quality than similar products elsewhere. In this way, consumers feel they are getting more value by buying products at Indomaret.157 Overall, the pricing strategy implemented by Indomaret can increase product attractiveness and attract consumer attention, thereby increasing sales and providing added value for consumers. Apart from that, the leadership of Indomaret Fresh believes that this strategy also helps Indomaret to compete with other retail companies that offer cheaper prices.158However, Indomaret must also be careful in implementing this strategy because if it is excessive, consumers can feel cheated and lose trust in them. The data above concerns the problem of price balance. Islam is very concerned about this, the most principle is that prices are determined by the balance of demand and supply. This balance occurs when the seller and buyer are willing to accept each other. This willingness is determined by the seller and buyer and the buyer in maintaining the goods. So, the price is determined by the seller's ability to provide the goods offered to the buyer, and the buyer's ability to obtain the price of the goods from the seller.159 According to Rachmat Syafei, the price only occurs in the contract, that is, something that is agreed to in the contract is either less, greater, or equal to the value of the goods. Usually the price is used as an exchange for goods agreed to by the two parties making the contract.160Price can be interpreted as a monetary unit or other measure including goods and 157Interview with Edi Santoso (Head of Indomaret Fresh Ponorogo Store), on December 24 2023, at 14.00 WIB 158Ibid., 159 Adawiyah, Anisah Luthpi, et al. "The Concept of Economic Balance on Market Mechanisms and Price Determination in an Islamic Perspective." Journal of Education and Counseling (JPDK) 4.6 (2022). h. 3313-3314. 160 Mustafa Edwin Nasution, et al., Introduction to Islamic Economics, Kencana, Jakarta, 2007. p. 160.

80 services exchanged to obtain the right to ownership or use of a good or service. And it is also one of the marketing mix elements that provides income or income for a company compared to other marketing mix elements such as product, promotion and distribution.161 Regarding price issues, the market does not expect intervention from any party, including the state with the authority to determine prices. This is because basically the market does not need free power to determine what should be consumed and produced. Each individual is free to choose for themselves what is needed and how to fulfill it. This is the normal pattern of the market or 'natural order' in al-Gazali's terms relating to market evolution. Furthermore, Adam Smith stated to just leave it to the invisible hand, and the world will order itself." The basic decisions of economic actors are voluntary so that authority and command are not needed.162 3.2.2 Surya Mart Business Competition Strategy Competition in business and economics refers to the process of competition between companies or business entities trying to achieve certain goals. Winning customers, gaining a larger market share, ranking high in customer satisfaction surveys, or competing for the resources needed to remain operational are some examples of such goals.163Competition in business and economics refers to the process of competition between companies or business entities trying to achieve certain goals. Winning customers, gaining a larger market share, ranking 161 Tjiptono Fandy. "Service Management". (Yogyakarta: Andy Offset, 2001). h. 151. 162 Mubarok, J. et al. “Sharia Economics for Level 1 Law Universities. Department of Sharia Economics and Finance - Bank Indonesia, Jakarta. (2021). h. 73. 163 Mudrajad Kuncoro, Strategy on How to Achieve Competitive Advantage, (Jakarta: Erlangga, 2005), p. 86.

81 high in customer satisfaction surveys, or competing for the resources needed to remain operational are some examples of such goals.164 Surya Mart is one of the modern retail industries in Indonesia and is available in certain cities, including Ponorogo. Of course, there are many things that have left a significant mark in terms of location reach and number of shops, especially in the Ponorogo area itself. In Ponorogo itself, many Surya Mart outlets have appeared and there are six Surya Marts that the author found, including Surya Mart Jalan HOS Cokroaminoto, Surya Mart Ponorogo Kota Jalan Raya Ponorogo - Madiun, Surya Mart Jalan Batoro Katong, Surya Mart PAGI Jalan. Willis No. 8, Surya Mart Juanda Ponorogo, Surya Mart Jalan Bahayangkara.165 In its competition, Surya Mart Modern Retail includes several indicators of business competition that have been realized, such as the number of business competitions regarding the certainty of products being marketed with the aim of whether there is a realization of sharia values in them, competition in promotional events and discounts in each retail, as well as Of course, this concerns the price competition between the two retailers, both Indomaret Fresh Ponorogo and Surya Mart. Apart from that, access to passing public transportation makes it easy to reach business places, visibility of business locations can also provide great opportunities for carrying out spontaneous transactions.166Of course, by looking at several of the indicators above, with application to business competition in the real world, serious attention is needed in looking at business competition that can integrate sharia values into it. These indicators include: 164 Mudrajad Kuncoro, Strategy on How to Achieve Competitive Advantage, (Jakarta: Erlangga, 2005), p. 86. 165 Surya Mart Ponorogo. "Online Shopping at Surya Mart Ponorogo". Indexed by Google Searc March 2020. https://www.google.co.id/search?q=surya+mart+ponorogo&ie=UTF8&oe=UTF-8&hl=id-id&client=safari. 166Ponorogo, "Researcher Observations at Indomaret Fresh Ponorogo Retail Locations". 06 August 2023.

82 1. Competing Products Surya Mart is a place that offers a variety of products that are not limited to just basic ingredients or snacks. In Islam, there is an obligation to consume all products and services that are halal and do not conflict with what is stipulated in the Shari'a.167With the wide availability and completeness of Surya Mart, what was also interesting was what was conveyed by the head of the Surya Mart store, Mr. Parno Surya, who emphasized his firm commitment to the sharia principles that underlie every product presented on its shelves. Surya Mart leadership firmly rejects the sale of goods prohibited by Islamic values, making universal criteria regarding goods considered haram a strong basis for product selection. They seriously ensure that every product, especially those from MSMEs, still fulfills and is in line with sharia values and principles carefully and logically before throwing it on the market.168 Furthermore, he also said that Surya Mart has special differences compared to many other retailers such as Indomaret, especially in enforcing strict principles not to sell products that conflict with sharia principles. This is an interesting point because it opens up great opportunities for market expansion, both at the national and international level. This approach creates ample space for the products available at Retail Surya Mart Ponorogo to be more widely accepted. Even though there are slight differences in product offerings from Indomaret retail, the statement emphasized by the store leadership emphasizes that the products sold do not contain any haram elements, providing certainty of usefulness and halalness for consumers who buy them. This provides its own 167 Ismail Yusanto, Muhammad. Muhammad Karebet Widjajakusuma. "Initiating Islamic Business". (Jakarta: Gema Insani. 2002). p. 92-93. 168Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 1 2023, at 16.00 WIB

83 attraction and expands market share by upholding strong values regarding halal products.169 In conventional economics goods are goods that can be exchanged and are morally useful. Products include quality, features, design, style, variety, shape, brand, packaging, size, service, guarantee and returns. Quality is defined by the customer. Quality is how well a product meets the specific needs of customers. Specialties are characteristics that complement the basic function of a product. Design is the totality of features that influence the way a product looks and functions in terms of customer needs. Style describes how it looks and feels to customers. Physical or tangible products require packaging to create certain benefits such as protection, convenience, economic benefits and promotion.170 2. Surya Mart Promotion and Discount Events Furthermore, Surya Mart has a varied schedule for promotional events, which are often held periodically and even suddenly for some special events. They divide their promotional strategies into two types: general promotions and specific promotions. Promotion generally involves outreach to the public through various channels such as advertisements, banners, TV, radio, and others. On the other hand, promotions are specifically aimed at permanent members with exclusive discount offers, including special promotions on certain days such as "JuSaMa" (Friday, Saturday, Sunday) of course by providing attractive products and prices. There are other promotions such as through big events such as commemoration of Heroes' Day, Eid al-Fitr celebrations, Eid al-Adha, and several other big events such as Cheerful September, Happy November, and so on. This diverse approach allows Surya Mart to reach various 169 Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 1 2023, at 16.00 WIB 170 M. Suyanto, Muhammad. "Business Strategy & Ethics (Ethics and Business Strategy of the Prophet Muhammad SAW)", (Yogyakarta: Andi Offset, 2008), p. 263.

84 consumer segments with attractive and relevant offers according to certain moments.171 Of course, we offer various promotions and discounts with the aim of attracting customers' interest in shopping. Some promotional strategies used by Surya Mart include:172 1. Samples, in this case Surya Mart provides free samples or samples of products with the aim of a strategy to encourage customers to buy products at Surya Mart. 2. Coupons are not much different from those offered at Indomaret such as member cards, among others. Surya Mart itself also offers coupons to customers which of course can be exchanged for discounts or other benefits. 3. Next, Rebate: the provisions of which provide discounts to customers who buy products in certain quantities. 4. Package price: In this case Surya Mart offers a package price for a group of products. 5. Prizes: what's interesting about Surya Mart is that it gives free prizes to every customer who buys certain products or reaches certain spending thresholds. 6. Discounts, of course in this case Surya Mart also offers discounts on each product to its customers. 7. Free testing: where Surya Mart provides free product testing to customers in the hope of creating a sense of customer trust in Surya Mart. 8. Combined promotion: combining several promotional strategies to attract customers. 171Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 1 2023, at 17.00 WIB 172Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 24 2023, at 14.00 WIB

85 In its promotional strategy, Surya Mart emphasizes and guarantees that the services they provide do not contain elements of fraud, including in terms of product promotions. Even though the principle of honesty does not always reach 100%, Surya Mart is committed to minimizing this risk in its business operations. They strive to make customers feel that the transactions carried out are based on honesty, creating strong trust among consumers in the services and promotions presented.173 Marketing in Islam is a form of muamalah that is justified in Islam, as long as all transaction processes are protected from things prohibited by sharia provisions. Islam also has certain more specific limitations regarding the definition of products, especially limitations that must be adhered to, including when promoting or advertising not to lie.174This statement is confirmed and also supported by a hadith narrated by Ibn Majah which means: "A Muslim is a brother to another Muslim, it is not halal for a Muslim to sell goods that have defects to his friends, unless he explains it" (HR. Ibn Majah).175 Furthermore, in positioning the promotion of its products or services, Surya Mart leadership conveys and positions the promotion of its products or services by focusing on added value that applies sharia principles. They highlight unique products that are halal, high quality, and provide extra benefits that support sharia values, such as sustainability or clear social contributions. In this way, Surya Mart can differentiate itself in the market with promotions that not only attract customers but are also consistent with sharia principles.176 173Ibid., 174 Hermawan Kertajaya, Muhammad Syakir Sula, "Sharia Marketing". (Jakarta: Mizan Pustaka, 2008). h. 9. 175M. Nashiruddin Al-Albani, "Summary of Sahih Sunan Ibnu Majah", (Jakarta: Pustaka Azzam, 2007), p.335. 176Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 5 2023, at 09.30 WIB

86 3. Surya Mart Price Competition Strategy On the issue of price, the leadership of Surya Mart also specifically stated that he did not apply the price concept of the term ajimumpung, which in Javanese terms refers to selling when goods are scarce by applying the highest possible price, or taking advantage of scarcity to sell at a high price when the goods are in demand. This principle has never been implemented by Surya Mart. Surya Mart continues to uphold sharia principles in setting prices, showing their commitment to fairness and honesty in business. Surya Mart's pricing is based more on values that emphasize a balance between fair profits and consumer needs, without taking advantage of the scarcity or popularity of a product to set unreasonable prices.177 Furthermore, it is related to determining product selling prices, in this case the researcher tried to meet one of the consumers who shopped at the relevant retailer. In his statement he said that excellence in pricing plays a very important role in influencing competition in the market. Competitive prices are often the main factor influencing my choices when shopping. For example, if a shop offers the same product at a lower price than its competitors, I tend to choose to shop at that shop and this is at Surya Mart. However, price is not my only consideration. The quality of products and services is also an equally important factor. Although competitive prices can be the main attraction, the availability of goods, a pleasant shopping experience, and guaranteed product quality also influence my decision as a consumer.178 According to Rachmat Syafei, the price only occurs in the contract, that is, something that is agreed to in the contract is either less, greater, or 177Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 5 2023, at 09.30 WIB 178Interview with Muhammad Fajri (Student at the Faculty of Economics and Business, Muhammadiyah University of Ponorogo), on December 3 2023, at 14.00 WIB.

87 equal to the value of the goods. Usually the price is used as an exchange for goods agreed to by the two parties making the contract.179Price can be interpreted as a monetary unit or other measure including goods and services exchanged to obtain the right to ownership or use of a good or service. And it is also one of the marketing mix elements that provides income or income for a company compared to other marketing mix elements such as product, promotion and distribution.180 Regarding price issues, the market does not expect intervention from any party, including the state with the authority to determine prices. This is because basically the market does not need free power to determine what should be consumed and produced. Each individual is free to choose for themselves what is needed and how to fulfill it. This is the normal pattern of the market or 'natural order' in al-Gazali's terms relating to market evolution. Furthermore, Adam Smith stated to just leave it to the invisible hand, and the world will order itself." The basic decisions of economic actors are voluntary so that authority and command are not needed.181 4. Surya Mart Location Range In setting up a retailer, there are many strategic considerations that must be taken into account. Strategic location is one of the key factors, whether it is close to the crowds and whether it is on the fast lane or vice versa, but this is not always 100% optimal. Nevertheless, Surya Mart ensures that its range remains affordable for consumers. Environmental considerations such as the presence of people around the location are also important factors. However, in general, Surya Mart strives to ensure a wide reach for customers. Apart from that, understanding local culture and 179 Mustafa Edwin Nasution, et al., Introduction to Islamic Economics, Kencana, Jakarta, 2007. p. 160. 180 Tjiptono Fandy. "Service Management". (Yogyakarta: Andy Offset, 2001). h. 151. 181 Mubarok, J. et al. “Sharia Economics for Level 1 Law Universities. Department of Sharia Economics and Finance - Bank Indonesia, Jakarta. (2021). h. 73.

88 purchasing power is also a focus. Surya Mart tends to attract consumers with a simple shopping style, which fits local shopping habits.182 In its services, several Surya Mart branches also have variations in conditional policies in their services, where some provide services such as a place to perform prayers and some do not. However, they follow their company motto of focusing on affordable prices, friendliness, and Islamic principles. This is reflected when prayer time arrives, where Surya Mart employees flock to fulfill their religious obligations.183 These actions demonstrate their commitment to religious practices, and at the same time, send a strong message to consumers about the importance of adherence to religious teachings. This practice also provides an opportunity to provide consumers with explanations or arguments that support these teachings, which may attract their interest and appreciation for the religious principles upheld by Surya Mart.184 At Surya Mart, commitment to religion is not only an important aspect of customer service, but is also the main focus in employee coaching and development. They emphasize the importance of obeying religion as a top priority for employees, considering that discipline, diligence and totality in work must be balanced with obedience in worship. Moreover, Surya Mart implements weekly coaching activities, such as cults and reading the Koran on Mondays, which provide opportunities for employees to deepen their understanding of religion. This shows a strong commitment from the company in ensuring that religious values become part of the company's culture and practices, which gives consumers 182Interview with Mr. Parno Surya (Head of Surya Mart Ponorogo Store), on December 5 2023, at 10.00 WIB 183Ibid., 184Author's Observations and Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 5 2023, at 10.00 WIB

89 confidence that Surya Mart not only prioritizes excellence in service, but also in undoubted religious matters.185 3.3 Review of Sharia Economic Law in the Modern Retail Business Competition System Surya Mart and Indomaret Fresh Ponorogo Surya Mart and Indomaret are widely known for providing various daily necessities products under one roof which are of course comfortable and easy to reach. Starting from food and drinks, household needs, beauty products, to children's needs, it makes it easy for customers to get everything they need in their daily lives. With a variety of product choices, and has become one of the main goals of many people in meeting their needs. Therefore, these two retailers continue to maintain their reputation as one stop shops that the public can rely on.186 In Islam, retail business is a form of modern market where the market plays an important role in the economy of Muslim and non-Muslim communities. The market is a natural mechanism for exchanging goods and services and has been going on since early human civilization. Islam's appreciation for market mechanisms is based on Allah's provisions that commerce must be carried out well with mutual consent and there is no fraud in it.187This is also confirmed in the Word of Allah SWT in QS. Al-Muthaffifin verses 1-3 which read: ْي ِ ِّف ِ ط ف ُ ِّلْم ِ ل ٌۭ ٌ ْل ي ُو ن و ١ َ َف ْ و ت ْ س ه ا ِس ي ل ى ٱلن ع ۟ الُوا ْكت ذ ا ٱ ِ إ ين ذِ ه ذ ٱل ٢ َ َا ِ إ و و ن ُ ِسر ُُيْ ْ م ُ ُوه ن وز ه أ و ْ م ُ ك ٣ الُوه Meaning: "Great disaster for those who cheat. (namely) people who, when they receive a measure from someone else, ask for it to be fulfilled. And if they 185Author's Observations and Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 5 2023, at 10.00 WIB 186 Rahma Kurniawan, "Analysis of the Impact of Modern Shops on Micro, Small and Medium Enterprises in Padangsidimpuan City". (Thesis) Postgraduate, North Sumatra State Islamic University, Medan. (2019) p. 12-13. 187 Yustika, Mayangsari, "The Influence of Indomaret Modern Retail Business on Small Business Income Levels in Malili District, East Luwu Regency," (Thesis, IAIN Palopo). 2018. p. 13.

90 measure or weigh for someone else, they subtract. What is meant by cheaters here are people who cheat in measuring and weighing.”188 Retail trading activities carried out must also comply with the provisions in the Koran so that they are worthy of worship. In this way, we obtain material benefits and try to gain the approval of Allah SWT. It is possible that the application of sharia values in modern retail occurred before the emergence of sharia retail ideas, although it did not explicitly raise Islamic slogans, but implicitly the content of sharia values was already implemented in business processes.189 In terms of business competition, Islam very clearly prepares all detailed rules regarding competition law and ethics that must be obeyed, of course in accordance with those stipulated in Islamic teachings and law. This aims to avoid unhealthy competition. Because based on existing facts in the field, business competition is now very tight and wild and many are using various methods to achieve their desired desires.190 Therefore, based on the results of the research presented above, related to retail business competition between Surya Mart and Indomaret Fresh Ponorogo, the author focuses on analyzing the review of Sharia Economic Law on the modern retail business competition system in Surya Mart and Indomaret Fresh Ponorogo supermarkets. Which includes several indicators including: Business competition regarding the certainty of products being marketed with the aim of whether there is a realization of sharia values in them, competition in promotional events and discounts at each retailer, also of course regarding price determination competition between the two retailers, both Indomaret Fresh Ponorogo and Surya 188Ministry of Religion of the Republic of Indonesia, "The Qur'an and its Translations", (Bandung: CV Publisher J-ART, 2004), p. 587. 189 Hermawan Kertajaya, Muhammad Syakir Sula, "Sharia Marketing". (Jakarta: Mizan Pustaka, 2008). h. 9. 190 Diah Sulistianingsih, "Review of Business Competition Fiqh and Islamic Business Ethics on Grocery Store Business Competition (Case Study on Jalan Barong, Kertosari Village, Babadan District, Ponorogo Regency)," (Thesis) (Ponorogo State Islamic Institute, 2022). h. 26- 27.

91 Mart. Apart from that, access to passing public transportation makes it easy to reach business places, visibility of business locations can also provide great opportunities for carrying out spontaneous transactions. 1. First.Competing Products from Retail Surya Mart and Indomaret Fresh Ponorogo Two statements from the head of the Indomaret Fresh Ponorogo store, Mr. Edi, and the head of the Surya Mart store, Mr. Parno Surya, highlight different approaches to compliance with sharia principles in product sales. Indomaret, through Mr. Edi's statement, emphasized the need for better coordination between branches to ensure that the products marketed comply with sharia principles. They tend to run their business by paying attention to local rules and values, avoiding illegal goods, but do not always emphasize the halal aspect of the product as the main focus. The statement made by the leadership of Indomaret Fresh above certainly concerns ensuring the safety of products marketed in accordance with established sharia principles. In a business context, the principle of Tawhid teaches that every business actor must pay attention to the interests of society and the surrounding environment. This is included in the principles of corporate social responsibility which teach that every company must make a positive contribution to society and the surrounding environment. In this case, companies must pay attention to the impact of their business activities on society and the surrounding environment, and try to reduce these negative impacts.191 The principle of social responsibility is also emphasized in QS. As-Saffat 37: Verses 22-24. Allah Subhanahu Wa Ta'ala says: ن َ َGod َ bless َ you ْ ُو د ُ ب ْ ع ِم ي .َ َ ْ ِحي ِط ا ْْل ا ََٰل ِصر ِ ا ْ م ُ ه ْ ُو ْد اه ف ِ َٰ ِّ اَّلل نِ ْ ُو د ْ ن ِ م . ن ْ لُو ْ و ُ ئ ْ همس ْ َّنُم ه ِ ا ْ م ُ ه ْ ُو ف ِ ق و 191 Fitri Amalia, "Islamic Business Ethics: Concept and Implementation for Small Business Actors 6, no. 1 (2014). h. 117. https://repository.uinjkt.ac.id/dspace/handle/123456789/30987.

92 The verse above is explained in Jalalyn's interpretation that Allah called to the angels, (Gather together the wrongdoers), namely those who have wronged themselves because they have committed polytheism (along with their colleagues), their close friends, namely the devils (and the gods they always worship).In this case, of course the verse explains that in the afterlife, every human being will be held responsible for their actions while in this world.192 From the data and theory presented, it appears that efforts to guarantee products that comply with sharia principles at Indomaret Fresh Ponorogo have not been optimal by prioritizing the importance of coordination between branches and the center to ensure compliance with the standards set by the company. This is clearly not in accordance with the principles of business competition in Islam, such as the principle of Tawhid which emphasizes attention to society and the environment. On the other hand, Surya Mart, as stated by Mr. Parno Surya, emphasizes its strong commitment to sharia principles in every product it offers. They carry out strict product selection, reject products that conflict with Islamic values, and ensure that every product, especially those from MSMEs, complies with sharia principles before being marketed. Thus, Surya Mart emphasizes a more assertive approach in ensuring product halalness and makes this the main point of emphasis in their marketing strategy. The relevance of the theory and data presented by shop leaders certainly concerns ensuring the safety of products marketed in accordance with established sharia principles. Products in the Koran are expressed in two terms, namely altahyyibat and al-rizq. The word al-tahyyibat is used 18 times, while the word alrizq is used 20 times. Al-Tahyyibat refers to something good, pure and good, something clean and pure, something good and thorough and the best food. alRizq refers to food that is blessed by Allah. According to Islam, consumer 192 Tafsir of the Qur'an. Tafsir Jalalayn Surah Ash-Shaffa 22-24. https://tafsirq.com/37-assaffat/ayat-22#tafsir-jalalayn.

93 products are useful, useful consumable materials that have utility value that produce material, moral and spiritual improvements for consumers. Something that is useless and prohibited in Islam is not a product in the Islamic sense.193 In addition, the statement regarding Surya Mart's commitment to sharia principles in product selection illustrates how business practices can be carried out by paying attention to religious and moral aspects explained in Islamic theory. The concepts of al-tahyyibat and al-rizq mentioned in the Koran underline the importance of providing consumers with good, clean, useful and Allah-blessed products. By using universal criteria regarding goods that are considered haram as the basis for product selection, Surya Mart not only considers consumer health and safety aspects, but also ensures that every product they offer is in line with sharia principles as a whole. With this, Islam very clearly prepares all detailed rules regarding competition law and ethics that must be obeyed, of course in accordance with those stipulated in Islamic teachings and law. This aims to avoid unhealthy competition. Because based on existing facts in the field, business competition is now very tight and wild and many are using various methods to achieve their desired desires.194 The statement regarding Surya Mart's commitment to sharia principles in product selection illustrates how business practices can be carried out by paying attention to religious and moral aspects explained in Islamic theory. The concepts of al-tahyyibat and al-rizq mentioned in the Koran underline the importance of providing consumers with good, clean, useful and Allah-blessed products. By using universal criteria regarding goods that are considered haram as the basis for product selection, Surya Mart not only considers consumer health and safety 193 Nurhidayatuloh, "Modern Retail Business Marketing Strategy from a Sharia Economic Perspective". (Thesis, Indonesian Islamic University). 2018. p. 54-55. 194 Diah Sulistianingsih, "Review of Business Competition Fiqh and Islamic Business Ethics on Grocery Store Business Competition (Case Study on Jalan Barong, Kertosari Village, Babadan District, Ponorogo Regency)," (Thesis) (Ponorogo State Islamic Institute, 2022). h. 26- 27.

94 aspects, but also ensures that every product they offer is in line with sharia principles as a whole. This step not only shows their firmness in respecting sharia principles, but also reflects the importance of running a business by paying attention to moral values, benefits for consumers, and avoiding products that are considered useless or prohibited in Islamic teachings to achieve a balance between benefit and compliance with principles. sharia. The main difference lies in each shop's emphasis and approach to compliance with sharia principles. Indomaret, while paying attention to local regulations and values, does not always place primary focus on the sharia aspects of its products. They highlight compliance with applicable central regulations. On the other hand, Surya Mart displays a very strong commitment to compliance with sharia principles in every aspect of its business. They carry out strict product selection, reject goods that conflict with Islamic values, and ensure the halalness of every product marketed. In this way, Surya Mart builds a strong identity as a retailer that emphasizes halal products as the main value in their operations, which can be attractive to consumers who pay attention to sharia aspects in shopping. 2. First.Promotional Events and Discounts Competed by Retail Surya Mart and Indomaret Fresh Ponorogo The head of the Indomaret Fresh Ponorogo store, Mr. Edi, and the head of the Surya Mart store, Mr. Parno Surya, Indomaret Fresh and Surya Mart, both adopted strong promotional strategies to attract consumer attention by offering discounts, economical packages and special programs. However, Indomaret Fresh's approach is more focused on promotions that tend to be general, with a focus on discounts on certain products and periodic promotional catalogs, such as SUHE or end-of-year fun promos. They use social media, advertising, and promotions in general as tools to reach customers. Although some of their promotions follow sharia principles by offering products that are in line with Islamic values, Indomaret Fresh's main focus seems to be more on attracting customers' attention with a variety of attractive discounts and offers.

95 The above statement is also contained in the principle of social responsibility. The principle of monotheism is the fundamental foundation of Islamic teachings. In a business context, the principle of monotheism also teaches every business actor to pay attention to the quality of the products and services offered, pay attention to the balance between profits and losses in business and pay attention to the interests of society and the environment concerned.195In line with the statement above, so far the promotional events carried out by Indomaret Fresh Ponorogo are very diverse and follow the principles set by the store with several strategies implemented. On the other hand, Surya Mart carries a more holistic approach in its promotional strategy. They not only offer discounts or gifts to customers, but also consider sharia values in their product selection and promotion. Surya Mart has an exclusive promotional program for permanent members with special discount offers on certain days, such as JuSaMa (Friday, Saturday and Sunday). More than just offering discounts, Surya Mart positions its product or service promotions by focusing on added value that applies sharia principles. They highlight unique products that are halal, high quality, and provide extra benefits that support sharia values, such as sustainability or clear social contributions. In this way, Surya Mart can differentiate itself in the market with promotions that not only attract customers but are also consistent with sharia principles.196 Surya Mart's statement is also contained in the Muamalat principle, namely the taba'dulul mana'fi' principle: namely that all forms of muamalat interaction must be of mutual benefit and mutual benefit for each party involved. This principle is a continuation of the principle of atta'awun or mu'awanah so that 195 Luthfi. N. H, "Principles of Islamic Economics". Center for Sharia Economics and Business Studies. Gadjah Mada University. Posted on July 2, 2018. By Abdul Qodri. S. https://pkebs.feb.ugm.ac.id/2018/07/02/princi-princi-economics-islam/” 196Interview with Mr. Parno Surya (Surya Mart Ponorogo Store Leader), on December 5 2023, at 09.30 WIB

96 this principle aims to create cooperation between individuals or parties in society in order to fulfill each other's needs in the context of mutual prosperity.197 The approach applied by Surya Mart in positioning its product promotions is in line with Islamic economic principles which emphasize added value generated through mutually beneficial interactions for all parties involved. The concept of products being marketed, of high quality, and providing extra benefits that support sharia values is an implementation of the taba'dulul mana'fi' principle in muamalat. Thus, the product promotions carried out are not only aimed at attracting customers but are also consistent with sharia principles which encourage cooperation and provide mutual benefits. This concept also describes the principle of atta'awun or mu'awanah in Islam, where cooperation and mutual fulfillment of needs between individuals or parties in society aims to achieve mutual prosperity, in accordance with the principles of muamalat which prioritize justice, mutual benefit and prosperity. Thus, Indomaret Fresh focuses more on a variety of discounts and attractive offers in general to attract customer attention, while Surya Mart takes a more holistic approach with an emphasis on honesty, sharia values in promotions, as well as positioning their products as choices that comply with the principles Sharia as the main advantage. 3. Third.Retail Price Competition Strategy for Surya Mart and Indomaret Fresh Ponorogo Indomaret Fresh and Surya Mart have different approaches to pricing strategies in retail market competition. Indomaret Fresh, through its leadership approach, prioritizes the use of price psychology by determining prices that end in Rp. 9, creating the perception that the product is more affordable even if the difference is only slight. They also combine pricing strategies with discounts to create greater appeal to consumers. Indomaret Fresh's focus on added product 197 Juhaya S. Praja, "Philosophy of Islamic Law". (Bandung: PT. Lathifa Press with IAILM Suryalaya Sharia Faculty, 2004).

97 value, such as better quality, is also an aspect they pay attention to in setting prices. However, they must be careful so that consumers do not feel cheated by this strategy. This is also a frequent question for Indomaret consumers, with the statement why there is a higher price difference between Indomaret retail and other retailers? So this becomes a complaint for consumers concerned about considering the continuity of shopping. There is also a lack of relevance to established sharia concepts and principles.198 Islam is very concerned about this, the most principle is that prices are determined by the balance of demand and supply. This balance occurs when the seller and buyer are willing to accept each other. This willingness is determined by the seller and buyer and the buyer in maintaining the goods. So, the price is determined by the seller's ability to provide the goods offered to the buyer, and the buyer's ability to obtain the price of the goods from the seller.199 The price determination mechanism in Islam is in accordance with Maqashid al-Syariah, namely realizing benefits and avoiding damage among humans. This is also in line with what the Prophet did. If the Prophet had directly set prices at that time, it would have been contradictory to market mechanisms. However, in certain situations, under the pretext of Maqashid al-Syariah, price determination becomes a necessity for the reason of upholding human benefit by fighting market distortions (combating mafsadah or damage that occurs in the field).200 198Interview with Oksahidha Ulil Restyoningtyas (Student of the Faculty of Economics and Business, Ponorogo State Islamic Institute), on November 26 2023, at 13.00 WIB. 199 Adawiyah, Anisah Luthpi, et al. "The Concept of Economic Balance on Market Mechanisms and Price Determination in an Islamic Perspective." Journal of Education and Counseling (JPDK) 4.6 (2022). h. 3313-3314. 200 Adawiyah, Anisah Luthpi, et al. "The Concept of Economic Balance on Market Mechanisms and Price Determination in an Islamic Perspective." Journal of Education and Counseling (JPDK) 4.6 (2022). h. 3313-3314.

98 On the other hand, Surya Mart emphasizes its commitment to sharia principles in pricing. They reject the concept of ajimumpung, namely exploiting the scarcity or popularity of a product to set a high price. The principles of fairness and honesty are the basis for determining product prices. Choosing a fair price, without taking advantage of the market situation, shows an approach based on ethical values in business. Consumers also highlight the importance of competitive prices, but acknowledge that other factors such as product quality and shopping experience also influence purchasing decisions. In this case, Surya Mart adheres to a firm commitment to sharia principles in determining prices, including honesty and fairness. Principle of Honesty (Hoesty). Islam strictly prohibits lying and deception in any form. Because, this truth value will have a direct impact on the parties carrying out transactions in trade and society at large. This principle is based on QS. Al-Imran verse 77 contains a threat to anyone who betrays them and exchanges them for worldly things that have no value before Allah. Apart from that, in the principles of justice, Islam, a just person is a person who complies with legal standards, both religious law, positive law (state law), and applicable social law (customary law). So, when setting prices, you must be fair so that no party is disadvantaged. Because Islam also forbids injustice.201 Regarding Surya Mart's price fixing statement which rejects the concept of ajimumpung, namely exploiting the scarcity or popularity of a product to set a high price, it is very relevant to what was done during the time of Rasulullah SAW. It has become a trade issue because of the high prices of goods that people need. Abū Dāwud narrated the hadith from Abū Hurairah (Hadith number 3,450) and Anas (Hadith number 3451), which means:202 201 Kamariah, K. "Microeconomics: Principles of Price Determination According to Ibn Khaldun." Ats-Tsarwah: Journal of Islamic Economic Law 2.1 (2022). h. 25-26. 202 Mubarok, J. et al. “Sharia Economics for Level 1 Law Universities. Department of Sharia Economics and Finance - Bank Indonesia, Jakarta. (2021). h. 73.