Islamic Economics

Twilight of the Capitalist System

2010-05-12T18:43:00.000+07:00

After the collapse of socialist systems, the capitalist system is estimated to be shrinking. Limit signs in his end of the capitalist system can be seen from increase credit derivatives, from Rp. 500 trillion in 1998, to Rp. 24 000 trillion at the end of December 2002. Not to mention the amount of bonds that default to USD. 1650 trillion, an amount far greater than the number of bond defaults during the previous 20 years. Ready to fall with this system or looking for an alternative system?Long-concept and this capitalist system into the spotlight, since Karl Marx and his followers, other socialist thinkers like EF Schumacher, Soedjatmoko, DR Scott, Islamic economic thinkers such as Umer Chapra, Prof. AD A Manan, Masudul A. Choudury, Najetullah Siddiqi, until the flow breakaway capitalists like Joseph Stiglitz, Paul Ormerod, Lester Thurow, Kevin Phillips to name a few names.

This system is increasingly the subject of rethinking again after some recent corporate scandals which produces peak Sarbanes Oxley Act of 2002 Corporate. So far the U.S. government's concern is to improve the technical aspects of the capitalist system, not philosophy, so do not be surprised if the crisis after economic crisis will continue to repeat.

Capitalist economic crisis since the beginning until now this has happened, say, for example, economic crisis 1930, 1960, 1980, 1999, 2001 with a variety of triggers and its magnitude. So far only the technical aspects improved. Take for example the crisis in 2001 with the emergence of cases of Enron and others that there is a crisis of confidence caused by the accounting scandals and ethics among management and professional (accountant and analysis), which manages corporate America. They are working together strategically to reap benefits from the existing system.

American response is to add such regulations already lot. Based on the Sarbanes Oxley Act of 2002 as the Corporate will be established Oversighat Public Corporation Board. But unfortunately in filling posts that have attracted controversy because of the attraction between political elites and parties concerned.

William Webster who has been appointed to fill the Accounting Oversight Board had resigned on 11 November. Even the integrity and independence of the current SEC Chairman Harvey L. Pitt no doubt because of its proximity to the accounting industry.

This situation illustrates how the capitalist system is actually very vulnerable to things that humans are caused by greedy desires a real human being in an Islamic economy is set up in such a way that the greed of human beings and all desires should be subject to the interests of a more noble and more enduring is not instantaneous or one-sided interests.

Capitalist system itself will repeat old mistakes and keep repeating, if the nature, philosophy is not repaired. The nature of capitalism was from the beginning was not "balanced", not fair. Because of the vision and mission only prioritized the "owners of capital." Owners of capital as an activator, initiator, leader, and also as recipients of an automatic blessing. Other parties such as labor, professionals should be under the shade

Concept of Abrahanomics

2010-05-03T08:04:00.000+07:00

The failure of the capitalist economy could no longer be covered up. This capitalist economic system had indeed succeeded in creating a modern society like today. Unfortunately, the number capable of being raised only a small part of society, not entirely. As many as 40 percent of the population is still in a state income less than two dollars per day. Thus, the Millennium Development Goals (MDGs), UN tries to cope with the poverty reduction target of 50 percent in 15 years. So far, the target was not reached. In fact, this year, it increased the number of world poverty is almost 100 million.
Concepts that dominate our economy today are designed by the capitalists or those who have capital, has the money, or have a property for their benefit. In this concept, man is a factor of production or object, not the subject of economic development. Human capital is the initiator of the owners, agents, and recipients of economic development outcomes. Borrowing the term democracy happens in a capitalist economic system is of, by and for capitalists.

Models, formulas, and results of economic activity, including the performance of economic entities, built by the world of science today, is designed for the benefit of the investors said. Thus, the time aspect terpikirkannya not currently a problem that does not lose big as the problems that have succeeded in overcoming it.

Why is there a failure? This is evidence of very limited human weakness because God gives science a bit. However, we feel that the ultimate truth Knows limited to the area of empirical, rational, and experience that is felt and that makes sense. Apparently, that's wrong. We forget that this world is filled with some containing even the existence of a supernatural nature and can not be solved by man. Economic concept, the concept of monetary, financial concepts, business concepts, management concepts and accounting concepts in fact contain errors and weaknesses. As a result, we enter into the trap of our own beliefs that feel right so as to produce a situation of instability, debacle, crisis, economic and financial turbulence, and destruction of the economic system that we experience today repeatedly with the intensity of the crisis that is getting more complex.

This mistake is understandable because the concept of capitalism is the thinking with the secular ideology that does not place ordained by God as a truth. Capitalists who become as dogmatic truth is clear error. Assess the attitudes of a dogmatic religion and its roots originated from the attitude of the church in the 15th century that established itself as the sole interpreter of the revelation of the truth of God without using the ratio of human freedom which can also reach the truth. The attitude of the church at that time who claimed to be the only source of truth does contain weaknesses. This attitude led to splinter movement from the rationalist who use its free thinking for the 'against' the church.

Now, everyone has learned a capitalist economic system which brings the secular ideology with an emphasis on rationalism, empiricism, and ignore things that are teostik, prophetic, and transcendental. However, it apparently failed to achieve its objectives. The clerics who brought the message teostik, prophetic, and other transcendental teachings already realized his mistake. We realize and see the world's problems are so complex that can not be solved only through hermeneutic interpretation of scripture with the textual and linguistic approaches, without accompanied by pasangannnya, ie textual interpretation or commentary kauniah (empirical) which is a capitalist domination over the years.

Both parties: the church / clergy / clergy / carrier and teostik prophetic truth, a jurist with the rationalist / empiricist / pragmatist / atheist are a complementary pair to be able to work together to solve this humanitarian problem. Both no longer have opposing opinions and attitudes that blame each other until finally getting away from the ultimate truth. Both approaches can be accepted and will be more accurate if the two approaches were combined and diinteraktifkan in a same domain and generate empirical teostik interpretation more accurate. The phenomenon of fusion is some IAIN into university branches of the phenomenon that I mentioned above this. However, since new and still in a transitional period, the direction and the results are not real. Despite IAIN transformation into public universities, which occurred not teostik and empirical combination, but the inclusion of the empirical dominance of the secular in the world that have been judged too teostik and hermeneutics.

Harvard University Forum on Islamic Finance on March 27 to 28 and then held at Harvard University, Cambridge, Massachusetts, USA, showed signs of fusion at the two schools of philosophy. International Forum, which held almost every year since 1994 and now have the time to-9 has been welcomed from all divine religions are there. The theme of Bridging the Financial Communities have the same meaning with what I describe above. Namely, to bridge the two major poles in the dominant worldview today. That is, between the flow teostik hermeneutic and empirical atheists in formulating the financial system more equitable, more giving happiness together, and more bring us toward the divine good pleasure. The presence of some conventional financial figures, interchnage faith movement, good governance institute, or representatives of Judaism, Catholicism, and Christianity under the umbrella of the famous conservative Harvard University shows that there are bright spots toward the construction of the bridge.

One appeal of the last panel session can also be regarded as a conclusion the forum is an appeal and a call for followers of divine religions, the monotheistic religion of Abraham, must help each other prepare financial economic system concepts that could offer a new paradigm to replace the paradigm of capitalist economic system today is already collapsing. Therefore, if a paper is not one of Canada referred to it as an economic system Abrahanomic. This means that the Islamic financial and economic system that has been implemented with a very good performance should also be supported by other divine religions (Jews and Christians). Because all three religions are more similarities than 'religion' of capitalism.

King Henry VIII and Tawarruq

2010-04-19T07:20:00.000+07:00

King Henry VIII was a controversial figure. Her desire to have more than one wife became one of the triggers breakdown of relations with the British empire of the Roman Catholic church. King Henry VIII finally married his wife six people who have their own unique character. Catherine of Aragon, received the nickname The Traitor (the Betrayed Wife), was the first wife. Anne Boleyn, second wife, nicknamed The Seducer (The Temptress).
Became his third wife Jane Seymour, was named Woman Good (The Good Woman). Anna Cleves was the fourth wife who was nicknamed The Bad (The Ugly Sisters). Katherine Howard, the fifth, dubbed the Evil (The Bad Girl). Finally, Catherine Parr, dubbed the figure Motherhood (the Mother Figure).

Another trigger poking out when King Henry VIII in 1545 to allow interest money though still forbids riba with interest requirement should not be doubled, ie not more than eight percent. In 1547 John Calvin in Geneva also provided that allows the interest money is not more than five percent. In fact, when it was the Roman Catholic church still forbids usury and does not distinguish it with interest money.

Recently hundreds of years later the Vatican tolerates permissibility of 1822-1836 interest money. Hundreds of years longer to tolerate a banker as a lawful profession, precisely in 1950 when Pope Pius XII approved the banking system.

Allowing a haram with a time limit in certain circumstances and can be a wise attitude. In fiqh rules became known when a state law became a narrow area, when a state law became a narrow area.

In circumstances in the narrowest of terms fikihnya called an emergency, it is an unclean can be allowed. However, if this lasts longer then a will be halal haram for all.

Murabaha is known in the books of fiqh in fact nothing more than a transaction with the seller selling goods to mention the amount of profits taken. Ribhi (fortunately) to the root word of murabahah. What is currently implemented in Islamic banking is actually more than just murabaha referred to in the book of fiqh.

Murabahah in the Islamic bank is the series of transactions beginning with the bank to buy the goods in cash, in installments and then sell them to customers by stating the amount of profits taken by the bank. In practice often murabahah in the Islamic bank is also equipped with wakalah contract in which sharia banks appointed as representatives of bank customers into buying goods needed. In fiqh circuit according to sharia although this contract does not exactly match the existing simple murabaha in the book of fiqh.

The Book of Jurisprudence as well recognize that similar transactions murabaha, but the reverse murabaha payment methods. His name tawarruq. In the book of fiqh, tawarruq no more than a transaction to buy goods on an installment basis with a more expensive price and then sell them for cash to a third party with a cheaper price. At first glance appear to conflict with the business logic.

Normally people buy cheaply and then sell it at higher price. Profits arising from that difference. In tawarruq happens in reverse. Buying a more expensive price in installments and then sell it at higher price in cash.

In the business logic tawarruq although the selling price is lower than the purchase price, the seller can immediately receive a cash payment. Almost all the books of fiqh allows tawarruq transactions, except Ibn Taymiyyah and Ibn Qayyim of the school of Hambali.

What is currently implemented at overseas Islamic bank actually much more complex than just tawarruq known in the book of fiqh. A sharia bank in cash to buy goods (eg 100) for sale to the Islamic bank B with a higher price (eg 110) in installments. Later, Islamic bank B will sell more to other parties with a lower price (eg 100) in cash. This example of the simplest tawarruq Islamic bank overseas.

Tawarruq in Islamic bank financing is actually a series of transactions. First Islamic bank transaction A purchase of goods in cash. Second, the Islamic bank transaction B bought in installments from the Islamic bank A (for 110) to then sell to other parties in cash (worth 100). In practice often tawarruq in Islamic bank financing is also equipped with wakalah contract, in which the Islamic bank to be as representative of the customers in buying goods needed.

In another variation, a representative of Islamic bank in the sale. In another variation, a representative of Islamic bank in buying as well as representatives in selling. Even in practice there are also Islamic bank which provides certainty of profits over a series of such transactions.

Financing tawarruq popular overseas has not come to Indonesia because it did not get approval fatwa. Some Islamic banks that wish to offer these products have to postpone his plans.

Tawarruq indeed controversial. Not because tawarruq does not comply with sharia, but because its application is not in accordance with the spirit tawarruq known in the book of fiqh.

Indonesian opinion of the scholars in this apparently received strong support from scholars abroad. After walking tawarruq products and become popular overseas, eventually the International Islamic Fiqh Academy, the world body formed by the Organization of Islamic Conference (OIC), April 2009 ban on Islamic financial institutions to finance tawarruq.

Such confusion ensued antarekonom. Although Adam Smith, Ricardo, Marshall, Wicksell, Keynes clearly distinguish between the rate of profit (rate of profits) generated by the industrial sector and the interest rate (rate of interest) generated by the financial sector, confusion still rife.

Tax Money in the Islamic Perspective

2010-04-17T20:13:00.001+07:00

Taxation has become a very sensitive political issue. Because of the disappointment that had accumulated on the management (collection / utilization) taxes, there arose a very serious moral movement impact, tax boycott. If not treated quickly, the movement could be a wild ball which threatens the legitimacy of governments, even the existence of the state itself. Taxes are the life blood (life blood) countries. Taxes paid by the state erect; tax boycott collapsed state. Naudzubillah.
According to Islamic jurisprudence, the definition of obligatory alms tax is levied by the government over citizens. Called the dole because there is no direct benefit (iwadl mubasyir) received by the payer. Mandatory in the sense of enforceable public interest (mashalih ammah).

Given how absolute role for the existence of the state tax and welfare of people (if managed correctly), Islamic super-serious attention through its main teachings (pillars of Islam), namely zakat. Throughout the history of the country, the tax has developed (evolved) through three concepts

meaning. First, taxes as a tribute (dharibah) to be paid by the people solely because they are the servants who should serve the interests of the ruler as his master, ruler. Tax as a tribute is running for centuries in the early stages of the history of the kings of feudal power in the entire surface of the earth. The king claimed to be incarnations of gods ruling the universe. At this stage, the tax is defined as proof of loyalty to the people as servants in the palace to the king's palace as a Look-so, to borrow a phrase of Java.

There are no moral rules or laws that govern how and to whom tax money should be managed. Also, not yet known concept of corruption as a crime lord, or officials of state finances. Tribute this era is the era of absolute kings of feudalism.

Second, conceived as compensation, tax (jizya) to the rulers of the people. This concept came after the people of the taxpayer (tax payers) started to realize that the king / ruler is not a god who may treat people arbitrarily. Authorities are also human beings who hold the power because the mandate of the people. Neither taxpayers nor the ruler of the people the tax collectors are human beings who more or less equivalent. So, if the authorities levy taxes, should no longer free. Taxes must be balanced with service to the people who pay for it.

This second concept is clearly more advanced and feels more civilized than the first draft. However, there are structural defects that could widen the gap between powerful people on the one hand and weak-poor people on the other. Because the fee concept (jizya), large taxpayers feel entitled to get great service from the state, while the small taxpayer is only entitled for small services, and the poor who can not afford to pay taxes should nerimo with the remaining services (tricle down effect), if it is there.

This era is the era of our modern age of capitalistic today, the era of artificial and elitist democracy, free market democracy without conscience; as abundant prosperity only to a small portion of people, most of mankind was even more immersed in poverty and keterhinaan plenary. State to serve the strong and rich.

If you want to uphold justice, as in the Pancasila, there is no other option for us other than the third, the tax as a handout for the Lord God Almighty, the Creator of heaven and earth, for justice and prosperity for all. Taxes with the meaning of Islam called zakat, which literally means purity and growth. That is, with taxes as a charity, we purify our hearts from envy of others, as well as develop the prosperity and justice for all.

That is, taxes are no longer as gifts (bribes) or fee (jizya) to the ruler, but as a charitable exemption for justice and prosperity for all, especially those who are weak, poor and destitute (Attaubat 60). In this concept, every dollar of tax money is money God is mandated to officials of the state as a servant of God and the people (Amil) with a full sense of responsibility. Those who abuse the tax money, is responsible to the people in the world and God in the Hereafter.

Some Thoughts about the Islamic Public Finance

2010-03-01T20:19:00.000+07:00

From the point of economic analysis, policy muhajirin unite people with the Ansar was giving economic impact is very large, making the country prosperous Medina at a later date. Fiscal policy plays an important role in the Islamic economic system when compared to monetary policy. The existence of the prohibition of usury and the obligation of zakat expenditure implies the importance of fiscal policy position compared with monetary policy. Given the time that the Islamic state built the Prophet did not inherit property in pendirinan as befits a country, then fiscal policy is an important role in building the Islamic state.

Muslim Public Finance
In Islamic finance, financial policy should be tailored to the objectives to be achieved by an Islamic government. There are fundamental differences from the goal of economic activity in the conventional economy with Islamic economics. More conventional economic goals is material and does not consider aspects of 'immaterial'. Any analysis intended to measure the results of these activities from the mundane point of view only. Meanwhile, Islamic economics has a very comprehensive goals concerning material and spiritual aspects of both to life in this world and the hereafter.

The first Islamic state established in the world is a country that built the Prophet in Medina which we know as the Islamic State of Madina. This country was built based on Islamic spirit that is reflected from the Qur'an and the Prophet's leadership. The main capital used to build this country is not money but the spirit is instilled ketauhidan community Rusulullah Medina. At that time the muhajirin who fled from Mecca to Medina and came without bringing sufficient supplies. While in Medina, there is no rule that well-organized.

Some policies have been taken by the Prophet to strengthen the existing government. In the economic field, in order to encourage the growth of existing economic activities, then the policy steps taken by the Prophet are:

1. Building a mosque as an Islamic center that is used in addition to worship as well as for other activities such as a meeting place of parliament, secretariat, Supreme Court, the headquarters of the army, foreign affairs offices, education center, a training ground for the wide spread of religion, dorm, Baitul Maal, where the council and the delegates.

2. In order to spur economic activity will bring together between the Prophet mujahirin with the Ansar. Ansar group gave some of their wealth to the muhajirin to be used in production activities until the muhajirin can carry out his life.

In terms of Islamic economic analysis, policy muhajirin unite people with the Ansar was giving economic impact is very large. The brotherhood had been made Affairs Medina as a prosperous country in the future.

In the early days of the Government of the Islamic State, Islamic public finance and fiscal policy has not much role in economic activity .. not run fiscal policy as carried out in the analysis of fiscal policy today, because I have found no state income at the time. Prophet Muhammad and his staff did not receive the usual salary of a government. Government revenue derived only from public donations. Zakat not required at the beginning of the Islamic government. If the Prophet need of funds to help the poor and needy, then the usual Bilal borrowed from the Jews.

Another source of revenue for the government at the beginning of the year was property derived from the spoils of war, and this was allowed to become one of the government's financial resources after the decline in surah al-Anfal (Sura 8:41) in the second year Hijri. Furthermore in the second year Hijri Zakat Al-Fitr is a duty that must be paid by every Muslim, and this later became one of the government's financial resources.

Other financial resources derived from the poll tax paid by non-Muslim groups, especially the scribes, which guarantee the protection of life in the Islamic government. Other sources are kharaj (land tax levied on non-Muslims), ushr (import) charged to each merchant and is paid only once a year and is valid only if the value exceeds 200 dirhams trade.

With time and began gathering the financial resources, the government began to finance various expenditure is mainly used to maintain the existence of the state. For example to finance defense expenditures, debt payments, aid to travelers, salary payments to guardians, teachers, and other state officials.

Only then, down the provisions of paragraph concerning zakat fund expenditures to the eight groups, as stated in the letter at-Tauba Sura 60 verse. With this revelation the fiscal policy was clearly specifying the types of expenditure that can be used on existing charity funds. The use of zakat funds outside the provisions set by the verse is not in accordance with the provisions of the Koran. There was clear how Islamic economics is very concerned at the poor, the degree of life needs help and was appointed to a decent level.

Reviewed the public finance side of the collecting and spending zakat funds can be viewed as activities for the distribution of income more equitable. Islam does not want the rest of the property in the hands of someone. If the property has enough nisabnya, then Zakah must be issued. Thus here there was no effort to encourage people to rotate into the system property economy, which can generate growth.

With the rise of Islam, which is reflected by the extent of the Islamic government territory, the role of public finance activities increasingly important. Through the institution of zakat collection Amil is a charity fund-raising model that is at that time. Institution Baitul Maal is 'finance department' Islamic government.

In addition to these institutions institution, the Islamic government there are also other institutions that play a role in improving a social welfare institution that is associated with charitable activities. In Islamic history, noted that this charitable institution so large role in the economic system.

Islamic Fiscal
Unlike conventional fiscal policy, in which a government can affect economic activity through various incentives in the tax rate or amount of 'tax. base 'of an economic activity, then the zakat system, all the provisions of the amount of' tariffs' charity has been determined based on the instructions of the Prophet. Therefore, the policy is very different from the zakat tax policy.

Zakat is a major component in the public finance system as well as the main fiscal policy in the Islamic economic system. Zakat is a compulsory activity for all Muslims. However there are other components, which are voluntary, which can be used as another element in the source of national revenue. Voluntary components are related associated with one's level of faith.

Financial resources outside the government it can be determined as long as no conflict with existing provisions of sharia. Source of new financial resources can be formed after going through the review process jurisprudence. For example, whether to remove poverty, governance allowed to levy taxes beyond the charity? This question is one of debate among jurists that are characteristic of how a fiscal policy can be implemented in an Islamic system of government.

While new taxes in the public finances in the conventional economic system is examined based on different principles. One of the principles used in the public finances conventional economic system is the principle of fairness. In the public finance, said fairness issue as a matter of 'ethics' which is full of value judgment. For that, they specify some principles that should be considered in the judgment value of benefit principle and ability to pay principle. Admittedly, the analysis system in the Islamic public finance system has not semaju analysis on conventional public finance. Still need to work hard to develop ideas relating to public finance Islamic. And Allah knows the best

Deconstruction of Capitalism and Reconstruction of Islamic Economic

2010-01-25T08:57:00.005+07:00

Financial disaster struck the country the superpower United States. Several world-class giant banks that have mastered to various parts of the world fall. Starting from the bankruptcy of Lehman Brothers, the giant banks and giant financial company Bear Stearns. Moments earlier, the U.S. government was forced to take over the largest mortgage companies in America; Freddie Mac and Fannie Mae while Merrill Lynch had not much different conditions to be acquired by Bank of America. Finally the largest insurance company AIG (American International Group) shows the same critical phenomenon.

To overcome the crisis of the great storm and save the giant banks that collapsed, the United States government was forced to bailout $ 700 billion dollars to 1 trillion U.S. dollars. America's intervention in the domestic financial sector Uncle Sam is contrary to policy schools of free market (capitalism) that followed the United States. In fact a similar injection of funds to BLBI anyway, no significant exposure to stem the crisis storm so great. This bailout policy, not just the American government, but also central banks of Europe and Asia step in to inject funds to boost liquidity of the economy, which is expected to prevent the domino effect of the collapse of investment banks are world class.

A few moments after Lehman Brothers bankruptcy information, the world's financial markets experienced a free fall in the lowest level. Several major banks collapse and the collapse of other investment banks in the United States immediately triggered a wave of panic in various financial centers around the world.

Capital markets in the United States, Europe and Asia soon experience that resulted in panic selling of stock index falling to each market. Stock markets everywhere into a free fall into the abyss. London stock market recorded the worst fall in a day that reached 8% decrease. While Germany and France each slapped with a fall of the capital market by 7% and 9%. Capital markets emerging markets such as Russia, Argentina and Brazil also experienced a very bad slump of 15%, 11% and 15%.

Since the beginning of 2008, China's stock market plunged 57%, India 52%, Indonesia 41% (before the activity is suspended), and the European zone of 37%. While bond markets slumped, the developing country's currency weakened and commodity prices fell, especially after the oil commodity speculators judged that the economic recession will reduce energy consumption of the world.

In the U.S., Wall Street continued to sag. Dow Jones as the epicenter of world capital markets fell. Dow Jones index numbers indicate worst rates in the last four years under the number 10,000.

In order, anticipate that the financial crisis, seven central banks (including the U.S. Federal Reserve, European Central Bank, Bank of England and Bank of Canada) cut interest rates 0.5%. This is the first time the policy interest rate the central bank carried out simultaneously in a large scale.

Based on the facts and reliata is happening right now, it was obvious that the drama of the financial crisis entered a very level in the fall, dank arena that can be said that the U.S. financial crisis at the moment, far worse than the Asian crisis in 1997-1998 years ago. The impact of the current crisis was so pathetic global finance. After all, when the Asian financial crisis, at least there is 'safe heaven' or 'safe heaven' for global investors, namely in the United States, Europe and Japan, but now, all capital markets fall. All investors panic.

Therefore, the whole world economic observers agree that the economic shock from the financial storm that hit the United States is the most severe shock after the Great Depresion in 1930. Even the IMF's financial sector shocks judge this time was the worst since the era of the 1930s. It is expected to undermine world economic growth slowed to 3% in the year 2009, or 0.9% points lower than the projection of the World Economic Outlook in July 2009.

From exposure to the above, look to the real, that the capitalist economic system embracing laize faire and riba-based re-defendant. Schools of neo-liberalism can not be maintained. Thought of Ibn Taymiyya and Ibn Khaldun is a correct ijtihad and fair to realize the economic benefit of society.

So very wrong with what Fukuyama to declare the victory of liberal capitalism as a representation of the end of time "The end of history" (National Interest Magazine, 1989). Fukuyama's thesis is outdated and nasakh (not applicable), because the economic system of capitalism has failed to create a just economic order and stability.

In fact, since the early 1940s, Western economists have been aware of such failure indications. Is Joseph Schumpeter with his book Capitalism, Socialism and Democracy, stated that modern economic theory has entered a period of crisis. The same view was also expressed by economists generation of the 1950s and 60s, such as Daniel Bell and Irving Kristol in the book The Crisis in Economic Theory. Similarly, Gunnar Myrdal in the book Institutional Economics, Journal of Economic Issues, also Hla Mynt, the book Economic Theory and the Underdeveloped Countries and Mahbubul Haq, in his book The Poverty Curtain: Choices for the Third World.

Incline to the view that capitalism grew louder in the 1990s era in which many Western economists generation of this decade and experts of Islamic economics in the same generation as expressly stated that economic theory is dead, among the most prominent is Paul Ormerod. He wrote a book (1994) entitled The Death of Economics (Death of Economics). In this book he states that the world currently affected by an anxiety that all-powerful with the operation of less economic system has resilience to cope with any economic or monetary shocks. Indications that may be mentioned here is in the late 19th century the world experienced a crisis with the amount of the unemployment rate is not only happening in other parts diunia developing countries but also plagued the developed countries.

Next Omerrod insisted that economists are stuck in a mechanistic ideology of capitalism that did not have the power to help and overcome the economic recession that hit the world. Market mechanism is a form of capitalist systems tend to be applied to the concentration of wealth in certain groups of people.

Because of that, now comes a wave of consciousness to find and use the economic system of "new" that have implications for justice, equality, prosperity and the achievement of comprehensive goals of efficiency. The new economic concept is considered very urgent to be realized. Economic construction is done with an objective analysis of the overall format of the contemporary economy with a clear vision and a fresh approach and comprehensive.

Under the domination of capitalism, the economic damage happening everywhere. In recent years, the world economy was entering a phase that is very unstable and the future entirely uncertain. After experiencing a difficult time because of high inflation, returning the world economy experienced a deep recession, severe unemployment, plus the high real interest rates and exchange rate fluctuations that are not healthy.

The impact was the destruction of the joints economies of developing countries, huge projects have forced the rescheduling, hundreds of entrepreneurs out of business, the prices of goods and services including goods of basic needs increased uncontrollably.

The crisis is even more alarming because of the extreme poverty in many countries, various forms of socio-economic inequities, large balance of payments deficits, and the inability of some developing countries to repay their debts. Henry Kissinger said, most economists agree with the view that "None of economic theories or concepts that appear before this could explain the global economic crisis" (News Week, "Saving the World Economy").

Seeing these phenomena is tragic, it is not surprising that a number of leading economists, criticize and worry about the economic ability of capitalism in the economic prosperity on this earth. In fact quite a lot of claims stating that capitalism has failed as a system and economic model.

The presence of these new economic concept, not the ordinary ideas, but has the support of the world's leading economists who received the Nobel prize in 1999, the Joseph E. Stiglitz. He and Bruce Greenwald wrote the book "Toward a New Paradigm in Monetary Economics". They offer a new paradigm in monetary economics. In the book they criticize the capitalist economic theory (conventional) with the new monetary approach suggests that either consciously or unconsciously, is the point of view of Islamic economics in the field of monetary, such as the role of money, interest, and bank loans (terms of real and monetary sectors).

An Islamic Economic Reconstruction Requirement
Because capitalism has failed to deliver prosperity with justice, it becomes a necessity for mankind today to deconstruct and reconstruct the economy of capitalism and economic justice berketuhanan called Islamic economy. Means breaking down the paradigm of deconstruction, construction systems and materialism of capitalism, and replace it with a system and paradigm of Shari'ah. Positive achievements in the field of science and technology exist that we can use, means that the collapse debris is there that can be used, such as tools and econometric analysis matamatis,. Etc.. Whereas negative values, concepts and theoretical paradigms that destrutktif, materalisme philosophy, moral indifference, and many more concepts of capitalism in the field of monetary and economic development must be deconstructed. Because without the efforts of deconstruction, the crisis after crisis would continue to occur, the economic injustice in the world will be more rampant, more and gaping economic disparities, injustice through a system of usury and paper currency more and more hegemonic.

Now depends on the academics and practitioners to serve economic construction Shariah Islamic economics that really fair, maslahah, and can realize the welfare of mankind, without any financial crisis, (economic stability), how oppression, injustice and exploitation, both among individuals and companies, the state of the company, as well as rich countries against poor countries.

Islamic Economic Development

2010-01-19T17:10:00.001+07:00

The development and progress of Islamic financial practices are fantastic, has changed the map of thought and the world's financial practices significantly. Although born in 1975 (refer to the establishment of the Islamic Development Bank / IDB in Jeddah), discourse and practice of Islamic finance has penetrated both developed and developing countries on five continents. In fact, before the IDB stands, the format of Islamic economics and finance are blurred.

Dr M Umar Chapra, an initiator of Islamic economics and finance, once told the author about his personal experiences. Mid-1950, while studying economics at a university in America, he often discussed with colleagues from Pakistan and other countries. He argues Islamic economics as a scientific discipline is there and can be realized.

Her belief is so strong intellectual background of the coachee teacher, Sayyid Abul A'la Al-Mawdudi, the Islamic doctrine of universal and comprehensive. Although confidence is always communicated with his colleagues and academics at the university, he did not get a positive response. He even mocked, ridiculed, demeaned, and deemed not insane.

Unfriendly atmosphere that was ongoing due to the golden age of economic ideology of socialism and capitalism. Therefore, to complete the S3 and teaching in almameternya, he was forced to keep his ideas, to be explained in a comprehensive manner conducive situations. Returned to Pakistan in 1961, he joined the Central Institute of Islamic Research. Center of scientific study that systematically criticizing the ideas and principles embodied in the Islamic tradition, which is considered to meet the intellectual premise for a healthy economic system. At this institution he had the opportunity to develop focused thinking.

After several years teaching economics at several universities in the United States, he became economic adviser to the Saudi Arabian Monetary Agency (SAMA). Activities that provide direct experience with the complex operational aspects of a financial system and monetary control. After that, the literature on Islamic economics emerged, especially a PhD student's thesis topic like Dr MA Mannan, Islamic Economics, Theory and Practice, which appeared in 1970.

IDB case study
As countries establish IDB member OIC, the Muslim economists feel the economy stages Islam has shifted from ideas and theories to the practice field and institutional. IDB is more to be a pilot project. IDB became a kind of laboratory and education center, training, and the international Islamic financial studies.

Many parties, especially academics, professionals, and students conduct scientific research at the IDB. The results of research into materials seminars, symposia, and international conferences. It once more confirms the identity of the IDB to raise prestige of Islamic financial arena on a global level. IDB figures and performance is the center of attention of experts, clearly very positive for the condition and positioning of Muslims vis-a-vis other peoples in international affairs.

Success was not only abolished the Islamic people doubt his ability to overcome the internal problems of weight, but also strengthen their belief that the Islamic financial system more equitable, fair, and stable than the existing financial system. Capital IDB success, studies of economics and Islamic finance to spread to Western countries.

In some universities in Saudi Arabia, began to teach Dirosah Fil-Iqtishod al-Islami, such as Imam University in Riyadh and Umm al-Quro in Mecca. In Pakistan established the International Institute of Islamic Economics in 1980 and in Malaysia was established Kulliyah of Islamic Economics in 1983. In Indonesia, although the issue of Islamic economics relatively late entry, but there is a strong enthusiasm to learn, as if to catch up. In Indonesia, perkembagan scientific studies are very diverse and dynamic, because it has involved universities and private land, whether owned by Muslims and non-Muslims.

Necking
But there are worrying trends. Direction of economic thinking and developments of Islamic finance through downsizing. The idea which was originally based on economic thinking in terms of scientific disciplines (scientific discipline), is now driven more strongly to the financial sector alone. Many colleges that offer Islamic studies or Banking Islamic Accounting apart from the roots of Islamic economics in a philosophical-epistemological. In fact, education and training module banks, often eliminating the main points of the study of Islamic economics - both in terms of science and systems.

Seminar on Islamic banking is often performed with varied topics, but seemed out of the spirit and the spirit of the Islamic economic philosophy in an integrated manner. Explanation interviewees remains a question mark. Very logical, because the participants often ask the fundamental things-philosophical, but answered with a partial-pragmatic approach. Usually, if not satisfied, they mutter''Ah, this is tantamount to capitalism'',''Oh, no different from conventional banks'', and other similar expressions.

This tendency is dangerous, because it will deliver the parts to be supporters of Islamic economic science building. Like a stripped down car components, which can not work carrying passengers. If the parts are to be removed components and supporters one by one, the Islamic economy in terms of science is lost and will not be able to function as a science. Is it to predict future events (Milton Friedman), or make a description and analysis of facts (Samuelson).

The trend is happening for several reasons. First, the unavailability of adequate literature. Entry of the Islamic economic issues in Indonesia is not coupled with the supply of reference sources that can be scientifically justified. Second, more motivated because of the spirit (hammasah). Impulse driven by passion alone, can not lead anyone to the objectives to be achieved.

Third, existing studies based on lack of understanding of scientific epistemology, philosophy and adequate. Maybe this problem is most severe academic. Until now, there have not seen the economic experts of Islam in Indonesia which controls aspects of it. Who come to the surface only those who understand the scientific studies have pragmatism. And the author really understands why it happened, and why not many are interested in the philosophical aspects of Islamic economics.

Right rail
There are several ways to bring the discourse of Islamic economics and finance to the right rail, sesuasi rule a scientific discipline. Among other things, the first way, reproduce scientific references and references that can be accounted for. We have to admit that all references are available in English and Arabic. Therefore, there must be a translation stage such as the efforts of Caliph Harun al-Rashid and the caliphs after which the translation of Greek Referrals, so that Muslim intellectuals master science and philosophy.

The second way, described Islamic economics with all its branches are integrally and simultaneously. For example microeconomic and macroeconomic, public finance, taxation, trade and international finance aspects even more detailed as the theory of consumer and producer behavior. Ignoring one aspect will result in the loss of the building structure of Islamic economics and damaging its image.

The third way, the spirit (hammasah) should be coupled with a careful view (bashirah). Required a high level of criticism in the conduct of the study, because we will face different philosophy basis of their respective scientific disciplines. The experts of Islamic economics and finance should be able to explain that Islamic finance and economics have different philosophical basis. And therefore he is radically different from any discipline.

But these explanations have to use a medium that can be understood by those of different views. In short, we must be able to explain that we are different not just differently, but because it is different. The fourth, the socialization process of Islamic economics should be done by highlighting scientific roots, and not concentrate on the branches and fruit only. This approach is still lacking, both being taught in universities as well as the introduction of training and training for trainers for the teachers and lecturers.

The fifth way, the approach to teaching economics and financial aspects of Islam need to connect the teachings of Islam which is more basic, such as creed, sharia, and morals. The third pillar should be a spirit, so as to create a meaningful scientific disciplines, not only intellectually, but also in spirit and conscience. And Allaah knows best-shawab bus.

Monopoly on Islamic View

2010-01-16T14:49:00.002+07:00

On May 18, 1998, public prosecutors from 20 states, the District of Columbia and the United States Department of Justice, demanding Microsoft Corp. for allegedly violating anti-trust regulations. The Justice Department claims Microsoft is not fair to force consumers to use software products, especially Internet Explorer Web browser through the Windows operating system, which has prevented the occurrence of healthy competition. The U.S. government has accused Microsoft of monopolistic practices have been done.

Cases mentioned above, is not the center of our attention in this article. Our focus is whether the practice of monopoly or cartel also is a business model that is forbidden in Islamic perspective.

Islamic Perspective
There are so many in the Islamic literature relating to monopolies, and nearly all agree that monopolistic practices are strictly prohibited. The same applies to all forms of monopolistic competition (price, goods, etc).

All interviewees stated that the monopoly in all kinds of community needs is prohibited. Reasons for such restrictions, the monopoly will have enormous power to raise prices and control the supply of goods at will, and in the end, will torment the people.

Proof in Al-Quran
Monopoly (ihtikar) comes from the word hakr, which means collecting and controlling goods. Ihtikar used by scholars of Islamic jurisprudence to assert the privilege to collect and control of goods in an effort to anticipate the need for price increases. In other words, means the process of monopolizing ihtikar products to result in price increases.

Al Quran does not mention about ihtikar. Al Quran only show about hoarding gold and silver. However, in the hadith the Prophet Muhammad is mentioned that a lot of muhtakir (monopolist) is a sinner.

Monopoly and the Spirit of Islam
In an article a consultant in the Islamic sharia Banker Magazine said that the spirit of Islam is opposed to monopolistic practices and the terms of any condition.

Dr. Zaki Badawi also argued that the same thing applies to the banking system and the efforts of others. Monopoly in the banking system as an example, the monopolist will provide the financial strength and commercial practices in the community. The spirit of Islam to realize that the monopoly will give the right of undue authority to a few groups will also affect the ineffisiensi.

However, sometimes there are events / circumstances in which some Muslim groups to monopolistic practices. For example, the Islamic banking system in some Muslim countries, has operated a national monopoly with state protection.

Such cases occur in Malaysis Islamic Bank Bhd, conducted by the state monopoly when founded in 1983, until then the government of Malaysia introduced the banks of two systems in 1993, which allows conventional banks to open bank services without proper Islamic bank interest.

Although there are many opposing views, especially those related to monopolistic practices recently, most experts argued that monopolistic practices in all its forms in the field of trade, politics finasial and contrary to Islamic principles.

Passing through Thin Line
The question that arises is can the Muslim men participating in the activities of the company or investing in businesses involved in monopolistic practices that are not against the law and illegal activity?

According defisini significant monopoly on supply groupings and one player to exploit consumers and workers, many experts tend to state monopoly as opposing the practice of law in Islam.

However, experts have argued subjectively. One hadith says that menuruf, ihtikar only items related to household needs and motivation to store items that can trigger or anticipate rising prices of goods in the market.

Current monopoly, as praktenya generally conducted by some companies not only control the supply to affect prices, but also to maintain the business, the government's desire and market penetration (by making significant price declines). Currently, more harmful monopolistic rival firms in the same industry than adverse consumer.

Return to the Microsoft case, several institutions of Islamic funds have been canceled from the list of Microsoft stock sharia. However, monopolistic practices more acceptable than that based on the practices of interest.

Contribution of Muslim Scientists to Development Economics

2010-01-15T09:53:00.002+07:00

scientific yes, history yes, including work in the economic field. Even a person can be considered defected from the teachings of God when in conflict with, and the death penalty would be given to him. Told In the dark ages, the western world experienced a setback in the field of science.

On the other hand, was the dark ages that experienced by the western world it is inversely related to the development of science in the Islamic world. During this period was the golden age of Islam, where many Muslim scientists succeeded in giving the works of significant scientific, one of the world in development economics. Many Muslim scholars who write, research, and produce economic theories that result up to now are still relevant to be studied and applied.

Some Muslim scholars who managed to produce phenomenal work on the economic theory of them is Ibn Taymiyyah, Ibn Rushd, Ibn Khaldun, Al-Ghazali, and much more. Ibn Taymiyyah, for example, had issued a theory known as 'price volatility' or the ups and downs in market prices. He stated that: "For the ups and downs in market prices not only because of the injustice caused by a particular person or party, but also because of the short length of production period (khalq) a commodity. If production rises and demand falls, the market price will rise, on the other hand, if production falls and demand rises, the market price will come down. "The theory is if we examine more deeply involve the law of supply and demand (supply and demand) in the market , now it is recognized as a theory of irony that comes from the western world.

Another figure who managed to give a big contribution is the Ibn Rushd (Aveorrus). Roger E. Backhouse (2002), wrote a book called 'The Penguin History of Economic, which contains in it about the work produced by Ibn Rushd. He produced a theory by introducing a fourth function of money as a means of saving the purchasing power of consumers, who stressed that the money can be used at any time by consumers for buying life. Earlier, Aristotle mentions that the function of money there are three, namely: as a medium of exchange, a tool to measure value, and as a reserve for future consumption.

Ibn Rushd also denied Aristotle's theory of value for money, where its value should not change. Ibn Rushd states that the money should not be changed for two reasons, first, the money serves as a tool to measure value, then the same as Allah, the Most Estimator, he would not change, then the money as a measure of the situation should not be changed. Second, money serves as a reserve for future consumption, the change in him is not fair. From both these reasons, the actual nominal value of money must be equal to its intrinsic value.

Other experts are Ibn Khaldun's theory that produces development and social development and economic impact on the well-being. Umer Chapra (2000), states that Ibn Khaldun had to give enlightenment to the world economy, where the state's role is crucial in social development. Ibn Khaldun stressed that Sharia will not be straight if not through the state's role or authority, the state will not run well without the implementation of sharia law. State or government will not run well without the people (the Caliph). Sustainability of people will not run without the capital / assets (al maal). Property obtained from a significant development (imarat), and construction will not run without some measure of justice, and justice is one of the criteria men brought to account by Allah SWT. So, according to Ibn Khaldun in the application of sharia would not erect state without justice is based on the social and economic fields.

The next character is Al Ghazali who stated that the needs of human life consists of three primary needs (darruriyyah), secondary (hajiat), and the need for expensive (takhsiniyyat). Hierarchy of needs theory is then 'taken' by Nassau William Senior which states that human needs consist of basic needs (necessity), secondary (Decency), and tertiary needs (luxury). Al-Ghazali was also expressed about the main purpose of sharia is a problem penerepan religion or religion, life, thoughts, descent, and wealth is concerned with economic issues.

There are many other works produced by Muslim scientists to the development of economic science. The sad fact of their theories claimed came from the west, but if we examine the significance of economic theory in the western world, was first produced by a professor from the University of Glasgow, whose name was Adam Smith in his book "An Inquiry Into the Nature and Cause Of The Wealth of Nations ". The book was produced in the 18th century, which even it there are many similarities with the book 'Origin' Ibn Khaldun's work produced a few centuries earlier.

Contribution of the Islamic economic scientists is that we must make reference to keep on learning and produce significant works, both in the field of economics, and other sciences in accordance with our expertise of each. May Allah SWT make us people who thirst for knowledge and make us all closer and taqarrub Him. Amen. Allaah 'alamu bi-ashowab

Sharia Formality without Soul

2010-01-12T20:01:00.002+07:00

The global crisis began to show off to anyone who is not prepared for it. Big banks, big corporations with a reputation for hundreds of years forced out of business. Islamic financial institutions began to receive the effects, especially those just interested in fulfilling the formalities aspects of sharia, but forget the spirit of sharia itself.

Beginning with the oil price increase due to the prolonged war, which makes the Gulf countries flooded with petro dollars. The abundance of liquidity has encouraged aggressive investment for profit. On the other hand, awareness of religious values to encourage the emergence of demand for investment products in accordance with sharia. One characteristic of Islamic investment products is the underlying asset for any financial transaction.

Well, the high demand for investment products that have this underlying asset, was greeted by large banks to design products associated with a particular commodity, such as oil, copper, gold and palm oil. Investment products known as murabaha commodity has become very popular among Islamic banks in foreign countries.

Commodity futures exchanges to get new momentum to this development. Volume of trade increased rapidly. If the oil price was at the commodity futures exchanges followed the oil price in the spot market because of the small volume, now oil prices in the spot market following the oil price in futures exchanges. This situation is further pushed oil prices skyrocketing.

The increase in oil prices skyrocketing and immediately make a flooded Gulf petro dollars, and driving up the purchasing power of this region. Property prices soared in the Gulf region because of the excessive market expectations seemed to Dubai, Qatar, and the countries of other Gulf region will be transformed into the world financial center to replace New York and London. Development of man-made islands shaped palm trees, Fajr Al Arab as the world's tallest building, the more bounce to the market expectations of high demand for property sector. Needless to say property prices in the region soared.

Although property prices to soar so high, but rising oil prices seemed to have given the purchasing power is almost unlimited. The euphoria that comes from money illusion of rising oil prices and rising property prices, encouraging the banks in the region, including Islamic banks, to disburse funding in the property sector.

When the market corrects itself and the prices of commodities, including oil prices, falling close to fair prices, all parties as if waking from a dream. Those who invest in commodity products murabaha feel confident that their investment was safe because it is fixed and guaranteed return of certain commodities, are now beginning to realize the risks that arise.

With the decline in commodity prices that are pledged as collateral, the value of goods can no longer guarantee to cover the amount of murabaha receivables, which in turn makes the measure of investment value Corrected value risk (risk-adjusted return) sag. Legally, the debt-claim his murabaha did not decline, but the risk is increased due to falling value of collateral.

When the Islamic banks which have murabaha commodity products are commercial banks, and record a collection of funds products, and when investing in commodities markets as a record of productive assets, reduction in the value of this guarantee would cause the bank should record the additional costs to meet the obligations of reserve creation of productive assets. Furthermore, bank profits will be hit.

When the Islamic banks which have murabaha commodity products is an investment bank and record it as an investment product for customers, who must bear nasabahlah increase in risk. Legally, the value of customer investments are not reduced, but the accounting of this risk increases seen in the decline in market value of investment in the customer book.

Decrease in commodity prices also resulted in correction of the property market with falling property prices, in addition to pressing the capacity of market liquidity. This situation is hitting the bank twice. First, customers began to have trouble paying property mortgage financing. Second, the value of collateral in the form of decreased property thereby increasing bank fees for setting up reserves of productive assets.

This negative impact of causing sharia banks are stuck in a mechanical formality provisions of sharia. In the formality of sharia, technical operations and product structure in accordance with sharia. However, the soul Islamic transactions are not met. First, the trading of physical commodities is much less than the volume of trade for most commodity transactions conducted murabaha not followed by delivery of goods. The existence of underlying asset of more dedicated to the fulfillment of purchase along, namely ma'kud alaih (the object of transactions), but these harmonious spirit which is intended to prevent separation (decoupling) the financial sector to the real sector are not met.

Second, soaring property prices and commodity prices beyond the limits kewajarannya an indication of market distortion. From the demand side of this distortion can be encouraged by Impulsive buying due to increased purchasing power suddenly. From the supply side, these distortions may be driven by engineering the price by a few large players in the conventional commodity market and in the property market. Engineering strength greater price when the prices in the spot market following the futures price, because the market trading volume was much smaller than the volume of futures market trading.

Third, investment in instruments in the global market especially in foreign currency will be the entrance to the global crisis to the domestic market. Islamic banks invest a lot of the instruments in the global market, will be hit worse than Islamic banks who play the market without experiencing mental domestik. Syariah sharia, muttering like a prayer uttered without feeling the presence of the Hearer of Prayer. Thankfully this did not happen in Indonesia.

Al-Ghazali's View on Economy

2010-01-11T06:55:00.002+07:00

In the philosophical discourse of Islam and Sufism, is no doubt that Hujjat al-Islam al-Imam al-Ghazali (450 H/505 H) is one of the Islamic thinker who is very popular. He is not only famous in the Islamic world, but also in the intellectual history of mankind in general. Al-Ghazali's thinking is not only true in his day, but in certain contexts, and respond to penetrate the various issues of contemporary humanity. Among Muslims, he was better known as Sufism and philosophical character.

This fact is not surprising given the lighthouse top of his thinking, as we can see from some of his writing, is at this study area. However, the actual claim of Al-Ghazali's ideas penetrated widely into a variety of other scientific branches, such as fiqh, usul fiqh, kalam, ethics, and even economics. Thus, al-Ghazali is not only good at talking about Islamic philosophy and mysticism, but he was also an expert review of economic questions, particularly about the ethics of Islamic finance.

Nejatullah Muhammad Siddiqi in his book Reading in Islamic Economic Though entering the name of al-Ghazali to the rows of the Islamic economic thinkers second phase together with Ibn Taymiyya, Ibn Khaldun and other figures. In the second phase of this discourse of Islamic economic thought has developed an intensive and are characterized by changes in the power structure of Islam is increasingly widespread.

The style of Islamic economic thought during this time is more focused on micro-economic analysis and the functions of money. Al-Ghazali, for example, a lot of money mentioned, function, and evolution of its use. He also explained the problem prohibition of usury and its impact on the economy of a nation.

Indirectly, he discussed the problem scales, price controls (at-tas'is or intervention), the determination of tax in certain circumstances or emergencies. He also talked about how to overcome the impact of price increases, whether the market mechanism or government intervention, and others.

Bernand Lewis (1993) asserted that the concept of Al-Ghazali's finances shows the typical character, given the philosophical nuances kentalnya base due to the influence of mystical science. However, the interesting part of the financial outlook is that Al-Ghazali was not trapped in a philosophical plateau, but shows a harmonious mix between This real condition that occurs in people with philosophical values are accompanied by a logical argument and clear.

Therefore, for the financial outlook of Al-Ghazali's neat that it becomes an established concept, this short article to describe fully the financial outlook around him to then be reviewed in the perspective of the Islamic economic system.

The concept of money
In his landmark work, Ihya 'Ulum ad-Din, al-Ghazali defines that money is the goods or objects that serve as a means to obtain other goods. The body is regarded not as an item value (intrinsic value). Therefore, he likens the money as a mirror that does not have their own color, but can reflect all kinds of colors.

Refer to these criteria, in terms of defining the money, he not only emphasizes the aspects of the functions of money. Such a definition is more perfect than the limits set out most of the more conventional economists define money was limited to the functions inherent in money itself.

Because the money according to Al-Ghazali only as a standard price of goods or things then money has no intrinsic value. Or more precisely the intrinsic value of a currency that is shown by his real existence, there has never been considered. Al-Ghazali's assumption that money has no intrinsic value is ultimately related to the issues surrounding the demand for money, usury, and selling currencies.

First, the ban hoarding money (hoarding money). In the Islamic concept, money is the public body which has a significant role in the economy. Therefore, when the money withdrawn from circulation, will lose an important function in it. For that, the practice of hoarding money is strictly prohibited in Islam because the instability will affect the economy of a society.

According to Al-Ghazali's basic reason for the prohibition of hoarding cash because such action would eliminate the inherent function of money. As mentioned, the purpose is to make money circulating in the community as a means of transaction and not to be monopolized by certain groups. In fact, the worst effects of the practice of hoarding money is inflation.

In this case economic theory explains that the amount of money in circulation and the amount of goods available at the same time close relations inversely. If the money supply exceeds the amount of goods available, there will be inflation.

Conversely, if the money supply less than the goods that are available there will be deflation. Both the economic disease that must be avoided so that between the money supply of available goods in the market balance.

Second, the problem of usury. In a simple addition of riba is the subject of capital obtained by way of falsehood. Explicit prohibition of usury in the Qur'an Surat Al-Baqarah verse 275, 278-279, Ar-Rum 29, An-Nisa '160-161, and Ali Imran 130. Fundamental reason Al-Ghazali in the forbidden usury related to money is based on the motifs printed money itself, that is, only as a medium of exchange and standard of value of goods only, not as a commodity. Therefore, the act of riba by way of exchange of the kind of money is the action that came out of the original purpose of creation of money and prohibited by religion.

Third, buying and selling currencies. One of the things that belong in the category of riba is the buying and selling currencies. In this case, Al-Ghazali thus prohibiting this practice. For him, if the practice of currency trading is allowed the same as letting someone else make money hoarding practices will result in a scarcity of money in society. Since the sale, the money will only be circulated in certain circles, namely the rich. This action is very unjust.

So a bit of the financial outlook of Al-Ghazali is filled with the spirit of universal humanity and the Islamic business ethics. However to become an established concept and perfect, the thought of Al-Ghazali's finances are still scattered They require hard work from his heirs for later re reconstruct systematically and logically.

OIC, IDB Be Responsive...!

2010-01-09T18:32:00.001+07:00

The global financial crisis that hit the international world in recent months has given an indication of how fragile the global financial system that relies only to the financial markets in several international markets. Capitalist system which has become the locomotive for world economic movement failed to create a valued new world economic order that is more just, balanced, and capable of providing welfare for the inhabitants of the earth.

Therefore necessary that steps terkonsep well and comprehensively to create a new order in the world economy. OIC as an organization that collects no less than 57 Islamic countries are the most representative forum to play an important role in making changes and led to the idea of new world economic order.

Meanwhile, the IDB as a financial institution that is very influential to the Islamic world was supposed to take strategic steps for the interests of the financial system of the future Islamic state. But, until today we have not seen and heard both institutions to make a statement or a strategic position for the advancement of the Islamic world and internationally.

Islamic countries joined in the OIC and IDB have really great potential in leading the economic system reform and the financial world. With a shared vision and collaborative spirit of the high Islamic countries are expected to be able to force a new balance in international economic arena now dominated by U.S., European Union, Japan, and China.

With a potential population 19 percent of the total world population, or about 1.9 billion population, controlled 77 percent of world oil reserves, enough for the needs of the next 75 years. In addition, 90 percent of the world's hydrocarbon reserves are in the Islamic world. There are two major issues that could be a big strategic agenda for the OIC and IDB to anticipate long-term crisis, while preparing the agenda of the new world economic order, namely the use of a common currency and common market of the Islamic world.

Common currency
Today there are three types of master currency world economic activity, namely the U.S. dollar, euro and Japanese yen. Overall U.S. dollar dominated the world's financial transactions in different amounts in euros and yen. Overall the U.S. dollar over any form of economic activity and international financial transactions, which reached 80-90 per cent of total transactions (Bank Indonesia, 2004).

Monetary system and world trade today is a system that does not create monetary stability, not a common exchange rate, and exchange rate fluctuations that occur every time. Currently each state uses different types of currency in order to conduct international trade, one currency for export, one for imports, and another as their domestic currency.

For poor countries and developing countries, the current monetary system is a monetary system that is not profitable. Reform of the world monetary system is one step in order to create a monetary system more stable and equitable for all countries.

However, the current reform of the monetary system more equitable world is difficult because the world monetary problems closely related with the political elements and economic power (Stigliz & Amartya Sen, 2004). In the current monetary system, the United States as a superpower can earn huge profits by simply printing and distributing the dollar in international markets.

Japan a country that has a big economic power in the world economy also profit from the world monetary system today. However, Japan is politically unable to make changes to the world monetary system (RA Mundell, 2003).

With the monetary system and the conditions of international trade is not profitable, it should poor countries and particularly developing Islamic countries belonging to the OIC and IDB reduce reliance on fiat money by creating a monetary and economic system supported by a currency stable and more fair.

One of the most significant recommendations is the use of gold dinar as an international currency. During its use, gold dinar valued more stable and have high levels of inflation and fluctuations of less than fiat money. Gold dinar role of trade easier and reduce trade barriers, such as speculation, exchange rate fluctuations are sharp, and various other obstacles (Meera, 2004).

To make the dinar as the currency used as the basis of world monetary system, required many steps and strategies to achieve it. One of the steps and strategies carried out by applying the dinar currency in international trade, especially in the export and import trade between Muslim countries (markets with the Islamic world).

Application of gold dinar in international trade will not replace the role of the domestic currency. Domestic currency remains necessary and used as a tool in domestic transactions.

The use of the dinar as a currency trade transaction has been done by the Government of Malaysia in 2002 with trading partners, such as Iran and Saudi Arabia. Application of dinar currency in trading early steps to realize the dinar currency to the single currency Muslim countries and as a global currency (Mahathir Mohammad, 2003).

Common market
Actually the idea of forming common markets and enhance economic cooperation to the Islamic world is not new. This idea is often expressed in the meeting World Islamic Economic Forum (WIFE) and at meetings initiated by the OIC and IDB.

However, it seems this idea has not received intensive from Islamic countries. Of course this idea needs to be enriched and sharpened with a variety of research, such as the idea that the EU had to wait 40 years. There are several steps that can be used.

Step formation of this common market can be started from other regional development of Islamic countries. The formation of free trade areas can be initiated from the sub-sub-regional, as in the Middle East, Africa, South Asia, and Southeast Asia that will facilitate the next stage of integration. These trade relations are expected to mutual benefit and optimize the benefits of resources and production respectively (Azis, 2006).

Pro is very important in priority products and services from members of the trade pact because there has not been optimal. Trade among OIC countries is only about 12 percent of the total of all trade in the OIC countries.

Total OIC trade is only seven percent of total world trade. In fact, about 60 percent of natural resources in this world are in Muslim countries. This condition is not independent of each other is still at least trade OIC countries and the amount of dependence on trade with countries of non-Muslims.

The next step, with the market in the form of trade and investment flows requires partisanship Islamic funds which have Muslim investors. One of today's reality shows, an investor's surplus funds mainly from the Muslim countries of petro dollars that have flowed into the Muslim world. There should be a shared commitment among Muslim businessmen to prioritize investing in Islamic countries.

To support this common market would need a common currency. Islamic member states have time to use a common currency in the form of gold dinars. It's like the European countries with euronya.

Each Islamic country can use the gold dinar as the single currency in international trade transactions whose value is recognized among Islamic countries. It is expected to reduce dependence on the U.S. dollar. As a result, reducing the need for U.S. dollars so they can secure the exchange of Islamic countries.

The use of the dinar as a currency trade transaction fellow Islamic country one of the solutions of the problem above. Use of money dinar by all Muslim countries and make it as a single currency (monetary union) means of payment fellow Muslim state trading will give considerable impact on the unity and growth of trade in Muslim countries.

The next step was the Islamic countries should immediately establish an Islamic financial system is integrated, whether banking, capital markets, and other Islamic financial institutions. We need to strengthen the funding and the role of the Islamic Development Bank (IDB) for its World Bank-Islamic world.

We also need the International Monetary Fund Islam (like the IMF) are interest-free financing scheme. Thus the system integration will be increasingly robust economy.

Kinilah time by using a very precise moment, the OIC and IDB be, start thinking big and strategically replace the economic system and financial world is not fair. Role of the OIC and IDB will be highly anticipated by the entire world Muslim community.

Two central issues that were raised will be very relevant to the world economy today. The use of the dinar as a currency trade transactions among member countries of OIC & IDB is one solution to the problem above.

Use of money dinar by all Muslim countries and make it as a single currency trade payment instruments other Islamic countries will provide a big enough impact on the growth of trade in Muslim countries. With the increased trade antarsesama OIC & IDB members who use the money dinars, not only have an impact on reducing the amount of fiat money in the use of export and import transactions, but also will affect the welfare of this nature.

Sukuk and Peanut

2010-01-08T07:35:00.003+07:00

Investment Dar, an investment company based in Kuwait, half owner of Aston Martin Lagonda shares, is the first company failed to meet its obligations for 100 million dollars for the issuance of sukuk. It is the duty value of the periodic sukuknya which will mature in 2010. Nakheel, the owner megaproyek man-made islands shaped palm tree, is also expected sukuknya forced to restructure 3.5 billion worth of U.S. dollars which will be due in December.

On the other hand, the sukuk market is still in demand. Indonesia began to enter the international market by offering a sukuk worth 650 million U.S. dollars. Bahrain also offers a sukuk worth 500 million U.S. dollars. Although sukuk market overall declined by 56 percent in 2008, after reaching a record high 30.8 billion worth of U.S. dollars in 2007.

Islamic finance has been believed that strong and have high resistance to the economic crisis, began to question its validity. At least for three indications that this is now beginning to look abroad. First, the emergence of sukuk issuer defaulted. Second, decreasing the value of corporate assets because the decline in the Islamic financial market value of securities owned. Third, begin to increase financing problems.

Let us discuss one by one. Sukuk defaulted certainly influenced by many things, one of which is sukuk structure itself. In general, the existing sukuk can be grouped into two. First, asset-based sukuk real (asset-based sukuk). Second, sukuk are attached to the real assets (asset-backed sukuk). For asset-based sukuk, real assets are used only to make the transaction structure to comply with sharia principles. As for asset-backed sukuk, real assets to the SPV separated ownership.

This difference theoretically provide a different level of risk.
Viewed from the side of risk, investors in asset-based sukuk have actually the same level of risk by providing unsecured debt (unsecured). Meanwhile, investors in asset-backed sukuk has a right to collect the real assets of ownership have been separated, although in some countries the right to collect real asset that does not mean the right to own real assets.

More specifically, the sukuk structure with bi mausufah ijara akad dhimma, the covenant in the lease which will be leased goods not being necessarily contain a greater risk than the covenant ijara sukuk, the rent covenant which has the form of goods.

In both types of sukuk syariah this ijara both meet Islamic principles, but the risk is different. In ijara sukuk, which are goods still be realized there must be additional risks, which failed, or fails to hand over-use goods which become the object of sukuk. If the contract is not anticipated risks and protected, then the risk of actual investors with unsecured debt (unsecured).

While the sukuk, which has the form of goods, this risk does not exist. This is where the important role of regulators and institutions in issuing fatwas rules. Compliance is required not only the formal aspects of sharia-procedural, but far more importantly in developing required kearifbijaksanaan regulations and legal opinions for the Islamic financial industry.

Islamic financial products are sophisticated feasible only sold to sophisticated investors as well. Only Islamic financial products that can simply be sold to investors who also simple. Thus, it is necessary to define rules that investors who are sophisticated investors and who are simple, well what the product is sophisticated and simple products.

Logically, this definition will vary from one country to another because of differences in levels of understanding and the development industry. That is why also the idea of mutual recognition (mutual recognition) regulations and legal opinions without adjustment of conditions in each country, does not meet the criteria kearifbijaksanaan.

In the science of jurisprudence, for example, when the sale of peanuts that have not been harvested also distinguish between transactions between people who have expertise in transactions among the laity. In general, if the transaction between the laity, jurisprudence prohibits buying and selling peanuts because of the quantity and quality is not known. Thus, such trading is feared this will lead to gharar (uncertainty), therefore this transaction is prohibited. They were what is called a simple merchant.

However, if the transactions carried out among people who have expertise in assessing the quality and quantity of peanuts, this transaction is allowed. Usually the buyer given a chance to sample the peanuts in several places in the land to be harvested, then they began to haggle. Beans stay fresh in the ground, the transaction can be done. These are the so-called sophisticated traders.

Jurisprudence developed hundreds of years by many scholars who attempt to provide local kearifbijaksanaan in interpreting the provisions of sharia, is an invaluable legacy for us who live in this era. Always felt the spirit in their fatwas. Kearifbijaksanaan spirit, the spirit of Islamic maqasid, the spirit of ultimate truth.

Without this spirit, Islamic finance would like dish was bland without salt. Formal-procedural indeed meet Islamic principles, but not kesyariahannya perceived by the public. Indonesia is the world's biggest hope to display the Islamic finance really felt beak.

During this time, Indonesia would prefer schools to be careful than the schools growth. Minimize the role of the clergy, let alone dwarf the role of scholars in developing finance and banking industry will only result in Islamic finance and banking industry without the spirit of sharia.

Money's Meaning in Islamic View

2010-01-06T17:13:00.002+07:00

Money which is running an economy lubricants are always a hot topic for discussion. Like an engine without oil, the economy also will not work without the money. However, many of us who only understand the meaning of money in the context of its form as paper money and coins. In fact, the definition of money is anything that can be accepted as a means of payment for goods and services in an economic system. In fact, in ancient times people used stone, animal skins, salt, and shells as money. At the time of the Prophet (SAW), gold coins (dinars), which comes from the Roman and silver coins (dirhams), which comes from the Persian are the two precious metals are regarded as currency. In the current era, paper money (fiat money) has become a common means of payment used in all countries in the world.

On the origin of money has three important functions, namely as a medium of exchange, store of value, and measuring the value of a commodity. However, with interest menyebarluasnya system in the current financial transaction, the function of money has grown into a commodity. The function of money as a commodity is supported by several contemporary financial theories such as the Loanable Funds Theory. In this theory of interest (interest) is considered as the price of the funds available for lending (loanable funds), which became one variable that affects the level of supply (supply of) and demand (demand for) of the loanable funds. Based on the above theory, it can be concluded that the supplier of loanable funds would be willing to lend money to the borrower if the borrower is only willing to pay back the loan in an amount greater than the principal. The difference between the amount due to the principal borrower and that is what is called interest. By contract, the price (interest) is to pay the borrower under any circumstances (the borrower's business profits or losses) to the lender, because the lender has considered selling a commodity called money.

Here is clearly seen that in the current financial system right now, money is regarded as a tradable commodity. This is in contrast with Islamic views who do not accept the functions of money as a commodity. That's because money does not qualify as a commodity. According to Sheikh Muhammad Taqi Usmani, an expert in Islamic finance Shariah, there are at least 3 factors that distinguishes the money to commodities. Firstly, money has no utility instrinsk (intrinsic utility). In contrast to commodities, money can not be eaten, worn, or used directly. Money can be exchanged only with a commodity, and commodities that will be eaten, worn or used. In economic terms, money only has value in exchange as commodities having value in exchange and value in use at once.

Second, money does not need the quality to determine its value, in terms of paper currency USD 100.000 an old issue of paper money in 2007 with a new Rp 100.000 published in 2009 has the same purchasing power. Another case with commodities, for example, output of the Honda Jazz Honda Jazz 2007 to January 2009 the output has a different price. This indicates a difference in quality between the two cars on top of which reflected the value and the price difference.

Third, the money does not require specification of the validity of transactions, while commodities have specific properties when the validity of transactions. For example, if we want to buy the goods we will choose the things we want to taste us, like color, other complementary accessories. That is, if the seller offers the same goods but they were not in accordance with our tastes may be we will refuse. But it is different with the money that is not specific. For example, for the payment of monthly electricity bills amounting to Rp 300,000. we can pay these bills by using three pieces of money USD $ 100,000 or four pieces of money Rp 50,000 plus one sheet of Rp 100,000 and even we can pay these bills with three hundred pieces of Rp 1,000. For the recipient there will be no difference in the value of the three ways above payment.

There is one additional difference between commodity money, especially with fiat money we use today. Paper money (fiat money) to current has no intrinsic value (intrinsic value). Paper money became legal tender by law issued by a country that declared the validity of the money. This shows that the acceptance of paper money as a means of payment is only due to the government trust factor that ensures the validity of these bills. That is, if the trust is lost or reduced the value of the money will be weakened (terdepresisasi) due to more people off, by selling money, than to have it. Because obviously, have no intrinsic value.

However, it should be also stressed here that fiat money is a legitimate money on the side of the sharia. The author does not agree with the view that gold is only valid at the shari'a. Indeed, the true gold is the money the best and most stable in value, and if we can re-use gold as a standard of value for money, of course, the world's financial system would be much better. However, claims that only gold or silver are recognized Islam as the money and gold and silver but it is not legitimate, this is an excessive claim. The proof, the Caliph Umar never meant to make the camel as a currency, but then was advised not to do it, because eventually the camel will be vanished from life. So is Imam Malik once said that if people make the animal skin as a currency, he undoubtedly would prohibit selling such animal skins but with cash and may not be tertangguh. Although today we are eager to return to the gold as the standard currency value, we should not be excessive and extreme by saying that fiat money is forbidden. Proscribe the same kosher is bad in Islam to justify the unlawful. If unlawful fiat money, a dowry of course we become invalid, and our marriage is not valid, then our children are also to be a bastard. Is not that logical consequence of the said fiat money is forbidden? And Allaah knows best.

Islam and the Muslim World Welfare

2010-01-05T19:53:00.002+07:00

In recent days, exactly on the date of 1 sd March 4, 2009, Indonesia hosted the World Islamic Economic Forum (WIEF) to-5. WIEF usually attended by hundreds of participants from various countries to discuss economic and Islamic finance, with a scientific approach and empirical-practical. The last meeting was held last year in Kuwait.

This time the forum has a very important meaning at least for two reasons. First, because he was held in the middle of the global economic situation is getting bad pointing. Of the expected birth of this forum offers the concrete to help overcome the situation. Perhaps for this reason the 5th WIEF the theme,''Food and Energy Security & stemming the Tide of Global Financial Crisis.''

Second, because of the fact that the level of welfare of the Muslim world, if we measure the level of state welfare-Muslim-majority country, with size Human Development Index (Human Development Index), currently remains at a very low position, although the Muslim countries of East Central for many years enjoyed economic prosperity due to the abundant natural resources, especially oil and gas. This forum could be occasions for introspection about what is right and wrong that had been carried out by Muslim nations that.

In this paper, I will be reminded about the purpose of Islamic law that still must be the basic framework and the main goal in every time we try to develop an Islamic economy. In this paper, I will reveal important facts about the situation and the problems associated with the welfare of the Muslim world, including Indonesia, and offers the most appropriate solutions with the objective of the sharia.

Destination Sharia
Imam Al-Syathibi (Abu Ishaq Ibrahim ibn Musa al-Syathibi, died 790 Hijri), an Islamic thinker who pioneered the birth of science maqaashid al-syarii'ah (Islamic goals) through his landmark work, Al-Muwafaqaat, explained that the main purpose Islamic law is to promote human welfare. Sharia, according to Al-Syathibi, is something that has implications for the good, such as honesty, fairness, openness, tolerance, and compassion, as that's the main purpose of sharia is to create human welfare.

If we turn to the Qur'an, we will see how much attention to the welfare of God. In the Qur'an, there are at least 69 verses that specifically address poverty. In addition, dozens more are still there verses that mention the word type with poverty, such as word faqir, fuqara, ba's, saa'il, qani ', mu'tarr, dhaa'if, and mustadh'afiin. In addition, there are at least 42 verses of the charity which correlated with poverty are also very close. If you add up, we'll find more than 150 verses of the Koran which correlated with poverty.

Just for comparison, is associated with usury, which of course also an important principle in Islamic economics, there are only 7 verses. The amount of Islamic attention on poverty and improving human welfare can also be seen from the many traditions of the Prophet Muhammad about it. In one hadith it is said that poverty is very close to paganism. Thus, consistent with the goals He sent Muhammad to be a 'sign' for the love of God for the universe (see Qur'an sura Al Anbiya verse 107), sharia also has a goal brought to improve the welfare of mankind.

Welfare Measure
Dictionary Wikipedia states, peace is a condition or circumstances in which good men in prosperous, healthy, and peaceful. Welfare (welfare) also means well being (healthy, happy, prosperous and.) For several years after World War II, the measurement of human welfare changes. In the 1950s, prosperity is measured from the physical aspect, like nutrition, height and weight, life expectancy, and income. In the 1980s, there was a change in which prosperity is measured by income, labor, and civil rights. In the 1990s, Mahbub ul-Haq, Pakistani scholar, defined the size of the welfare of the so-called Human Development Index (HDI). With HDI, welfare is no longer focused on aspects of economic-material quality, but also on aspects of social quality of a society.

The HDI is a composite of three components (subindeks), namely: 1. Life Expectancy Index (Life expectancy index), 2. Education Index (Education Index) is measured from the Enrollment Index (index of keterdaftaran reflects the level of formal school population) and the Adult Literacy Index (an index of literacy among the adult population), and 3. Per capita GDP at Purchasing Power Parity Index (Index of Per capita income adjusted to purchasing power parity), which briefly called GDP Index. All three sub-indices, each taking one-third portion of the set of HDI.

The HDI is measured annually and published by the United Nation Development Program (UNDP). In November 2008, UNDP publishes the HDI ranking of 2006 over 179 countries. In this analysis, what I meant by Muslim countries is a country with a Muslim population of 60 percent or more of the total population of the country's population. Of the 30 countries with the highest HDI obtained facts relating to the Muslim world as follows:

There are only two Muslim countries, namely Brunei Darussalam (ranked 27) and Kuwait (ranked 29), who entered in the ranks of 30 countries with the highest HDI. The two countries have a high HDI because sustained by GDP Index. Without us prove, the high GDP Index both countries is due to high revenues from natural resources are not renewable (oil and gas).

In contrast, European countries and Asian countries dominate the sequence with the 30 highest HDI is generally the countries that excel in the development of technology (knowledge-based economy). In fact, these countries do not have natural resources that can be seeded. Just additional information, if we arrange the 30 countries with the highest Education Index, we found none of whom is a Muslim country.

The second population of Muslim countries are not only more than 2.77 million people, namely Brunei Darussalam, and Kuwait 343,653 inhabitants 2,418,393 inhabitants. Total population of these two countries represent only 0.3 percent of the total population of countries in the ranks of 30 countries with highest HDI, which amounted to approximately 913 million people, or only 0.15 percent of the total Muslim world (appr. 1.5 billion soul), and 0.04 percent of the total world population (appr. 6.3 billion people).

As a state with a very large population, Indonesia's economy has different characteristics to the characteristics of Muslim countries in the Middle East. The focus of increasing GDP per capita and education in Indonesia should be done by empowering the sectors that have a lot of actors (the bottom of the pyramid, Prahalad term borrowing). Namely, Micro, Small and Medium Enterprises (MSMEs), which amounted to nearly 50 million units and absorbs nearly 92 million workers. By placing SMEs in priority economic development of Indonesia, in fact we're carrying out the message of Islam: Let the treasure is not only circulate among the rich among you have. [Surah Al-Hashr (59): 7].

Establish Network of Islamic Economics Research

2010-01-04T19:21:00.004+07:00

Although the practices of Islamic economics and finance including Islamic banking in the country have shown significant progress in recent years, but challenges to future development will obviously not always easy. Therefore, the various supporting elements should continue to be optimized to help accelerate progress in the Islamic economic future.

Among these supporting elements are research or study. With the research, determining policy and strategy of Islamic economic development can be done more accurately based on potential, problems and trends-kencederungan really happening in the community. In this case, the role of research will only be optimal if: First, the research topics of theoretical and practice that actually related to the development of Islamic economics. Second, every study done really add value compared to research that has been done before. Value added can be referred to the exploration of new topics or deepening of the old topics that have been studied previously but with the method, the sample or the analysis time is different.

So far, interest in various circles to conduct research on aspects of Islamic economics has been quite large. Each year, an estimated tens of Islamic economic research in the homeland, either in the form of business research / policy, academic research by faculty or university researchers, and research required by the student as a dissertation or thesis and thesis graduate degree candidates. Research was partly sponsored by business organizations or certain government agencies, but the majority of the independent research with full funding comes from private sources or the Institute researcher.

However, unfortunate that many of the research that has been done tend to be separated from one another. Many Islamic economic researchers write about the topics the same, but these writings are not intertwined continuum, there is no criticism, no suggestions, and no conclusions so that the topics covered tend to stagnate and not having sharpening.

Repetition happens not only inhibit the development of the economic substance of Islamic studies, but also lead to further boredom and skeptical view of some parties. This situation is within certain limits become more severe because the accident in Indonesia has not awakened a strong academic culture that values a research or scientific publications more often determined by popularity or the structural position of the researcher or a writer rather than the quality of their work. Similarly, criticism of a research or scientific publications are often associated with aggression or disrespect to the researcher or writer.

In this regard, it is necessary steps to optimize the role of research in support of the Islamic economic progress in Indonesia. Among them through the development of information systems research and Islamic economic data, which is not only incomplete, but it can also be easily accessed by researchers and enthusiasts of Islamic economics in Indonesia (mainly online through the internet).

The three most important goal of this step are: First, mapped and the establishment of networks of scientific research and publication in accordance with Islamic economic classification details of topics discussed. Second, the creation of the communication fabric of research (or a kind of "clusters" of research) among researchers and enthusiasts of Islamic economics. Third, building an academic culture, especially the critical tradition in research and scholarly publications on Islamic economics.

Research information system and Islamic economic data should include at least a list of research or scientific publication of Islamic economics and classified mapped in detail, both based on field of study subjects, such as economics, management, accounting, and sharia muamalah / law, and based on the study object such as financial institutions, ziswaf (zakat, infak, sadaqah, endowments), the empowerment of people, and the eradication of corruption. For example, the classification of research on the subject of Islamic economics can include basic concepts, methodology, economic pemikian (classical or contemporary), microeconomic theory, macroeconomic theory, and applied economics. Each of these classifications can then be subdivided into sub-units of smaller until the level of the second, third, fourth and so on. Similarly, research classification of objects may include financial institutions such as banking, insurance, capital markets, and microfinance institutions, each of which can be subdivided into sub-units are more detailed.

Outside the core content, and research information systems of Islamic economic data can contain a list of scientific journals with an Islamic economic order of publication and title of the writings in it. Similarly, a complete list of books about Islamic economics (including the table of contents), both published domestically and abroad.

Furthermore, research information systems and Islamic economic data may also contain a list of researchers or practitioners of Islamic economics major, local, national, or international, complete with profiles and their professional activities. List of institutions or organizations that focus on research and development of Islamic economics is also worth considering, in addition to other things that can encourage building in the academic culture of research and scientific publications on Islamic economics

Efforts to establish an Islamic economic research networks may be accompanied by the sacrifice of energy, time and cost. However, God willing, if diikhtiarkan seriously, the sacrifice that will reverberate far more benefits in order to optimize the role of research in support of an Islamic economic progress in the future.

It was so exactly what had once told an Islamic economist, Muhammad Umer Chapra, in an interview, "[E] konomi Islamic require big thinking, creative ... There is no room for repetition what has been written. It unfortunate that some of our writers do not read anything that has ever written ... " White six.

Islamic Banking: Between Ideas and Facts

2009-12-07T17:15:00.004+07:00

As from the operation of Bank Muamalat Indonesia (BMI) in 1992, the economic rise of Islam in Indonesia has around 17 years old. During nearly two decades, the economic development of Islam in Indonesia somewhat unusual. Can be proved by the existence of Islamic Banking, where the growth of Islamic banks in the largest Muslim country is very advanced, especially in terms of quantity. However, there was a big problem faced by Islamic banks is that in terms of quality, especially concerning aspects of compliance with sharia (sharia compliant).

If the question "Is there a difference between Islamic banks with conventional banks" submitted to the Muslims, the dominant response that was met was "no different from the same alias. This occurs because the activity or practice in the field mostly run by Islamic banks tend to match and direct it toward an answer. This paper tries to describe the analysis of issues related to sharia compliant Islamic Banking has swept over this.

Can not be denied that the Islamic Bank itself is a profit-oriented businesses, but in accordance with the principles of Islamic economy that a business must be in accordance with Islamic guidelines and consider the life of the world and the hereafter in a balanced way. Need to be reminded of one of the main differences between the Islamic Economic system with the conventional economic system is replaced with a system of instruments for interest rate and loss results (profit and loss sharing). This has of course also characterizes the differences with other Islamic Bank.

Things that make incessant accusations that the Islamic Banking Islamic labeled it only while it is like a big proportion of conventional financing or bai bitsaman murabaha based ajil fixed margin, and deviations made in implementing Bank Syariah selling this covenant. Data so far indicate that the proportion of murabaha akad approximately 60-70% over the amount of financing provided by Bank Syariah (Islamic Banking and both BMT). This situation is not only plagued the Islamic Banking in Indonesia but also in Malaysia and the countries of the Middle East.

In fiqh, there is no rule against murabaha if done in accordance with the terms and rukunnya. However, in practice in some Islamic Banking irregularities committed. The first example, the determination of margin / mark-up entirely conducted by the Bank Syariah. Unilateral determination is not allowed because the akadnya must have transparency and fairness between the seller (Bank Syariah) and buyers (customers). Islamic Banking is the fair should be informed about the cost of goods and variables that determine the profit margin for later offered to customers. The process of openness and bargaining is what eventually led to his willingness to both parties that it is different from conventional loans.

Usually customers are going to compare with the equivalent level of margin percent interest rate on the loan. Here, the Bank of Sharia should be careful in explaining this important issue, do not directly mention the equivalent rate, but the process must be explained first. Once again the process of determining margin above can help, because the margins on offer Islamic Banking from the real costs and should not be above the interest rate determined immediately (not real) by a conventional bank. Customers will certainly understand and recognize the difference between the covenant and the covenant syar'i syar'i not.

Second, most Islamic Banking does not give the goods to the customers, but giving money to customers as a representative to purchase the required goods. This certainly deviate from the rules of fiqh, because there are two transactions in one covenant that is wakalah and murabaha. In addition, with such transactions may be customers do fraud with funds provided by the Bank Syariah. To overcome this, Islamic Banking is expected to have a special network of distributors of goods the customer needs or even have their own sort of effort that provides goods for akad murabaha.

This process had to be a bit forced because as a medium of education and socialization. Sharia Bank employees should have the competence and patience in carrying out aspects of sharia compliance. Role of Sharia Supervisory Board (SSB) is also very necessary to control the Islamic bank's performance, especially related to sharia compílance. During this DPS problem lies in the professionalism, so expect management board or the Islamic Banking can provide incentives in the form of salary or a reasonable fee to DPS to work professionally and optimized.

Regarding the dominance of murabaha financing must also be addressed by the Bank Syariah. In accordance with the principles of Islamic economy is based on the results of the system is supposed Islamic Banking products are berakad more Mudaraba or Musharaka. Bank Syariah chose murabaha more because the stakes are small and provide certain benefits (fixed return) Mudharabah Akad which heralded by the Bank Syariah rarely done in the financing transaction. Besides having a high risk and cost of agency costs due to the emergence of Asymetric Information, the Islamic Bank also argued that customers do not want to and not ready to use the system for the results.

There are several things to note about this Mudharabah akad. First, if we look mudaraba practices in the field, then the covenant will not be seen purely as a akadnya mudaraba is a modified mudaraba musharaka for capital comes from two sides, Islamic Banking and customers. Although in terms of management, Bank Syariah not interfere. This happens because the Bank Syariah just want to give financing to businesses that have been running for a certain period of time.

Second, the financing division of the return was not based on profit-sharing system and the loss (profit and loss sharing) but using the system for revenue (revenue sharing). This system was chosen because Sharia Banks dare not fully share the risk or loss (loss / risk sharing) capital in full. Finally, the benefits to be provided by the customer turned out to have been estimated (defined in advance) by Bank Syariah because customers are not able to make financial reports to calculate the loss labaatau business.

Departure from the reality of the above, then the Bank should put more emphasis on Islamic Musharaka financing because it is more in accordance with Indonesia's economic situation today. Musharaka do require that the Islamic Bank for the costs involved in the management of projects dibiayainya, but it is more realistic and would be more beneficial to the system for long-term results both from the profit and Islamic aspects. For the division of return, it was time for Islamic Banking is not only safe course, the principle of sharing should be applied fairly. This could begin with a community assistance with joint responsibility that has been done on community mores Indonesia.

Islamic Banking program may be modeled after the Grameen Bank in Bangladesh that has been successfully running this system. Fellow members of the finance group can help each other and to bear when one of its members having business difficulties. In this way, the system can result in a genuine and do not need to specify in advance the estimated profit, because there is mutual trust between the Bank Syariah with customers and between members of the group itself. What needs to be addressed is the problem of moral disease which during the public descend through increased spiritual aspect and a good example. One reason why the proportion of customer financing is dominated is to know the characters from the customer before the akad financed with revenue sharing. The reason this is logical, but if used too long it will be a boomerang for the Bank Syariah. In fact after a long operation, the portion of murabaha financing does not decline significantly.

From the results of several studies indicate that the system for optimum results applied in developed countries and not optimally applied in developing countries. But Sharia Bank should conduct a breakthrough and breakthrough innovations to argue that research results. Although sharia compliant Islamic Banking in Malaysia and the Middle East - which first experienced a resurgence of Islamic Economics - no better than Islamic Bank in Indonesia, but Islamic Banking in Indonesia as the largest Muslim country in the world to provide differentiation and repositioning as do a fair Financial Institutions and economic empowerment of the people. If not immediately fix the aspect of compliance syariahnya, it is not wrong if there are allegations that the Islamic Banking and Islamic guise only selling a mere religion. Such situation will lead to mission efforts in this economic impasse and the loss was a matter of time. Bisshawaab Allaah knows best.

The Focus of Islamic Banking Competitiveness

2009-12-07T17:09:00.003+07:00

Often we hear that Islamic banks have been far more able to perform the intermediary function compared with conventional banks. Especially with the amount of financing portion which is distributed to the SME sector provides evidence of commitment to Islamic banks to the economic empowerment of the people. Therefore, the performance of Islamic banks can be As with Sustainable Competitive Advantage in the banking industry competition that increasingly tight. However, a source of strategic advantage over the Islamic banks can not contribute significantly to support sustainable economic development and equitable. This gap is still small due to Islamic banks share in the national banking business. This requires a strategy that could boost Islamic bank assets nationwide. With the background mentioned above, this paper tries to provide input for a national Islamic banking industry to improve the quality competitiveness is still associated with lack of market share.

Observing the reality of the development of sharia banks in Indonesia today, the increasing competitiveness of Islamic banks is very urgent to be implemented. Secara objektif harus diakui bahwa bank syariah masih kalah bersaing dibandingkan dengan bank konvensional, sehingga diperlukan strategi bersaing yang tepat untuk meraih keunggulan kompetitif dalam industri perbankan nasional. In this case, the strength of competitiveness is crucial for the success or failure of a company in a particular industry. Rather than supporting the economic development of nations, if it continues to operate with low competitiveness of the existence of Islamic banks will be threatened by the map of banking competition is getting tighter. The development and current competitive conditions suggests the need for an accelerated program for Islamic banks are able to catch up on the conventional banks. There are three fundamental factors of the most influential in terms of infrastructure that must be addressed, namely:

First, limited office network that blocks access to Islamic banking clients. Service network owned Islamic banking system is still limited, the lack of coverage of these operations in turn will become a significant obstacle for the users of Islamic banking services and reduce the level of comfort and satisfaction of using Islamic banking services.

Office network expansion should be done in order to reach all layers of society, so the reason for the territory dhorurot no syariahnya banks can be minimized. Especially when the main focus is the distribution of Islamic banking capital to the SME sector that in fact require broad access to reach them. Islamic banking network expansion is not necessarily with offices opening a new branch, because it requires huge capital. Sharia banks have to be creative and innovative in making new breakthroughs in order to reach the wider community services to remote-corners. Options ways used by Islamic banks to extend their networks depends on the needs and abilities of the bank itself.

Several alternative strategies that could be considered Islamic banks such as: optimization of application services Office Channeling, with examples of a wide range of BNI, BRI Units or spread to rural areas; synergy among Islamic banks through savings and ATM products with special sharia banks; strategic alliances with other companies, such as mortgage insurance, as well as by BMI (Shar-e card) with PT. Pos Indonesia; symbiotic mutualism with other agencies, for example by hand or PTAIN Indonesia PTAIS a KTM in the making and opened outlets in college; considering a merger or acquisition policy between banks as one of efficiency and effectiveness of strategies to expand sharia banking network.

Second, Insani Resources. Recommendations based on data from DSN-MUI has found hundreds of financial institutions and businesses with thousands of Islamic sharia service office in Indonesia. Become common knowledge, however, that the rate of growth does not follow sharia business with the provision of adequate human resources. The situation is not balanced it would make sharia banks are having difficulty in doing professionalism in serving customers. Based on recent data, the characteristics of scholarly resources sharia banks dominated conventional science from ex-employees of conventional banks. This makes conventional strong tendency in the development of sharia banks.

To overcome this gap, it should be stressed to the Islamic banks to build a serious commitment to human resource issues. Recruitment or human resources management at the Syariah Business Unit is often hampered by the parent bank's policy, where implementation of the recruitment or human resource management is done by the parent bank centralization, especially many events at which banks make dual banking from conventional HR rotation to sharia. Rotation is carried out by the bank management is not accompanied by adequate debriefing, which led to the impression of sharia banks were no different from conventional banks. Islamic banking as a principal, has the responsibility of the bankers in developing Islamic banking system that really fit with the concept of sharia muamalah. Human Resources Development in the Islamic banking sector is very urgent because of the success of the development of sharia banks at the micro level is determined by the quality of management and the level of knowledge and skills of bank managers.

Bank Syariah must meet human resources that have extensive knowledge in the field of banking, understanding the implementation of sharia principles in banking practices, and has a strong commitment to implement it. Existing obstacles must be eliminated through the recruitment and selection of appropriate human resources competence requirements of sharia banks, by the way: Training and Human Resource Development needs to adjust to the ideal fulfillment of human resources for Islamic Banking; Evaluation and Job Design; Compensation, Senior Career, Succession Planning, etc. . Ideally, HR Profile Sharia Banking may be exemplified as follows: The formal education S1 or S2 of Islamic finance and economics university in the country or abroad; Mastering the soft and hard competency Islamic Banker; Paradigm Sharia. This qualification is very important because with a clear input of competence is professionalism Sharia bank office services will be improved and not with half-hearted and not just a 'cosmetic' alone.

To further facilitate efforts to improve human resource competency standards, Islamic banks can establish cooperation with the college education of Islamic Economics. This synergy and also to provide solutions that curriculum constraints and implementation challenges and match academic links to the Islamic banking industry. Furthermore, the BI and the DSN-MUI as the supreme authority can work together to establish human resource certification sharia banks. Standardization is very important to avoid differences in services, while increasing the asset so that it can compete with conventional banking resources. One also added Special Training for Accounts Officer (Finance) and Customer Service Officer to achieve service excellence.

Third, support of adequate information technology is absolutely required by Islamic banks to serve and provide convenience for customers. Without the help of IT (Information Technology) is a sophisticated, Islamic banks will be left behind the times and customers. Tendency bank customers today are choosing a bank that is already online and have extensive ATM network and the complete features. In this era of sophisticated telecommunications, IT controlled banks will win the competition in capturing customers. Therefore, the necessary IT systems are up to date in accordance with the will of the customer and the characteristics of Islamic banks.

The problem, however, banking technology is very complex, expensive and almost all affected parties outside the bank, including from overseas vendors. It was very burdensome Islamic banks which have relatively low IT spending. Ends with this condition, Islamic banking services will become expensive and the customers who will receive the effects. Therefore, BI is expected to endorse the proposal from the National Bank team (Perbanas) which has developed a scheme called Indonesian Banking Architecture Technology (ATPI). ATPI is considered to improve the bargaining position of the vendor because the bank allows banks to share technological resources. In ATPI, banks can collaborate using information technology resources to achieve compliance requirements (compliance). At the same time, they still compete through a variety of products and services.

One implication of this is the formation of ATPI cooperation model with the pattern of "shared-services" in which a few large banks can share technological resources it has to go serve the needs of other banks. Thus, a bank, including BPR can provide a service of technology based banking services to their customers by using resources from other banks or vendors of information technology solutions provider. Working together to share ATM networks such as ATM BCA, ATM or any ATM Prima Joint can be an example.

Islamic banks should also take advantage of the convenience provided by the ATPI is willing to share with conventional banks which are relatively more advanced technology or to unite all Islamic banks for later 'joint venture' to use IT services together. IT is used by Islamic banks themselves must meet the criteria of standardized, compatible and in accordance with bank products sharia (free of interest calculation) and in accordance with the regulations of Bank Indonesia and the MUI.

If the three fundamental factors that most influence on the development of sharia banking infrastructure has been fulfilled and done optimally, it is expected that Islamic banks can assist in the intermediation function.

Islamic Banking for SME

2009-12-04T12:57:00.003+07:00

Reality MSMEs and Reorientation Islamic Banks
A group of people or individuals with all his effort, trying in the field of economy in a very limited scale, that is what is called the SME (Small and Medium Enterprises). There are many factors that limit the movement of MSME business. The main factors that affect their movement is limited difficulty of access to education, capital, and technology. However in objective reality, with all its limitations, the SMEs still able to survive in the storm of economic crisis.

If traced in depth, proved the existence of SMEs supported by the flexibility of their respective fields of business, whether starting from a small capital, simplicity of technology, limited human resources in quality and quantity, as well as the limited market. Such characteristics are also supported with a high morale to maintain self-esteem.

Most businesses SMEs in Indonesia that have shaped its own characteristics in accordance with the reality of the Indonesian economy. They run businesses can stand on their own feet and be independent without having a group or under other corporate groups. Most production is not a service but the goods using relatively low technology. The orientation focused on the local market so that any location in rural or suburban. Their capital is also limited, and that certainly was a very difficult business to get loans or financing from banks, in other words unbankable category.

While occupying the foundations of economic structures and Indonesia became the driving force of economic development, but received capital support MSMEs are still minimal. In such circumstances, financial assistance, technology, and management for the development of their institutional capacity is needed. One unique thing that currently found in the MSMEs is their commitment and concern for morality. At the time of the big businessmen and tycoons busy-busy doing all kinds of business crimes that violate the law, people working in the field of MSME clung to business ethics and morality. By looking at the contribution of SMEs and the urgency of the nation's economic development, so it's natural to sharia banking industry reorientation to focus on the real sector by empowering the SME entrepreneurs.

The role of Islamic banking in the real sector development can be seen from the scheme developed in the Islamic bank financing, but in the real contributions donated by Islamic banks through his duties as a financial intermediary institutions. Viewed from the financing scheme that was developed, only Islamic banks to channel funding to the real sector. Business dynamics that occur in the real sector will be reflected directly in Islamic banking activities. In channeling financing, Islamic banks use the akad-akad which is always associated with the real sector and financial sector growth simply follow the growth of real sector.

Financing with akad murabaha, greetings, and can only be channeled ijara if there is a good or service (real sector) that are funded. Even with the covenant Musharaka financing / mudaraba, not only channeled to finance the real sector, but also made perfect correlation between the cost of capital with return on capital. This is obviously very different from a lot of conventional banks are not disbursing credit to the real sector, namely to speculation in financial markets. Islamic banks are not based banking financial sector as conventional banks. Instead, Islamic banks are based banking real sector.

Most conventional bank funds are not having an impact on the growth of real sector since bought SBI (Bank Indonesia Certificate) to obtain revenue without the risk of interest rates. What's worse, a large number of conventional bank loans used for speculation in financial markets, or at least can be said, are not used to encourage the growth of real sector.

Islamic Banking Services for SMEs
Some things that can be provided by Islamic Bank for SMEs, to do with the achievement of targets and the vision above, among others: First, extensive alternative products with the result as the main product. Products with a system of profit and loss sharing partnership is appropriate paradigmatic to empower MSMEs. Second, business management based on moral and transactions in accordance with Islamic principles. This Keungggulan matched to the characteristics of people engaged in the MSMEs, who want to stick firmly to business ethics and morality. Third, manage and have access to funds in the voluntary sector. This is in accordance with the commitment of Islamic Banking concerned with the development of SMEs as part of poverty alleviation through economic instruments of Islam (Zakat, infak, Sadaqah, Endowments).

Is applicable, the concept of the above services can be implemented by the Bank Syariah through strategic programs as follows: First, Islamic banks to give top priority to serve the financing of SMEs. Financing SME segment itself can be executed directly by the branch offices of banks or do Channeling sharia or joint financing with the BPRS and BMT through linkage programs. But according to World Bank findings, the most appropriate approach for SMEs is that Microfinance Institutions here Sharia bank linkage programs with LKMS be optimized to reach SMEs.

Islamic Bank Linkage Program with BMT. This partnership program is the most important step because the condition of SMEs (small-scale, limited collateral, no legal status, remote location, and the administration is weak) is very difficult to reach by the Bank Syariah (high costs, high risks, legal requirements, difficult to reach, and the difficulties business rate). Existence LKMS as BMT is indispensable as a mediation between the SME sector with the Bank Syariah. This is because the characteristics of the BMT is matched with the needs of SMEs, which provide savings services, financing, payments, deposits; focus to serve SMEs; using the procedures and mechanisms for contextual and flexible; and was in the midst of a small or rural communities. BMT as a representative of the Islamic Bank to channel financing has been mandated to him so that his own Islamic Bank need not fear taking a huge risk.

The second program, the pilot project as well as the development of SMEs empowerment scheme or sharia investment models for SMEs. With this pilot project, will appear a good example and proves that the Islamic financing scheme is very beneficial and equitable. Islamic Banking can also jump directly handle mudaraba and musharaka financing with joint responsibility. As a first step of the pilot project, Bank Syariah can work with BMT to declare the agenda of "one SME, one superior product". This can improve the competitiveness of SMEs and encourage them to continue to innovate. The project was conducted by mentoring and education, especially in the management aspects of shari'a schemes and paradigms for the system.

Furthermore, the Third, the Islamic Banking Program Human Care and Development Sector Voluntary Blueprint Sharia. Through the ability to access and manage the social funds, Bank Syariah should make the stages and strategic steps to optimize the potential of social funds and more capable memproduktifkannya. To raise funds, for example, Bank Syariah can mewacanakan issues of social philanthropy to its customers or perhaps even implement CSR (Corporate Social Responsibility). Through the development of products qardhul hasan, Bank Syariah can reduce the difficulties experienced by SMEs that experienced natural disasters or natural disaster. Grants, gifts, or free assistance in the form of equipment or business can be conducted insfratruktur as a manifestation of concern to the people of Islamic Banking.

Fourth, improving SMEs capacity building by providing technical assistance in the form of management assistance, SOP standardization, the use of IT systems, and marketing products. This increased effort may involve relevant departments of the cooperatives and SMEs, industry and trade, as well as PNM SOEs or even NGOs in their respective fields.

Closing
Poverty alleviation programs through the empowerment of SMEs who became one of the mission of Islamic banks today will not by itself make the community prosper, as long as there has been no effort to remove barriers simultaneously the source of problems in the development of small and micro businesses. Barriers should be eliminated in pelaksanakan efficiency, increase output quality, reduction of unemployment, increasing rural incomes, and reduce the gap between the rich and the poor. For that, the Government must be able to make policies that do not harm the perpetrator parties small and micro businesses in the attempt. Unfair regulation will cause reduced output, increased reliance on imports, reduction in export competitiveness, and pressing the lower income communities both rural and urban, so the development of small and micro businesses and social welfare in the area are difficult to materialize.

This classic is always questioned why the perpetrators of micro and small businesses can not grow is not the availability of funding sources (financial) as capital to run its business. Actually it is not enough funding to develop a business. If we look at periods of the previous government, how much funding assistance programs (financial) loans are disbursed in the form of government to develop a variety of businesses that do not bring results, but instead make efforts have run into bankruptcy because it is unable to compete in developing a business that is not can repay their loans. The main cause of the failure of these programs, is not running an equal partnership between the stakeholders involved in the program, in addition to other reasons.

Therefore, Bank Syariah should take lessons from programs that have been made in the past. Programs that have succeeded, can be taken advantage by the Bank of sharia by reducing the weaknesses that caused the end of the program. All stakeholders need to be aware of development, that is currently developing an economic system based on the values of the Islamic Sharia as an alternative to the system running right now. Prevailing economic system currently can not solve the perceived problems of distribution are not well balanced and widen the gap between the rich and the poor. Thus, in a development program for the public welfare, have also examined the concepts of Islamic economy as an alternative solution of the prevailing economic system so far.

However, the most important of all the above programs is the lack of awareness of Islamic Banking own party to be a friendly bank to MSMEs. For that to be realized in concrete terms, the commitment of sharia banking in microfinance development, particularly by ensuring the allocation of significant funds in the banking business-plan is for the micro entrepreneurs. Thus, can actually channeled through Islamic microfinance institutions have proven integrity and capability.

Islamic Bank's Strategies in Crises

2009-12-03T08:17:00.001+07:00

Current and future, a national Islamic banking industry faced with great challenges of the global financial crisis. The crisis that originated from the United States is bringing great impact on the economy and financial system all countries in the world, Indonesia is no exception. Sluggish global economy is able to inhibit the acceleration of sharia banking, if not exactly disiasati immediately. Profits decline and the weakening of the competitive Islamic banks is the possibility of negative effects caused by this crisis. However, on the other hand, these difficult conditions may also encourage Islamic banks to create new investment or financing, developing methods and instruments of liquidity management, and strengthen endurance in the midst of a crisis.

In 1998, Islamic banks proved able to survive when the economy was rocked by the financial crisis Indonesia. Now, the ability of Islamic banks survive re-tested it. Therefore, the Islamic banking industry players must implement a strategy to focus on maintaining the existence of order and can increase its position in the market situation is erratic.

Survive
Adopt survival strategies is a must for the management of Islamic banks in order to remain able to perform the intermediation function in time of crisis. This strategy includes the first, Consolidation Strategy. This strategy is applied through the protection and strengthening the competitive position of Islamic banks in the market. This does not mean only the silent witness management market dynamics and invasion of competitors. Management should focus on core competence, especially Islamic banks commitment to the implementation of sharia principles, the strength of capital structure, and the availability of third party funds. Awareness to meet the competencies will help to increase resources that provide competitive position better than the competition.

Second, cost advantages. Achievement rates of return for shareholders and depositors are higher than usual will make it easier to apply Sharia bank consolidation strategy above. The best way is to cut operational costs (service cost) incurred. Indeed Islamic bank's capital structure contains no debt so there is no fixed interest payments to depositors or other maal Shahibul. This gives a competitive advantage for Islamic banks compared to conventional banks because of pressures related to the management of risk taking and investment decisions will be slightly relaxed. Therefore, the managerial costs are relatively more manageable than the interest cost.

Third, mergers and acquisitions. Based on the experience of financial institutions and non-financial, this strategy is the most common strategy recommended. The merger will have a positive impact on economies of scale, the ability to compete and synergy Islamic banks. But there are few records that need to be considered, namely the merger of two weak banks that sharia will only result in an Islamic bank is not strong enough. Differences nature (source and use of funds, cost structure) between Islamic banks and conventional banks also have to be really considered if applied to two different types of banks.

Striking out
This strategy can be used by Islamic banks to take initiatives to maximize opportunities and minimize threats. First, market expansion. The global financial crisis will provide opportunities sharia bank is open enough to enter this market for less untouched. This market provides new customers from sectors such as SME financing, empowerment of women, and the funding needs for the local government budget. This will provide a golden opportunity for Islamic banks to win new sectors. Islamic banks can expand and diversify its financing activities through the establishment of funding a new branch offices or affiliated with a bank in that market segment has not been touched by this.

Second, Diversification Strategy. Islamic banks can issue new products or innovations to existing products, with the approval of Shariah Supervisory Board. This can be done simultaneously with the introduction of a new market segment. This strategy involves the movement of Islamic banks to the market by offering new products. Islamic banks can be penetrated the market by bringing new products to the financial industry, such as the establishment of and investment in Islamic insurance, Islamic mutual funds and other Islamic financial institutions. In addition, Islamic banks may be diversifying its investments outside the financial sector through direct investment into the real sector such as manufacturing plants, hospitals, and other industrial companies.

Third, Dynamic Leadership. The crisis also forced the bank's sharia automatically change the target depth and structural. Therefore, the leadership of Islamic banks are required to take actions that are responsive, intelligent, and quite flexible. Unique character and leadership will be strong determinants of success or failure of implementation strategies that have been prepared. The top managers should be able to control the operational activities of Islamic banks are stable through the storm crisis. Managers of Islamic banks today challenged to be more willing to take strategic decisions as a form of response to urgent situations. The young managers also may be given the opportunity to escort the Islamic banks and try to do a variety of new and innovative breakthroughs.

The combination of business on the orientation is expected to create a national Islamic banking industry into compliance with the crisis phenomenon. An integrated manner is a major issue of these strategies. Cooperation among Islamic banks would have a significant role in reducing the ill effects of the global financial crisis. This strategy is also meant to build awareness to help one another in goodness (ta'awanu 'ala al-Birri) and strengthen brotherhood among Muslims (Ukhuwah Islamiyah). A comprehensive strategy to unify our Islamic banking industry in the vanguard.

Islamic Economics as a Counter of Conventional Economics

2009-11-04T19:06:00.002+07:00

Introduction
In accordance with historical facts, truth and positivistic sekularistik offered by conventional economics had generated a lot of discrepancies that cause humanitarian crises. science is recognized as a free value (value free) is berprentensi to perpetuate injustice created by the owners of capital.

Economic revival of Islamic science is an answer to the need for more economic science humanist. With load moral values of Islam (the Qur'an and Hadith), Islamic Economic science is believed to be able to provide welfare for mankind better. The mustadl'afin who had been marginalized by the conventional economics would lift the worth and dignity.

However, the development of Islamic Economic science is itself not yet balanced. On the one hand, although in some deviations in the practice Islamic Economic development institutions rapidly. While on the other hand, excavation Economic theories of Islam is less and making relatively slow progress. This situation is certainly a challenge and an opportunity for the existence of Islamic Economic science today and in the future perkembangnnya.

Driven by a kind of background above, this paper seeks to identify opportunities and challenges of Islamic Economics to do science as a counter to conventional economics. While providing a strategy to determine the next steps in the development of the science of Islamic Economics.

Some Opportunities and Challenges
One of the biggest challenges in the development of Islamic Economic science came from the Muslim community itself. The challenge is feeling "insecure" or insecurity in the face of the West in this case conventional economics. Muslim economists Kekurangpercayaan myself this must be removed by the mastery of language, culture, science and conventional economic theory. Having mastered this, the Muslims' sense of inferiority can be overcome and the development of Islamic economy will be more elegant appearance. It is precisely from here can be seen, that science aims to overthrow the Islamic economy and restore the superiority of Western self-confidence of Muslims.

Islamic Economics and conventional economics has a difference in the moment of birth and development history. Conventional economics paradigm of positivism and secularism emerged in the middle of the expansion of Western imperialism. Until the end of this science is now used as a tool of legitimacy for penjajajahan and covert oppression through what is often referred to as globalization. In contrast, the science of Islamic Economics reborn as a noble effort to liberate the Muslim nations from the cruelty of an oppressive economic colonization. Based on the comparison of age, no one if the development of the science of Islamic Economics is still too early and searched for their raw form. This is reasonable because it was the age of science a few centuries of Islam Economy younger than conventional economics.

Actually, conventional economics does not take a neutral position, but more dominated by a paradigm that reflects the structure of Western consciousness shaped by modern civilization. Meanwhile, the science of Islamic economy was closer to the neutral position because it did not go after power and wanted the sides of the generosity and equality.

Muslims who categorically accept conventional economics will experience a variety of abuses such as the economic distortions from realistic positions, deprived of its economic roots, and depends on other nation's economy. By using the science of Islamic Economics, the danger of fraud that can be removed. A relatively new science develops it will protect Muslims from isolation and put the economy into a more realistic position.

With value-free based or value free, turned out to reviewers in conventional economics have to keep distance from the object studied. This Brief is a requirement of objectivity and neutrality heralded by Western economists. But really this is only used to hide his lust exploitation of existing resources. In contrast to the Qur'anic values, economists can be more closely Muslims and pro terhadp object it studies. This makes the science of Islamic Economics cleaner, objective, and neutral.

It is true that Islamic economics save huge potential for human prosperity. But economists did not rule out more Muslims to see what was in him than what is in reality. This can be caused mererka slipped into the rhetoric or fanaticism and economics of conventional attack blindly. In these circumstances, the science of Islamic economy will be used to make "intellectual revenge". But awareness and originality can prevent Muslim economist from the danger of slippage into the above.

Closing
From the above, there are at least three things that can be done strategically in order to arrange the next steps for the development of the science of Islamic Economics in the future. First, the revitalization of the old tradition that includes the Qur'an and Hadith and Muslims thought the classical economists. Al-Quran and Hadith are the main source of reasonable doubt to the science of Islamic Economics. So, too, could not be denied that long before there was Adam Smith, Keynes, Friedman, and other Western economists, have many ideas of Islamic Economic science born of such classics scholar Abu Ubaid, Abu Yusuf, al-Ghazali. Ibn Khaldun, Ibn Taymiyya, and so on. This long tradition should not necessarily be left in the development of the science of Islamic Economics.

Second, Renewal and development of a long tradition. Old tradition mentioned earlier certainly have a different context by the fact that we experience today. Therefore, the necessary adjustments to be relevant to the conditions that surround us here and now. It certainly made the adjustment should be within the framework of Shari'ah maqasidus. Third, Penyikapan of conventional economics. This action is also intended to contribute to the development of the science of Islamic Economics. The attitude is not called a reactionary and did not oppose a progressive scientific thought in the West. This is intended to create the foundations of economic science in Islam is strong scientific perspective. Here must be able to distinguish between good and bad. Of course keep in mind the phrase "do not accept everything and do not reject it".

Prophetic spirit of Islamic Economics

2009-10-27T12:18:00.001+07:00

Positivism and Secularism, that was the root problems that led to the emergence of a new paradigm in the development of science today, one of which is the science of Islamic Economics. Positivism assumes that all reality is there are objects that can only be measured using a logic truth value of cause and effect (causality). Therefore, conventional economics, which stood on this philosophical foundation will consider himself free value (value free), so scientists have to keep a distance from the object observed. With this philosophy, then indirectly conventional economics has been transformed into a "guard dog" for the interests of the capitalists.

Secularism is an idea that seeks to separate religion from human life. Thus science was not spared from this secularization efforts. Source of truth is only a mere knowledge that ultimately control their own people, while the revelation of God is no longer used as a guide of life. This has resulted in the destruction of human life and cause a lot of inequality. This situation encouraged the Islamic intellectuals deconstruct rollicking "disability" in the conventional economy, to then proceed with trying to bid or a responsible solution through Islam. With the source of the religion which is believed to provide guidance and perfect life in accordance with the development of this era, then it is proper Islamic Economic science serves as an answer to the economic reality that has hegemony of capitalism.

Economic science definition of Islam by Muslim intellectuals agreed that the science of Islamic Economics is economics in accordance with Islamic sharia, and if so will arise the question what schools used, its interpretation belongs, and the like questions. The author will not discuss the issue, because the different economics science discussion of fiqh and it will not bear an intellectual answer. According to the authors, the science of Islamic Economics standing on the typical paradigm. Paradigm that includes the Qur'an and Sunnah and its derivatives causes combined with the rationality and empirical research continues to move dynamically from text to context or otherwise from the context to the text. Paradigm, of course, must be in the corridor maqashidus sharia.

Concerning the epistemological paradigm or the basis of Islamic Economics is clear and we do not need to doubt it anymore. But there are difficulties experienced when we tried to formulate a theory of Islamic Economics. This has often been criticized, that why if the paradigm with the economic assumptions that are different but still the same theory. This is certainly reasonable, not merely an apology, because the new science of Islamic Economics begun to pick up again the last few years, whereas conventional economics has been and continues to grow several centuries ago to the present. Obviously this can be a challenge and an opportunity for young intellectuals.

Interestingly, even Kuntowijoyo encouraging that Muslim scholars are not inferior (not inferior) to say unscientific, because the size of objective scientific positivism secular sciences has obviously failed. Of course we agree with the suggestion that because we are building a foundation of knowledge and even a better civilization in the midst of Western hegemony. After all, Western civilization itself is the representative of the of the heyday of the Islamic and Western scientists are also many who take the thinking of Muslim scholars such as Ibn Rushd, Al-Ghazalli, Ibn Sina, Abu Yusuf, Ibn Khaldun, Ibn Taymiyyah and others. Finally, the future of Islamic Economics, of course, depends on the struggle and hard work of Muslim intellectuals who never gave up.

Most important examples of the derivative paradigm of Islamic Economics is the science of economics of the system free of riba, or interest rate instruments are replaced by exploitative sharecropping system. We can illustrate in a simple way: When we borrow loans from banks, in accordance with the agreement, we must pay principal and interest on the loan when due. Interest is charged as a percentage ribawi is set at the beginning, not our business whether for profit or suffer losses. Unlike the profit-sharing system, which must be paid the principal plus a number of results, if our efforts make a profit and if we experience a loss of business, then the losses will be borne jointly in accordance with the percentage of time akad. Therefore called for the results and the loss (profit and loss sharing) where Shahibul Maal (lender) and mudarib (debtors) are both sharing the risk in accordance with the real conditions experienced.

Turning to the empirical region, Islamic Economics has a real contribution, ranging from the establishment of Islamic Economics courses at several universities as a project pencerdasan people, until the emergence of BMT, Islamic banks, Islamic insurance, mortgage sharia, Islamic mutual funds, Islamic bonds, the market Islamic capital as an effort to improve the economic standard of the people as well as a counter to capitalism. That way, we can see the prophetic spirit in the body or prophetic knowledge of Islamic Economics. Soon to humanization, human awareness about the dangers of hegemony of conventional economics that gave birth to various forms of social pathology; to liberation - to offer the science of Islamic Economics as an effort to transform people into transcendence - present keilahiahan values, as the spirit of reality with text integralisasi (revelation). This task is one attempt to make the movement of social transformation and process requiring a long time. Muslims are supposed to give an appreciation of this noble effort. Efforts to shift the ideological consciousness of the people toward the science of consciousness.

Methodology of Islamic Economics

2009-10-24T09:15:00.001+07:00

Definition and Objectives
There are various definitions of Islamic Economics, according to economists and Muslim intellectuals. Two of the various terms are: Islamic Economics is a social science which studies the economic problems of the people who have the Islamic values (Mannan, 1997, p. 19). Islamic Economics is the branch of science that helps to realize human welfare through the allocation and distribution of resources which are scarce in accordance with maqashid (Chapra, 2000, p. 125). However, in essence can be perceived that the science of Islamic Economics is the study of human efforts in allocating resources to meet the needs of life in ways consistent with Islamic teachings.

Thus, Islamic Economics has a different task with conventional economics. Duties in addition to studying the reality of the behavior of economic agents, both domestic producers, domestic consumers, and governments, also must formulate the concept of ideal behavior according to Islamic teachings should be made by economic agents, as well as its effects are possible for the economy. Concretely, this science in addition to explaining the variables involved, which may cause a discrepancy between the real behavior with the ideal behavior also served recommend appropriate strategies to guide the behavior of economic agents to the ideal behavior can be realized (Chapra, 2000, pp 127-128 ).

Philosophy of Science
Ontology deals with the nature of what is studied, or in other words, ontology is the science of being qua being. Methodology of science can not be separated from the human perspective view of the world (worldview), among others, a view of where the origin of the universe, what meaning and purpose of human life, such as what rights and responsibilities of individuals and communities against one another (Chapra , 2001, p. 12).

Epistemology is about how the body of knowledge developed. In other words, discuss the scope and limits of science. The question that must be answered: Where the source of knowledge? What is the nature of science? How to verify the truth?. Truth revelation dogmatic and absolute, so the role of revelation in the search for truth is very important. However, we are required to place the truth of rational and empirical facts within the framework of Islam as a whole. In fact, Islam regards the position of reasonable importance, to the point that God's wrath against those who do not want to use reason (10:100). There are two main approaches used to develop the science of Islamic Economics deductive and inductive. Deductive approach begins with extracting the essence of Islamic teachings into elements of Islamic economic theory. Inductive approach, in contrast, begins by describing the real behavior of economic agents and the interactions between them in the economy.

Verificationism is a view which says that an idea can be said right when he discovered evidence that could support the idea. Falsificationism is a view which says that an idea can be said right when he did not find evidence that could refute the idea. Falsificationism versus verificationism debate so far is still going on among Western economists. Economic experts discuss Islam is not a lot of this debate because they are only at the level of empiricism. Meanwhile, epistemology in Islamic economics are even more extensive, including concepts or ideas that are non-empirical (eg, about God, afterlife, etc.). Masudul Alam Choudhury (1998), explained that Islamic economic approach to using the methodology shuratic individual process is replaced by a consensus of experts and market participants in creating a balance of economic and market behavior. Individualism which is the basic idea of conventional economics can no longer survive, because it ignores the right of distribution, so that created a gulf between the rich and the poor.

A science is said to be positive when discussing something at the level of what it is (what is), and normative when discussing something at the level of what should be (ought to). In accordance with his duties, Islamic economics is not limited solely as a positive science or normative nature. Restricted Islamic economics as a purely positive science or normative is unnecessary and unproductive. Any attempt to limit the positive aspects and normative in the end would be bad, in terms of causing birth and growth of secularism in the science of Islamic Economics (Mannan, 1997, p. 9-13).

Axiology discuss the purpose of organized science, or in other words, to what science has been developed that will be used. The purpose of Islamic economics is to achieve Falah, or the happiness of the world hereafter. For the life of the world, Falah contains three terms: survival, freedom from poverty, and strength and honor. For the life hereafter, Falah contains three terms: the eternal survival, welfare immortal, eternal glory, and knowledge that is free from all ignorance.

Position and Development
Some authors express different views about the relationship of Islamic economics and conventional economics. Some places of Islamic economics is de novo, as part of Islamic science as a whole. Some places of Islamic economics at par with conventional economics, as part of the overall economics. Although related, but not Islamic Economics muamalah fiqh. Muamalah fiqh is knowledge of Islamic rules that are practical in the economic field (civil) and the arguments associated with these rules. Islamic economics has three functions relationship with fiqh muamalah: [1] a different function with fiqh muamalah, [2] the same function with fiqh muamalah, [3] Function that supports muamalah fiqh.

Knowledge of the history of the Muslim economy is very useful for the development of Islamic economics. However, what has been done by predecessors Muslims should not be interpreted as an ideal guide for an Islamic economy (except for what is epitomized in the Prophet Prophethood). Many Muslim thinkers have valuable contributions that directly or indirectly affect the development of modern economics. This, again expressed need in order to raise awareness and pride of the Islamic civilization Muslims will. However, these contributions must be examined critically and objectively, and should not be accepted for granted just because it is done by a Muslim.

Introduction to Islamic Micro Economics

2009-10-22T17:07:00.001+07:00

Micro Economics is the application of economics in individual behavior as consumers, producers and as workers, as well as the implications of government policy to influence the behavior. While Macro Economics is the science of economics which studies the working mechanism of the economy as a whole (aggregate).

One of the drawbacks of conventional economics is the absence of a clear relationship between the objectives of macroeconomic and microeconomic. Islamic Economics is also trying to overcome this weakness by building the foundation for macroeconomic micro. However, these efforts have not completely fulfilled, the Islamic microeconomics is still groping in the new surface and discuss some key concepts, such as about self-interest, social interests, individual ownership, individual preferences, market mechanisms, competition, profit, utility and rationality. These concepts in a language similar to that of conventional economic dikemukan tends to give the impression that there is no difference, but in fact the foundation philosophy of the Islamic world view has given meaning and a different significance.

On the theoretical ground, there are some subjects of microeconomics that has become a study from the perspective of Islamic economics, among others:
1. Rationality Assumptions in Islamic Economics
- Expansion of the concept of rationality through transitivity requirements and the influence infak (alms) to the utility.
- Expanding the spectrum of utility by the Islamic values of halal and haram
- Loosening of the requirements of continuity, such as illicit goods demand emergency.
- Expanding the time horizon (as opposed to the concept of time value of money)

2. Demand Theory Islami
- Increased utility between lawful and unlawful goods.
- Corner Solution for halal-haram choice.
- Request for illicit goods in an emergency (not optimal)

3. Islamic Consumption Theory
- Consumption in Islamic Interporal
- Usury inverse relationship with the charity
- Inverse relationship with the savings ratio of final consumption
- Investment Savings

4. Islamic Production Theory
- Comparison of the effects of interest and for the results of the cost of production, income, and production efficiency.

5. Theory Offer Islami
- Comparison of the influence of the sales tax and commercial due to producer surplus.
- Internalisasi External Costs.
- Application Fee Compensation, the size limit, or recycling.

6. Islamic Market Mechanism
- The market mechanism according to Abu Yusuf, al-Ghazaly, Ibn Taymiyyah, Ibn Khaldun.
- The market mechanism Islami and Islami price intervention.
- Intervention price fair and unjust (version by Ibn Taymiyyah).

7. Market distortions Islamic perspective
- Distortion Demand and supply (Ba'i Najasy, Ikhtikar)
- Tadlis / fraud and Taghrir / uncertainty (quantity, quality, price, time)

8. Efficiency Allocation and Income Distribution
- Infak and utility maximization
- Superiority of the Islamic economic system

Discourse of microeconomics is still fundamentally flawed because it is often adopted from the model used in conventional economics that is not always consistent with the assumption paradigmatiknya. Moreover, empirical testing of these models is not possible now because of the lack of an economy that is truly Islamic or approach, and also the unavailability of data required for the test. Very few studies that show how the Muslim economic activity operates in the ancient times. In fact, empirical studies of modern Muslim societies in Muslim countries and non-Muslims from an Islamic perspective is also very rare.

However, this does not mean reducing the interest and enthusiasm we develop the science of Islamic Economics. Framework which has terintis hypothesis can serve as a useful purpose in providing a theoretical structure for the science of Islamic Economics and identify the strengths and weaknesses of an Islamic economy, when later it was already practiced in some countries. Only by developing appropriate microeconomic paradigm that will strengthen Islam is the unique identity of Islamic Economics. Therefore, "Construction of microeconomic theory under Islamic restrictions is the most challenging task in front of the science of Islamic Economics".

Criticism to Time Value of Money and the Islamic Economic Solutions

2009-10-17T09:49:00.002+07:00

Counter-concept of Time Value of Money
Islamic economic principles which have come from both the legal sources of the Koran, Hadith and Muslim scholars thought. These fundamental values underlying the Muslim economists view the birth of thought, including reviewing the functions of money in economic life. In their opinion, the functions of money there are only two, namely: 1. as a measure of prices, and 2. means of payment. The function of money as a store of value is not recognized because it was considered something close to usury. The function of money is prohibited from actually gave birth to the theory that time value of money. Corollary, Muslim economists do not agree with this concept.

As we all know, conventional financial theory based arguments justifying the existence of interest (interest) through the concept of time value of money (time value of money). In the Islamic economy, the validity of this concept has been disproved his argument with the prohibition of usury in Islam. Instead, the business activities of Islamic Economics always stressed to the mechanism for the system (profit and loss sharing). The concept of partnership is considered more appropriate and in accordance with the principles of justice are realistic.

In conventional economics, the definition often used to describe the sense time value of money is "A dollar today is worth more than a dollar in the future because a dollar today can be Invested to get a return" This understanding is certainly not accurate because each investment is always have the possibility to obtain positive results, negative, or no return. That is why in financial theory, always known risk-return relationship (in the direction of the relationship between risk and outcome). The higher the level of risk faced / borne, the greater the results you want / get, and vice versa.
According to the opinion of conventional economists, there are two things that became the foundation of the concept of time value of money, namely:

1. Presence of Inflation
Can dimisalkan: inlasi level say 10% per year. One can buy 10 bananas fried today with pay 10,000 when he bought it, but next year, with the same amount of money he only 10,000 can buy fried bananas 9. Therefore, he will ask for compensation for the loss of purchasing power of money due to inflation.

2. Preference present consumption to future consumption
Assumes zero inflation rate, so with 10,000 person can still buy 10 bananas fried today or next year. For most people, eating 10 fried bananas now more unpopular than consuming fried banana 10 next year. With this reason, although the zero inflation rate, preferably 10,000 and consumed today. Therefore, to postpone consumption, it requires compensation.

The first argument be refuted because it is incomplete condition. In every economy there is always a state of inflation and deflation. It should state the reason for the deflation becomes a negative time value of money. Say deflation rate 10% per year. Fried banana 10 days worth 10,000, but when he bought it with money next year as it can be fried plantain 11. Therefore, it would give compensation for the rising purchasing power of money due to deflation. But in reality this does not apply, only one state are accommodated by the time value of money.

Conventional Economics is also incorporated elements of uncertainty and call return as the discount rate of compensation which is more general than the term interest rate. The uncertainty of return is converted to a premium for certainty over uncertainty. Investment course there is always a possibility of getting positive returns, negative return, and no return. This is what caused uncertainty (uncertainty), but the probability of negative returns and no return is exchanged for something definite, premium for uncertainty.

This situation is rejected in the Islamic Economy, a condition al-ghunmu bi la ghurmi (Gaining responsible for return without any risk) and al-kharaj bi la dhaman (without income Gaining responsible for any expense). Actually, this situation is also rejected by the financial theory that explains the direction of the relationship between risk and return.

The same quantity of time for everybody, which is 24 hours a day, 7 days a week. But the value of time will vary from one person to than others. For example for a laborer working hour is worth 25.000, for financial managers to produce Rp.250.000, whereas for Islamic Economics expert Rp.2.500.000 appreciated.

So the factors that determine the value of time is how someone used the time. The more effective (efficiency) and efficient (right way), the higher the value of time. Effective and efficient will be profitable in the world for those who carry it out. Therefore, whoever the perpetrator, the benefit sunnatullah action in the world.

Moreover, in Islam you are looking for profits not only benefit the world but also in the hereafter. Therefore the use of time not only to effective and efficient, but he also must be based on the faith. Faith is what will bring benefits in the afterlife. Conversely, if the faith can not be profitable in the world, means that there are factors that have not obliged.

Risk of Economic and Business Fluctuations
State of an economy would fluctuate from one period to another period. A business activity would also be affected by the macroeconomic situation, which inevitably have to take into account the risk factor in business. Referring to the time value of money, conventional economics use the scale to measure the interest rate and inflation uncertainty factor. This is to mensiasati to a smaller degree of risk and obtain the desired level of profit.

Uncertainty in conventional economic thinking was based on two things. First, the uncertainty caused by several investment options with the level of risk and benefits of different expectations. Second, the uncertainty as a result of economic conditions uncertain and unpredictable. The situation is all this uncertainty is usually addressed by monetary policy through interest as the main instrument for controlling the money supply / tackle inflation.

Instrument system in anticipation of interest rate uncertainty in economic studies of Islam itself does not want its existence. However, a business activity would be influenced by macroeconomic factors of inflation. This is what makes the reasons given in addition to the value of money paid in credit by taking into account inflation. This additional money allowed for the value of the fixed and does not include usury. The amount of additive is not allowed to be determined at the start / predictable for long-term but should be in accordance with the reality that has happened.

Modern business finances are often filled with elements of speculation (gharar) and interest (usury). On the contrary, Islam was strictly prohibits these elements and using real analysis to calculate the level of benefits and risks of each business. Thus, possible benefits and disadvantages of different for the same loan amount. Islamic Economic Studies of the theory itself is still interest in micro-economic approach has not so deep and comprehensive in the areas of macroeconomic policy and monetary policy.

Sharing System as a Solution
In response to a disagreement with the theory of interest (time value of money), Economics of Islam offers a system of cooperation with the mechanism for the results (profit and loss sharing). A fairer system departs from the assumption that every effort always is the risk of both profit and loss so that both parties must be prepared to share and accept whatever happens is not just one side only of profit or loss.

In Islamic Financial Institutions, principles and mechanisms for the results applied to mudaraba and musharaka product. But unfortunately the main product of this proportion is still smaller than other products. This deficiency occurs because of socialization and understanding of public institutions has not run optimally. Public education is needed so that more information for the same perception of the institution and the community.

The idea and concept for a just outcome will be successful if executed with a consistent and professional. However, difficult to apply in the real world, because the face the uncertainty and inflation. These obstacles can be overcome with modifications as long as still within the framework of sharia. Through the Islamic system is more equitable, Islamic Financial Institutions still have a chance for economic pemberdayakan primarily on small business.

Urgency Zakat Management By State

2009-10-17T09:46:00.001+07:00

In Islam, charity is a very fundamental service and closely related to the divine aspects of social and economic. According to the provisions of Islam, zakat levied on every living human soul (zakat Al-Fitr), and the treasures of the qualified (zakat maal). Zakat-charity that is collected and then distributed to the needy, poor, Amil Zakat, reverts, serf, gharimin, fighters Sabilillah fi, and Ibn sabil.

Potential Zakat as an instrument of poverty alleviation has been getting serious attention in the literature of Islamic Economics. But there is still little scope to examine the role of the state in the management of zakat. This issue just developed in recent years.

According to Usher, there are four motives that underlie the rich to share portions of their income or wealth with the poor, namely: altruism, self-protection, prevent crime, and maintain a liberal society. These motifs in economics is often categorized as an activity, including consumption of goods which have characteristics of public goods.

In Islam, altruism is the main reason for doing charity, which is a form of obedience to the commandment of God. This is done by paying zakat is given to the poor. A true Muslim will get satisfaction when able to improve the welfare of the poor. This achievement mainly driven by the spirit of brotherhood and humanity.

Mannan (1997), called zakat as how ¬-religious economic activity with the five essential elements. First, ¬ keper element of religious belief, in the sense that the war ¬ seo Muslims pay Zakat believed his actions as a manifestation of faith and obedience. Second, elements of equity and justice, which refers ¬ charity's purpose as a medium of redistribution of wealth. Third, the element of maturity and productivity, which emphasizes the time of payment until after one year, the normal size for a human to get income gusahakan ¬. Fourth, the element of freedom and reason, in the sense that the ¬-due obligations apply only to healthy human body and mind, who feels responsible to pay for the sake of themselves and the people. Fifth, the elements of ethics and fairness, which implies that the charity is reasonably drawn according to ability, without leaving a very difficult burden of paying the zakat.

Prophet said that poverty could plunge men into infidelity. In this modern context, infidelity as the impact of poverty can be extended means include crime, child abuse, pornography, prostitution, etc.. Thus becomes very reasonable for the state to intervene in the management of zakat.

Nisab specifications and the imposition of zakat object should be one of the process of poverty alleviation programs in Islam. This program will contribute significantly if operated with proper administrative mechanism. Well prove the existence of a strong gradual mechanism than as an instant political interests alone.

The argument about the importance of the state's role in managing the charity must include the economic rationale is equipped with non-economic reasons. Right now the foundation needed to strengthen the micro-economic approach to religion (fiqh) in terms of confidence that the management of state-due conducted in a responsible manner.

Some empirical evidence shows that the small potential criticism of zakat funds is not right. Even the data in the 1990s showed that the transfer of income to the poor in the U.S. state equivalent to 2.5% of their national income. Therefore, the necessary mapping of the relationship more transparent mechanism between the political system, economics, and finance.

Zakat has very important meaning in the teachings of Islam that every Muslim must be fulfilled. Government is obliged to encourage and facilitate the Muslims in such a way that the religious orders, including charity, can be implemented.

Development of Islamic Banking Accounting

2009-10-17T09:44:00.001+07:00

General accounting function as a tool to present information that is financial, especially in relation to socio-economic activities within a community of people who apply tertentu.Sebagaimana now that the rules or standards used to compile financial reports - known as Generally Accepted Accounting Principles -- can not be separated from the community point of view (in which economic activity was organized) to the values of social life. This is evident from the not easy to harmonize international accounting standards, although there are always efforts towards cultivated by the International Accounting Standards, which we PSAK Part also using the IAS as a reference or references.

The implications of these above causes a strong effort from Muslim scholars, especially in the economic field and accounting for formulating economic and accounting system in accordance with the guidelines of Islamic Shariah.

Personal duty of every Muslim to hold the property records as well as debt and obligations actually contained in the Qur'an in various dimensions, it reflects the orderly administration which is a very important part in the life of a Muslim to allow a Muslim can easily fulfill their obligations like charity, debt settlement receivables, etc. estate calculations.

Therefore, standardization of financial accounting based on Islamic Sharia becomes an obsession that realistic for the community of scholars and business practitioners around the world although Muslims Muslims are not in a position of power and influence is significant in social life and political economy to the global size of even the recent It is facing a very severe test.

Development of a desire to realize the Islamic identity of the new business successfully realized in the form of appearance-based banking on Islamic guidance, while other business entities such as manufacturing, commerce and other services not specifically stated as a business entity Islam with all its consequences.

The emergence of Islamic banking has been rapidly pushing the need to standardize operational systems that will terrefleksi in the accounting system used As with the base in the reporting system to meet the different interest groups who need the information tsb. to measure the accountability and effectiveness of the management of economic resources which they will be mandated by the entity.

Tsb needs facilitated by the existence of accounting and auditing organization for Islamic financial institutions (Accounting and Auditing Organization for Islamic Financial Institution) is headquartered in Manama, Bahrain, and encompassing nearly all Islamic financial institutions, professional accounting organizations and central banks of countries that allow operation tsb islam.Lembaga financial institutions. has published accounting standards for Islamic financial institutions / banks which certainly is expected to be adopted by professional accounting organizations and the central bank organizers countries Islamic banks.

Approach in tsb.menggunakan accounting standard-setting International Accounting Standards as the primary basis of the standard needs assessment in accordance with Islamic banking operations in a practical way so that IAS will accept as long as not contrary to the sharia and automatically rejected if it is not in line with Islamic guidance with the consequences of creating a standard only in accordance with sharia.

The difference is quite fundamental philosophical between conventional banks with Islamic banking standards have implications for financial statement presentation given Sharia bank sharia bank functions include the functions of investment managers, investors, service providers and financial traffic and charity managers of social funds.

Another thing that is not less important is the concept used for the results so that the Islamic banks do not know the cost of funds or cost of funds as a deduction on interest income to produce a spread / margin before operating expenses reduced by. That is why the Islamic banks do not recognize the negative spread is due to the results to investors or depositors actually based the ratio of pre-agreed outcome of the investment management and banking business solely on the funds entrusted by the owners or depositors' funds in banks.

The relationship between the customer funds with the bank owner is the investor relations with fund managers so that they will be investing in Islamic banks accounting standards should be recorded as investment accounts (investment accounts) and not as an obligation or liabilities. While funds are deposited not only on the basis of the covenant, but on the basis mudaraba wadiah covenant will be recorded as a liability or liabilities, although the funds the bank they will have the right to invest and get results for separate bank profits without any obligation to give the results. However, banks should provide rewards for owners wadiah funds in accordance with bank policy prevalent even picked the right bank fund management burden tsb (administrative burden).

On the other hand the relationship with the recipient's bank is funding and business partnerships or relationships because of the debt receivable purchase and sale transactions (murabaha) which have not been resolved or paid respite.

In the Islamic view is not strictly relevant to separate the financial institutions and non-bank banks even though non-financial institution that is the thing that could happen if an Islamic financial institutions conducting activities in real estate investing such as developers or developers like or do trading in cash and / or good leasing, which ended with the transfer of rights or not.

Broadly speaking, the financial report display on the side of Islamic banks is characterized by the existence of assets account financing (financing) either in the form of bills of transactions or the shape of the bank's participation in the position of the covenant or musharaka mudaraba also of other productive assets in the form of leased assets or even inventory can be significant depending on the activities of Islamic banks tsb. On the liabilities side wadiah characterized the funds in the form of current account and in some specific countries also include savings accounts and unrestricted investment accounts of a deposit account with the akad mudaraba so not classified as liabilities in the sense of mandatory return under any circumstances.

Definition of unrestricted investment accounts are free to show the bank can make an investment as long as not contrary to the sharia was on the other side there is a restricted investment account that according to Sharia bank accounting standards are not recorded as part of the liabilities, but are recorded as off balance sheets with a special report disclosure form reports change position limited investment funds (compared with funds managed by BI and SKAPI version) are forms of investment are also not recorded as productive assets. In this case the bank and earn a fee or for the results.

The contents of the report Profit - Loss also reflects the function of the Islamic banks in the form of sales revenue (from murabaha) for the results (of mudaraba and musharaka) rental income (from ijarah / leasing) and income other services as long as not contrary to the sharia and if forced banks receive income such as non-Islamic banking services from conventional deposits will be issued and distributed to the social interests which must be didisclose thing. On the load side of the load will not be found even for the fund should not be classified as an expense in the reporting of Islamic banks, but must be clearly disclose the basis for the use of other operational costs are no different from conventional banks.

Basically, Islamic banks are also embracing the concept of accruals, especially for the load was for revenue to be done carefully depending on the local Islamic council opinion whether to use cash or accrual basis. Use of cash basis refers to the precautionary principle is based on Islamic teachings that say that what will happen, so visiting is not ghoib should recognize revenue (read: luck) before you actually shaped the flow of real cash into the bank (remember the principle that BI is used before the SKAPI the cash basis). In Islamic banking accounting standards such as for billing murabaha benefits are recognized when the covenant was signed when the loan is not through a financial reporting period is when the credit through a financial reporting period either in lumpsum or installment is revenue recognition should be proportionate to the accrual unless sharia supervisory board to determine when cash or installment / payment is received.

From the description above shows that although not all things can be revealed but at least gives a picture that needs a new paradigm for designing applications dalm accounting for Islamic banks in accordance with existing standards. Although the academic discussion is still ongoing in order to deepen and enrich the discourse of ideas and business economic system of Islam is consistent with the effect of a law which is a refinement of banking laws earlier bank was very encouraging because it can adopt BI tsb standards. together with IAI, so there are standard guidelines for the practice of Islamic banking especially when it then began to appear a new Islamic bank in the form of a bank or a branch of Islamic sharia from conventional banks.

Urgency Standardization of Islamic Banking Accounting

2009-10-17T09:37:00.002+07:00

One of the fundamental problems faced by Islamic banks is currently standardizing accounting and auditing system, which aims to create financial transparency and improve the quality of financial services to the community. We know that among the keys to the success of Islamic banking is largely determined by the level of public confidence in the bank's financial strength is concerned, and confidence in the bank's operational compliance with Islamic sharia system. This belief is particularly trust given by the depositors and investors, which were both major stakeholders including the banking system in the world.

One of the main sources to achieve public confidence is a high level of information provided to the public, which the Islamic bank should be able to convince the public that he has the ability and capacity in achieving financial goals and objectives in accordance with Islamic Shari'a. Therefore, build a system of accounting and auditing standards is a necessity and has become the main requirement that must be met. Without it, it is impossible Islamic banks can increase its competitiveness with conventional banks. Even if we look at the Qur'an, then the need for recording transactions in an orderly accounting system is a very important thing. This is as stated in Sura Al-Baqarah: 282, where Allah SWT says: ¡° O ye who believe, if you do not bermuamalah in cash for a specified time, you should write it. And let a writer of you write properly. And do not be reluctant writer to write as Allah has taught him, then let him write, and let people who owe it mengimlakkan (what's going to write it), and let him fear Allah his Lord, and let it reduce its debt at all rather than ...¡± .

Of course, if we associate that verse with contemporary banking context, it has a systematic accounting systems, transparent, and accountable, is an inseparable part of Islamic teachings. But we need to consider, especially at the operational level, the accounting system on Islamic banking has its own characteristics different from conventional banking accounting system, although in certain aspects, both have similarities. Among the most basic difference is the prohibition of usury / interest in the practice of Islamic banking and Islamic banking product differentiation is more varied and diverse when compared with the conventional banking system. Thus the concept and basic structure of investment and finance in Islamic banking system should become the main preamble in building a credible accounting system.

Basic mechanisms of Islamic Bank

As a financial intermediary institutions, the basic mechanism of sharia banks are accepting deposits from the owners of capital (depositors) at the side of his liability (obligation) to then offer financing to investors on the asset side, with a pattern or an appropriate financing scheme with the Islamic Shari'a. On the liabilities side, there are two main categories, namely interest-free current and savings accounts and investment accounts based on the principle of PLS (Profit and Loss Sharing) between the bank by the depositor. While the asset side, which is including all forms of financing patterns and usury-free Islamic standards, such as mudarabah, musharaka, istisna, greetings, and so on.

To achieve this goal is a standard accounting, the basic structure of our investment activities can be broken down into two parts, the first, unrestricted investment accounts (investment accounts without limitations) and the second, which is restricted investment accounts (investment accounts with limitations). The purpose of the first point is the Islamic banks have the freedom to invest the funds received in various investment activities without being limited by certain provisions, including the use together with the bank owners of capital. While the purpose of the second point is the bank only acts as a manager who does not have the authority to mix funding received by the owners of capital the bank without the approval of investors. Besides both cases, Islamic banks must also reflect its function as a charity fund managers, and charitable funds including funds qard hasan. Meanwhile, the aspect of recognition (recognition), measurement (measurement), and recording (recording) each transaction in the accounting system of Islamic banks have in common with the processes that occur in conventional systems.

Objectives of Financial Accounting
To maintain consistency, both internal and external banks, and to ensure compliance with Islamic law, then we need to define the purpose of standardization of financial accounting in Islamic banking. This is also an attempt to provide a general guide in determining a number of choices based on alternatives available. The purpose of this financial accounting system is the first, to determine the rights and obligations of all parties concerned, such as the depositor and the bank owners. Then the second is to ensure the security and safety of Islamic bank assets, including bank guarantees related rights and rights of other stakeholders. Third, ensuring improved management and the productive capability of Islamic banks to be always in harmony with the objectives and policies that have been established. And the fourth is to provide useful financial reports for the users ¡ª such as shareholders, owners of accounts, fiscal authorities, etc. ¡ª to enable them to make legitimate decisions in conducting negotiations and transactions with the Islamic banks.

In order for a financial report is really justifiable, then the quality of the information provided must meet several criteria, among others: (i) the principle of benefit, especially for the wearer; (ii) the relevance of financial reports with a view to reporting; (iii) level of trust; (iv) komparabilitas, meaning can be compared based on a specific time period; (v) consistency, which means that the method is used consistently and not easily changed; and (vi) easy to understand, and no multi-interpretation. In addition to these six, the information provided should also include some aspects. First, the information available should be able to describe accomplish existing goals and consistency with the Shari'a. If banks do deal in prohibited transactions, such as associated with the system of usury, it must be explained in detail about the separation of recording the transaction. And second, that information should be able to help outsiders to evaluate the bank's capital adequacy ratio, investment risk, liquidity, and various other banking financial aspects. This is very important to do, so that the credibility of the banks accountable.

Challenges ahead
At present, various efforts have been made to establish auditing and accounting systems that are standard for Islamic banks. Among them are the efforts made by AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), based in Bahrain. Since its founding in 1991, this institution has many significant contributions. But of course, still many things to be done by experts and practitioners of Islamic banking. This is due to the greater challenges, including how to compete in a healthy and productive with conventional banks.

Among the toughest challenges that the future is how to create a standard accounting methodology to various types of patterns or Islamic banking financing schemes that can be accepted internationally. Then also is the challenge that regulation in general has not shown more allegiance to the Islamic banking sector. But the author believes, if all parties have been consistent in upholding the concept of Islamic banking as a whole, then gradually Islamic banking have hope for the future may replace the conventional banking system. Hopefully. White six.

Islamic Credit Card, Between Allowed And Forbidden

2009-10-17T09:26:00.004+07:00

Islam does not recognize the term credit card. More precisely the debit card instead. But the community is a popular credit cards. How does Islam look at him? "Basically in Islam is not known whose name the credit card, the more precise is the debit card." That the contents of expression Assoc. Prof. Dr. Mohd. David Burn in one national seminar in Kuala Lumpur in 2002. Daud Bakar, who is also a member of the National Shariah Council of Malaysia is one of those who do not agree with the given label credit card Shari'ah.

In Malaysia, Islamic Credit Card was first issued by the Bank Islam Malaysia Berhad in 2002. As the first Shariah bank in Malaysia, the bank is known as a pretty innovative banks in offering Shariah products. In the case of Islamic credit card is the basic one used in the transaction al innah bay. Though this scheme is forbidden in Islam and similar to muta 'marriage according to Imam Shafi'i.

However, there are still markets that use this credit card because it is based on their needs in the shop. Thus a cursory look of Islamic law becomes more flexible by the demand in the community. Is it should be the development of products with the label Shari'ah wants only to follow it regardless of the market or maintain law expressly Islamic fiqh?

Credit Card vs. Debit Card
What is the difference between credit card and debit card? Basically, credit card, the owner does not need to have the money in cash or in bank deposits. According to the Financial Consumer Agency Canada (FCAC), a credit card is a plastic payment card that allows the holder to obtain goods and services on credit terms and without the requirement to pay cash.

So just by giving the debt to the people who do not have the money, then the debt must be repaid on the term period. Another case with, a debit card where the owner should have money in the bank deposits related. So when buying and selling transactions conducted, debit card used to transfer a sum of money incurred in the purchase and sale. So the concept of the difference between debit cards and credit cards became clear. Debit cards require a specific deposit transactions can be run well, but it is certain types of any credit card called his name.

In the Shari'ah or credit card in Indonesia known as Shariah card use fee charged on loans for a period. And any extra on certain loans usury name. Riba course is forbidden in Islam, whether it changed with aqad for this service can be called instead of usury? Kehatian there is need for concern in this regard.

But the borrowers are allowed to add the debt that was borrowed without any coercion from creditors (Hadith Muslim). Therefore there is a name that is qardhul hassan benevolent loan without any additional fee, while Dayn's loan or debt.

Hassan Qardhul itself is aqad cooperation in providing assistance to businesses money, it is different with that in general Dayn used other than for business purposes such as for the consumptive and aqad different, so the relationship between borrowers with people who lend money are creditors and debtors. The difference is quite thin but could have broad implications.

Therefore, in Islam rather than using transactions with better Dayn syarikah system or a more equitable partnership. Rosly (2001) equate the contract system with the same basic Dayn riba financing system for use in additional transaction fees.

Substance Over Form
Analyzing opinions Assoc. Prof. Dr. Mohd Daud Bakar is a doubt kesyari'ahan credit card analogy is based on the credit card the same as those for debt manganjurkan. Whereas in Islam, debt is one thing that is not recommended. This refers to the many traditions narrated by Bukhari, whose contents are people who have debts are always telling lies and always was never kept her word.

Therefore, the Prophet Muhammad himself always pray that he is always in a state of debt. Therefore in the Koran (surah Al-Baqarah: 280) mentioned that people who struggle to repay debt relief should be given in pay, this is to avoid the hadith mentioned above.

According to Beekun (1996), the debt is allowed in a very forced one, the added debt must be repaid as soon as possible. Whatever type of transaction aqad used in credit cards and the like either Shariah ijara qardh or> wadiah, the substance remains to advise people in debt. This is what underlies why credit cards may not be a disyari'ah.

Shariah credit card that does not use interest rate or mortgage payments permissibility does not mean permissible in Islamic perspective. This behavior can cause the wrong paradigm for primarily Muslims themselves. Permissibility of a fatwa should be a credit card not only rests on halalnya but also refers to his kindness to the Muslims.

The same thing also commented on by Aries Mufti (Republika, May 7, 2004) which argues that in Australia in the form of credit card debt household reach 201 trillion U.S. dollars and foreign debt U.S. $ 172 trillion. Meanwhile, according Ameridebt, in the United States itself is almost a national consumer debt has reached more than one trillion U.S. dollars.

Credit card debt has reached 400 billion U.S. dollars in this case. On the other hand, there is one study by the Consumer Federation of America in mid-December 1997 stated that the increase in credit card debt in that year doubled the rate of inflation itself. This is based on that there should be a minimum amount spent on goods compared with the savings rate so that the burden of interest rates from credit card smaller than a ditabungkan. Credit card so that spur people to continue to buy and consume goods that are not needed to avoid loss of credit card fee burden.

In Islam there is known as yudfa 'asyaddu ADH-dhararyn, the intention is that the transaction may be allowed initially banned on the grounds there was no other choice, and to take things less dangerous. For example, to buy the book at www.amazon.com, type of payment that can be used a credit card. Certainly the use of credit cards is allowed if there is no other book stores or payment options besides using a credit card. Another case with buying in supermarkets in Indonesia, which also provides debit card facility, in this case the use of debit cards should be prioritized.

Attitude should be like this or paradigm that is applied in everyday life for Muslims. So there is a scale of priorities in the implementation of activities of daily life according to Islam. For example in the use of credit cards and other Shari'a is not at the level of dignity dharuriyat (primary) as long as there are other types of financing that is more Islamic, this card is not required. So the credit card and other Shariah into the category of dignity hajjiyat (secondary) or even dignity tahsinat (complementary) can still be used if other financing types, such as debit cards.

Thus Shari'ah credit cards and other "permissible" if the facility is a debit card or cash payment no. So its use only for things that are emergency and temporary, rather than become a necessity, or until all the fatwa was issued.

Auction and Bidding Law

2009-10-17T08:56:00.001+07:00

Islamic Sharia rahmatan lil 'alamin gives freedom, flexibility and breadth of room for business activities of Muslims. Of course it was intended business activities in order to seek God's gift of a lawful provision, through various forms of mutually beneficial transactions prevailing in the society without violating or take the rights of others unlawfully. (QS.An-Nisa ': 29, Al -Mulk: 15)

Therefore, before deciding about the auction sharia law which is one form of muamalah, need to understand first of ihwalnya. Auction (auction) in terms of contemporary muamalah transaction known as a form of sale of public goods to the highest bidder. Auctions can be a supply of certain goods to bidders who originally opened the auction with a low price, then getting up until he is given to prospective buyers with the highest price, as Dutch-style auctions (Dutch Auctions) and called (auction up).

In addition, the auction can also be a supply of goods, which was originally opened the auction with a high price, then getting down to eventually be given to prospective buyers with the highest bid that the seller agreed upon by the auctioneer (auctioneer) as a power seller for the auction, and usually marked by tapping (called the auction off). This auction is also used in the practice of selling shares on the stock exchange, ie the seller can offer the desired price, but if no buyer, the seller can lower the price until there is agreement.

Market auction (auction market) itself is defined as an organized market, where prices continually adjust to supply and demand, and usually with a standard commodity, the number of sellers and buyers large enough and did not know each other. According to the prevailing conditions in those markets, conducting the auction may use certain terms such as the seller may reject the bid deemed too low at the lowest price limit use / reserve (reservation price) or cut price (upset price). The objective is to prevent the dirty tricks of the conspiracy auction (auction ring) and the plot bidder (bidder's ring) is a group of buyers in the auction are conspiring to offer a low price, and if successful then auctioned off among themselves. Supply dirty as it is called supply cincai (collusive bidding / collusive tendering). As in the case of goods confiscated in the case of bankruptcy or other, the lowest price restrictions is to prevent cheating the game between the owner and buyer of goods. (Friedman in the Dictionary of Business Terms, 1987, An-Nawawi, al-Majmoo ', XII/304).

While the tender offer also has a meaning that is an offer or proposal by pentender untu obtain approval (acceptance) of the means to pay lawful (legal tender), or services in order to pay off a debt or obligation to avoid punishment or confiscation if not paid in full. In a business contract, the tender is an offer made by suppliers (suppliers) or a contractor to supply / bought goods or services, through an open bidding process (open tender). In the process, the bidders can compete with lower prices the desired quality, or supply a closed (sealed bidding) are included in the bid envelope stamped and opened simultaneously at a given time to choose the best from the aspect of price and quality and the participants can lowering the price again.

Tender is also often used for the implementation of a project, by way of project owners to auction and the prospective participant / project bidding or competitive tender with the lowest prices and goods / services as appropriate. Usually frequent irregularities in the form of a tender offer cincai / collusion (collusive tendering) with a practice or way of bribes and other unhealthy to win the bidding / tender.

In principle, Islamic law allows sale and purchase of goods / services that are permitted by way of auction in jurisprudence called covenant Bai 'Muzayadah. (Juzzi Ibn Al-Qawanin Al-Fiqhiyah, 290, Majduddin Ibn Taymiyyah, Muntaqal Akhbar, V/101) Practices auction (muzayadah) in a simple form ever done by the Prophet Muhammad, when he was approached by a friend from the Ansar asked for alms to him . Then the Prophet asked: "Is there in your house an asset / goods?" Friends had said that he has a hils (rag) is used as blankets and mats and a qi'b (large wooden cup) used to drink water. Then he told her to take the second item. When he handed it to the Prophet, he took it and offered it: "Who is interested in buying these two things?" Then someone offered them a price of one dirham. So he began to raise its bid: "Who would want to add it again with a dirham?" He said to another bidder: "I bought it for two dirhams" Then the Prophet gave him the item and give two dirhams auction results last Ansari told friends. (Narrated Abu Dawud, al-Nisaa'i and Ibn Majah) Ibn Qudama, Ibn Abd al-Bar and others reported consensus' (agreement) bolehnya scholars about buying and selling in an auction they have become the prevailing custom in the Muslim market in the past. As Umar bin Khathab also been done, so too because people need the auction practices as one way of buying and selling. (Al-Mughni, VI/307, Ibn Hazm, Al-Muhalla, IX/468) This opinion is shared throughout Hanafi, Maliki, Shafi'i and Hanbali and Dzahiri.

However, there are few scholars who object to such an-Nakha'i, and Al-Auza'i. (Ibn Rushd, Bidayatul Mujtahid, II/165, Ash-Syaukani, Nailul Authar, V/191) Sell-buy in the auction does not include the practice of usury, though he called bai 'muzayadah, from the word ziyadah additional meaningful as the meaning of usury. However, additional understanding here is different. In bai 'muzayadah the bidding price increases are more in the covenant sale by auction if the seller or buyer will be done by increasing the reduction in bids. While the practice of usury, which meant additional illegitimate is additional agreed in advance in the akad borrowing money or other goods ribawi. The practice of offering goods / services in the bidding of others - as prohibited by the Prophet. with his saying: "Do not offer something that other people have offered and no other person's hand in marriage proposal" (Narrated by Bukhari and Muslim) - can not be categorized in the sale of this auction, as proposed by the Az-Zaila'i in Tabyin Al-Haqaiq (IV/67).

More specifically, the practice of offering something that other people have offered can be classified into three categories: First, if there is an explicit statement of approval from the seller the price of one bidder, it is not allowed for others to bid without the permission of the approved bidders bid.

Second, if there is no indication of approval or rejection of the offer from the seller, then there is no prohibition laws for others to raise the bid or the first bid. This case is analogous to the hadith as Fatima bint Qais reported that the Prophet and Abu Jahm Mu'aawiyah have ask for her hand, it is because there is no indication of his approval of the proposal, he offered her to marry Usama bin Zaid.

Third, if there are indications of approval from the seller of a bid, although not stated explicitly, then according to Ibn Qudama still not allowed to be offered to others. As to the substance of the tender on terms not very different from the auction because the law both supply of goods / services to obtain the desired price with the condition of the goods / services as desirable.

But to prevent any irregularities and violations of Sharia, norms and ethics in the practice of auctions or tenders, Islamic law provides general guidelines and criteria as a guide line as follows: 1) Transactions carried out by a competent law based on mutual voluntary ( 'an taradhin ), 2) Object auctions and tenders must be lawful and useful, 3) full ownership of the goods or services sold, 4) Clarity and transparency of the goods / services that are auctioned or tendered without any manipulation like any other window dressings or 5) promissory delivery of goods from seller, 6) Clarity and certainty of the agreed price with no potential conflicts. 7) Do not use the way that leads to collusion and bribery to memangkan tenders and bids.

All forms of cheating engineering to make profits in the unauthorized practice of auctions and tenders are categorized in the practice of scholars najasy (gang / dirty tricks tenders and auctions) are forbidden, the Prophet Muhammad (Narrated by Bukhari and Muslim), or also can be included in the category Risywah (bribes ) if the seller or the buyer to use the money, facilities or services to win the tender or auction that did not meet the desired criteria for its business partners. Thus, it can be concluded that the legal profession is also an auctioneer and worked at the auction house allowed in Islam, during the general criteria as outlined above shariah.

Fasting and Actualization of Islamic Economics

2009-10-17T08:53:00.004+07:00

The essence of fasting is to control yourself and desires of all of canceled reward value of fasting. Thus, fasting is also substantially self-control significantly from inappropriate behavior, such as mubazzir (exaggerated) in consumption, open the entertainment business disobedience (disco) and anything that is forbidden as ghibah, lied, saying cruel, corruption, accepting bribes, play gambling, including eating riba (bank interest).

People who are true fasting would try to avoid unlawful actions, because if the deed was done, fasting is not worth at all. This is what disabdakan Prophet Muhammad, "Many people are fasting, do not get the value of nothing, except hunger and thirst alone."

The scope of Islamic economics is very broad, covering the scope of conventional economics. Because of that, the economy is not just limited to Islamic banking and financial institutions, but also about the production, distribution and consumption is also on monetary, fiscal, management, accounting and so on. The entire Islamic economics should we actualize it in daily life as the practice of Islamic law in the field of muamalah.

At present, we need to do an evaluation and critique of our current behavior in the conduct of fasting. The way we look at any of Ramadan needs to be clarified. Phenomenon that occurs during Ramadan is the occurrence of excessive kosumsi pattern, namely the purchase of food, drinks, fruits that cost excessive relatively more expensive than usual days.

Fasting and consumer behavior
First of all, fasting must give birth every living being simple and efficient in consumption. Simple life attitude, efficient and not redundant in the month of fasting, see the teachings of Prophet Muhammad when fasting. The Prophet taught that the iftar meal with just a sip of water and eating a date. Attitudes and behavior when it almost disappeared from the lives of Muslims, especially in Indonesia.

We have had a habit of cultivating Muslim food, beverages, fruits, all kinds of cakes, porridge, compote and iftar event that shows the attitude sidup israf and tabzir. This behavior is clearly contrary to the Sunnah of the Prophet and the Islamic sharia.

Very anti-Islamic attitudes extravagant life or mubazzir, because the devil are brothers mubazzir. Islam teaches a simple life attitude in consuming goods and foods. In the Qur'an Allah says firmly, "Eat and drink ye, but not extravagant. Truly Allah loves not those who exaggerated."

Israf and tabzir behavior not only contrary to the sharia or the Sunnah of the Prophet, but also showed attitudes individualistic and selfish, because when we apply israf consumption patterns (excessive), many of our brothers that the economic crisis that is very sad. And if we can save, then the rest of the money could be used to infak or charity to the poor who need funds for a decent life.

Not to mention that Ramadan is over, some are busy buying new clothes, prepare the cake and drinks for Lebaran and recreation plan for Lebaran. This consumer behavior that Muslims should be corrected gradually.

Principles of Islamic Capital Market

2009-10-17T08:44:00.002+07:00

Capital market is one milestone in the current world economy. Many industries and companies that use institutional capital markets as a medium to absorb the investment and the media to strengthen their financial position.

Factually, capital markets have become the financial nerve-center (the world's financial nerve, Red) modern economic world. In fact, the modern economy could not possibly exist without the existence of capital markets with a well-organized. Every day trillions of dollars from this transaction through this institution.

As modern institutions, capital markets can not be separated from the weaknesses and mistakes. One of them is an act of speculation. In general the processes of business transactions that occur are controlled by speculators.

They are always watching the market change, making the analysis and calculations, and take action on the speculation in the purchase or sale of shares. Activity that makes the market remains active. However, this activity is not always beneficial, especially when the cause of depression is remarkable.

Speculative nature of the activity can be specified as follows. First, speculation is not really an investment, although in between there are similarities. A very fundamental difference between them lies in the 'spirit' of animating, not in shape. Speculators to buy securities to profit by reselling them in the future. Meanwhile, investors buy securities with the aim to participate directly in the business.

Second, speculation has increased unearned income for a group of people in the community, without them giving any contribution, whether they are positive or productive. In fact, they have taken advantage of the cost of society, which, however, very difficult to be justified economically, socially, and morally.

Third, is the source of speculation is the cause of the financial crisis. The evidence suggests that the activity of these speculators who caused the crisis on Wall Street in 1929 which resulted in great depression for the world economy in the 1930s.

Similarly, the 1967 devaluation of sterling, and francs, the currency crisis in 1969. This is just some examples. Even to this day, the monetary authorities and financial experts are always busy to take steps to anticipate the action and the impact that may have been caused by speculators.

And, fourth, speculation is the outcome of the mental attitude 'to get rich quick'. If someone has been trapped in this mental attitude, then he will try to justify all sorts of ways regardless of religious signs and ethics. Therefore, Islam strictly forbids acts of this speculation, because it is diametrically opposed to the values illahiyah and insaniyyah.

Basic principles
There are some basic principles for building a capital market system in accordance with Islamic teachings. As for implementation, it takes a long process of discourse. These principles, among others, not diperkenankannya sales and purchases directly. Currently, if a person or a company wants to sell or buy shares, he will use a broker or brokerage services. Then it will contact the broker jobbers and convey intention to transact, both in the purchase or sale of shares.

Then the jobber is offering 2 price rate, which rate prices would be bought that are usually lower and the rate that would sell price which usually higher. Furthermore the jobber is obligated to buy the stock. Transaction model provides implications 2. The first, the jobber will purchase shares even though they do not necessarily need it.

They bought shares in the hope that will be able to sell it back to the parties that need. This will open the door of speculation. The speculators know that they can be profitable to buy shares from the market because of the jobber was able to provide a ready stock.

Similarly, if the stock was less profitable, they can also quickly remove it. The next implication is the price change is determined solely by market forces, where there is no significant change of the intrinsic value of stocks.

In Islamic teachings, rules of capital markets should be made in such a way as to make the act of speculation as a business that is not attractive. For that, the procedure of purchase / sale of shares directly is not allowed.

Procedure, any company that has a quota of certain shares to give authority to the agent on the trading floor, to make a deal on the stock. The task of this agency is to bring together companies with potential investors, and not buy or sell directly.

The shares are sold or purchased if it is available. If many parties who want a particular stock, then they must first be registered as an applicant, and the stock is then sold / purchased with the principle of first-come-first-served (who came before him served, Red).

Price determination
Currently, the stock price is determined by supply and demand forces. Whereas in the Islamic rule, the determination of stock prices is different from pricing as it is today. If we look at the balance sheet of the joint stock company, it is seen that assets equal to the share capital plus liabilities. These assets represent the capital, where the obligation is assumed equal to zero.

Thus, stock certificates have a specific value, where value will be equal to the value of its assets. Every stock price is above or below the value of its assets, does not show the real condition.

But market forces are able to make the stock price is above / below its asset value. In the Islamic view, to prevent this distortion, the stock price should be in accordance with their intrinsic value.

The calculation formula is: the price of shares equal to the share capital + gains - losses + accumulated profits - the accumulation of losses, all divided by the number of shares (Muhammad Akram, Issues in Islamic Economics).

This formula will provide real value of the stock certificates, and would more describe the actual conditions. No one is allowed to buy or sell at various price levels except on the basis of price regulation has been set.

The question, whether a policy like this, speculators will not be interested in speculation activities? There are two reasons that explain this. The price will not change quickly. Price declared since the date of balance sheet and are valid until the next balance sheet date.

In addition, buying or selling stocks is not easy work, and a lot of uncertainty. The speculators will not be hasty in buying stocks before the balance sheet date. This will reduce speculative activity.

Another basic principle is to study carefully the account books. Standard practice of business management and accounting should be applied to all companies that have a certain quota shares. Then there is the need to audit and investigation of a sudden to examine the truth of a company's balance sheet.

In addition, each company should be required to announce its financial position once every three months, so the public will know how true intrinsic value of the stock at least 4 times a year.

Of course, a firm closing date will differ from other companies, so the date of announcement of its financial position would be different. Thus, almost every week throughout the year, there will be announcement of the closure and financial position, and this will continue to make active markets throughout the year.

This basic principle also forbids companies to sell their own shares. The next company is forbidden to sell his own shares in the market without any permission from the registrar / registrant Join Stock Company. In addition, there are credit restrictions for speculation purposes. Fund loans for the purpose of speculation in the stock market is strictly prohibited in Islam.

Forward transaction
One of the major part of the business venture is a forward transaction, where the two parties agreed to conduct transactions on the delivery of a specific date in the future. Usually between one to twelve months after the date of the transaction. On the London Stock Exchange, forward this transaction has been banned in a broader scale. In addition, there are also not allowed to short sell. It is selling shares before someone have it, hoping to buy it back with a lower price.

Contango also not allowed. There are two reasons why the contango will not happen in Islamic capital markets. First, the price will not change quickly because the price is determined by the intrinsic value of the shares. Then the second, funding for which comes from contango usury will not be available because Islam forbids usury, or the like.

Likewise option transactions, either single or double option second option is not allowed in Islam, as affirmed in the book Mishkat al-Bai. The existence of the overall supervision of capital market activities. To ensure effective implementation of Islamic capital markets, as well as to prevent deviation from Islamic values, it is necessary to an institution that has full authority, whose members not only financial experts, but also by legal experts / Islamic law.

Peek Opportunities of Islamic Bonds

2009-10-17T08:22:00.003+07:00

There is a close connection in developing Islamic financial institutions. So also with the instrumentation, instrumentation finances. One institution will require institutions and other instruments. When Islamic banking was developed, there was an urgent need to create Islamic financial markets. At the time of Islamic mutual funds raised, it is necessary instruments for the distribution of halal his placement Mutual fund portfolio sharia sharia banking needs, require halal stocks, and also raises the possibility of Islamic bonds opportunities.

Development of institutions and financial instruments based on the shari'a is an important part of efforts to develop Islamic finance. Is an attempt grounding teaching sky. Other efforts were not a continuation of the development of concepts and theories that did not stop only at the normative level only.

The approach can be done there are two kinds. First, the discipline that promotes new alternatives to conventional commercial finance. Here the creative efforts of interpretation of religious teachings to promote a new alternative that is believed to provide a greater benefit with a minimum level of harm. The second approach is to reevaluation of the concept and practice of existing conventional financing with Islamic law (fiqh). By questioning and judging whether the concepts and practices are in line with sharia.

Judgments will fall on the determination of lawful, makruh, Mubah, sunnah, or unlawful. It is interesting to question the bonds and options from the perspective of sharia example. It seems so far, which seems more dominant is the second approach, although the first approach did not stop done. Establishment of institutions-banks for actual results can be classified as a result of the first approach. In terms of assessing Islamic bonds, two approaches should be used.

Is Bonds Sharia?
Islamic bonds must be different from conventional bonds. Since there is convergence of opinion that the interest rate (interest rate) is usury, the instruments have a component of interest (interest-bearing instruments) it will step aside from the list of permissible investments. Therefore, raised the so-called alternative Islamic bonds.

Islamic bonds known as muqarada bond, proposed as an alternative to interest-bearing bonds. Muqarada is synonymous with an equally qirad with mudharaba. Sederhanaya is a loan translation of results or profit-loss sharing. These financial instruments have to get approval from the IOC Academy. This means that already can seal internationally lawful.

Muqarada bond issued by the company (as mudarib, manager) to investors (as rabb al mal, owner of the funds) with the purpose of funding specific projects that run the company. The project is a separate character with the general activities of the company. Periodically distributed profits based on a certain percentage agreed upon. Analogues as regular coupon bonds distributed periodically. But this coupon is not ditentulkan percentage of the (fixed pre-determined). Percentage is the ratio of profits, so the base meggunakan profit-loss sharing. This contract also provides a bond payment at maturity or expiration. These contracts actually the same as mudharaba. And already applied in some countries such as Jordan and Turkey. Similar to the principles of Islamic bonds are instruments such as the Islamic certificate of deposits are considered as medium-term instruments.

Secondary market for Islamic bonds
Bonds trading in the secondary market interest arose because the purpose of liquidity (as-suyulah). In fact, almost all Islamic bonds purchased for the long-term investments until maturity or her maturity. Trading still occur, but only at the IPO and the due date at a price of par, together with nominal bonds listed on the certificate (shahdah al-Dayn).

If there is not trading on the due date, then the contract is made bai al-Dayn. Bai al Dayn is defined as "the sale of a right that normally payable from a transaction raises, services, loan, to the debtor himself, or to any third party" [Rosly and Moustapha (1999)]. Most scholars of this transaction memfatwakan unlawful by reference to the hadith narrated Daruqutni. Hadith in question is that Ibn Umar said, "The Prophet forbade the sale of debt with a debt payment amount is different at other times". Because of the debt purchase and sale transaction is seen as a major element of his usury. This opinion is widely accepted, therefore the secondary market opportunities for Islamic bonds to be very small.

But there are Islamic bonds secondary market in Malaysia. Issuance of bonds as the bonds of his certificate through a process of asset securitization on the principle of bi thaman ajil murabaha. Is a sales contract with the suspension of payments basis (deffered payment) and the price is determined on the basis of fixed mark-up profit. Because the objects in the sale of Islamic law is a commodity that has a certain value. Therefore, securitization done to make these notes as a claim on the pledged assets. Then the bond is issued through an initial public offering through an auction mechanism or bidding process (bai al muzayadah) with discount. Explanation of the validity of such a mechanism is provided by Ngadimon [1999].

This process is different from muqaradah bonds which do not seem problematic, also because there is no secondary market. Islamic bonds in Malaysia invites big controversy. Because, in principle, the income from buying and selling debt is riba. Because the debt remains a debt, although supported by its underlying asset. Thus majority of scholars. Sami Hasan Houmoud (in response to discussion paper pointer Rosly and Moustapha [1999], "Dayn Bay'an Islamic Bonds and Issues in Malaysia", International Conference on Islamic Economics in the 21st century, Kuala Lumpur, 1999) from the IDB said that for the case of Malaysia , "It is obvious that what was practiced under the name of Islamic Bonds were not Islamic."

Indeed there should be caution in developing products using sharia label. Because open opportunities in practice actually deviated from the substance of sharia. In the Islamic economy symposium last week (3/04/2000), Prof. MA Manan, IDB consultant economist, ordered that if an Islamic financial institution carrying kemudharatan Instead, you should not even have to carry the name of sharia. Because the community will be able to judge which is just a label and which ones are truly Islamic. Something shifted from welfare to misery had nothing to do with sharia. Really Islamic may not even carry his sharia label, but the substance remains grounded in sharia.

Success of a financial market, whether Islamic or otherwise, will depend on the trust factor of the system and processes, diversity and quality of product, and the confidence of investors and issuers to use financial products. A framework arrangement can be designed to influence these factors.

With the conditions described above, the future of Islamic bonds can still be seen prospectively in line with developments other Islamic financial institutions. Small possibility of a secondary market these bonds can indeed be a development constraint, because investors will still want liquidity.

Alternatively, the secondary market is still trading at par with. Or expand the reach of investors with a holding period is consistent with the bond matures. Once again, success still depends on investor confidence factor.

Imam Abu Yusuf (113H/731M - 182H/798M)

2009-10-17T08:10:00.002+07:00

This rubric is a display that will set forth the pioneers of Islamic economics both classical and modern. For this first edition we will set forth a figure of scholars-economists who are not familiar to Muslims, especially for those who bermadzhab Hanafi. These figures are Imam Abu Yusuf, a friend and both students of Imam Abu Hanifa is the most important.

Name: The name he was Ibrohim ibn Ya'qub ibn Habib al-Anshori al-Kufi al-Baghdadi. Al-Anshori was called because of his mother's side there are still descendants of the Anshor blood. He was born in the town of Kufa, which is known as Islamic territory dominated by ahlu ro'yi. He got as al-Kufi as born and raised in the city of Kufa, while al-Baghdadi is a ratio to Baghdad, which is the town where he devoted himself as a scholar and well spread qodhi Hanafi until his death.

The teachers: Since childhood, Imam Abu Yusuf already have a strong interest in science, especially the science of Hadith. He narrates, among others from his teachers that Hisham ibn Urwa, Abu Ishaq al-Shaybani, Ata 'ibn Saa'ib and others. In fiqh, he learned to Muhammad ibn Abdur Rohman bin Abi Laila who is familiar with Ibn Abi Laila. But he is very interested in the jurisprudence as well as his teacher and friend of Imam Abu Hanifah (150 H). Because of his interest to the jurisprudence of Imam Abu Hanifa is so large, in addition because the strong encouragement of Imam Abu Hanifa himself, so he was compelled to spread throughout the Hanafi Abbasid territory. Even be said that was he the first and most responsible for the development of the Hanafi jurisprudence of Islamic society. This ni because he was appointed as the Chairman of the judges (Qodhi al-Qudhot) by the caliph Harun al-Rosyid, this position is actually the first office in the Islamic justice system, so freely to issue fatwas and decide the case by referring to the Hanafi jurisprudence. At the same time he got the freedom to seek the pembatu which of course is in line with fikihnya own.

His works:
1. Kitab al-Atsar. A book that collects the traditions narrated from the teacher and also from his father. Traditions collected in this book is not all muttasil (continued until to the Prophet Muhammad) only until Sebagain to friends (mauquf) or to Tabi'in (mursal).
2. Book deviation Ibni Abi Abi Hanifa wa Laila. Seeing the title already crossed that this book collects the differences in the fiqh of Abu Hanifa and Ibn Abi Laila who is also a teacher of Imam Abu Yusuf.
3. Kitab ar-Radd ala al-Siyar Auza'i This book is a set of arguments-arguments against the Imam Abu Yusuf al-Auza'i opinions surrounding the war and jihad.
4. Kitab al-Khoroj. This book is a book of his most important and famous that beat the fame his books another. With this book he is crowned Fakih and classical Muslim economists.
According to a scholar Ibn Najm Hanafiyah, there are many more books written by Imam Abu Yusuf, other than those already mentioned above, for example as-Sholah book, Kitab az-Zakah, and others.

A glimpse of the Kitab al-Khoroj.
This book was written by Imam Abu Yusuf at the request of the caliph Harun al-Rosyid to guide you in collecting state revenues or income from taxes, zakat and jizya. As was said by the Imam Abu Yusuf, "Verily Commander of the Faithful Harun al-Rosyid (may Allah strengthen his power) has asked me to write a general book a guide in gathering khoroj, usyur, zakat and jizya". Given the title and the contents of this book this book it can be classified as a book Public Finance in terms of modern economics.

Khoroj is the land tax which is controlled by the Muslims either because of war or because the owner entered into a treaty with the Muslims. They remain the owner of its lands, but by paying taxes (khoroj) a certain amount to the Baitul Mal.

Usyur are plurals usyr means a tenth or 10 per cent. He refers to the level of agricultural charity and customs that apply to the Muslim traders and non-Muslims across the region daulah Islamiyah. In agriculture there are problems due the following conditions: if penglelolaan soil using irrigation techniques were then nisf Zakah al-usyr (5 per cent) whereas if the irrigation management is using rainwater is then Zakah usyr or 10 per cent. In recent history, customs of Muslim traders, and ahlu dhimma ahlu differentiated harb. Muslim traders charged rub'ul usyr (2.5 per cent), ahlu dhimma nisf al-usyr (5 per cent) and the Ahl al-harb usyr (ten per cent).

Jizya is a head tax to be paid by non-Muslims who live and be protected in an Islamic state. Prophet Muhammad set a poll by his friend Muadz bin Jabal when he was sent to Yemen as many as one dinar every person who has consent. This size does not seem to be standard conditions proved Umar ibn jizya Khottob pick as many as 4 pence or 40 dirhams.

Apart from charity, and ghonimah fai 'incomes above the third is a source of major income sources for daulah Islamiyah. Kitab al-Khoroj this is the first book that collects all revenue daulah Islamiyah and the posts and expenditures based on the Sunnah kitabullah Apostles.

Begins with good advice to the caliph Harun al-Rosyid, Imam Abu Yusuf stressed that the authorities realize that the mandate of power is hard but if done with full trust is also a source of very great reward. The main task of the authorities is to eliminate injustice felt by the people and meet all their needs and unseen. (Pp. 3-17)

In collecting zakat and other income, the authorities advised to choose people who can be trusted (trust), thorough and critical. This is all expected to be the free union of all leaks so that optimal results can be realized for the benefit of citizens. (P. 132)

According to Imam Abu Yusuf, Islamic economic system clearly follow the principles of market mechanism to provide optimum freedom for the actors in it, namely producers and consumers. He presented a atsar that many citizens complain to the caliph Umar bin Abdul Aziz as prices soared in their time. Umar bin Abdul Aziz answered their complaints by saying that the previous rulers (before him) has been collecting taxes from ahlu dhimma with levels that exceed the carrying capacity. While his poll tax burdens not limited to his own ability but because of "the Prophet Muhammad was sent to a caller to Islam and not be a tax collector." If, for any reason other than the monopoly, hoarding or unilateral action is not reasonable from the manufacturer, the price increase occurs in the economy, the government can not intervene to fix prices. Fully pricing played by forces of demand and supply in the economy. (Pp. 131-132).

Kitab al-khoroj different from the books of classical Islamic economics was born from a generation that close to him like a book of al-Ubaid Abu amwal works whose content is a collection of Hadith and related atsar economics, finance and business. The book is in addition to describing the traditions of the Prophet SAW associated with chapters state revenue and expenditure in detail and systematically, also spread the thoughts of Imam Abu Yusuf himself in these matters which is an expression of opinion notwithstanding madhhab of Abu Hanifa in his many different issues teacher. Although this book was written more than 1200 years ago, but still very relevant to serve rujuakan in economics, finance and trade in modern times now. Even can be used as a guide, reference and complement the government's fiscal policy and monetary and economic development in general.

Religion and Economics

2009-10-16T11:04:00.002+07:00

Such flows freely secularism devastating role of religion in all public areas. Domain of religion pushed into a corner, which is limited to the maintenance process of birth, marriage, and death. In fact it is only taking care of his tendency to die. Because the birth was represented by the civil registry and the wedding was the civil registration authorities and courts. It is expected by the idea of secularism that he is free and is sponsored by supporters of the capitalist economic system because the power is also extended to the political and social fields. Therefore the wave of secularism that the economy is the domain of capitalism try to eliminate or sterilize religion in every economic sector, especially in the various policy and economic rules. Religious ideology should not color the economic practice. This expectation of capitalism. What is fact so?

In the West itself behind this is recognized the study of religion and economic relationship is very little not to say almost nothing. But is not there. Let's look at some of these studies. Adam Smith in his first book was considered the religious elements have a role in the economic field. In this case the religion he called by the term 'moral suasion'. He stated that the moral aspects should be colored and a role in the economy.

But in his next two are more famous 'The Wealth of Nations' religious aspect but eventually lost remains of the missing functions are replaced with the name 'invisible hand'. As we know in the end in theory, models, and economic policy, banking finance, the role and value of religion altogether eliminated.

Chester I Barnard (1938) have argued about the moral responsibilities of an executive to lead the company. Then Max Weber (1958) wrote a book about the positive effects of Protestant ethic against the spirit of capitalism in his book 'The Protestant Ethic and the Spirit of Capitalism ". Gerald Bell (1967) and then compare the success in the field of wealth and power between Protestants by Catholics. He Protestants conclude more successful in achieving wealth and power than with Catholicism. Gerhard Lenski (1967) found the same thing does religion affect one's mobility and success.

Lipset, Bendix, and Weller found a significant relationship between religious attitudes and economic behavior a person. Gordon Woodbine and Tungsten Chou (2003) saw the relationship between religious affiliation with the student's perception of the ethical consumer. They concluded that more Muslims have a commitment to ethics than Buddhists and Christians. Buddhists more committed than terhdap Christian ethics.

Indeed Emile Durkheim (1933) states that the economic prosperity of a nation diminished role of religion. But from the other side in line with the development of society, Naisbitt (1996) predicts the rise of the religious spirit of the future. Finally, with the corruptions of capitalism and it seems the emergence of alternative systems of capitalism both in the scope of the votes have a more humanistic sense and that came from outside such radical ideas (socialists, communists) and the Islamic cause more attention to cool this religion is increasing. This not only among Muslims but also among Catholics, Christians, Jews, Buddhists, Hindus etc.. Religion is also trying to formulate their positions in the economic field.

Cases such as the Enron scandal led to the emergence of corporate accountability law that increasingly tight and increasingly nuanced ethical thick and prominent. Even the recent appreciation to those who try to associate religion with secular science increasingly appreciated. For example Charles Tawney (89), Professor at the University of California Berkeley, winner of the Nobel Prize in Physics (Quantum electronics) in 1964 received awards in April 2005 for trying to enter the spiritual aspect of his work.

He declared that religion and science in line. He used to bridge the religion and science. Tawney will receive the Templeton Prize prize of U.S. $ 1.5 million. Some opinions Tamney among others: 'If we look at what is religion is?, Religion tried to understand the purpose and meaning of our nature. Science tries to understand the function and structure. If there is understanding, the structure must have a lot to do with the meaning, in the long run they would be in line '.

It is possible to say that the physical laws that govern life in this world just a coincidence. But it was not possible methodological tested today. When he taught at Columbia University he gave a lecture on the topic 'The Convergence Science and Religion'. He stated that science and religion should be to find common ground.

The difference is vague or superficial even if we see the same qualities realnya. The findings in the field of astronomy discoveries have opened the eyes of men to religion. The fact that this nature was initially a wonderful thing, how can it exist without God?. The Templeton Prize for Progress Toward intended or Discovery Research Realities about and began Spriritual founded in 1972 by Sir John Templeton. Previous winner was Mother Teresa, Billy Graham, Holmes Rolston III, and John C Polkinghorne.

Islam from the beginning was never to separate aspects of religion and religion, including non-economic activities. Hence, Islam has always been the target of a target of capitalism and his minions who want to maintain hegemony in the world of God. Islam always put God as the ruler and the source of truth which is considered better than the theory and formulation of human values that are God's creation with all its limitations. No exception in the economic field.

The concept of celestial, celestial concept is considered better than the other concepts that have the basic limitations and has proved felt by mankind, in which the capitalist system was almost brought mankind kejurang destruction, wars and social conflicts due to the injustice and the violent destruction of natural .

Time Value of Money On Debates

2009-10-16T11:02:00.002+07:00

In the context of conventional economics, there are many things we can compare the technical evaluation of the project, meaning that comparisons should be made of the perception of Islam when the techniques and concepts we can not find an adequate solution in the capitalist economic system. One of these is the concept of time value of money (time value of money).

The concept of time value of money has been claimed by most experts of Islamic economics as something that is forbidden because of the element of riba in it. Although a common understanding of this concept is reflected in some Islamic muamalah covenant which was permissible in Islamic law, for example is the principle of buying and selling greeting, a tough sale to pay (bai bitsaman al ajil), ijara, and ujrah or wage concept in Islam, where all these things can not be separated from the dimension of time is inherently associated with the existing transaction.

It is a wise move if the cost of capital concepts are clearly defined with little awareness of the value of time. Study of fiqh seemed to dominate the legal side, but the development of these problems must be coupled with other tools to become more comprehensive study and representative for a scientific study. Perhaps we can say that this problem still left some ambiguities which should be dealt with scientifically and adequate, because there will be many questions and discussions that motivate the desire and a new effort to re-provide solutions that are relevant to the development of complex semakain era and complex.

The concept of time value of money is the development of theories that there is interest (theory of interest), of the various views of the capitalist economists of all time. In the classical theory of interest is very well known figure who was Smith and Ricardo, they argue that interest is compensation paid by the borrower (borrower) to the lender (lenders) as remuneration for the benefit of the money lent. If the money can be used to generate business, then so if used for loans. Then Bohm Bawerk, Austrian developer Interest Theory, also argued that people will feel happy with the existing goods rather than goods to be obtained in the future. This marginal productivity of the goods is now greater than the marginal productivity of goods for the future (time preference theory).

Generate theory on the basis of psychological outlook is very subjective, so make an understanding of the theory of interest to be wrong. First, some people are not saving because they want more of her savings in the future, but more for specific purposes, such as school, marriage, retirement and more. Second, a lot of wealth accumulation activities intended only for personal satisfiers, prestige or social status had no need of flowers. Also, why many people who do not spend all his current income but save for the future.

Monetary interest in the theory of reasons is in the form of interest payments actions opportunity to profit from lending money. Keynes called it as speculation the motive of the demand for money (liquidity preference). This motif is defined as an attempt to guarantee profits in the days to come. From these theories the concept of time value of money appears. In the western discipline of economics that there is a position formulation rent, wage and interest; (r) L; (w) L; M, where:
- (R) K means the rent for capital
- (W) means the wage for labor
- (I) M means the interest for the money.

Formulation of the above shows that the equivalent of rent or the rent is fixed assets and the asset moves, equivalent wage labor, and interest or interest equivalent is the money. From here seems to us that, it is wrong to put the rent or lease for the money, because money is not a fixed asset like home or mobile assets such as cars that can be leased. Another reason is the consideration of the inflation factor, which is marked by increasing prices and the overall tempo continuously, resulting in declining purchasing power of money or Decreasing purchasing power of money.

Therefore, according to the concept of time value of MONE also (with inflation as an indicator of the amplifier), then the decision is logical interest money instead of the declining purchasing power of money during lent. However, to say the right reasons in the world economy if all that happened was inflation, deflation or without a stable condition. So do not close the possibility that perhaps lent money now (in the economic circumstances of the inflation rate was 10-30% interfal for instance), precisely in the coming year is higher because of the improving economic situation or in a low inflation rate is below 10 %.

Din Islam is syumul and mutakamil promising with all the solutions the world and akhrat, because he designed as a rahmatan lil alamin. Islamic concept of financial instruments (jihaz Maali) never apart from the wisdom and benefits (ifadah). Islamic concept of time value of money is something that is ijtihadi, said that textually ijtihadi had never heard the word time value of money in verse or hadith the Prophet Muhammad, may we lafadz add as similiar is something lafadz nasaa or forward transaction. Therefore need a serious attempt to explore the law of the instrument was later called ijtihad, and as a more specific derivasinya is qiyas instrument. If we observe carefully the concept of time value of money is qiyas jali or she based the naqli proposition sharih (lihad lafadz nasaa in the history of Imam Bukhari Hadith Hadith no. Mukhatashar book of 938 in al-Saheeh).

In principle, Islam really appreciate the time, this is very grounded and should be believed by every Muslim. Hence there are several verses in the Quran Al Karim makes qasm time as an object or an oath by God, like wal ASHR (for period), wadhuha (after time in the morning), wallaili (by night), wannahaari (by time of day), walfajr (after dawn) and others. In a hadith is also advisable to always take the opportunity before coming narrowness (time utility) and the scholars also stressed the importance of time. As an example of a Sayyid Qutb said: "time is life".

There needs to be discussion between the legal separation time of the value that was practiced in the conventional concept of time with the concept of value in a particular transaction in connection mumalah Islamic fiqh, it is intended that the discussion became more wise and right (mushib). If the time referred to in the concept of value by way of the tough relatively more expensive, and the concept of wages (ujrah) which tended to increase from time to time, a practical example that naturally can not be separated from the time value of money. Islam provides a way out (makhraj) to treat the concept of economic value of time with the return on capital as the foundation work, and not the return on money related to the tribal relationship (rate of interest), as a solution to the concept of time value of money in the practice of conventional economic attached to the practice of usury / interest. Where the value of money / wealth generated by a different person in accordance with the contribution, quality, and other types of donated amalah.

Understanding Concept of Money and Capital in Islam

2009-10-16T10:50:00.002+07:00

Since the first man has used various means to establish exchange of goods, in order to meet their needs. In the civilization that is still very simple, human conduct exchange needs by barter. However, this exchange entails a double coincidence of wants from the parties that this exchange. The more numerous and complex human needs, the more difficult to make exchanges so that complicates human muamalah. That's why people had been thinking of the need for a medium of exchange that can be accepted by all parties. A medium of exchange is called money.

In the development history, has experienced the evolution of money before becoming a medium of exchange like the current modern. Before man discovered a metal that can be used as a medium of exchange, they have used goods and even livestock as a medium of exchange that serves as money and called a commodity money. But when the precious metals and stones found, they began to exchange by using precious metals, especially gold and silver. Precious metals, printed by the authorities into fragments with a certain weight, as legal tender.

In the Qur'an and the hadith, gold and silver has been mentioned both in its function as a currency or as a symbol of wealth and riches are stored. This can be seen in QS. At-Tauba: 34 which describes the people who hoard gold and silver, either in the form of currency or in the form of common wealth and they do not want to spend Zakah will be threatened with a painful punishment. This verse also stresses the obligation of Zakah for precious metals in particular. In Sura al-Kahf: 19 God tells the story of Ash-Habul Kahf (cave dwellers) who sent one of their friends to spend the silver (wariq) to buy food after they slept 309 years of diving in the cave. The Qur'an uses the word that means wariq of silver coins or dirhams.

In addition, the Qur'an also tells the story of the Prophet Joseph was thrown into a well by his brothers and found the merchants travelers. By them, Joseph then sold at a cheap price of just a few dirhams. This verse clearly using words dirhams which means coin of silver. From the stories told by the Koran, it is clear that the use of two precious metals (bimetallism) as the currency has been done by humans thousands of years before the birth of Prophet Muhammad.

In addition, many traditions of the Prophet Muhammad who called dinars and dirhams, or use wariq said. Rasulullah SAW said, "with dinar Dinar, there is no advantage between the two (if convertible); and the dirham dirhams and no excess in between the two (if traded)." (Reported by Muslim). In another hadith the Prophet Muhammad used the word wariq as in the following hadith: "silver coins numbering five auqiyah under no obligation zakat on it." (Bukhari and Muslim).

Money Function in Islamic Economics
In every economic system, the primary function of money is always a medium of exchange (medium of exchange). From the main function is derived other functions such as money as a standard of value, store of value, unit of account and standard of deferred payment. Any other currency will undoubtedly works like this.

In a capitalist economic system, money is seen not only as legal tender (legal tender) but also seen as a commodity. Thus, according to this system, money can be traded with an excess of either on the spot as well as tough. In this perspective the money can also be leased (leasing).

In Islam, anything that serves as money, then the function only as a medium of exchange. He is not a commodity that can either dijualbelikan with an excess of on the spot or not. One important phenomenon of the characteristics of money is that it is not necessary to be consumed, it is not necessary for himself, but needed to buy other goods that human needs can be met. This is explained by Imam Ghazali that only gold and silver metal in the substance (zatnya itself) there is no benefit or purpose-tujuaannya. According to him in his book Ihya Ulumiddin "Both of them do not have anything but they mean everything". Both are like a mirror, he does not have color but she can reflect all the colors.

Even in the early days of Islam's community with terbisa bermuamalah dinar and dirham, the possibility to make other goods as a currency that serves as a medium of exchange has emerged in the minds of friends. For example Umar once said, "I want (one time) make camel as a means of exchange." This statement from the lips of a very understanding about the nature and functions of money in the economy. According to Omar, the real money as a medium of exchange should not be limited to the two precious metals like gold and silver. Both these precious metals will experience instability when the instability on the demand side and supply. Because of that, whatever, can actually serve as money, including camel leather. In his view, when an item changes its function into a medium of exchange (money) then the function will eliminate its monetary function or at least will dominate its function as a normal commodity.

Shaykh al-Islam Ibn Taymiyyah also argued that money as a medium of exchange material can be drawn from what was agreed by the prevailing custom ( 'urf), and the term created by humans. He does not have to be limited from the gold and silver. For example, the dinar and dirham term itself has no natural boundaries or shari'ah '. Dinar and the dirham is not necessary for himself but as Wasilah (medium of exchange) a medium of exchange function is not related to any purpose, not related to material that does not put them in touch with the print image, but with this function of objective human needs can be met (See, Majmuatul Fatawa).

In general, the scholars of Islam and social scientists agree on the functions of money as a medium of exchange only. Rows of renowned scholars such as Imam Ghazali, Ibn Taymiyyah, Ibn al-Qayyim al-Jawziyyah, Ar-Raghib al-Ashbahani, Ibn Khaldun, al-Al-Maqrizi and Ibn Abidin clearly pointed out the main function of money as a medium of exchange. Therefore, the currency must be fixed, its value does not rise and fall.

Paper money is commonly used today is called fiat money. So called because the ability of money to serve as a medium of exchange and have no buying power because of the money backed by gold.

Once the money is following the gold standard (gold standard). Yet this regime has been long abandoned by the world economy in the mid-decade 1930's (England, leaving in 1931 and the whole world had abandoned in 1976). Now the paper money became a medium of exchange because the government designated it a medium of exchange. If the government revoke its decision and use the money from other species, will bank notes will have no value at all.

Many people who doubt or do not even know the law in terms of paper money from the sharia. Some argue that paper money does not apply usury, so that if someone owes Rp. 100,000.00 then returned to the borrower as much as Rp. 120,000.00 within three months, then not including usury. They assume that what applies at the time of the Prophet is gold and silver money and what is forbidden to exchange with an excess of the gold and silver, because it is not paper money usury laws apply to him. The answer can we find the explanation and that the currency can be made from any object, including camel leather, Umar said. When it was established as a legitimate currency, then the stuff that changed the function of goods used to be a medium of exchange with all its derivatives functions. Jumhur scholars agree that illat in gold and silver are prohibited unless a similar exchange with a similar, equal to equal, by the Prophet Muhammad is because "tsumuniyyah", ie those goods become a medium of exchange, store of value in which all goods are weighed and judged by its value .

Because the bills are de facto and de jure has become a legitimate means of payment, though no longer backed by gold, then the position in the same legal position of the gold and silver at the time of the Koran down a legal tender. Therefore, at present usury bills. Paper money is also recognized as assets that must be removed from her charity. Legitimate Zakatpun issued in the form of paper money. Similarly, it can be used as a tool to pay the dowry.

Capital in the Islamic Perspective
Capital is in English called the capital means goods produced by natural or man-made, which is required not to satisfy human wants directly, but to help produce other goods which will be able to meet immediate human needs and generate profits (See, William N . Loucks and J. Weldon Hoot, See, William N. Loucks and J. Weldon Hoot, Comparative Economic Systems, pp. 19 Comparative Economic Systems View, William N. Loucks and J. Weldon Hoot, Comparative Economic Systems, pp. 19, pp. 19). Physically there are two types of capital is fixed capital and circulating capital. Fixed capital such as buildings, machinery or factories, ie, objects that when benefits are not enjoyed by the existence of the substance decreases. The circulating capital such as raw materials and money when the benefits enjoyed, the substance is missing. Differences both in the shari'a can be seen as follows. Fixed capital in general can be rented, but can not be loaned (qardh). While the circulation of capital that can be loaned consumptive nature (qardh) but can not be rented. This is because ijara in Islam can only be performed on objects that have characteristics, the substance can be enjoyed separately or all at once. When a rental item, then the benefits of these items are separated from the owner. He is now enjoyed by the tenant, but the ownership status remains at the owner. When the lease expired, the goods were returned to the owner in as new condition.

Money does not have such properties. When a person uses the money, the money ran out. If he uses the money from the loan, then he take on debt for the amount used and must be returned in the same amount (mitsl) rather than its substance (a'in).

Return on Capital
From the above description is obvious that capital goods are included in the permanent category such as vehicles, cars, buildings, or the ship will get a return on capital in the form of rent wages if the transaction is used ijarah. In addition, capital goods can also get a return on capital in the form of part of the income (profit) if a transaction that is used is based on the rule musharaka "An item that can be leased, then the goods may be done musharaka it." This has been done by the Muslims of the past such as in muzara'ah transactions. In this covenant the land owner provides the land to be tilled by tenants. Benefits resulting from this effort was divided in accordance with the agreement, for example 50:50.

Unlike the fixed capital, circulating capital (in this case money) will not get a return on capital in the form of wages as in ijara lease. Because Islam is not money in the commodities that can be rented or dijualbelikan with excess. He needed only as a medium of exchange. But he has a return on capital when developed in the form of mudaraba akad. He also lent (qardh) but not allowed to exceed the return anyway. Such excess into the category of riba.

Integrated Marketing Communications of Zakah Institutions

2009-10-15T18:32:00.003+07:00

Marketing and communications are integrated, an integral part of the activities of charity management institutions, and even a front-line charity fundraising process, infaq, Sadaqah. Just like a conventional company, Zakat Management Institute (LPZ) had to have a powerful marketing team, creative, innovative, powerful and able to make a breakthrough. Trustworthy, transparent and professional is a necessity that should be the capital for LPZ, if not impossible to obtain the public trust.

Integrated Marketing Communications into the leading line in the process of charity fundraising communications, infak and Sadaqah (ZIS). Target marketing is to produce a closing agreement without neglecting the service so muzakki be faithful. While the target of communication is to get people to think, feel or act a certain way. As a result of marketing and integrated communication an integral part of LPZ. The following explanations are the elements of integrated marketing communications.

Integration Planning
Effective communication results from structured thinking, combined with deep insight and knowledge about the needs, aspirations, and goals muzakki behavior. If you do not have the integration is limited to a mere theory for LPZ mobile communications without a clear target. LPZ knowledge of the public desire, will make them able to determine the positioning of a public institution, so that they can develop strategies for effective message delivery.

Advertising
Ads can be identified as a sending a message through the media through TV, radio, newspapers, magazines to posters as a form of communication that aim to influence the public. The main constraint for LPZ is not enough budget available for advertising expenditure. So have other ways to advertise without great cost, for example, by holding a media partnership for the delivery of PSA (Public Service Advertising) in the socialization of innovative programs. Marketing communications task is to ensure that the media (TV, radio, newspapers) was to have these innovative programs, which open opportunities of cooperation in the delivery of PSA.

Public Relations
Public Relations (PR) may play a role beyond advertising, because PR can respond to events very quickly, according to a planned strategy. PR agencies will be able to charity work better if integrated with activities such as creating a positive media environment.

Direct Mail for Relationship Marketing
For LPZ, direct mail is one of the weapons to get a new muzakki. This invitation can be delivered with the tithe promote excellent programs in poverty alleviation, so that the benefactors will trust funds ZISnya through our institutions. Marketing team must continually strive to obtain new prospects that will be targeted direct mail delivery. Advantage of direct mail is fixed on the target and the receiver can store up to the time was right to tithe.

Sponsorship
Sponsorship has the ability in the delivery of a number of areas of communication. Appropriate packaging can create or strengthen a sense of high name. If we are observant, lots of media information, events or programs that may involve companies or other institutions to participate. Direct Mail, letterhead, newsletters, posters, brochures, go to charity guidelines, operational vehicles, publicity in the media, seminars and empowerment programs or other potential sponsors in the sales room.

Design
Design influence will permeate all sectors and a central communications, but not the least LPZ-looking they are so impressed by the professional is not because they do not realize the importance of design is persyarakat found success in communication. Appearances packaging, advertising all have a role in raising the public's emotional response, and the response that is at the heart of everything we want to achieve.

Exhibition & Seminar
The exhibition is an event that was attended by various circles. The exhibition is also designed to be known by the public, so the LPZ participation in exhibitions to introduce the program to the public. Usually the participation of social institutions will get a special price or below the price of other conventional company. The seminar was held as a private event and implemented for the benefit of the institution. The seminar can be an opportunity for institutions mendapatka positioning. From the seminar we will be able to introduce our organization to the public, but we also will benefit from penyeleggaraan, both from membership or sponsorship, if we are able mengorganizer well.

Electronic Communication
The progress of electronic media is a new challenge in the world of marketing, including in the world of "zakat" an. Internet is also able to penetrate cultural boundaries and social classes that can serve as a window of the world in terms of information. Management of the Internet will open the opportunity for programs terkomunikasikannya so likely to get LPZ new muzakki both from within and abroad. Television and radio is also the most widely consumed media so that if the public LPZ and the role of communicating the program through TV and radio means effective communication. We can minimize production costs by getting the cooperation of media, so they also feel a program.

Presentation & Marketing Tools
Presentation of business institutions should also be done by LPZ. Individuals, groups, companies and institutions had become a target business in the delivery of excellent programs that will build trust. LPZ marketing team is a force in the "sales" zakat. So elegant marketing tools should also have prepared for a weapon. Make every meeting a great thing for candidates muzakki.

Utilizing Moment & Media
Ramadan, a time to remember the back to give tithe. Blessing month of ramadhan acquisition will boost charity funds if LPZ able to communicate well. Various media must be utilized in sosialaisasi charity. Although not only the month of ramadan just LPZ ZIS pursue acquisition targets, the most important is the flair and be able to choose the right media in socializing. Internal media at various media companies could be in communicating the ZIS. Posters, balloons, banners, Giant Banner, Zakat Handbook, brochures, stickers, sms, email, PSA also through TV and radio is a means to achieve certain targets, but it also Marketing Team to innovate in good tithe ease through ATM, SMS Charity , Phone Banking, Internet, Supermarket cashier, or direct payment through the outlets.

The whole business is a combination of PR, Advertising and promotion to establish the identity of this charity, ultimately results in achieving marketing targets charity, so charity funds, infak, Sadaqah and endowments can be managed properly.

Money on the View of Islamic Economic Thinkers

2009-10-15T18:27:00.002+07:00

Although at the beginning of the emergence of Keynesian economic thinking, the existence of money in the economy has not fully recognized. But along with the circulation period and in line with economic changes, the function and role of money in the economy more important that he not be separated from the economic system. This causes the berkonklusi economists that money is one important factor in determining the level of economic activity sesebuah country. At least there are two fundamental reasons why the economist's view that money is important in an economy. The first is that the money can be used to determine the amount of nominal, as the price level, and second because it also can be used as a standard to determine the amount of riel, such as the amount of riel riels output and employment.

In Islamic history, awareness of the importance of money in an economic system has emerged long before economics was recognized as a separate discipline. The role of money in Islamic economics has been discussed by Iman al-Ghazali (1058-1111 AD) in his book famous, þIhya Ulum al-Din. According to him, people just need money as a broker / exchange (medium of exchange) to purchase goods and services. Meanwhile, Ibn Taymiyya (1263) mentions that the money was not only functions as a medium of exchange, but he also serves as a tool for determining the value (measurement of value). Finally, in discussing the role of money in the economy, agreed with Ibn Qayyim al-Ghazali, Ibn Khaldun as it is more likely to agree with the opinion of Ibn Taymiyya.

Because there are economic instruments that are both conventional instruments or institutional policy that is inconsistent with the teaching of the Quran and the Hadith, the function and role of money in the economy of conventional and Islamic economics is different. Because the fundamental reason the economic functions of money in Islamic and conventional economics is different is that the Islamic economic system, interest (riba), gambling (gambling) and the elements are not clear, gharar (uncertainty) is forbidden religion. While conventional economic view of all these elements as a normal and legal.

In conventional economics, JM Keynes (1936) in his famous book, A General Theory of Employment, Interest and Money mengemukan a theory about the demand for money, known as liquidity preference (liquidity preference). This liquidity preference theory states that there are three main motives that determine the amount of demand for money in an economy, namely: the motive transaction (transaction motive); motive case (precautionary motive); and speculative motives (Speculative motive).

Transactions motive is defined as a motive for the demand for money necessary for the needs of a transaction. Because these transactions are usually done by individuals and businessman, the JM Keynes divides this transaction motive in (a) the motives of income (income motive), and (b) the motives of business (business motive). Meanwhile, in case the motive is a motive for holding money in order to anticipate the productions that can not be predicted in the future. In conventional economics, this motif dipengarahui by individual income levels and interest rates. Meanwhile, demand for money by speculation that the motive is to avoid deterioration of the capital value (capital value) due to decreased economic activity. To avoid this loss, the businessman used to invest money (capital) in the stock markets whose profits were largely determined by the difference in interest rates.

So we can clearly see that the first two motifs demand for money, ie the transaction motive and the motive is to guard berkaitang money directly to function as a medium of exchange (the tool of exchange) in an economy. Meanwhile, speculation over the motive is closely related to function as a store of money or property prices (store of value or wealth). When we think komparasikan between Islamic economic thinkers with Keynes's opinion above, it was clear that unless the motives of the money to speculate, the motive for having more money is approved by the economic thinkers of Islam, as stated above.

We know that the motive for this speculation is intended to scoop a profit and accumulate wealth by memamfaatkan rate changes from time to time. Looking at the characteristics and the way it is practiced in the speculation business world that involve interest (interest) to justify all means, promote the value of greed (greediness) without regard to the values of justice, it is expressly opposed to Islamic motifs of this speculation. One example of this motif is the act of monopoly (ihtikar). In a monopoly of goods and services as one act of speculation, Imam al-Ghazali distinguishes between the monopoly at the time of shortages (shortages), or the economy in the famine and at the excess (surplus) of goods and services. Shortages in the state, monopolistic practices are very much against the economic values of Islam.

Meanwhile, the Islamic economic thinkers did not see action as a monopoly on goods and services in a surplus situation as something that acts contrary to moral values and Islamic norms. This is because at the time of the excess supply of goods and services in the market, monopoly action will not affect the price of goods and services that will not endanger the welfare of the people. So it is clear to us that the motive of this speculation is contrary to the values of justice, because in addition to involving interest, it also involves elements of gambling (gambling) and also involves gharar elements.

As mentioned earlier, both the motive and the motive for the transaction in case it is not seen as a motive for the demand for money as opposed to the values and norms of Islam. But this does not mean that in a transaction, one that could take its own course with violating the provisions of God Almighty, such as manipulation, transactions of illegal goods, transactions involving interest, and monopoly. The motive of this transaction should be based on the concept of Islamic transactions. Meanwhile, in case the motive is a motive of money demand is highly recommended that Islam, as long as that motive sahaja not solely motivated to reap maximum benefit, perhaps, by exploiting differences in interest rates and saving money from places mengelurkan deposits (banks). Because of this motive is a motive for someone to save money for the sake of the future, especially in the face of economic difficulties that can not be dijangkakan, then this pattern is in accordance with the values of humanity and consideration to help others (altruistic consideration).

This motif is very useful not only to relieve himself, but also to help ease the burdens of others when facing economic disaster. However, the offered assistance to alleviate other people should not in the form of loan interest, but preferably in an interest-free assistance bentuan, Qard al-Hasan.

In addition, please note that Islam forbids treating the money as the goods (commodity) that can be bought and sold. In Islam, money is not identical with commodity that can be traded for the purpose of making profit (In Islam, money is not identical to items that can be traded in order to profit). Islam only see money as a medium of exchange, intermediary devices, and tools to determine the value, not as goods bought and sold. This means that Islam does not justify the money traded on the Foreign Exchange market (VALAS) with the purpose of speculation and enrich themselves.

Memperjualbelikan advantage in money markets Foreign Currency sourced from the difference in purchase price and selling price and interest rate differences between one country to another country where the Foreign Currency is traded against Islamic values. For example, we bought the U.S. dollar using IDR, and then sell the U.S. dollar to buy the British pound sterling, pound sterling and later sold to buy Deutchmark Germany, and eventually sold to re Deutchmark buy rupiah, and so on. From this sale process, which is often referred to Arbitraging, usually gains or losses on the can is not worth the sacrifices made and the time required. It may be that in time the shortest possible time, as the case of George Soros, who has been blamed for the primary application of the monetary crisis in the greater part of the East Asian country recently, the benefits can memperjualbelikan money with Foreign Currency market is berbilion-milliard. Soros is due to the action, not the few countries that fragile economic fundamentals particularly Indonesia, the people must suffer because of the economic crisis that hit. This is the reason why Islam does not justify the money is treated the same as free goods bought and sold, as practiced in Western economies.

Based on the above explanation, then we can see that the prohibition of "interest" (usury) in Islamic economics cause not all the functions of money in the economy can be implemented in the conventional economic system of Islam. The involvement of interest, gambling, and gharar juhalah the motive of money demand has led to speculate this motif strongly opposed by Islam. Meanwhile, two other motives, motives for the transactions demand for money and in case was not regarded as a motive for holding money is contrary to Islamic values as far as the elements of riba does not motivate them in the second motive was money demand. Unlike in conventional economics, Islamic economics strongly opposes it to be treated the same as the goods (commodities) which can be bought and sold are intended solely for profit.

Growth Against Terrorism

2009-09-30T07:44:00.002+07:00

Among in change for the better Asia’s economy, actually planted terrorism’s time bomb. This regional which potentially exit faster from recession of world economy still continue face serious threat of terrorism everywhere.

Be irony, success stimulate economy come out from global recession, on other side embedded violence of fundamentalism ideology which always frighten. Asia’s peoples as shall raced at quickly to represent sufficienct solution to war against on terrorism and similarly make economy stimulation as effective medicine to solve terrorism.

Because directly either or indirectly terrorism’s disturbance increase uncertainty and effected decrease investment. Terrorism also cause rise allocation fund to defense become double, bounded budget which should appropriated for necessity of social, health, and proverty.

Thereby, when happen coordination failure, will have economy consequences seriously to whole Asia’s growth. Various research refer, rich Asia’s countries have to expropriate role conduction with proactive prepare prevention action against terrorism until effort to leave from global recession able salty whole economy of Asia’s countries.

Fast and Social Ascetic

2009-09-29T08:50:00.003+07:00

Moslems uproarious welcome Ramadan, non moslems also follow emphaty and welcome it. Fast is imsak mean refrain from everything which cancel fast, physically as well as spiritually. We be obliged to refrain from eat, drink, and sexual desire since dawn until sunset. we also prohibit to gossip with some one else, say abusive word, giving the raspberry, listen to ugliness voice, and other negative deeds.

During Ramadan, generally product consumption like foods, clothes, and daily needs increase and its price also rise sharply. Increasing that consumption, awared or not concerned consumerism culture which influence pattern of religiousness. Moreover advertisement and program on mass media and everyday cramped our mind.

Fast properly become medium to reduce consumerism culture which already permissive. We ought to untraped and colonized advertisement and packed of magnigicience which during Ramadan batter and hypnotize with various thing that sticked with piety, courteousness,and goodness. Whereas piety measured from as far as we care and commited to maintain humanity.

Ramadan is right time to share and care. Than gave a loose and desire odf consumerism, had better we make Ramadan as medium of social ascetic. Social ascetic meaned as training form of self-discipline, self-contemplation, upgrading care about poor along with desirability to help our brother, Moslem or non-moslem.

Fast can make our sense of social solidarity trained and united seriously. Thus, fast not only refrain hungry, thirsty and seek merit but also really impacted to surrounding and poor peoples.