Syariah Banking

Jan 15th, 2007, in Business & Economy, by

Jusuf Kalla says a syariah based banking system will better create prosperity.

Vice president Jusuf Kalla, while opening the 2007 Syariah Fair & Bazaar at the Institut Agama Islam Negeri (IAIN) on the 14th in Medan, North Sumatra, said that a banking system based on Islamic syariah law was ideal in order to bring about welfare and prosperity for the people.

The syariah system is the best banking system to create welfare and prosperity for the people as the system is applied on the basis of togetherness/cooperation.
(Sistem perbankan Syariah yang paling baik untuk mewujudkan kesejahteraan dan kemakmuran rakyat yang berkeadilan karena sistem syariah dilaksanakan atas prinsip kebersamaan)

Sharia banking had grown in prominence recently, he said, because it relied on the principles of fairness and working together, whereas traditional, western, forms of banking were overly centred on the profit motive where “money seeks money”. Syariah banking in contrast was based not on money but on trade in goods and that both the customers and the banks shared the risks of transactions equally. It also enabled poor people and small businesses to participate in the banking sector because little or no collateral was required.

He added that a number of banks in non-Muslim countries had provided sharia compliant banking facilities, including the United Kingdom and Hong Kong. This had happened to the point where sharia banking could no longer be considered the exclusive preserve of the Islamic religion: mediaindo

Sharia is no longer a monopoly of Islam.
(Syariah kini sudah bukan monopoli Islam.)

8 Comments on “Syariah Banking”

  1. looking for sally says:

    I guess that is what you called overclaimed, the sharia banking could no longer be considered exclusive to Islam just because UK and HK provided the service (I wonder who provide that service and for what customer). Wait for a moment and the conventional banking was too much profit oriented, hell the explaination by JK really beyond my ordinary thinking.

  2. Diana says:

    I guess Syariah system is the SOLUTION of economics environment, especially in Indonesia. Because Syariah system show the essential of Nabi Muhammad SAW personality (Tabliq, Amanah, Shidiq, Fatanah) which needed for our economics environtment (include banking). With that way, I’m sure that Indonesia will get the better condition, because everyone (not only moslem) will do their business activities in honesty and togetherness.

  3. Dragonwall says:

    Do you guys think that a Sharia Bank will help Indonesia.

    Sharia bank means no interest payable to depositors! How efficient is the Sharia bank in term of Investment?

    Because the sharia Bank are making money by lending and earning interest from depositor’s money and not paying depositor interest! Is that halal or haram?Otherwise how are they going paying for the salaries of their staffs and operational costs? From their own pocket? What a joke. Government subsidy? It is all BS.

    Remember the case when Abdul Rahman Wahid was working with Astra’s Summa Bank for it to be converted into a Sharia Bank, when Astra was sabotage by Bob Hasan. It was sad case of unwarranted loss for William and Edward Soeradjaya with the help of a traitor doing an inside job by collaborating with outsiders.

    Where di Bob Hasan got his money, his Bank BUN all by robbing others and money obtain from illegal levies place on logging that was due to the Indonesian government that went to his pocket.

    The short VP is all happy if the Sharia Bank pulls through. I can name you a list of benefits that he will get and not the Indonesian economic. Think it yourself short ass and tell the public what will interest the public and what will benefit you.

    Lets not fool the Indonesians into Sharia Banking. Indonesians should also not be fooled into Sharia Banking. What Indonesian needs right now is how to make money. Only those munafik people are willing to have their money and tightened their belts and starve by adopting Sharia Banking. I am not sure how many is willing.
    The choice is yours.

  4. sukarno says:

    I’m sue syariah bank system will be better of athers as long as the men behind of it who those ‘amanah’ and smart in bank system even conventional and system syariah.

  5. maretta says:

    Syariah banking system feasible to applied only in heaven…Please do breakdown all the base principle (mudharabah, musharakah, murabahah, ijarah, etc), u’ll found that it all use ratio..transaction dealt, first aff all, both parties have to agreed on a certain level of ratio.. The question is how the bank determine the ratio (syariah offcourse) and furthermore what is the catalyst they use to determine the fairness of the ratio to both parties (muaajir vs mustajir, shani vs mustashni,etc)…. while money now is different with money tomorrow so r the differences with the purchasing power of the money..But the must torturing questions in syariah system is that it seems to persuade the default risk (because syariah system used honesty and justice principle..ukh c’mon, we’re still on earth) and we’re not talking about the impact of the competition yet to the system and the bank will to survive..then this is will be another marketing mumbo jumbo to capture the untapped what Dragonwall said “Only those munafik people are willing to have their money and tightened their belts and starve by adopting Sharia Banking” God have mercy……………

  6. dragonwall says:

    Hmmm trying to figure out should we use rocks of gold on a weigh and measure it with Rupiahs less inflation to come up with a ratio.

    Must be kind of testing.

  7. walk4change says:

    In my opinion..using shariah as the based of the economical system in indonesia is the best way to bring us into better economical condition..if we’re looking on our condition nowdays, you’ll see how bad our capitalism to get much money faster is the only aim on this system (by using everyway to get it exactly) and their tools is interest..the freedom that provided by capitalism bring you breakingdown, and now it looks on lehman brother case..and also the impact of capitalism that shows nowdays are more wide the gap between the rich and the poor….

    today,, many conventional bank are build shariah bank..not only in indonesia, but also all country included us and uk.. bad stereotype about islam do not stop their for using shariah system and now it looks by the RBS (biggest bank in uk) by making shariah do you they’re dummies with those policie on making shariah division..?? c’mon, open ur eyes, living in earth is not all about’s about how to bring and create welfare, prosperity, decraesing poverty..and the only system that think about it only on shariah system..i do believe that it will shows many approvement as the time goes…

  8. mahameru says:

    the word of ‘shariah’ itself refers to something taken from Islamic teaching; as shariah grounds it principle on two core sources of Quran (the holy book of Islam) and Sunnah – the Prophet Muhammad tradition – thus the word of Shariah refer to something and anything Islamic.

    but lets also explore the facts on a specific issue of prohibition of riba / interest: apparently, the believe of Islam is not the only religion opposing the action of interest taking! – Prior to Islam, as among the revealed religions, Judaism had also prohibited interest. Judaism Old Testament reads, “I you lend money to any of my people with you who is poor, you shall not be to him as creditor, neither shall you require interests from him” (Ex.22; 25). And from the Christianity teaching, the Gospel according to Luke, chapter 6 verse 30 reads, “Give away to everyone who begs of you, and of he who takes away from your goods, do not demand them back again.” (Cited in Al Qadarawi, 2003, p.243)
    A significant distortion on the application of usury’s subject -which is from broader interpretation of humankind to a narrower scope of only the believer of Judaism, has somehow emerged in the case of Judaism verse, as Al Qadarawi (2003, p.243) claims that,
    “It is therefore sad to see that the Old Testament has been subjected to such distortions that the meaning of ‘My People’, which originally had a broader application, later became restricted to the Jews alone, as we read in Deuteronomy, ‘You may lend on interest to a foreigner, but to your brother you shall not lend on interest” (Deut. 23; 20).”

    my point is that the principle on prohiiting interest/riba is not of an exclusive feature of Islam.
    why bringing about the issues of prohibition of interest?…as i believe that the core values of islamic finance of being fair, togetherness concept , partnership, money not for money = are all based on a fundamental issue of the prohibition of interest taking. this could be further explored academicly from the sayings/thoughts of Imam Al Razi in regards to the wisdom behind the interest prohibition in Islam-which have apparently been supported by modern findings and researches and they are all only to finally support Imam Al Razi’s classic thoughts on the wisdom of Islamic teaching for the specific issue of interest prohibition; it was also considered as a weighty economic rationale.

    postgraduate student of islamic studies – scotland

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