<![CDATA[The hiwalah contract is a contract in Islamic finance that functions as a mechanism for transferring debt from one party to another in accordance with sharia principles. However, the use of this contract in Islamic microfinance institutions is still relatively limited due to the low public understanding of the concept and mechanism of hiwalah. This study aims to analyze the implementation of the hiwalah contract at BMT ASA Nusantara, Luak District, Lima Puluh Kota Regency and identify the benefits and obstacles in its implementation. The study used a qualitative approach with a descriptive research type. Data were obtained through observation, interviews with the founder, public relations, employees, and customers of BMT ASA Nusantara, as well as documentation, then analyzed using the Miles and Huberman model through the stages of data reduction, data presentation, and drawing conclusions. The results of the study indicate that the implementation of the hiwalah contract at BMT ASA Nusantara is in accordance with sharia principles, the Fatwa of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI), and is under the supervision of the Sharia Supervisory Board. The contract is executed through clear procedures, using the hiwalah muthlaqah contract, and provides benefits to customers as an alternative to Sharia-compliant debt settlement. However, the use of the hiwalah contract remains suboptimal due to low public understanding and limited public awareness of the product. Therefore, increased education, promotion, and product development are needed to optimize the use of the hiwalah contract and support the development of Sharia-compliant financial institutions.]]>
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