Archive | 2021
Sharia Islamic Economics in the Middle of Civilization Transition
Abstract
Journal of Sharia Economics Vol. 3, No. 1, June, 2021, pp. 64 75 Mohammad Ghozali; Resi Handayani; Wahyudi Bakri Page | 65 Both in general and specifically, individually or in groups, macro, and micro. Current development changes the economic system which increases according to the development of human culture. As homo economics, this is a human effort to complete their needs and survival.1 The economic system it’s a group of economies that have regulations. Every economic institution influences each other for economic progress.2 The discourse about Islamic economic system because recently began to find several weaknesses from the conventional economic system under the auspices of capitalism. Capitalism assumptions fail in realizing the original ideals of a common welfare economic system.3 Islam, as a heavenly religion that is complete and comprehensive but also universal, governs all aspects of human life, including the economy. Islamic economics actually has been born since Muhammad SAW started his career as a trader. Even though Islamic institutions had not yet emerged, Muhammad SAW had practiced a trading system that was later accommodated in Islam. Of course, the Islamic economy has different characteristics from others, including capitalism and socialism.4 There were some articles discussed about the Islamic Economics in the various context, for example related to the money and monetary in Islamic economics,5 also Islamic economics from the perspective of Maqasid Asy Syariah6, and many others. This paper discussed how the economic system of capitalism, the economic system of socialism, the Islamic economic system, and the relationship between them. LITERATURE REVIEW Islamic Economics Islam is a teaching that concerns the entire system of life that is compressive, in which it regulates all aspects of life, both social, economic, cultural and political aspects, as well as spiritual matters as a form of servitude to God. In the economic context, Islamic teachings through the Qur an and al-Sunnah are the main basis that establishes legal rules as limits for human behavior in carrying out economic activities aimed at achieving stability in the welfare of the people without having to be harmed by one of the parties. or only advantageous in one of the other parties. The Islamic economic system in it works based on (a) the same goal, it is seeking the satisfaction of various 1Syafiq Hanafi, Sistem Ekonomi Islam dan Kapitalisme, (Yogyakarta: Cakrawala, Cet. I, 2007), 1. 2M. Nur Rianto, Pengantar ekonomi Syariah Teori Dan Praktik, (Bandung: Pustaka Setia, Cet. l, 2015), 63. 3Elma Muchtar Aditya, Universalitas Ekonomi Islam, Jumal Fokus Ekonomi, STEI Widya Manggala Semarang, Vol.3 No.l, Juni 2008, 87. 4Choirul Huda, Ekonomi Islam dan Kapitalisme (menurut Benih Kapitalisme dalam Ekonomi Islam), Economica: Jurnal Ekonomi Islam, Volume 7, Edisi 1, Mei 2016, 27 5 Joko Hadi Purnomo, “Uang Dan Moneter Dalam Sistem Keuangan Islam,” Journal of Sharia Economics 1, no. 2, (December 2019): 80-100. 6 Fira Mubayyinah, “Ekonomi Islam Dalam Perspektif Maqasid Asy-Syariah” Journal of Sharia Economics 1, no. 1, (June 2019): 14-29. Journal of Sharia Economics Vol. 3, No. 1, June, 2021, pp. 64 75 Mohammad Ghozali; Resi Handayani; Wahyudi Bakri Page | 66 needs of human life both for personal and public interests. The Islamic economic system works according to (b) the principle that is influenced and limited by Islamic teachings sourced from the Qur an and hadith.7 Furthermore, Islamic economic system which is considered more fair, honest, and real has a completely different paradigm from the capitalist economy which prioritizes only one party, namely the owners of capital. Islamic economics is expected to provide a good and more rational alternative for the progress and welfare of the world community.8 According to Musa Asy ari as quoted by Musran, in the Qur an, economic principles emphasize the need for two basic principles, namely the existence of vertical dynamics in the form of work ethic and horizontal in the form of social welfare in economic life. In Islamic teachings, the behavior of individuals and communities is directed towards how to fulfill their needs and how to use existing resources. This is a subject that is studied in Islamic economics so that the economic implications that can be drawn from Islamic teachings are different from traditional economics. According to Metwally, the principles of Islamic economics can be broadly described as follows:9 1. In Islamic economics, various types of resources are seen as gifts or deposits from God given to humans. As a gift from God, humans as recipients of this gift must use it as efficiently and optimally as possible in production in order to fulfill common welfare in the world, namely for themselves and others. As a consequence, each of these activities will be accounted for in the hereafter. 2. Islam recognizes the existence of private ownership rights over certain goods within certain limits, including ownership of the means of production and factors of production. First, the right to individual ownership is limited and bound by the interests of the community, and second, Islam rejects and prohibits from any income earned illegally and void, let alone efforts to destroy society. 3. Islam realizes that cooperation is the main driving force of the Islamic economy. Consequently, for a Muslim, whether he is a buyer, seller, wage earner, or profit maker and so on, he must still adhere to the guidance of Allah swt in the Qur an. 4. Private ownership of wealth must play a role as productive capital which will increase the amount of national product and improve the welfare of the community. Therefore, the Islamic economic system rejects the accumulation of wealth that is controlled by a few people. This concept is in stark contrast to the capitalist economic system, where industrial ownership is dominated by monopolies and oligopolies, including industry which is in the public interest. 5. Islam guarantees ownership rights for the community, and its use is planned for the benefit of the people. This principle is based on the Sunnah of the Prophet 7 Ikit. Akuntansi Penghimpunan Dana Bank Syariah. (Yogyakarta: Deepublish, 2015) 8 Ikit. Akuntansi Penghimpunan Dana Bank Syariah. (Yogyakarta: Deepublish, 2015) 9 Yuliani. “KONSEP DAN PERAN STRATEGIS EKONOMI SYARIAH TERHADAP ISU KEMISKINAN” Iqtishadia 8, (1), March 2015: 133-154. Journal of Sharia Economics Vol. 3, No. 1, June, 2021, pp. 64 75 Mohammad Ghozali; Resi Handayani; Wahyudi Bakri Page | 67 6. Islam teaches that a Muslim should be afraid of Allah and the hereafter. 7. In this regard, Islam denounces excessive profit taking, trade based on dishonesty, unfair treatment, all forms of discrimination and oppression. 8. A Muslim whose wealth exceeds a certain size (nis}āb) is obliged to pay zakat. Zakat is a means of distribution of the wealth of the rich, which is shown to the poor and those in need. 9. Islamic teachings prohibit any interest payments (riba) on various forms of loans. Regarding the issue of flowers, the Qur an gradually warns us about flowers METHOD This was a library research. Khatibah suggests library research as an activity carried out systematically to collect, process, and conclude data using certain methods/techniques in order to find answers to problems faced through library research.10 Meanwhile, Danandjaja suggests that library research is a systematic scientific method of bibliography research, which includes the collection of bibliographic materials, which are related to the research objectives; collection techniques with library methods; and organize and present data.11 The data used in this article was secondary data, in which the authors used various sources from books, research articles, website, and many more. RESULTS AND DISCUSSION Capitalism Economy System Capitalism is the largest and most trusted economic system at a time where this system believes that the greatest power of economic movement is in the largest number of investors and the economic balance of various sectors is believed because of the existence of market mechanisms without government interference. The capitalist system is the power that is in the hands of every individual or individual, meaning that everyone can own resources and compete for profits.12 Capitalism comes from the origin of the word capital, which means capital, which is defined as a means of production such as land and money. Meanwhile, the word is means understanding or teaching. Capitalism is an economic system that tends towards being collected individually without interference from the kingdom or the government. It can be interpreted that capitalism is an understanding of the teachings of everything 10 K. Khatibah Penelitian kepustakaan. Iqra : Jurnal Perpustakaan dan Informasi, 5(01), 2011: 36-39. 11 J. Danandjaja. Metode Penelitian Kepustakaan. (Indonesia: Antropologi Indonesia, 2014). 12Itang, Adib Damuri, Sistem Ekonomi Kapitalis, Sosialis dan Islam, Jurnal Keislaman, Kemasyarakatan dan Kebudayaan, Vol. 18, No. 1, 2017, 67 Journal of Sharia Economics Vol. 3, No. 1, June, 2021, pp. 64 75 Mohammad Ghozali; Resi Handayani; Wahyudi Bakri Page | 68 related to capital or money.13 In capitalist economy, the role of capital is very important. The owners of capital can control the market and determine prices in order to achieve large profits. Industrialization can run well through capitalism.14 The Definition of capitalism according to scientific: 1. According to Fernand Braudel, he said that the capitalists are speculators and monopolists to obtain large profits without taking too much risk. 2. Capitalism by Karl Marx15 a production system based on the relationship between capital and labor. Investors have full rights regarding private ownership. Capitalism leads to individualism ownership in the realm of profit, the market system, etc. 3. Capitalism by Ayn Rand is