Economic

To overcome the crisis of the great storm and save the giant banks that collapsed, the United States government was forced to bailout $ 700 billion dollars to 1 trillion U.S. dollars. America's intervention in the domestic financial sector Uncle Sam is contrary to policy schools of free market (capitalism) that followed the United States. In fact a similar injection of funds to BLBI anyway, no significant exposure to stem the crisis storm so great. This bailout policy, not just the American government, but also central banks of Europe and Asia step in to inject funds to boost liquidity of the economy, which is expected to prevent the domino effect of the collapse of investment banks are world class.

A few moments after Lehman Brothers bankruptcy information, the world's financial markets experienced a free fall in the lowest level. Several major banks collapse and the collapse of other investment banks in the United States immediately triggered a wave of panic in various financial centers around the world.

Capital markets in the United States, Europe and Asia soon experience that resulted in panic selling of stock index falling to each market. Stock markets everywhere into a free fall into the abyss. London stock market recorded the worst fall in a day that reached 8% decrease. While Germany and France each slapped with a fall of the capital market by 7% and 9%. Capital markets emerging markets such as Russia, Argentina and Brazil also experienced a very bad slump of 15%, 11% and 15%.

Since the beginning of 2008, China's stock market plunged 57%, India 52%, Indonesia 41% (before the activity is suspended), and the European zone of 37%. While bond markets slumped, the developing country's currency weakened and commodity prices fell, especially after the oil commodity speculators judged that the economic recession will reduce energy consumption of the world.

In the U.S., Wall Street continued to sag. Dow Jones as the epicenter of world capital markets fell. Dow Jones index numbers indicate worst rates in the last four years under the number 10,000.

In order, anticipate that the financial crisis, seven central banks (including the U.S. Federal Reserve, European Central Bank, Bank of England and Bank of Canada) cut interest rates 0.5%. This is the first time the policy interest rate the central bank carried out simultaneously in a large scale.

Based on the facts and reliata is happening right now, it was obvious that the drama of the financial crisis entered a very level in the fall, dank arena that can be said that the U.S. financial crisis at the moment, far worse than the Asian crisis in 1997-1998 years ago. The impact of the current crisis was so pathetic global finance. After all, when the Asian financial crisis, at least there is 'safe heaven' or 'safe heaven' for global investors, namely in the United States, Europe and Japan, but now, all capital markets fall. All investors panic.

Therefore, the whole world economic observers agree that the economic shock from the financial storm that hit the United States is the most severe shock after the Great Depresion in 1930. Even the IMF's financial sector shocks judge this time was the worst since the era of the 1930s. It is expected to undermine world economic growth slowed to 3% in the year 2009, or 0.9% points lower than the projection of the World Economic Outlook in July 2009.

From exposure to the above, look to the real, that the capitalist economic system embracing laize faire and riba-based re-defendant. Schools of neo-liberalism can not be maintained. Thought of Ibn Taymiyya and Ibn Khaldun is a correct ijtihad and fair to realize the economic benefit of society.

So very wrong with what Fukuyama to declare the victory of liberal capitalism as a representation of the end of time "The end of history" (National Interest Magazine, 1989). Fukuyama's thesis is outdated and nasakh (not applicable), because the economic system of capitalism has failed to create a just economic order and stability.

In fact, since the early 1940s, Western economists have been aware of such failure indications. Is Joseph Schumpeter with his book Capitalism, Socialism and Democracy, stated that modern economic theory has entered a period of crisis. The same view was also expressed by economists generation of the 1950s and 60s, such as Daniel Bell and Irving Kristol in the book The Crisis in Economic Theory. Similarly, Gunnar Myrdal in the book Institutional Economics, Journal of Economic Issues, also Hla Mynt, the book Economic Theory and the Underdeveloped Countries and Mahbubul Haq, in his book The Poverty Curtain: Choices for the Third World.

Incline to the view that capitalism grew louder in the 1990s era in which many Western economists generation of this decade and experts of Islamic economics in the same generation as expressly stated that economic theory is dead, among the most prominent is Paul Ormerod. He wrote a book (1994) entitled The Death of Economics (Death of Economics). In this book he states that the world currently affected by an anxiety that all-powerful with the operation of less economic system has resilience to cope with any economic or monetary shocks. Indications that may be mentioned here is in the late 19th century the world experienced a crisis with the amount of the unemployment rate is not only happening in other parts diunia developing countries but also plagued the developed countries.

Next Omerrod insisted that economists are stuck in a mechanistic ideology of capitalism that did not have the power to help and overcome the economic recession that hit the world. Market mechanism is a form of capitalist systems tend to be applied to the concentration of wealth in certain groups of people.

Because of that, now comes a wave of consciousness to find and use the economic system of "new" that have implications for justice, equality, prosperity and the achievement of comprehensive goals of efficiency. The new economic concept is considered very urgent to be realized. Economic construction is done with an objective analysis of the overall format of the contemporary economy with a clear vision and a fresh approach and comprehensive.

Under the domination of capitalism, the economic damage happening everywhere. In recent years, the world economy was entering a phase that is very unstable and the future entirely uncertain. After experiencing a difficult time because of high inflation, returning the world economy experienced a deep recession, severe unemployment, plus the high real interest rates and exchange rate fluctuations that are not healthy.

The impact was the destruction of the joints economies of developing countries, huge projects have forced the rescheduling, hundreds of entrepreneurs out of business, the prices of goods and services including goods of basic needs increased uncontrollably.

The crisis is even more alarming because of the extreme poverty in many countries, various forms of socio-economic inequities, large balance of payments deficits, and the inability of some developing countries to repay their debts. Henry Kissinger said, most economists agree with the view that "None of economic theories or concepts that appear before this could explain the global economic crisis" (News Week, "Saving the World Economy").

Seeing these phenomena is tragic, it is not surprising that a number of leading economists, criticize and worry about the economic ability of capitalism in the economic prosperity on this earth. In fact quite a lot of claims stating that capitalism has failed as a system and economic model.

The presence of these new economic concept, not the ordinary ideas, but has the support of the world's leading economists who received the Nobel prize in 1999, the Joseph E. Stiglitz. He and Bruce Greenwald wrote the book "Toward a New Paradigm in Monetary Economics". They offer a new paradigm in monetary economics. In the book they criticize the capitalist economic theory (conventional) with the new monetary approach suggests that either consciously or unconsciously, is the point of view of Islamic economics in the field of monetary, such as the role of money, interest, and bank loans (terms of real and monetary sectors).

An Islamic Economic Reconstruction Requirement
Because capitalism has failed to deliver prosperity with justice, it becomes a necessity for mankind today to deconstruct and reconstruct the economy of capitalism and economic justice berketuhanan called Islamic economy. Means breaking down the paradigm of deconstruction, construction systems and materialism of capitalism, and replace it with a system and paradigm of Shari'ah. Positive achievements in the field of science and technology exist that we can use, means that the collapse debris is there that can be used, such as tools and econometric analysis matamatis,. Etc.. Whereas negative values, concepts and theoretical paradigms that destrutktif, materalisme philosophy, moral indifference, and many more concepts of capitalism in the field of monetary and economic development must be deconstructed. Because without the efforts of deconstruction, the crisis after crisis would continue to occur, the economic injustice in the world will be more rampant, more and gaping economic disparities, injustice through a system of usury and paper currency more and more hegemonic.

Now depends on the academics and practitioners to serve economic construction Shariah Islamic economics that really fair, maslahah, and can realize the welfare of mankind, without any financial crisis, (economic stability), how oppression, injustice and exploitation, both among individuals and companies, the state of the company, as well as rich countries against poor countries.

Dr M Umar Chapra, an initiator of Islamic economics and finance, once told the author about his personal experiences. Mid-1950, while studying economics at a university in America, he often discussed with colleagues from Pakistan and other countries. He argues Islamic economics as a scientific discipline is there and can be realized.

Her belief is so strong intellectual background of the coachee teacher, Sayyid Abul A'la Al-Mawdudi, the Islamic doctrine of universal and comprehensive. Although confidence is always communicated with his colleagues and academics at the university, he did not get a positive response. He even mocked, ridiculed, demeaned, and deemed not insane.

Unfriendly atmosphere that was ongoing due to the golden age of economic ideology of socialism and capitalism. Therefore, to complete the S3 and teaching in almameternya, he was forced to keep his ideas, to be explained in a comprehensive manner conducive situations. Returned to Pakistan in 1961, he joined the Central Institute of Islamic Research. Center of scientific study that systematically criticizing the ideas and principles embodied in the Islamic tradition, which is considered to meet the intellectual premise for a healthy economic system. At this institution he had the opportunity to develop focused thinking.

After several years teaching economics at several universities in the United States, he became economic adviser to the Saudi Arabian Monetary Agency (SAMA). Activities that provide direct experience with the complex operational aspects of a financial system and monetary control. After that, the literature on Islamic economics emerged, especially a PhD student's thesis topic like Dr MA Mannan, Islamic Economics, Theory and Practice, which appeared in 1970.

IDB case study
As countries establish IDB member OIC, the Muslim economists feel the economy stages Islam has shifted from ideas and theories to the practice field and institutional. IDB is more to be a pilot project. IDB became a kind of laboratory and education center, training, and the international Islamic financial studies.

Many parties, especially academics, professionals, and students conduct scientific research at the IDB. The results of research into materials seminars, symposia, and international conferences. It once more confirms the identity of the IDB to raise prestige of Islamic financial arena on a global level. IDB figures and performance is the center of attention of experts, clearly very positive for the condition and positioning of Muslims vis-a-vis other peoples in international affairs.

Success was not only abolished the Islamic people doubt his ability to overcome the internal problems of weight, but also strengthen their belief that the Islamic financial system more equitable, fair, and stable than the existing financial system. Capital IDB success, studies of economics and Islamic finance to spread to Western countries.

In some universities in Saudi Arabia, began to teach Dirosah Fil-Iqtishod al-Islami, such as Imam University in Riyadh and Umm al-Quro in Mecca. In Pakistan established the International Institute of Islamic Economics in 1980 and in Malaysia was established Kulliyah of Islamic Economics in 1983. In Indonesia, although the issue of Islamic economics relatively late entry, but there is a strong enthusiasm to learn, as if to catch up. In Indonesia, perkembagan scientific studies are very diverse and dynamic, because it has involved universities and private land, whether owned by Muslims and non-Muslims.

Necking
But there are worrying trends. Direction of economic thinking and developments of Islamic finance through downsizing. The idea which was originally based on economic thinking in terms of scientific disciplines (scientific discipline), is now driven more strongly to the financial sector alone. Many colleges that offer Islamic studies or Banking Islamic Accounting apart from the roots of Islamic economics in a philosophical-epistemological. In fact, education and training module banks, often eliminating the main points of the study of Islamic economics - both in terms of science and systems.

Seminar on Islamic banking is often performed with varied topics, but seemed out of the spirit and the spirit of the Islamic economic philosophy in an integrated manner. Explanation interviewees remains a question mark. Very logical, because the participants often ask the fundamental things-philosophical, but answered with a partial-pragmatic approach. Usually, if not satisfied, they mutter''Ah, this is tantamount to capitalism'',''Oh, no different from conventional banks'', and other similar expressions.

This tendency is dangerous, because it will deliver the parts to be supporters of Islamic economic science building. Like a stripped down car components, which can not work carrying passengers. If the parts are to be removed components and supporters one by one, the Islamic economy in terms of science is lost and will not be able to function as a science. Is it to predict future events (Milton Friedman), or make a description and analysis of facts (Samuelson).

The trend is happening for several reasons. First, the unavailability of adequate literature. Entry of the Islamic economic issues in Indonesia is not coupled with the supply of reference sources that can be scientifically justified. Second, more motivated because of the spirit (hammasah). Impulse driven by passion alone, can not lead anyone to the objectives to be achieved.

Third, existing studies based on lack of understanding of scientific epistemology, philosophy and adequate. Maybe this problem is most severe academic. Until now, there have not seen the economic experts of Islam in Indonesia which controls aspects of it. Who come to the surface only those who understand the scientific studies have pragmatism. And the author really understands why it happened, and why not many are interested in the philosophical aspects of Islamic economics.

Right rail
There are several ways to bring the discourse of Islamic economics and finance to the right rail, sesuasi rule a scientific discipline. Among other things, the first way, reproduce scientific references and references that can be accounted for. We have to admit that all references are available in English and Arabic. Therefore, there must be a translation stage such as the efforts of Caliph Harun al-Rashid and the caliphs after which the translation of Greek Referrals, so that Muslim intellectuals master science and philosophy.

The second way, described Islamic economics with all its branches are integrally and simultaneously. For example microeconomic and macroeconomic, public finance, taxation, trade and international finance aspects even more detailed as the theory of consumer and producer behavior. Ignoring one aspect will result in the loss of the building structure of Islamic economics and damaging its image.

The third way, the spirit (hammasah) should be coupled with a careful view (bashirah). Required a high level of criticism in the conduct of the study, because we will face different philosophy basis of their respective scientific disciplines. The experts of Islamic economics and finance should be able to explain that Islamic finance and economics have different philosophical basis. And therefore he is radically different from any discipline.

But these explanations have to use a medium that can be understood by those of different views. In short, we must be able to explain that we are different not just differently, but because it is different. The fourth, the socialization process of Islamic economics should be done by highlighting scientific roots, and not concentrate on the branches and fruit only. This approach is still lacking, both being taught in universities as well as the introduction of training and training for trainers for the teachers and lecturers.

The fifth way, the approach to teaching economics and financial aspects of Islam need to connect the teachings of Islam which is more basic, such as creed, sharia, and morals. The third pillar should be a spirit, so as to create a meaningful scientific disciplines, not only intellectually, but also in spirit and conscience. And Allaah knows best-shawab bus.

Cases mentioned above, is not the center of our attention in this article. Our focus is whether the practice of monopoly or cartel also is a business model that is forbidden in Islamic perspective.

Islamic Perspective
There are so many in the Islamic literature relating to monopolies, and nearly all agree that monopolistic practices are strictly prohibited. The same applies to all forms of monopolistic competition (price, goods, etc).

All interviewees stated that the monopoly in all kinds of community needs is prohibited. Reasons for such restrictions, the monopoly will have enormous power to raise prices and control the supply of goods at will, and in the end, will torment the people.

Proof in Al-Quran
Monopoly (ihtikar) comes from the word hakr, which means collecting and controlling goods. Ihtikar used by scholars of Islamic jurisprudence to assert the privilege to collect and control of goods in an effort to anticipate the need for price increases. In other words, means the process of monopolizing ihtikar products to result in price increases.

Al Quran does not mention about ihtikar. Al Quran only show about hoarding gold and silver. However, in the hadith the Prophet Muhammad is mentioned that a lot of muhtakir (monopolist) is a sinner.

Monopoly and the Spirit of Islam
In an article a consultant in the Islamic sharia Banker Magazine said that the spirit of Islam is opposed to monopolistic practices and the terms of any condition.

Dr. Zaki Badawi also argued that the same thing applies to the banking system and the efforts of others. Monopoly in the banking system as an example, the monopolist will provide the financial strength and commercial practices in the community. The spirit of Islam to realize that the monopoly will give the right of undue authority to a few groups will also affect the ineffisiensi.

However, sometimes there are events / circumstances in which some Muslim groups to monopolistic practices. For example, the Islamic banking system in some Muslim countries, has operated a national monopoly with state protection.

Such cases occur in Malaysis Islamic Bank Bhd, conducted by the state monopoly when founded in 1983, until then the government of Malaysia introduced the banks of two systems in 1993, which allows conventional banks to open bank services without proper Islamic bank interest.

Although there are many opposing views, especially those related to monopolistic practices recently, most experts argued that monopolistic practices in all its forms in the field of trade, politics finasial and contrary to Islamic principles.

Passing through Thin Line
The question that arises is can the Muslim men participating in the activities of the company or investing in businesses involved in monopolistic practices that are not against the law and illegal activity?

According defisini significant monopoly on supply groupings and one player to exploit consumers and workers, many experts tend to state monopoly as opposing the practice of law in Islam.

However, experts have argued subjectively. One hadith says that menuruf, ihtikar only items related to household needs and motivation to store items that can trigger or anticipate rising prices of goods in the market.

Current monopoly, as praktenya generally conducted by some companies not only control the supply to affect prices, but also to maintain the business, the government's desire and market penetration (by making significant price declines). Currently, more harmful monopolistic rival firms in the same industry than adverse consumer.

Return to the Microsoft case, several institutions of Islamic funds have been canceled from the list of Microsoft stock sharia. However, monopolistic practices more acceptable than that based on the practices of interest.

On the other hand, was the dark ages that experienced by the western world it is inversely related to the development of science in the Islamic world. During this period was the golden age of Islam, where many Muslim scientists succeeded in giving the works of significant scientific, one of the world in development economics. Many Muslim scholars who write, research, and produce economic theories that result up to now are still relevant to be studied and applied.

Some Muslim scholars who managed to produce phenomenal work on the economic theory of them is Ibn Taymiyyah, Ibn Rushd, Ibn Khaldun, Al-Ghazali, and much more. Ibn Taymiyyah, for example, had issued a theory known as 'price volatility' or the ups and downs in market prices. He stated that: "For the ups and downs in market prices not only because of the injustice caused by a particular person or party, but also because of the short length of production period (khalq) a commodity. If production rises and demand falls, the market price will rise, on the other hand, if production falls and demand rises, the market price will come down. "The theory is if we examine more deeply involve the law of supply and demand (supply and demand) in the market , now it is recognized as a theory of irony that comes from the western world.

Another figure who managed to give a big contribution is the Ibn Rushd (Aveorrus). Roger E. Backhouse (2002), wrote a book called 'The Penguin History of Economic, which contains in it about the work produced by Ibn Rushd. He produced a theory by introducing a fourth function of money as a means of saving the purchasing power of consumers, who stressed that the money can be used at any time by consumers for buying life. Earlier, Aristotle mentions that the function of money there are three, namely: as a medium of exchange, a tool to measure value, and as a reserve for future consumption.

Ibn Rushd also denied Aristotle's theory of value for money, where its value should not change. Ibn Rushd states that the money should not be changed for two reasons, first, the money serves as a tool to measure value, then the same as Allah, the Most Estimator, he would not change, then the money as a measure of the situation should not be changed. Second, money serves as a reserve for future consumption, the change in him is not fair. From both these reasons, the actual nominal value of money must be equal to its intrinsic value.

Other experts are Ibn Khaldun's theory that produces development and social development and economic impact on the well-being. Umer Chapra (2000), states that Ibn Khaldun had to give enlightenment to the world economy, where the state's role is crucial in social development. Ibn Khaldun stressed that Sharia will not be straight if not through the state's role or authority, the state will not run well without the implementation of sharia law. State or government will not run well without the people (the Caliph). Sustainability of people will not run without the capital / assets (al maal). Property obtained from a significant development (imarat), and construction will not run without some measure of justice, and justice is one of the criteria men brought to account by Allah SWT. So, according to Ibn Khaldun in the application of sharia would not erect state without justice is based on the social and economic fields.

The next character is Al Ghazali who stated that the needs of human life consists of three primary needs (darruriyyah), secondary (hajiat), and the need for expensive (takhsiniyyat). Hierarchy of needs theory is then 'taken' by Nassau William Senior which states that human needs consist of basic needs (necessity), secondary (Decency), and tertiary needs (luxury). Al-Ghazali was also expressed about the main purpose of sharia is a problem penerepan religion or religion, life, thoughts, descent, and wealth is concerned with economic issues.

There are many other works produced by Muslim scientists to the development of economic science. The sad fact of their theories claimed came from the west, but if we examine the significance of economic theory in the western world, was first produced by a professor from the University of Glasgow, whose name was Adam Smith in his book "An Inquiry Into the Nature and Cause Of The Wealth of Nations ". The book was produced in the 18th century, which even it there are many similarities with the book 'Origin' Ibn Khaldun's work produced a few centuries earlier.

Contribution of the Islamic economic scientists is that we must make reference to keep on learning and produce significant works, both in the field of economics, and other sciences in accordance with our expertise of each. May Allah SWT make us people who thirst for knowledge and make us all closer and taqarrub Him. Amen. Allaah 'alamu bi-ashowab

This fact is not surprising given the lighthouse top of his thinking, as we can see from some of his writing, is at this study area. However, the actual claim of Al-Ghazali's ideas penetrated widely into a variety of other scientific branches, such as fiqh, usul fiqh, kalam, ethics, and even economics. Thus, al-Ghazali is not only good at talking about Islamic philosophy and mysticism, but he was also an expert review of economic questions, particularly about the ethics of Islamic finance.

Nejatullah Muhammad Siddiqi in his book Reading in Islamic Economic Though entering the name of al-Ghazali to the rows of the Islamic economic thinkers second phase together with Ibn Taymiyya, Ibn Khaldun and other figures. In the second phase of this discourse of Islamic economic thought has developed an intensive and are characterized by changes in the power structure of Islam is increasingly widespread.

The style of Islamic economic thought during this time is more focused on micro-economic analysis and the functions of money. Al-Ghazali, for example, a lot of money mentioned, function, and evolution of its use. He also explained the problem prohibition of usury and its impact on the economy of a nation.

Indirectly, he discussed the problem scales, price controls (at-tas'is or intervention), the determination of tax in certain circumstances or emergencies. He also talked about how to overcome the impact of price increases, whether the market mechanism or government intervention, and others.

Bernand Lewis (1993) asserted that the concept of Al-Ghazali's finances shows the typical character, given the philosophical nuances kentalnya base due to the influence of mystical science. However, the interesting part of the financial outlook is that Al-Ghazali was not trapped in a philosophical plateau, but shows a harmonious mix between This real condition that occurs in people with philosophical values are accompanied by a logical argument and clear.

Therefore, for the financial outlook of Al-Ghazali's neat that it becomes an established concept, this short article to describe fully the financial outlook around him to then be reviewed in the perspective of the Islamic economic system.

The concept of money
In his landmark work, Ihya 'Ulum ad-Din, al-Ghazali defines that money is the goods or objects that serve as a means to obtain other goods. The body is regarded not as an item value (intrinsic value). Therefore, he likens the money as a mirror that does not have their own color, but can reflect all kinds of colors.

Refer to these criteria, in terms of defining the money, he not only emphasizes the aspects of the functions of money. Such a definition is more perfect than the limits set out most of the more conventional economists define money was limited to the functions inherent in money itself.

Because the money according to Al-Ghazali only as a standard price of goods or things then money has no intrinsic value. Or more precisely the intrinsic value of a currency that is shown by his real existence, there has never been considered. Al-Ghazali's assumption that money has no intrinsic value is ultimately related to the issues surrounding the demand for money, usury, and selling currencies.

First, the ban hoarding money (hoarding money). In the Islamic concept, money is the public body which has a significant role in the economy. Therefore, when the money withdrawn from circulation, will lose an important function in it. For that, the practice of hoarding money is strictly prohibited in Islam because the instability will affect the economy of a society.

According to Al-Ghazali's basic reason for the prohibition of hoarding cash because such action would eliminate the inherent function of money. As mentioned, the purpose is to make money circulating in the community as a means of transaction and not to be monopolized by certain groups. In fact, the worst effects of the practice of hoarding money is inflation.

In this case economic theory explains that the amount of money in circulation and the amount of goods available at the same time close relations inversely. If the money supply exceeds the amount of goods available, there will be inflation.

Conversely, if the money supply less than the goods that are available there will be deflation. Both the economic disease that must be avoided so that between the money supply of available goods in the market balance.

Second, the problem of usury. In a simple addition of riba is the subject of capital obtained by way of falsehood. Explicit prohibition of usury in the Qur'an Surat Al-Baqarah verse 275, 278-279, Ar-Rum 29, An-Nisa '160-161, and Ali Imran 130. Fundamental reason Al-Ghazali in the forbidden usury related to money is based on the motifs printed money itself, that is, only as a medium of exchange and standard of value of goods only, not as a commodity. Therefore, the act of riba by way of exchange of the kind of money is the action that came out of the original purpose of creation of money and prohibited by religion.

Third, buying and selling currencies. One of the things that belong in the category of riba is the buying and selling currencies. In this case, Al-Ghazali thus prohibiting this practice. For him, if the practice of currency trading is allowed the same as letting someone else make money hoarding practices will result in a scarcity of money in society. Since the sale, the money will only be circulated in certain circles, namely the rich. This action is very unjust.

So a bit of the financial outlook of Al-Ghazali is filled with the spirit of universal humanity and the Islamic business ethics. However to become an established concept and perfect, the thought of Al-Ghazali's finances are still scattered They require hard work from his heirs for later re reconstruct systematically and logically.

Therefore necessary that steps terkonsep well and comprehensively to create a new order in the world economy. OIC as an organization that collects no less than 57 Islamic countries are the most representative forum to play an important role in making changes and led to the idea of new world economic order.

Meanwhile, the IDB as a financial institution that is very influential to the Islamic world was supposed to take strategic steps for the interests of the financial system of the future Islamic state. But, until today we have not seen and heard both institutions to make a statement or a strategic position for the advancement of the Islamic world and internationally.

Islamic countries joined in the OIC and IDB have really great potential in leading the economic system reform and the financial world. With a shared vision and collaborative spirit of the high Islamic countries are expected to be able to force a new balance in international economic arena now dominated by U.S., European Union, Japan, and China.

With a potential population 19 percent of the total world population, or about 1.9 billion population, controlled 77 percent of world oil reserves, enough for the needs of the next 75 years. In addition, 90 percent of the world's hydrocarbon reserves are in the Islamic world. There are two major issues that could be a big strategic agenda for the OIC and IDB to anticipate long-term crisis, while preparing the agenda of the new world economic order, namely the use of a common currency and common market of the Islamic world.

Common currency
Today there are three types of master currency world economic activity, namely the U.S. dollar, euro and Japanese yen. Overall U.S. dollar dominated the world's financial transactions in different amounts in euros and yen. Overall the U.S. dollar over any form of economic activity and international financial transactions, which reached 80-90 per cent of total transactions (Bank Indonesia, 2004).

Monetary system and world trade today is a system that does not create monetary stability, not a common exchange rate, and exchange rate fluctuations that occur every time. Currently each state uses different types of currency in order to conduct international trade, one currency for export, one for imports, and another as their domestic currency.

For poor countries and developing countries, the current monetary system is a monetary system that is not profitable. Reform of the world monetary system is one step in order to create a monetary system more stable and equitable for all countries.

However, the current reform of the monetary system more equitable world is difficult because the world monetary problems closely related with the political elements and economic power (Stigliz & Amartya Sen, 2004). In the current monetary system, the United States as a superpower can earn huge profits by simply printing and distributing the dollar in international markets.

Japan a country that has a big economic power in the world economy also profit from the world monetary system today. However, Japan is politically unable to make changes to the world monetary system (RA Mundell, 2003).

With the monetary system and the conditions of international trade is not profitable, it should poor countries and particularly developing Islamic countries belonging to the OIC and IDB reduce reliance on fiat money by creating a monetary and economic system supported by a currency stable and more fair.

One of the most significant recommendations is the use of gold dinar as an international currency. During its use, gold dinar valued more stable and have high levels of inflation and fluctuations of less than fiat money. Gold dinar role of trade easier and reduce trade barriers, such as speculation, exchange rate fluctuations are sharp, and various other obstacles (Meera, 2004).

To make the dinar as the currency used as the basis of world monetary system, required many steps and strategies to achieve it. One of the steps and strategies carried out by applying the dinar currency in international trade, especially in the export and import trade between Muslim countries (markets with the Islamic world).

Application of gold dinar in international trade will not replace the role of the domestic currency. Domestic currency remains necessary and used as a tool in domestic transactions.

The use of the dinar as a currency trade transaction has been done by the Government of Malaysia in 2002 with trading partners, such as Iran and Saudi Arabia. Application of dinar currency in trading early steps to realize the dinar currency to the single currency Muslim countries and as a global currency (Mahathir Mohammad, 2003).

Common market
Actually the idea of forming common markets and enhance economic cooperation to the Islamic world is not new. This idea is often expressed in the meeting World Islamic Economic Forum (WIFE) and at meetings initiated by the OIC and IDB.

However, it seems this idea has not received intensive from Islamic countries. Of course this idea needs to be enriched and sharpened with a variety of research, such as the idea that the EU had to wait 40 years. There are several steps that can be used.

Step formation of this common market can be started from other regional development of Islamic countries. The formation of free trade areas can be initiated from the sub-sub-regional, as in the Middle East, Africa, South Asia, and Southeast Asia that will facilitate the next stage of integration. These trade relations are expected to mutual benefit and optimize the benefits of resources and production respectively (Azis, 2006).

Pro is very important in priority products and services from members of the trade pact because there has not been optimal. Trade among OIC countries is only about 12 percent of the total of all trade in the OIC countries.

Total OIC trade is only seven percent of total world trade. In fact, about 60 percent of natural resources in this world are in Muslim countries. This condition is not independent of each other is still at least trade OIC countries and the amount of dependence on trade with countries of non-Muslims.

The next step, with the market in the form of trade and investment flows requires partisanship Islamic funds which have Muslim investors. One of today's reality shows, an investor's surplus funds mainly from the Muslim countries of petro dollars that have flowed into the Muslim world. There should be a shared commitment among Muslim businessmen to prioritize investing in Islamic countries.

To support this common market would need a common currency. Islamic member states have time to use a common currency in the form of gold dinars. It's like the European countries with euronya.

Each Islamic country can use the gold dinar as the single currency in international trade transactions whose value is recognized among Islamic countries. It is expected to reduce dependence on the U.S. dollar. As a result, reducing the need for U.S. dollars so they can secure the exchange of Islamic countries.

The use of the dinar as a currency trade transaction fellow Islamic country one of the solutions of the problem above. Use of money dinar by all Muslim countries and make it as a single currency (monetary union) means of payment fellow Muslim state trading will give considerable impact on the unity and growth of trade in Muslim countries.

The next step was the Islamic countries should immediately establish an Islamic financial system is integrated, whether banking, capital markets, and other Islamic financial institutions. We need to strengthen the funding and the role of the Islamic Development Bank (IDB) for its World Bank-Islamic world.

We also need the International Monetary Fund Islam (like the IMF) are interest-free financing scheme. Thus the system integration will be increasingly robust economy.

Kinilah time by using a very precise moment, the OIC and IDB be, start thinking big and strategically replace the economic system and financial world is not fair. Role of the OIC and IDB will be highly anticipated by the entire world Muslim community.

Two central issues that were raised will be very relevant to the world economy today. The use of the dinar as a currency trade transactions among member countries of OIC & IDB is one solution to the problem above.

Use of money dinar by all Muslim countries and make it as a single currency trade payment instruments other Islamic countries will provide a big enough impact on the growth of trade in Muslim countries. With the increased trade antarsesama OIC & IDB members who use the money dinars, not only have an impact on reducing the amount of fiat money in the use of export and import transactions, but also will affect the welfare of this nature.

On the other hand, the sukuk market is still in demand. Indonesia began to enter the international market by offering a sukuk worth 650 million U.S. dollars. Bahrain also offers a sukuk worth 500 million U.S. dollars. Although sukuk market overall declined by 56 percent in 2008, after reaching a record high 30.8 billion worth of U.S. dollars in 2007.

Islamic finance has been believed that strong and have high resistance to the economic crisis, began to question its validity. At least for three indications that this is now beginning to look abroad. First, the emergence of sukuk issuer defaulted. Second, decreasing the value of corporate assets because the decline in the Islamic financial market value of securities owned. Third, begin to increase financing problems.

Let us discuss one by one. Sukuk defaulted certainly influenced by many things, one of which is sukuk structure itself. In general, the existing sukuk can be grouped into two. First, asset-based sukuk real (asset-based sukuk). Second, sukuk are attached to the real assets (asset-backed sukuk). For asset-based sukuk, real assets are used only to make the transaction structure to comply with sharia principles. As for asset-backed sukuk, real assets to the SPV separated ownership.

This difference theoretically provide a different level of risk.
Viewed from the side of risk, investors in asset-based sukuk have actually the same level of risk by providing unsecured debt (unsecured). Meanwhile, investors in asset-backed sukuk has a right to collect the real assets of ownership have been separated, although in some countries the right to collect real asset that does not mean the right to own real assets.

More specifically, the sukuk structure with bi mausufah ijara akad dhimma, the covenant in the lease which will be leased goods not being necessarily contain a greater risk than the covenant ijara sukuk, the rent covenant which has the form of goods.

In both types of sukuk syariah this ijara both meet Islamic principles, but the risk is different. In ijara sukuk, which are goods still be realized there must be additional risks, which failed, or fails to hand over-use goods which become the object of sukuk. If the contract is not anticipated risks and protected, then the risk of actual investors with unsecured debt (unsecured).

While the sukuk, which has the form of goods, this risk does not exist. This is where the important role of regulators and institutions in issuing fatwas rules. Compliance is required not only the formal aspects of sharia-procedural, but far more importantly in developing required kearifbijaksanaan regulations and legal opinions for the Islamic financial industry.

Islamic financial products are sophisticated feasible only sold to sophisticated investors as well. Only Islamic financial products that can simply be sold to investors who also simple. Thus, it is necessary to define rules that investors who are sophisticated investors and who are simple, well what the product is sophisticated and simple products.

Logically, this definition will vary from one country to another because of differences in levels of understanding and the development industry. That is why also the idea of mutual recognition (mutual recognition) regulations and legal opinions without adjustment of conditions in each country, does not meet the criteria kearifbijaksanaan.

In the science of jurisprudence, for example, when the sale of peanuts that have not been harvested also distinguish between transactions between people who have expertise in transactions among the laity. In general, if the transaction between the laity, jurisprudence prohibits buying and selling peanuts because of the quantity and quality is not known. Thus, such trading is feared this will lead to gharar (uncertainty), therefore this transaction is prohibited. They were what is called a simple merchant.

However, if the transactions carried out among people who have expertise in assessing the quality and quantity of peanuts, this transaction is allowed. Usually the buyer given a chance to sample the peanuts in several places in the land to be harvested, then they began to haggle. Beans stay fresh in the ground, the transaction can be done. These are the so-called sophisticated traders.

Jurisprudence developed hundreds of years by many scholars who attempt to provide local kearifbijaksanaan in interpreting the provisions of sharia, is an invaluable legacy for us who live in this era. Always felt the spirit in their fatwas. Kearifbijaksanaan spirit, the spirit of Islamic maqasid, the spirit of ultimate truth.

Without this spirit, Islamic finance would like dish was bland without salt. Formal-procedural indeed meet Islamic principles, but not kesyariahannya perceived by the public. Indonesia is the world's biggest hope to display the Islamic finance really felt beak.

During this time, Indonesia would prefer schools to be careful than the schools growth. Minimize the role of the clergy, let alone dwarf the role of scholars in developing finance and banking industry will only result in Islamic finance and banking industry without the spirit of sharia.

On the origin of money has three important functions, namely as a medium of exchange, store of value, and measuring the value of a commodity. However, with interest menyebarluasnya system in the current financial transaction, the function of money has grown into a commodity. The function of money as a commodity is supported by several contemporary financial theories such as the Loanable Funds Theory. In this theory of interest (interest) is considered as the price of the funds available for lending (loanable funds), which became one variable that affects the level of supply (supply of) and demand (demand for) of the loanable funds. Based on the above theory, it can be concluded that the supplier of loanable funds would be willing to lend money to the borrower if the borrower is only willing to pay back the loan in an amount greater than the principal. The difference between the amount due to the principal borrower and that is what is called interest. By contract, the price (interest) is to pay the borrower under any circumstances (the borrower's business profits or losses) to the lender, because the lender has considered selling a commodity called money.

Here is clearly seen that in the current financial system right now, money is regarded as a tradable commodity. This is in contrast with Islamic views who do not accept the functions of money as a commodity. That's because money does not qualify as a commodity. According to Sheikh Muhammad Taqi Usmani, an expert in Islamic finance Shariah, there are at least 3 factors that distinguishes the money to commodities. Firstly, money has no utility instrinsk (intrinsic utility). In contrast to commodities, money can not be eaten, worn, or used directly. Money can be exchanged only with a commodity, and commodities that will be eaten, worn or used. In economic terms, money only has value in exchange as commodities having value in exchange and value in use at once.

Second, money does not need the quality to determine its value, in terms of paper currency USD 100.000 an old issue of paper money in 2007 with a new Rp 100.000 published in 2009 has the same purchasing power. Another case with commodities, for example, output of the Honda Jazz Honda Jazz 2007 to January 2009 the output has a different price. This indicates a difference in quality between the two cars on top of which reflected the value and the price difference.

Third, the money does not require specification of the validity of transactions, while commodities have specific properties when the validity of transactions. For example, if we want to buy the goods we will choose the things we want to taste us, like color, other complementary accessories. That is, if the seller offers the same goods but they were not in accordance with our tastes may be we will refuse. But it is different with the money that is not specific. For example, for the payment of monthly electricity bills amounting to Rp 300,000. we can pay these bills by using three pieces of money USD $ 100,000 or four pieces of money Rp 50,000 plus one sheet of Rp 100,000 and even we can pay these bills with three hundred pieces of Rp 1,000. For the recipient there will be no difference in the value of the three ways above payment.

There is one additional difference between commodity money, especially with fiat money we use today. Paper money (fiat money) to current has no intrinsic value (intrinsic value). Paper money became legal tender by law issued by a country that declared the validity of the money. This shows that the acceptance of paper money as a means of payment is only due to the government trust factor that ensures the validity of these bills. That is, if the trust is lost or reduced the value of the money will be weakened (terdepresisasi) due to more people off, by selling money, than to have it. Because obviously, have no intrinsic value.

However, it should be also stressed here that fiat money is a legitimate money on the side of the sharia. The author does not agree with the view that gold is only valid at the shari'a. Indeed, the true gold is the money the best and most stable in value, and if we can re-use gold as a standard of value for money, of course, the world's financial system would be much better. However, claims that only gold or silver are recognized Islam as the money and gold and silver but it is not legitimate, this is an excessive claim. The proof, the Caliph Umar never meant to make the camel as a currency, but then was advised not to do it, because eventually the camel will be vanished from life. So is Imam Malik once said that if people make the animal skin as a currency, he undoubtedly would prohibit selling such animal skins but with cash and may not be tertangguh. Although today we are eager to return to the gold as the standard currency value, we should not be excessive and extreme by saying that fiat money is forbidden. Proscribe the same kosher is bad in Islam to justify the unlawful. If unlawful fiat money, a dowry of course we become invalid, and our marriage is not valid, then our children are also to be a bastard. Is not that logical consequence of the said fiat money is forbidden? And Allaah knows best.

This time the forum has a very important meaning at least for two reasons. First, because he was held in the middle of the global economic situation is getting bad pointing. Of the expected birth of this forum offers the concrete to help overcome the situation. Perhaps for this reason the 5th WIEF the theme,''Food and Energy Security & stemming the Tide of Global Financial Crisis.''

Second, because of the fact that the level of welfare of the Muslim world, if we measure the level of state welfare-Muslim-majority country, with size Human Development Index (Human Development Index), currently remains at a very low position, although the Muslim countries of East Central for many years enjoyed economic prosperity due to the abundant natural resources, especially oil and gas. This forum could be occasions for introspection about what is right and wrong that had been carried out by Muslim nations that.

In this paper, I will be reminded about the purpose of Islamic law that still must be the basic framework and the main goal in every time we try to develop an Islamic economy. In this paper, I will reveal important facts about the situation and the problems associated with the welfare of the Muslim world, including Indonesia, and offers the most appropriate solutions with the objective of the sharia.

Destination Sharia
Imam Al-Syathibi (Abu Ishaq Ibrahim ibn Musa al-Syathibi, died 790 Hijri), an Islamic thinker who pioneered the birth of science maqaashid al-syarii'ah (Islamic goals) through his landmark work, Al-Muwafaqaat, explained that the main purpose Islamic law is to promote human welfare. Sharia, according to Al-Syathibi, is something that has implications for the good, such as honesty, fairness, openness, tolerance, and compassion, as that's the main purpose of sharia is to create human welfare.

If we turn to the Qur'an, we will see how much attention to the welfare of God. In the Qur'an, there are at least 69 verses that specifically address poverty. In addition, dozens more are still there verses that mention the word type with poverty, such as word faqir, fuqara, ba's, saa'il, qani ', mu'tarr, dhaa'if, and mustadh'afiin. In addition, there are at least 42 verses of the charity which correlated with poverty are also very close. If you add up, we'll find more than 150 verses of the Koran which correlated with poverty.

Just for comparison, is associated with usury, which of course also an important principle in Islamic economics, there are only 7 verses. The amount of Islamic attention on poverty and improving human welfare can also be seen from the many traditions of the Prophet Muhammad about it. In one hadith it is said that poverty is very close to paganism. Thus, consistent with the goals He sent Muhammad to be a 'sign' for the love of God for the universe (see Qur'an sura Al Anbiya verse 107), sharia also has a goal brought to improve the welfare of mankind.

Welfare Measure
Dictionary Wikipedia states, peace is a condition or circumstances in which good men in prosperous, healthy, and peaceful. Welfare (welfare) also means well being (healthy, happy, prosperous and.) For several years after World War II, the measurement of human welfare changes. In the 1950s, prosperity is measured from the physical aspect, like nutrition, height and weight, life expectancy, and income. In the 1980s, there was a change in which prosperity is measured by income, labor, and civil rights. In the 1990s, Mahbub ul-Haq, Pakistani scholar, defined the size of the welfare of the so-called Human Development Index (HDI). With HDI, welfare is no longer focused on aspects of economic-material quality, but also on aspects of social quality of a society.

The HDI is a composite of three components (subindeks), namely: 1. Life Expectancy Index (Life expectancy index), 2. Education Index (Education Index) is measured from the Enrollment Index (index of keterdaftaran reflects the level of formal school population) and the Adult Literacy Index (an index of literacy among the adult population), and 3. Per capita GDP at Purchasing Power Parity Index (Index of Per capita income adjusted to purchasing power parity), which briefly called GDP Index. All three sub-indices, each taking one-third portion of the set of HDI.

The HDI is measured annually and published by the United Nation Development Program (UNDP). In November 2008, UNDP publishes the HDI ranking of 2006 over 179 countries. In this analysis, what I meant by Muslim countries is a country with a Muslim population of 60 percent or more of the total population of the country's population. Of the 30 countries with the highest HDI obtained facts relating to the Muslim world as follows:

There are only two Muslim countries, namely Brunei Darussalam (ranked 27) and Kuwait (ranked 29), who entered in the ranks of 30 countries with the highest HDI. The two countries have a high HDI because sustained by GDP Index. Without us prove, the high GDP Index both countries is due to high revenues from natural resources are not renewable (oil and gas).

In contrast, European countries and Asian countries dominate the sequence with the 30 highest HDI is generally the countries that excel in the development of technology (knowledge-based economy). In fact, these countries do not have natural resources that can be seeded. Just additional information, if we arrange the 30 countries with the highest Education Index, we found none of whom is a Muslim country.

The second population of Muslim countries are not only more than 2.77 million people, namely Brunei Darussalam, and Kuwait 343,653 inhabitants 2,418,393 inhabitants. Total population of these two countries represent only 0.3 percent of the total population of countries in the ranks of 30 countries with highest HDI, which amounted to approximately 913 million people, or only 0.15 percent of the total Muslim world (appr. 1.5 billion soul), and 0.04 percent of the total world population (appr. 6.3 billion people).

As a state with a very large population, Indonesia's economy has different characteristics to the characteristics of Muslim countries in the Middle East. The focus of increasing GDP per capita and education in Indonesia should be done by empowering the sectors that have a lot of actors (the bottom of the pyramid, Prahalad term borrowing). Namely, Micro, Small and Medium Enterprises (MSMEs), which amounted to nearly 50 million units and absorbs nearly 92 million workers. By placing SMEs in priority economic development of Indonesia, in fact we're carrying out the message of Islam: Let the treasure is not only circulate among the rich among you have. [Surah Al-Hashr (59): 7].

Among these supporting elements are research or study. With the research, determining policy and strategy of Islamic economic development can be done more accurately based on potential, problems and trends-kencederungan really happening in the community. In this case, the role of research will only be optimal if: First, the research topics of theoretical and practice that actually related to the development of Islamic economics. Second, every study done really add value compared to research that has been done before. Value added can be referred to the exploration of new topics or deepening of the old topics that have been studied previously but with the method, the sample or the analysis time is different.

So far, interest in various circles to conduct research on aspects of Islamic economics has been quite large. Each year, an estimated tens of Islamic economic research in the homeland, either in the form of business research / policy, academic research by faculty or university researchers, and research required by the student as a dissertation or thesis and thesis graduate degree candidates. Research was partly sponsored by business organizations or certain government agencies, but the majority of the independent research with full funding comes from private sources or the Institute researcher.

However, unfortunate that many of the research that has been done tend to be separated from one another. Many Islamic economic researchers write about the topics the same, but these writings are not intertwined continuum, there is no criticism, no suggestions, and no conclusions so that the topics covered tend to stagnate and not having sharpening.

Repetition happens not only inhibit the development of the economic substance of Islamic studies, but also lead to further boredom and skeptical view of some parties. This situation is within certain limits become more severe because the accident in Indonesia has not awakened a strong academic culture that values a research or scientific publications more often determined by popularity or the structural position of the researcher or a writer rather than the quality of their work. Similarly, criticism of a research or scientific publications are often associated with aggression or disrespect to the researcher or writer.

In this regard, it is necessary steps to optimize the role of research in support of the Islamic economic progress in Indonesia. Among them through the development of information systems research and Islamic economic data, which is not only incomplete, but it can also be easily accessed by researchers and enthusiasts of Islamic economics in Indonesia (mainly online through the internet).

The three most important goal of this step are: First, mapped and the establishment of networks of scientific research and publication in accordance with Islamic economic classification details of topics discussed. Second, the creation of the communication fabric of research (or a kind of "clusters" of research) among researchers and enthusiasts of Islamic economics. Third, building an academic culture, especially the critical tradition in research and scholarly publications on Islamic economics.

Research information system and Islamic economic data should include at least a list of research or scientific publication of Islamic economics and classified mapped in detail, both based on field of study subjects, such as economics, management, accounting, and sharia muamalah / law, and based on the study object such as financial institutions, ziswaf (zakat, infak, sadaqah, endowments), the empowerment of people, and the eradication of corruption. For example, the classification of research on the subject of Islamic economics can include basic concepts, methodology, economic pemikian (classical or contemporary), microeconomic theory, macroeconomic theory, and applied economics. Each of these classifications can then be subdivided into sub-units of smaller until the level of the second, third, fourth and so on. Similarly, research classification of objects may include financial institutions such as banking, insurance, capital markets, and microfinance institutions, each of which can be subdivided into sub-units are more detailed.

Outside the core content, and research information systems of Islamic economic data can contain a list of scientific journals with an Islamic economic order of publication and title of the writings in it. Similarly, a complete list of books about Islamic economics (including the table of contents), both published domestically and abroad.

Furthermore, research information systems and Islamic economic data may also contain a list of researchers or practitioners of Islamic economics major, local, national, or international, complete with profiles and their professional activities. List of institutions or organizations that focus on research and development of Islamic economics is also worth considering, in addition to other things that can encourage building in the academic culture of research and scientific publications on Islamic economics

Efforts to establish an Islamic economic research networks may be accompanied by the sacrifice of energy, time and cost. However, God willing, if diikhtiarkan seriously, the sacrifice that will reverberate far more benefits in order to optimize the role of research in support of an Islamic economic progress in the future.

It was so exactly what had once told an Islamic economist, Muhammad Umer Chapra, in an interview, "[E] konomi Islamic require big thinking, creative ... There is no room for repetition what has been written. It unfortunate that some of our writers do not read anything that has ever written ... " White six.