Indo-Eng Translation Workshop - 405

Islamic Economy

Islamic economy is a social science that studies about the citizen’s economic problems inspired by Islamic values. Islamic economy or cooperative economic system is different from capitalism, socialism, or even welfare state. It is different from capitalism because Islam oppose exploitation to the poor workers by the owners of capital and forbid the accumulation of wealth. Beside that, economy  through Islam insight is a life demands as well as advice which have religious dimension that is applied in the ethic and moral of life.

The difference of Islamic Economy and Conventional Economy

The economy crisis which often occur is considered as the act of conventional economic system, which put forward the system of interest as the profit’s instruments. It is contrast with the offers given by Islamic economy system, which is sharing system as their profit instrument. Islamic economic system is very different with capitalist, socialist, or communist economy. Islamic economy is also not being in the center of those three economic systems. Contrary to the Islamic economy, capitalist is more Individualist system, socialist that let the people bear the responbility with their extreme communist system. Islamic economy establishes trading rules and respect in transaction. Islamic economy must be able to provide the welfare of its community, give a sense of fairness to each members, togetherness and kinship and be able to give greater opportunity to every businessman.

The Objective of Islamic Economy

Islamic economy has the objective to give the harmony of life in the world. Islamic values not solely belongs to Muslim only, but also belong to every living creature in this world.The essence of the Islamic economy is the fulfillment of human needs based on Islamic values ​​in order to achieve the goal of religion (Falah). Islamic economy becomes the grace to the entire universe that is not limited by economic, social, cultural and political of the nation. Islamic economy is able to capture the value of the phenomenon of society so that in the process of it will not leave the source of Islamic economic theory of Islamic law, can change.

The Potential of Islamic Economy in Indonesia

Society organizations in the field of Islamic economics, The People of Islamic Economy (Masyarakat Ekonomi Syariah (MES)) judge that the Islamic economy in 2015 will grow better than this year. It is suited to expect the growth of the national economy which is also expected to increase at about 5.5%. Some Islamic economic approximates related industries such as Islamic banking and Islamic insurance support the fact. The growth of Islamic banking is expected to reach between 5-6% market section. Indonesian Islamic insurance industry who now holds the fourth position of the world will grow by 20% in 2015. According to the MES Islamic economic growth in 2015 will be better.