Hajj Funds Management Based on Maqāṣid Al-Sharīʿah; A Proposal for Indonesian Context

Indonesian hajj funds (BIPH) have the potential to support the implementation of hajj worship in an effective, efficient, transparent, and accountable manner while complying with Islamic law. However, it is said that the management turned out to be ineffective and unprofessional. This research aims to examine the management of hajj funds in detail using maqāṣid al-sharīʿah perspective to propose a breakthrough for its better management. It uses a normative juridical method through data presentation and explanation using an interdisciplinary perspective on maqāṣid al-sharīʿah. The data comes from journal articles, scientific documents, and statistical data. The research results show that in maqāṣid al-sharīʿah perspective, namely an instrument to create a balance of the Muslim way of life with Islamic legal values in social, political, economic, spiritual, and universal human aspects, the ḥifẓ māldimension urges using hajj funds for the benefit of society. Therefore, the Hajj Financial Management Agency (BPKH) should collaborate with the Ministry of Religious Affairs and other related stakeholders to manage Hajj funds optimally and efficiently while increasing trust and reducing negative public perceptions. Policies and regulations by the government are made in such a way that it can ease hajj pilgrims to carry out the worship comfortably, safely, smoothly, and spiritually enriching.Tulisan ini bertujuan untuk membahas mengenai pergeseran rechtregime penyelenggaraan haji di Indonesia berdasarkan teori dalam hukum administasi negara yang berlaku di Indonesia. Dari perspektif kontemporer, aspek penyelenggaraan dan pengelolaan dana haji merupakan salah satu tugas pemerintah yang berada pada domain urusan publik berdasarkan hukum. Paper ini menggunakan metode penelitian yuridis normatif dengan penyajian preskriptif-eksplanatoris menggunakan teori interdisipliner yaitu hukum administrasi negara dan maqashid kontemporer. Hasil penelitian ini menunjukkan bahwa terdapat pergeseran rechtregime haji dari privat ke publik dengan kendaraan red light theory menuju green light theory dalam hukum administrasi negara dimana negara turut campur dalam penyelenggaraan dan pengelolaan dana haji. Seiring dengan pergeseran tersebut, penyelengaraan dan pengelolaan dana haji selaras dengan pergeseran pardigma maqashid klasik yang terbatas pada perlindungan menuju maqashid kontemporer yang mendorong peningkatan kemaslahatan umum

Sistem Kelembagaan Keuangan Bebas Bunga Alternatif bagi Perekonomian yang Berkeadilan: Tinjauan Konstruktif

The Islamic economic system can be an option during the current world economic system with its market mechanism that can no longer be controlled by anyone and any system. The Islamic economic system is present as an alternative to the alignment of the economic system in a market order that is just and beneficial for human welfare. Islamic sharia principles in asset management emphasize the balance between individual and community interests, where assets must be used for productive things, especially investment activities which are the basis of economic activity in society. Interest-free financial institutions (Islamic financial institutions) as the implementation of the Islamic economic system include two institutions, namely bank financial institutions and non-bank financial institutions. In carrying out their financial activities, the two types of institutions carry out the main principles in transactions, namely: the prohibition of usury (interest) in various forms of transactions, conducting business, and trading activities based on obtaining legal profits according to sharia, and giving zakat. So that the financial institution must have a financial management strategy, properly and following muamalah fiqh.Sistem ekonomi Islam dapat menjadi pilihan di tengah sistem ekonomi dunia saat ini dengan mekanisme pasarnya yang tidak lagi dapat terkendalikan oleh siapa pun dan sistem mana pun. Sistem ekonomi Islam hadir sebagai alternatif keberpihakan sistem ekonomi pada tatanan pasar yang berkeadilan dan bermanfaat menyejahterakan manusia. Prinsip syariah Islam dalam pengelolaan harta menekankan pada keseimbangan antara kepentingan individu dan masyarakat, di mana harta harus dimanfaatkan untuk hal-hal produktif terutama kegiatan investasi yang merupakan landasan aktivitas ekonomi dalam masyarakat. Kelembagaan keuangan bebas bunga (lembaga keuangan syariah) sebagai implementasi dari sistem ekonomi Islam meliputi dua lembaga, yaitu lembaga keuangan bank dan lembaga keuangan bukan bank. Dalam melaksanakan kegiatan keuangannya kedua macam lembaga tersebut menjalankan prinsip utama dalam bertransaksi, yaitu: adanya larangan riba (bunga) dalam berbagai bentuk transaksi, menjalankan bisnis dan aktivitas perdagangan yang berbasis pada perolehan keuntungan yang sah menurut syariah, dan memberikan zakat. Sehingga lembaga keuangan tersebut harus memiliki strategi manajemen keuangan, secara baik dan sesuai dengan fiqh muamalah

Islamic Financial Instruments and its Impact on the Return On Sales: Al-Hajj Savings and Investment Fund of Jordan as a Model

Purpose: This study intended to investigate and analyze the relationship between deposits, money, real estate, stocks, and other gains and the return on sales at Al-Hajj Savings and Investment Fund of Jordan.   Theoretical framework: Quantitative techniques were tested by looking at the financial statements for the time period (2015 -2020).   Design/methodology/approach: the unit of measurement for this study is the Jordanian Hajj Provident and Investment Fund. In this study, there are differences between Islamic financial instruments. This study will be practical in nature, and illustrative in terms of purpose, which requires the use of causal and correlative relationships for this study.   Findings: Results showed that there is a significant statistical effect of deposit Profits on the return on sales, with a calculated T value of (6.765851) and a significance level less than 0.05. Additionally, the table's results indicated that (88.4%) of the change in "return on sales" can be explained by the change in the independent variable. Also, there is a significant statistical effect of finance Profits on the return on sales with a calculated T value of (2.871897) and less than 0.05. Additionally, the table's results indicated that 57.8% of the change in "return on sales" can be explained by the change in the independent variable. The results also revealed that (58.9 %) of the change in "return on sales" can be explained by the independent variable “Real State Profits” dimension. Finally, the result showed that there is a significant statistical effect of real state Profits on the return on sales with a calculated T value was (4.717416), with a significance level of less than 0.05, the table also showed that (81.6%) of the change in “return on sales” can be explained by the change in the “Stocks Profits” dimension.   Research, Practical & Social implications: The research indicated that in order to regulate Islamic finance instruments, one must adhere to the requirements of Islamic Sharia and implement the prescribed controls. Additionally, work to establish the necessary legal framework in Islamic nations so that Islamic financing instruments can be regulated and controlled at all stages and that they are not restricted to just one type.   Originality/value: The findings suggest several consequences forth fields of Islamic Financial Instruments and Al-Hajj Savings Investment Fund. Additionally, the Arab and Islamic country, including Jordan, have had a number of financial issues that this study helps to resolve. Al-Hajj costs of the participants are financed from their savings and profits, and if the savings exceed the costs of the Hajj, the participant can withdraw his savings and profits after performing the mandatory duty.

The Legitimation of Religion in Profit Seeking: The Role of National Shari‘āh Division of The Indonesian Muslim Council (DSN-MUI)

Religious legitimacy is a potent means of achieving one's objectives, including the pursuit of economic benefits. This is how Islamic financial institutions employ the fatwa of the National Sharia Council (DSN-MUI) in their operations. Nonetheless, this objective is often in conflict with the noblest religious ideals of justice, equality, and humanity. This paper aims to explain how the DSN-MUI fatwa acquires religious legitimacy, as well as the repercussions of granting this legitimacy to the public that utilizes Islamic financial institutions. The collected data consists of the texts of DSN-MUI fatwa from 2000 to 2021 as well as the results of interviews with DSN-MUI practitioners of Islamic economics, and pertinent academicians. The data is then descriptively and critically analyzed. The findings of the study suggest that there are three fatwa issued by the DSN-MUI that legitimize profits gained by Islamic financial institutions. However, this method may violate significant religious norms. This paper also concludes that competition between conventional and Islamic financial institutions is a significant factor in the emergence of this legitimacy.Keywords: The Legitimacy of Religion, Profit-Seeking, and the National Sharia Division of the Indonesia Muslim Council (DSN-MUI)

Implementation of Legal Substance and Sharia Values in Islamic Banking in a Muslim-Minority Region

This study aims to investigate the factors that impede the application of Islamic law in the operation of Islamic banking in a non-Muslim region in Indonesia, i.e., Papua. The readiness of human resources in Islamic banking, both in quantity and quality, to support Islamic banking operations in this specific case is not well investigated. This study employs a descriptive-analytical normative legal study, with technical analysis of primary and secondary data qualitatively. The investigation indicates that the application of Islamic law to the operation of Islamic banking has not gone well, contrary to the goal of establishing Islamic banking with a profit-sharing system. The progress of Islamic banking falls short, despite the national growth target.This study aims to investigate the factors that impede the application of Islamic law in the operation of Islamic banking in a non-Muslim region in Indonesia, i.e., Papua. The readiness of human resources in Islamic banking, both in quantity and quality, to support Islamic banking operations in this specific case is not well investigated. This study employs a descriptive-analytical normative legal study, with technical analysis of primary and secondary data qualitatively. The investigation indicates that the application of Islamic law to the operation of Islamic banking has not gone well, contrary to the goal of establishing Islamic banking with a profit-sharing system. The progress of Islamic banking falls short, despite the national growth target

Maslahah and Strategy to Establish a Single State-owned Islamic Bank in Indonesia

Objective - The market share of Islamic banking in Indonesia has continually decreased from 4.89% in 2013 to 4.85% in 2014 and 4.83% in 2015. As a result, the idea to establish a single state owned Islamic Bank occurs. This conceptual paper aims to contribute the maslahah framework regarding the future of Islamic banks in Indonesia.Methods - The methodology that used in this paper is a qualitative method which supported by quantitative data that align with the theory of the benefit of the Ummah (maslahah) and the community theory.Results - The breakthrough to increase the market share and deliver Indonesia becoming an Islamic financial hub is the option to convert the BRI as the biggest retail bank to a full fledge Islamic bank, and the next action is to acquire the Islamic banks which are subsidiary of conventional state-owned banks (Bank Syariah Mandiri-BSM, Bank Nasional Indonesia Syariah-BNIS, Bank Rakyat Indonesia Syariah-BRIS, and Bank Tabungan Negara Syariah-BTNS). Conclusions - Establishing a single state-owned Islamic bank is beneficial for the future of Islamic banks in Indonesi

Foreign Debt in the Perspective of Tafsir Fii Zilaal Al-Qur'an by Sayyid Qutb

This study aimed to analyze the contemporary interpretation of Sayyid Qutb against usury contained in foreign debt in his book Fii Zhilaal al-Qur'an Surah Al-Baqarah: 275. The method used in this research is the descriptive analysis method combined with the method of hermeneutics and supported by a literature review to find Sayyid Qutb’s thoughts on foreign debt. This study is an attempt to gain a proper understanding of usury-based on a contemporary interpretation of Sayyid Qutb in the book Fii Zhilaal Al-Qur'an especially that including in foreign debt. This study described the analysis of usury in foreign debt base on the interpretation of Sayyid. Findings. The results of this study are understandings of the thoughts of Sayyid Qutb in his book related to the impact of foreign debt which may lead to the theory that foreign debt will have an impact on regulatory intervention, colonization, and even warfare

The Challanges of Islamic Bank for Accelerating the Growth of Micro, Small and Medium Enterprises (MSMEs) in Indonesia

Islamic banking has a huge role in accelerating the growth of Micro, Small and Medium Entrerprises(MSME)s in Indonesia. The largest Muslim population in Indonesia is one factor for the developmentof MSMEs. This paper explains how the Problems and Challenges of MSMEs in Indonesia;Development of MSMEs in Indonesia; Relationship Between Islamic Bank and MSMEs in Indonesia;The Role of Islamic Bank for Development MSMEs; and The Challanges of Islamic Bank forAccelerating the Growth of MSMEs in Indonesia. The end of this paper, the authors offer solutions toIslamic banking challenges in accelerating the growth of MSMEs such as: First, to improvemudhorobah and musyarakah financing schemes to accelerate and develop MSMEs in Indonesia;Secondly, to reduce the dependence on the use of Murabahah contract products that are consumptiveand targeted middle and upper only, Third, improve the financing scheme Qordhul Hasan contract bycooperating against Islamic social institutions, such as BAZNAS, BAZDA, LAZ, BWI, and Mosque,etc by maximizing the utilization of zakat funds, infaq, alms, waqf which has been only consumptive.Fourth, the cooperation of linkage program to BPRS and BMT so that the funds channeled can bedirected to remote areas and on target. Fifth, coaching, mentoring, and mentoring to BPRS, BMT,MSMEs business practitioners, and Islamic social institutions in order to develop funds that are storedproductively. Sixth, allocate Hajj and umroh investment funds to MSMEs business practitioners

ISLAMIC BANKING REVOLUTION IN MALAYSIA: A REVIEW

Purpose of the study: The study aims to review the development of Malaysian Islamic banks from year 2008 to 2015 and its role in financing Malaysian economy. Methodology: The sources of data were collectted from Malaysian banks, the reviews of the experience of Islamic banks in Malaysia has been discussed, then this study analysed the roles of Islamic banks in the allocation of resources in the banking system. finally, this study explined the  overall development of performance in Islamic banks in Malaysia. Main Findings and Novelty: The results of this study show that the Malaysian Islamic banks have contributed on the structure of the Malaysian economy; particularly in supporting the SME (small and medium entrepreneurship) industries as well the large projects, which create a good positive impact on Malaysian economy and became one of the main financial sources of Malaysian investment. Applications of this study: Achieving the required requirements for the success of the desired Islamic financial system such as adherence to ethical controls and behavior would reduce the problematic ethical risks and the risks of information asymmetry and emphasis on the importance of participations in the banking system and the need to adopt them