The Offering of Islamic Economic’s Solution for the Indonesian Economy with the Face of a People's Economy

The Offering of Islamic Economic’s Solution for the Indonesian Economy with the Face of a People's Economy

Arin Setiyowati[1]

Introduction

BPS data (March, 2019) shows that in 2019 the poor population in Indonesia reached 25.14 million people (9.41%). The poverty measurement carried out by BPS uses the concept of ability to meet basic needs (basic needs approach). A decrease in the number of poor people from 2018-2019 shows that in absolute terms the poverty rate in Indonesia is still very large and efforts to overcome it are proceeding slowly. So the government is expected to strengthen the people's economy fairly, through a policy approach that is not pro-people, must be changed into pro-people policies, or at least what needs to be developed is a policy that is not against or neutral towards the people's economy so that the distribution of justice is created.

Some of the policies launched by the government in order to create fairness of distribution such as the Inpres Village program behind (IDT), Farming Business Credit (KUT), Social Safety Net (JPS), Rice for the poor (Raskin), and Direct Cash Assistance (BLT) which lately rife done. However, whether the results show? The reality is that the answer is not going well because it is allegedly prone to irregularities or immaturity in the application structure.

On the other side, the developing Islamic economy in Indonesia, particularly the Islamic financial institutions sector, has proven to provide economic stabilization solutions during the crisis of 1998. Through the business excellence of Islamic banks, Islamic economics has bargaining data in empowering the real sector. Unlike the capitalist economic system that stimulates people to be greedy.

In addition, there are still many offers of solutions to Indonesia's economic problems through Islamic economic products, whether born from the negation process, modifications or original concepts as value added to the economic system in Indonesia. Particularly in terms of minimizing economic inequality and creating equity in the distribution of wealth is very significant, so it really needs to be elaborated and internalized serriously, so it can go hand in hand with an economic system that has been right mapping the strategy and policy direction for the implementation of Islamic economics in the Indonesian economy with a populist economy.

Through this paper, the author intends to explain the Relevance of Islamic Economics if it is applied in the Indonesian economy with a populist economy. And offer solutions from the Islamic economy to Indonesia's economic problems.

Intersection and Role of Islamic Economy with Popular Economy

Based on the divine values ​​contained in the concept of Islamic Economy which is pro-small people through equitable distribution of wealth that is equipped with morals, it is very appropriate if placed in the container of Indonesia. Which the socio-cultural conditions are based on the principle of mutual cooperation, kinship and especially the domain of the majority of Muslims.

So what is the role of the Islamic economy in the Indonesian economy:

a.       The role of the Islamic Economy in the Indonesian economy especially the people's economy basically has an important bargaining position, especially when seeing that the majority of Indonesia's population is Muslim (88.8%). (Soeharto Prawirokusumo, 2001, in Noor, 2013, p. 230)

b.      The role of Islamic Economics in creating economic justice can be expected from distribution instruments such as zakat, endowments, inheritance, donations and alms which have considerable potential in Indonesia.

Islamic economic alignments to the people's economy above can be done by empowering the people's economy, through the distribution of assets in supporting the people's economy.

The Offering of Islamic Economic Solutions

Distribution policy in the Islamic Economic System upholds the value of justice, so the concept of distribution is an important basis that is used as a guide that is not to accumulate wealth only to one group, as stipulated in the QS. Al-Hasyr (59): 7. "So that treasure does not only circulate among the rich among you."

This verse becomes one of the cornerstones of the concept of distribution in Islamic economics through zakai, inheritance, endowments, infaq and alms, and muamalah agreements, especially in partnership with the Profit and Loss Sharing (PLS) mechanism which is loaded with justice. Intended for all parties and upholds cooperation as capital in the development of the informal sector / people's economy so that they are independent and empowered.

The following diagram is the instrument of distribution in Islamic economics:

Keterangan :                             : Wajib ----- >                   : Sunnah Wk                       : Wakaf I                           : Infak S                          : Sedekah A                          : Transaction contract in Islamic Economic

The diagram above shows the operational framework for assets distribution instruments in the Islamic economy. Which is able to meet community spaces from the smallest to the largest in the scope of the state based on needs. Starting from a close family circle, relatives to the general public. This means that the instrument is rigid and adjusted to the distribution path to each object neatly.

So that the opportunity of the suitability of the implementation of Islamic economics in Indonesia with a populist economic face is at the operational points of the distribution of assets, distribution instruments and muamalah contracts in Islamic economics that uphold the value of justice and humanism. Specifically, transaction agreements based on partnership are as needed in a people's economy.

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[1] Mahasiswa program S3 Ilmu Ekonomi Islam Universitas Airlangga Surabaya angkatan 2019, dan Dosen Prodi Perbankan Syariah FAI UMSurabaya.