Islamic Bank in Improving the

Economic Quality
By Prof. Bambang Setiaji
Univ Muhammadiyah Surakarta
Bank Syariah Bukopin
What is the distinguish of Islamic Econo
mic From Others?
Islamic Economic (IE) is activity that containt worship or
moral value, where movement of capital from the bubble
and wealthier countries in the global partnership (should
be) with clearer purpuse to help the poor countries to cre
ate many new products, business, and ultimatelly to allevi
ate unemployement (al fakir). But the profit is needed to
make the help continue (istiqomah).
Meanwhile the motive of capital movement today (under
the free market) is profit, money for money, this is absurd
or without noble purposes, why the weltier to only gain fr
om the poor.
This is imply that Islamic economics is set of logic mechais
m have ben creating to realise a clear moral pourposes.
IB sloud have clearer mission
IB as instrument of IE, should derive clear mora
l mission, that are to alleviate unemployment (t
he fakir) through creating business expansion,
start up, and SMEs.
Even Islamic bankers may be expend their all e
nergy to fullfill the fatiqueness daily banking te
chincal, the SOP have been design to realize m
oral purpose.
Islamic banks in promoting the real sectors.

Murabahah and real product

underline
UUS in Province Region Bank
The Loyalties
The SMEs and
Micro business and Islamic
Micro Finance
The obstacles in developing Islamic ban
k.-

(should be) Have a humanitic or social mission, IB Is

the most suitable with govt mission. But some
obstacle exist as
1. Govt as the source of deadly unfair competition:
the regulation to acces to low rate fund.
2. The hajj fund should be set as low rate fund (as a
part of whorship and help the jobless - faqir) and
should accesible to all IB.
3. Because of the magnitude of the low rate fund is
significant, this will impact to unfair market and
imply to sub optimal entrepreneruship and create
unemplyment.
The Fiqh Problem of PLS
Actually PLS in the Fiqh is individual bases
suitable with PT (ltd company)
Bank is a mass service that is imposible to
control validity of profit or loss report.
Basically every productive financing is
syirkah. Why?
About the loss sharing is not always 50
50, 0-100 is possibl depend on the
contract.

Simply murabahah is consumption

 Toward the more genuine Islamic ban
k.
The Islamic teachings related to the
capital is the zero interest rate, the
absence of interest and the intensification
of charity (public funds).
That principle may occur if capital are
accepted as public good. And all public
good is goverment duty.
State should subsidize interest, and
performance of banks should be changed to
how many job have been created.
 With zero interest the goal to realized full
employment will possible.
Higher interest rate related to higher
unemployemnt.
To solve unemployment is first agenda in
Islam and also in every goverments.
why many state banks and also IB stressed
on profit ? This is caused by miss
understood and the error from the true
mission.
Conclussion
Conclusion

Islamic economic = economic with cleaar purpose to help the

unfortune esp unemployment.

However goverment is sources of unfair banking compettiion by

regulation of acces to low rate fund, by a black box mechanism this
iwill impacted to sub optimal job creation.
Fiqh Should acommoded that is impossible to control
million fainacial report, if PLS shold be implied. Every
productive financing are syirkah and loss sharing is also
possible to 0 100 according agrrement.

Toward pure islamic banking system to implement zero

interest rate only possible if capital accepted as public
good, and purpose to aleviate unemployement is the
first agenda. Unemployment is worse than slavery. In
slavery System job still exist in case of unemployemnt
thembad job itself dosent exis.