Ekonomi & Keuangan Islam

The branch of social science that discusses the economy with the teachings of Islam

Understanding Islamic Economics Islamic economics is a branch of social science that discusses the economy with the teachings of Islam.

And among its contents discuss the Definition of Islamic Economics

The Islamic economic system is an economic system based on Islamic teachings and values, sourced from the Al Quran, As-Sunnah, ijma and qiyas. This has been stated in the letter al maidah verse (3). The Islamic economic system is different from the capitalist and socialist economic systems, the Islamic economic system has the good characteristics of the socialist and capitalist economic systems, but regardless of its bad characteristics. Islamic economics is a social science that studies people's economic problems inspired by Islamic values.

There are several definitions of Islamic Economics from Muslim economists in the book by M.B Hendrie Anto, including:

v Islamic economics is a science and application of guidelines and rules of shari'ah which prevent injustice in obtaining and using material resources in order to meet human needs and in order to carry out their obligations to Allah and society (Hasanuzzaman, 1986; p.18)

v Islamic economics is the response of Muslim thinkers to the economic challenges of their time. In this effort they are assisted by the Qur'an and Hadith, as well as reason and experience. (Shidqi, 1992; p.69)

B. History of the Islamic Economic System

With the destruction of communism and the socialist economic system in the early 90s, the capitalist economic system was hailed as the only valid economic system, but it turned out that the capitalist economic system had negative and worse consequences, because many poor countries were getting poorer and the number of rich countries relatively little getting richer. In other words, capitalists failed to increase the standard of living of many people, especially in developing countries, even according to Joseph E. Stiglitz (2006) the failure of the American economy in the 90s was due to the greed of capitalism, the full failure of existing economic systems was due to Each economic system has weaknesses or deficiencies that are greater than the strengths of each. The weaknesses or shortcomings of each of these economic systems are more prominent than the advantages.

That is what has led to the emergence of new thinking about the Islamic/sharia economic system, especially among Muslim countries or countries where the majority of the population is Muslim. Countries with a population of Muslims try to create an economic system based on the Koran and hadith, namely the Islamic economic system.