scholarly journals Islamic Finance and Economic Development: The Impact of the Islamic Finance Sector on Indonesia’s Economic Development

2021 ◽  
Vol 3 (1) ◽  
pp. 52-63
Author(s):  
Zainur Zainur

The re-existence of Islamic economics on the surface of the earth makes a major contribution to the new economic system, with new models and innovations that are applied according to the conditions it goes through without reducing the values that must be implemented in the Islamic economic system. Although it can be understood that this Islamic economic system is not a new thing, but has experienced a new history in the modern era This research aimed to describe the models and applications of sharia-based financial models in the economy, Islamic finance models that are able to promote equitable development, and the impact of the Islamic finance sector on economic development. This was qualitative research with document analysis. The results were financial system in Islam has an impact on economic growth, especially in Indonesia, it can be felt the level of difference between conventional economics and Islamic economics. In addition to the investment factor made by investors, the contract model that is applied bears the risk for both parties, because with a contract like this the level of prudence that must be carried out is more selective compared to other contracts. In addition to Islamic banking, non-bank financial institutions also have a very significant role in increasing economic growth. Among non-bank financial institutions that have an influence on economic growth are zakat, baitul maal wattamwil, waqf and others.

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 160-170
Author(s):  
Małgorzata Hala

The aim of the article is to present the role of the financial system in economic growth and development. The first part presents the traditional understanding of the relationship between the economic system and economic growth. The second part presents the experience of financial crises and their impact on the conversation on the mutual relations between the financial sector and the real sector. The third part shows the role of the state in the financial system. The article describes the arrangement of interrelated financial institutions, financial markets and elements of the financial system infrastructure.  It shows what part of the economic system the financial system is, and whether it enables the provision of services allowing the circulation of purchasing power throughout the economy. The article presents the important role of the financial system, the role related to the transfer of capital from entities with savings to entities that need capital for investments. It shows the financial system as a set of logically related organizational forms, legal acts, financial institutions and other elements enabling entities to establish financial relations in the real sector and the financial sector, and this system forms the basis of activity for entities using money, enabling the conclusion of various economic transactions, in which money performs various functions. The article also presents the concept of a financial crisis as a situation in which there are rapid changes in the financial market, usually associated with insufficient liquidity or insolvency of banks or financial institutions, and as a result, a decrease in production or its deepening. The article also includes issues related to the impact of public authorities (state and local authorities) on the financial system in the economy.


Author(s):  
I.P. Timofeev ◽  

The author offers a network model of the economic system designed to research the impact of increasing technological division of labor on the opportunities for economic development and growth. The article describes the main elements of the model and their economic interpretation, as well as the basic rules for its construction. An economic network consists of sets of producers, consumers and goods flows between them. The author shows how the model represents the appearance of various types of innovations. The author has outlined main directions of further development and researching the model.


2016 ◽  
Vol 1 (2) ◽  
Author(s):  
Jefri Putri Nugraha

Islam is a universal religion that regulates all dimensions of human life both; the world and the hereafter. Islam has also arranged economic problems since Islam was revealed through the Prophet Muhammad. Al-Quran and al-Hadith as the main reference of sharia economic thought. Islamic finance has become an economic system that was born along with the birth of Islam, but only this decade Islamic economic system become trending topic of discussion. Considering followers conventional notions began to look at the economic system of Syariah. In the era of globalization, there are a tendency in economic development for more attention to ethics in economic activity. This paper aims to explore in depth discussion on the trend of global economic and its development at the same time, reveals the opportunities and challenges in the economic development of sharia in the context of global economic development era.


2021 ◽  
pp. 25-33
Author(s):  
Julia Yereshko

Introduction. The issue of understanding the patterns and factors of economic growth is reflected in the work of scientists, politicians, historians and publicists from antiquity to the present. The economic system is transforming, at the same time evolving partly randomly, and quantitative changes often precede qualitative ones. Systems of this type are characterized by the bifucarial nature of development, i.e. a change in the qualitative behaviour of such dynamic nonequilibrium systems with a slight alternative to their parameters, bifurcation points (transition or progress) of which are the economic crises, and the equilibrium state is only a certain moment in their movement and development. This nature of evolution is decisive for the whole set of complex multicomponent nonlinear systems, represented by a multiparameter set of dynamic systems of lower order, which include economic ones. However, this typology automatically means a logical problem of finding patterns of their movement and development, given the difficulty of predicting the reaction of this type of system to the impact and change of their parameters. The aim of the article is to substantiate the optimal innovative model of the economy based on the determination of a key factor of economic development. The methodological basis of the research is dialectical analysis, the method of studying the causality of phenomena, determinism in the study of systems, theoretical and logical generalizations and hypotheses. Results. The characterization of economic systems as complex, multicomponent and chaotic, i.e. those that can be deterministic and predictable only in theory, explains the stochastic nature of economic laws and the logical absence of a "universal" recipe for development, which proves the need to find endogenous factors. Based on the assumption of a unified nature of development and unevenness, it is determined that the core of innovative development in the modern world is the intellectualization of economic systems. The factor of unevenness and development, at the same time, in the modern sense, development innovative that is, is the intellectual capital, which produces an innovative flash, which with the appropriate working mechanism becomes the driving force of development. The study of development theories proves the need to endogenize the "Sollow residual", because the assumption of the exogenous nature of scientific and technological development, and hence economic growth, does not explain the root causes of the uneven development of individual economies, and therefore does not explain the key development factor. Naturally, the general trajectory of global development is set exogenously, at the same time, it begins with an endogenous innovation outbreak, which turns into an innovation flow and forms the technological base adopted by the rest of economic systems. The contradiction of the neoclassical paradigm and institutionalism is purely nominal, because the establishment of rules and directives by institutions can be based on "ratio" and convergence of economic agents – institutions, or their synergy can provide recursive directiveness to the system, the economic system as a whole, that is, and "irrational" rules will be organically calibrated as a result of this interaction, at the same time, the presence of rules will give the chaotic multicomponent system some additional determinism. Thus, a five-fold synergy is proposed as an innovative model of economic development, which takes into account the whole set of interactions between economic agents in their joint development and conflict, determining the optimal trajectory of overall sustainable economic growth.


2017 ◽  
Vol 16 (6) ◽  
pp. 526-531 ◽  
Author(s):  
D. N. Shvayba1

Formation of an independent democratic Belarusian state is inextricably linked with transformations in all aspects of public life and, first of all, in economy. Economic reforms in Belarus are directed on creation of socially oriented market economic system, which will ensure the most efficient usage of resources at minimum social cost. In the social economy concepts of “equality” and “poverty” are considered as basic ones. Social security services are based on these concepts and role of the social security in any country is to reduce poverty and increase equality. In modern world poverty is uniquely associated with a low level of economic development and its eradication is the first step on the path to economic growth. As for inequality, such clear connection of this concept with economic development can not be traced. There are various theories explaining the impact of inequality on economic growth. However, they cannot be considered satisfactory because they predict opposite results. Several studies have universally postulated a security as protection of vital interests of a human being, society and State from internal and external threats. Vital interests comprise a set of needs and satisfaction of these needs reliably ensures existence and possibility of progressive development of a human being, society and State which are the main objects of the security. Presence of a hierarchical structure for organization of the system or its subsystems is an essential feature for any socio-economic system. The economy is a poly-hierarchical system. When considering the hierarchical structure of production management it is important to consider one property of the economic system that is incompleteness of information.


2017 ◽  
Vol 7 (2) ◽  
pp. 1
Author(s):  
Ali Murtadho

<p><em>Several theories about the development strategy formulated by the most conventional neo-classical economists much criticized. Fahim Khan including contemporary Islamic economic thinkers who criticize conventional economic development strategy with alternative bids from the Islamic economics perspective. Their thinking is exciting to examined substance and its correlation with the economic development of contemporary Islamic discourse that dominated the development of financial institutions/syariah banking. The creation of entrepreneurial opportunities made Fahim Khan as a keyword in the concept of criticizing conventional strategy and supporting the Islamic economic development strategy. Strategy opened and graced this productive creative independent businesses are deemed appropriate and supported by the Islamic economic system based on profit and loss sharing partnership (profit-loss sharing). The idea is to promote excellence banking system of sharing based on the conventional interest-based banking system in spurring economic development suplus to enliven the entrepreneurial workforce.</em></p>


ULUMUNA ◽  
2009 ◽  
Vol 13 (1) ◽  
pp. 169-188
Author(s):  
Lukman Al-Hakim

In Indonesia, the Islamic economic system has been popular recently since the Bank Muamalah Indonesia was founded and followed by establishment of other shariah financial institutions and businesses such as Bayt al-Mâl wa al-Tamwîl (BMT). BMT, a micro shariah economic institution, is a choice in community based economic development. BMT is significant because the wheel of Indonesian economy is moved by communities from up to down. Populist economy means muslim community”s economy because the majority of Indonesians is muslim and most of them move in the down economy line. It can be said that the improvement of muslim community”s economy shows the improvement of people”s. Conversely, the decline of muslim community”s economy points out the decline of people”s. Therefore, the BMT establishment is a must to build muslim community economic forces in moving the development”s wheel. The BMT development should be designed to support the economic democratization process in Indonesia.


AKADEMIKA ◽  
2015 ◽  
Vol 9 (1) ◽  
pp. 69-77
Author(s):  
Misbahul Khoir

In order for humans could reach the so-called falah (goodness), human behavior needs to be colored with the spirit and norms of Islamic economics reflected in its values. The principles and values of Islamic economics are considerably two inseparable things. The implementation of economic principles without being colored with values or values without being based on principles could keep people far away from their purpose, namely falah. The implementation of values not based on principles will tend to bring with it the normative economics, which would cause it trapped into injustice. While the implementation of values on the Islamic economic development is based on the five universal values, namely akidah (belief), 'adl (justice), nubuwwah (prophetic), khilafah (the government), and ma'ad (results). The five principles are used as the basis for building theories of Islamic economics. But strong and adequate theories not applied into a system will make the Islamic economics just as the study of science without giving positive impact on the economic life. Therefore, based on the five universal values, the three derivative principles should be built into the characteristics and the forerunner of the Islamic economic system. The Islamic economic system makes sure that there are no economic transactions that are contrary to the Shari'a. But business performance depends on the man behind the gun. For that reason, the economic actors within this framework could be held by non-Muslims. The Islamic economics could only be developed if the mindset and behavior of Muslims are already itqan (diligent) and ihsan (professional). It "may be" one of the secrets of the Prophet's statement, saying "Truly I was sent to perfect good character". Because good character could be an indicator of knowing good or bad behavior in determining both the success and the failure of business itself.


2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Siti Murtiyani ◽  
Hery Sasono ◽  
Dwi Condro Triono ◽  
Hanifah Zahra

This study aims to analyze and critically evaluate the implementation of the management of public ownership (Milkiyah 'ammah) and State ownership (Milkiyah Daulah) in Indonesia. This study descriptively describes the implementation of both ownerships that are currently practicing in Indonesia. Theoretical approaches used is the Islamic Economic System Madzhab Hamfara (Hadza Min fadzli Rabbi) who critically evaluate the implementation of the public wealth management and state wealth in Indonesia. This research used secondary data that was obtained from Madzhab Hamfara books, literature, journal and information relating to the Indonesian State assets management system. A comparative analysis was conducted to understand the difference between the public wealth management and state wealth management in Indonesia. Findings show that the management of both, public and state ownership are not in accordance to the ownership management approach of Madzhab Hamfara Islamic Economic System. The evidence suggests that both public and state ownership are not fully managed by the Government of Indonesia. The fact shows that public ownership in the form of water, fire and pastures are managed by individuals and institutions as well as foreign parties who have fund to privatize the public ownership. Consequently, it has the impact on unequal distribution of income that cause poverty in Indonesia. This research suggest that government should implement Islamic Economic System Madzhab Hamfara in managing public and state ownership in Indonesia. =========================================== Kajian ini bertujuan untuk menganalisis dan mengevaluasi secara kritis penerapan pengelolaan kepemilikan umum (Milkiyah 'Ammah) dan kepemilikan negara (Milkiyah Daulah) di Indonesia. Studi ini menjelaskan secara deskriptif tentang implementasi pengelolaan kedua kepemilikan tersebut yang sekarang dipraktikkan di Indonesia. Teori yang digunakan dalam penelitian ini adalah Sistem Ekonomi Islam Madzhab Hamfara (Hadza Min fadzli Rabbi) yang secara kritis mengevaluasi implementasi pengelolaan kepemilikan umum dan negara di Indonesia. Kajian ini menggunakan data sekunder yang berasal buku-buku madzhab Hamfara, literatur, artikel jurnal dan informasi lainnya yang terkait dengan pengelolaan aset di Indonesia. Analisis perbandingan juga dilakukan untuk memahami perbedaan pengelolaan kepemilikan umum dan kepemilikan negara. Hasil kajian menunjukkan bahwa pengelolaan kepemilikan, baik kepemilikan umum maupun negara di Indonesia, tidak dijalankan sesuai dengan sistem ekonomi Islam Madzhab Hamfara. Bukti-bukti menunjukkan bahwa pengelolaan kepemilikan publik dan negara tidak sepenuhnya dilakukan oleh negara. Fakta juga menunjukkan bahwa kepemilikan tersebut lebih banyak diserahkan kepada lembaga-lembaga privat bahkan lembaga-lembaga asing. Akibatnya, kesenjangan pendapatan yang menjadi pemicu kemiskinan terus terjadi. Kajian ini menyarankan agar pemerintah mengimplementasikan sistem ekonomi Islam Madzhab Hamfara dalam pengelolaan kepemilikan umum dan negara di Indonesia.


Author(s):  
Jessy V. Tiwang ◽  
Debby Ch. Rotinsulu ◽  
Daisy S.M. Engka

ABSTRAK             Pembangunan ekonomi daerah khususnya Pemerintah Kota merupakan titik awal pelaksanaan pembangunan, sehingga daerah diharapkan bisa lebih mengetahui potensi dan apa yang menjadi kebutuhan daerahnya salah satunya peningkatan Pendapatan dan Pertumbuhan ekonomi melalui proses pemugutan pajak Hotel dan Restoran guna dampak sesuai yang diharapkan.            Dalam penelitian ini bertujuan untuk menganalisis potensi dan efektivitas Pajak Hotel dan Restoranserta dampaknya terhadap Pendapatan Asli Daerah dan Pertumbuhan Ekonomi di Kabupaten Minahasa.            Berdasarkan hasil penelitian menunjukkan bahwa Pajak Hotel dan Restoran masih kurang berpotensi, sementara untuk tingkat efektivitas, Pajak Hotel dan Restoran menunjukkan angka yang efektif yakni rata-rata diatas 100%, dan secara bersama variabel Pajak Hotel dan Restoran memberikan pengaruh yang positif terhadap Pendapatan Asli Daerah, begitu pula secara bersamaan variabel Pajak Hotel dan restoran serta Pendapatan Asli Daerah memberikan pengaruh yang positif terhadap tingkat pertumbuhan ekonomi yang ada di Kabuaten Minahasa. Kata Kunci : Pendapatan Asli Daerah, Pertumbuhan Ekonomi, Pajak Hotel dan Restoran  ABSTRACT             Economic development areas especially the city is the starting point of construction , so that the regions is expected to be more aware of their potential and what has been one of the needs of the regions increase in income and economic growth through a tax collection hotel and restaurant to the impact as expected.            In this study aims to to analyze the all the potential and the effectiveness of tax hotel tax and restoranserta what effect it had on the regional genuine income and economic growth in kabupaten Minahasa .            Based on the research shows that hotel and restaurant tax potential is weak , while the effectiveness , hotel and restaurant tax shows a figure that is effective and above 100% , and together the hotel and restaurant tax positive impact on local revenue , this is also at the same time the hotel and restaurant tax and local revenue positive impact on the economic growth is in kabupaten Minahasa . Keyword : Local revenue, economic growth, hotel and restaurant taxes


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