ISLAMIC ECONOMY SYSTEM

A. INTRODUCTION

The economic aspect is one of the most important parts of our life, while not being the whole of it. The Islamic system is balanced and places everything in its right place. Islam has given detailed regulations for the conduct of our economic life which concerns mainly the earning and use of wealth.
Everything in Islam is for the benefit and welfare of mankind. The economic principle of Islam aim at establishing a just society wherein everyone will behave responsibly and honestly, and not as cunning foxes fighting for as big a share of something as possible without regard for honesty, truth, decency, trust and responsibility.

B. DEFINITION
1. Muhammad Abdul Manan "Islamic economics is a social science that studies the economic problems of the people who were inspired by Islamic values. 2. Metwally M.M "Islamic Economics can be defined as the study of Muslims behavior (believers) in an Islamic society that follows the Quran, the Hadith of the Prophet, Ijma and Qiyas". 3. Hasanuzzaman "Islamic Economics is the science and application of the suggestions and rules of Shariah that prevent injustice in acquiring material resources so as to create human satisfaction and allow them to run the commands of God and the community".

C. GOALS

Islamic economics has the purpose to provide consistency for the life of the world. Islamic values are not solely just for Muslims living alone, but all living creatures on earth. Islamic Economics is the essence of the fulfillment of human needs based on Islamic values to achieve the purpose of religion (Falah). Islamic economy be able to capture the phenomenon of the community and in the course without leaving the source of the economic theory of Islamic law, is subject to change.

D. DEVELOPMENT OF ISLAMIC ECONOMY KNOWLEDGE

E. History of Islamic Economy

Basically, Islamic economy is not a science of reactionary behavior toward conventional economy phenomena. The initial existence is the same with the initial existence of Islam in the

world (1500 years later) because Islamic economy is a part and

does not separate from Islam itself as living system. Islam is believed as a way or concept of life that covered economy as

one of human economical activity . Thus, can be said that

Islamic economy is Region activities or our worship in having economy activities.

D. FUNDAMENTAL PRINCIPLE OF ISLAMIC ECONOMIC

1.

TAUHID

Reflection of the divine nature of Islamic economics is not the aspect of economic actors but on the regulatory aspects that must be followed by economic actors. It is based on the belief that all economic factors, including human beings as economic actors is basically belong to God. Islamic theology and faith have a role in the economy of Islam, because it will directly affect the outlook in shaping personality, behavior, lifestyles, tastes and preferences of people, resources power of nature, and the environment. Islamic theology will also be a filter of moral that give sense and direction in using resources and also motivating the necessary mechanism for effective action.

2. Equilibrium
The principle of Equilibrium teaches us to believe that everything created by God in a balance and harmony state (Letter al-Mulk: 3). It teaches the principle of balance in humans to avoid any kind of monopoly and concentration of economic power in one hand or one group. On the basis of this addition, the Qur'an categorically rejects the existence of wealth distribution which is only about the particular group. As His Word in the letter al-Hashr verse 7:

"So the treasure was not circulated among the wealthy among you."

3. Free will
The principle of free will is teaching us that God has a will of an

absolute, but He also conferred to human freedom to choose between

two ways in front of him, that is good and bad. From here, so it can actually be understood that absolute freedom is the freedom that leads

humans to get closer to God. In other words, freedom is a freedom

that is bound by fairness and responsibility.

4. Responsibility
The principle of responsibility is also demonstrated the value of justice that must exist in Islamic economics, as a pillar of economic freedom which stands on an appreciation of nature and the glory of man must be perfected with the other pillars, the pillars is a justice. Justice in Islam is not just an additional principle, but is at the root of the principle. Therefore, justice is applied to all the teachings of Islam and its rules, both aqeedah, Shari'ah and morality.

E. Characteristics of Islamic Economics

1. Property Essentially Belongs to Allah and Man was Only The Caliph 2.Economics is Bounded By Aqidah, Syari'ah and Morality. 3. Balance Between the Spiritual and Material 4. Balance between individual needs and public needs 5. Individual freedom is guaranteed in Islam

F. Basic Difference Between Islamic Economics System and Conventional Economics System

Difference

Islamic System

Economics Conventional Economics System human thinking

source

Al-Quran and Al-Sunnah

Goal of life

al-Falah (happiness) in this satisfaction just in the

world and hereafter world

Concept of property as Property as wasilah put worldly as the goal wasilah (intermediary) to run the which has no any command of Allah. correlation with hereafter. (there is no concept of property as wasilah (intermediary) to run the command of Allah.