Implementation of Islamic Economics in Indonesia as a Form of the Pancasila Economic System

Helza Nova Lital and Zahera Mega Utama

Chapter 3 in Islamic Economic Institutions in Indonesia:Are they Successful in Achieving the Maqasad-al-Shari'ah, 2023, pp 43-57 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Research on the Implementation of Islamic Economics in Indonesia as a Form of the Pancasila Economic System aims to find the rationale for its application within the framework of the Pancasila economic system. Islamic economic (Shari’ah Economic) values that are universal in nature which have dimensions of noble values in an effort to achieve economic prosperity are also an inseparable part of the Pancasila economic system. This chapter will analyze the implementation of Islamic Economics in Indonesia as a Form of the Pancasila Economic System using the normative legal research method. Economic sources literally come from the provisions of Islamic law, namely, the Qur’an, hadith, and Ijma. Economic activities in Islam form a part of worship, and muamalat has a divine dimension (vertical) as well as relationships with fellow human beings (horizontal relationships). This is different from other economic systems such as the system of Capitalism, Socialism, and the Welfare State whose studies are more the result of human thought and not divine issues. Pancasila has characteristics that were formulated by the founders of the Republic of Indonesia as a crystallization of the noble values that live in Indonesian society. The values contained in the precepts of Pancasila include Divinity, Humanity, Unity, Deliberation, and Social Justice. The first and fifth precepts of Pancasila are closest to the values related to the principles in Islamic economics.

Keywords: Islamic Economics; Institutions; Maqasad al-Shari'ah; Islamic Capital Market; Shari'ah Entrepreneurship; Indonesia; Finance; Economics; International Finance; Corporate Finance; Islamic Finance (search for similar items in EconPapers)
JEL-codes: A1 A14 F3 (search for similar items in EconPapers)
Date: 2023
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