Mardhiyaturrositaningsih2019-09-252019-09-252016-06-192016http://hdl.handle.net/20.500.12424/153918The aim of this paper is to analyze the problems of profit and loss sharing financing. This is conducted with literature and interviews on funding customers, Islamic bankers and entrepreneurs. The results show that the profit oriented lack of trust in the abilities of partners, moral hazard, mismanagement and lack of sharia product information. In doing so, giving incentive for funding customers, incentive compatible constraint, involving effort in spiritual and intellectual expected may help small and medium enterprises to face ASEAN Economic Community.engWith permission of the license/copyright holdermedium enterprisessmall enterprisesloss sharing financingprofitASEAN Economic CommunityEconomic ethicsEthics of economic systemsLabour/professional ethicsTechnology ethicsConsumer ethicsMethods of ethicsPhilosophical ethicsJournal volume