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Islamic Economy Integration

Islamic Economy Integration

By Dr Khodijah Ishak, M.E.Sy Lecturer, Islamic Economy Institute of Bengkalis (STIE SYARIAH)

Economic integration is the application of economics based on a merger between conventional economics and Islamic economics. This method is the best alternative in meeting the wishes of Muslim users in most countries in the world because the economy is a very important sector for the survival of the ummah. The advantage of a country is measured by the level of its economic progress.

Based on data from Global Religious Futures, the world’s Muslim population is estimated at 1.6 billion people. However, in countries with a Muslim majority population, the economic system applied is not an Islamic economic system.

One of the obstacles is the lack of public understanding of Islamic economics. Many think that conventional economics is considered to have more advantages than Islamic economics. Basically, the benefits obtained in Islamic economics are actually the same as conventional economics. However, in Islamic economics, it does not contain elements that are prohibited by Allah SWT, for example, such as usury.

In Islamic economics, the concern is more about contract rules (agreements) when making transactions. For example, the Akad mechanism has a very important position and role in carrying out mu’amalah – which is a part of Islamic jurisprudence or fiqh. 

A contract can be one of the determinants of whether a transaction is legal or not. The execution of the contract that is occurring has a very broad influence (with legal consequences). In the Islamic economic system, transactions must always be based on the rules of Islamic law (Shariah), because transactions are a manifestation of human deeds that have the value of worship before Allah SWT.

In conventional economic practice, there are no restrictive rules about how an individual can make a profit. The main objective is that any capital owned by the economic unit either in the form of money or otherwise is to maximize profits.

Meanwhile, in the Islamic economic system, profit can only be made from transactions of a business nature and not from transactions that are of helping nature. In business transactions, profit sharing is carried out using a profit-sharing system the amount of which is determined as a percentage. With this percentage, profits will be divided according to their respective proportions, if it turns out that there is a loss, it will be borne jointly in accordance with the contract or agreement.

The Islamic economic system is an alternative choice because this system is different from other economic systems. The purpose of the Islamic economy is not merely for material gains but includes various aspects such as welfare, improving living standards, strengthening the spirit of brotherhood and socio-economic justice. Besides in the Islamic dealings, there must be a contribution to a balanced end, both in material and spiritual gains for all mankind. In the implementation of the Islamic system of economy, the dimension of faith is relevant in every decision humans make.

Islamic economics is also a system that can regulate Muslim behaviour that is based on the teachings of the Al-Qur’an and As-Sunnah which are both used as a solution in dealing with challenges related to the people’s economy.

The emergence of modern Islamic economics on the international stage began in the 1970s which was marked by the presence of contemporary Islamic economists such as Muhammad Abdul Mannan, M. Nejatullah Shiddiqy, Kursyid Ahmad, An-Naqvi, M. Umer Chapra and others. We do not have their influence today.

Therefore, if the Islamic economy is to be properly implemented, it will necessitate a comprehensive movement by various parties, particularly the governments of various countries with a large Muslim population.

It is necessary to increase human resources, make it easier to produce halal products, emphasise sharia investment, develop large-scale exports of Muslim products, and promote various sectors in the halal industry’s development.

Finally, there is much room for the implementation of the Islamic system of economy which is a system that dispenses fairness for all parties involved. The world is in need of fairness, certainly with. the economic disparity that is rampant worldwide.