Islamic System Economy Global Solution

The global economic crisis starts from the US economic crisis. It makes sense because the USA is one of the largest trading countries in the world. So, when something bad hits the US economy, it will also hit the rest of the world. Many people have started to think that Islamic economic system as an alternative solution for the global economic crisis because the current economic system (the conventional economic system) is not working to fix the problem.

There are at least three differences if we want to compare the Islamic economic system and the conventional economic system. First is about the interest rate. Second is about the risk taking activities and the third is the clear evidence. There is no interest rate in the Islamic economic system because it promotes the idea of participation in profit, loss, and actual exchanges of money. While in the other hand, the conventional economic system uses interest rate. So if someone borrows the money from the bank, he will not only repay his debts, but also with the interest. This kind of system burdens the society because people have to pay more than they borrow in the first place. The Islamic economic system prohibits the risk taking activities, such as gambling. While in the conventional economic system, risk taking activities are allowed. We see in the stock exchange, the value of the stocks can be different from time to time. It influences the value of money. The Islamic economic system promotes the idea of clear evidence. It means that the value of the money is counted by the value of gold, not from the value of other money. For example is the value of Rupiah depends on the US dollar.

Indonesia, as the largest Muslim country in the world, is able to gain many benefits from the implementing the Islamic economic system in Indonesia. It is because of the market is already there, but the challenges is about the willingness of the people. If there is no willingness from the people to implement this, of course it will hard to do it. We need to socialize the benefits of this Islamic economic system to the society. So the people will aware about them.

We do hope that this global economic crisis can be solved soon. So, our economy will become stable again and bring more benefits to the society.

By: Muhammad Gery Adlan, 1 EA 09, 10208847