Islamic Economic System and the Prohibition of Interest (Riba)
Based on the data quoted from the State of the Global Islamic Economy Report mec state that people Islam as much as 2 billion all over the world have using an economic system Islam in various field started from halal products to fashion and financial systems Islam reached 4.8% equivalent with 3.1 trillion USD. Based on this data that use of the economic system Islam has experience increase, for know more in about economy Islam, come on We learn article following this
Also Read : Bahas RIBA yuk
What is Islamic Economics?
According to Hasanuz Zaman in the book Economic Function of an Islamic State (1984) defines it that islamic economics is knowledge and applications and rules of sharia that prevent injustice in the requisition and disposal of material resources in order to provide satisfaction to human beings and enable them to perform their obligations to Allah and society. Economy based on divinity is done with principle law Islam and forbid it exists interst (riba) and appropriate with existing verses in the Quran and Hadith.
Islamic Economic Goals
What is goals from economy Islam? In teachings we are Islamic there is term originating falah from aflaha-yuflihu who has meaning success, glory and victory. As for objective from implementation of the economic system Islam namely a. fulfillment need basicr encompassing people food, clothing, shelter, health as well as Education. b. equality chance for all people. c. distribution source equitable economy so that no give rise to centering wealth and minimizing inequality of distribution funds income. e. freedom in obey moral values. f. can ensure stability and growth economy on the voice of the country.
Also Read : KAIDAH MENGENAL RIBA
Principle of Islamic Economics
يٰۤـاَيُّهَا الَّذِيۡنَ اٰمَنُوۡا لَا تُحَرِّمُوۡا طَيِّبٰتِ مَاۤ اَحَلَّ اللّٰهُ لَـكُمۡ وَلَا تَعۡتَدُوۡا ؕ اِنَّ اللّٰهَ لَا يُحِبُّ الۡمُعۡتَدِيۡنَ ٨٧
( QS al- Maidah 87) which means ” you who believe don’t you forbid what good has been permitted Allah to you , and don’t you surpass limit. Truly Allah No likes people who go above and beyond limit.
First Principle economy Islam is the rightful one determine right and wrong or halal and haram are absolute authority Allah For determine matter the whereas man No own authority. Second principle is use and utilize all giving Allah existing swt on earth in a way simple and not excessive. Third principle, collect treasure in a way natural and simple No greedy, as well advocacy life in a way simple.
وَالَّذِيۡنَ اِذَاۤ اَنۡفَقُوۡا لَمۡ يُسۡرِفُوۡا وَلَمۡ يَقۡتُرُوۡا وَكَانَ بَيۡنَ ذٰلِكَ قَوَامًا ٦٧ (Qs Al- Furqon : 67)
Meaning : ” And (incl servants Almighty God Compassionate) people who if spend (treasures), them no excessive, and not (also) stingy, among both of them in a way reasonable.
Fourth principle, principle freedom in production, distribution, consumption with halal way. Fifth principle is principle justice is done in all aspect life including activity economy.
Also Read : Kaya Tanpa Riba
Urgency implementation of the Islamic Economics System
- Religious Ideological is the most basic side from teachings Islam that is exists my desire to carry it out draft finance and business in accordance with rule Islam based on the Al-Quran and Hadith benchmark road life.
- Desire free in a way economy that is Changes in the economic system from previously using a conventional system which is a system brought by colonialism the west has considered experience failure in give well-being to public in a way general and economic conventional considered more profitable party certain, evidence from desire independent in a way economy with change the economic system conventional become Islam is with establishment of the Islamic Development Bank (IDB).
- Regulation economy idealistic Islam, on the economic system Islam there is rules that don’t can violated by the perpetrators economy, because rule the can influence economic behavior and output, for example prohibition transaction containing finances interest (riba).
Also Read : Cara Melunasi Hutang Riba
Prohibition of Interest (Riba)
Interest (riba) linguistically has meaning additional and based term interest (riba) means taking addition from treasure main thing to do a falsehood, in the transaction sell buy or borrowings conflicting principle muamalah in Islam.
Qs An- Nisa : 29
يَٰٓأَيُّهَا ٱ لَّذِينَ ءَامَنُوا ۟ لَا تَأْكُلُوٓا ۟ أَمْوَٰلَكُم بَيْنَكُم بِ ٱ لْبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضٍ مِّنكُمْ ۚ وَلَا تَقْتُلُوٓا ۟ أَنفُسَكُمْ ۚ إِنَّ ٱ للَّهَ كَانَ بِكُمْ رَحِيمًا
“O people who believe! Do not consume your neighbor’s property in a false (untrue) way, except in trade that takes place on the basis of mutual consent between you. And don’t kill yourself. Truly, God is Merciful to you”
from the verse we can know Allah Forbids us to taking addition like interst (riba) on every transaction of muamalah activities .
As for hadith states about prohibition interest (Riba) : ” Keep in mind that all usury which was practiced in the era of ignorance abolished from practice You. You entitled taking money principal ) that you give it, surely You No tyrannize and be wronged .” (HR Muslim).
Types of Interest (Riba)
- Riba Qard
Usury type This is extra taken with excess certain requirements in activity debt.
- Riba Jahiliyah
Extras provided from principal loan if borrower No can return debt right on time due date.
- Riba Fadhl
Exchange something objects (commodities) can exchange goods consumption with goods consumption or exchange Money with Money but quality and quantity different.
- Riba Nasi’ah
There is additional origin from suspension submission or reception type goods exchanged _ with goods others based on time that has been required in the transaction process.
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The solution to replacing the ribawi system with an Islamic economic.
Economy Islam offer an alternative replacement transaction interest that is with using a sharing system results (profit and loss sharing). Definition of system for results that is when capital owners do cooperation with businessman in something activity effort, which if produce profit so profit divided Together based on agreement and if experience loss so loss the borne jointly between capital owners and actors business. System for results This own a number of type that is Mudharabah and Musyarakah
- Mudharabah is cooperation between the owner of the capital (shahibul mal) who provides it overall capital and management business called with mudharib. If business experience profit so can shared based on agreement in contract whereas if experience loss so matter This borne by the capital owner if reason loss No from negligence manager effort (mudharib) and if loss caused by negligence mudharib so mudharib come too as well as responsible to loss business.
- Musharakah is draft cooperation between two party or more everything party enclose business capital contribution with agreement if business experience loss so loss the covered together.
Based on research conducted by ( Risanda, et al, 2017) stated that the system of profit and loss sharing is in economy Islam Good That mudhrabah or deliberation can ensure exists justice or not exists the wronged party.
References :
Risanda Alirastra Budiantoro, Riesanda Najmi Sasmita, Tika Widiastuti . (2018). “Sistem Ekonomi Islam dan Pelarangan Riba dalam persepektif Historis ”. Journal Ilmiah Ekonomi Islam. Volume 4 (1) 1-13
Fahrurrozi. ( 2019). “ Urgensi Penerapan Sistem Ekonomi Islam”. El Barka : Journal of Islamic Economics and Business . Volume 2(2) 191-221.
State of the Global Islamic Economy Report https://www.dinarstandard.com/post/state-of-the-global-islamic-economy-report-2023
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