Differences conventional business processes with business processes of sharia

Life in this world is related to the economic system that leads us to obtain happiness not only in the world, but also in the afterlife. As we know, in this day and age there are many issues we need to look at in choosing a financial institution in Indonesia.

There is an interesting phenomenon that can be observed from the spread of Islamic financial institutions in Indonesia. Debut Islamic finance in the country, beginning with Bank Muamalat operation in 1991, it has brought a new constellation in the finance and banking industry. In the number of the providers and the scope of activities developed within the Islamic finance industry indicates a situation of market demand unmet by conventional financial products. Theoretically, such a situation Unfulfilled demand encourages industry players to be creative and bring new products in line with the increase in public awareness of alternative financing schemes offered by financial institutions and Islamic banking.

Conventional business processes or sharia?

In general, there are some fundamental differences between muamalah-Islamic system with conventional financial business systems. First, the existence of the contract in the Islamic system is a must in every transaction and contract in accordance with its terms and applicable rules muamalah-Islamic systems. For example, contract savings activities (wadi'ah) is not done by giving certainty the amount of compensation would be given to the customer for the amount of funds deposited or stored securely in Islamic institutions. If ever there was benefit to the customer, the amount will depend on a reasonable policy given by the sharia, and not on the basis of rents or the exact percentage of the amount of funds deposited in unit time. Second, the treatment of the consideration given to the customer. In the conventional financial system, the amount of rent or interest promised in advance are treated as expenses (cost) to be paid by the bank to the owner of the funds. While the Sharia system, remuneration made ​​on the basis of profit sharing (profit sharing) which is determined in advance under an agreement between the bank and the owner of the funds. The third difference is the financing target of choice. In the conventional financial system, the lenders tend not to care about where funding allocations made ​​by banks or other financial institutions without regard to principles of halal-haram. While in the Islamic system, lending to customers should not be reserved for business activities that lead to the entry in the category of haram Islamic principles, such as gambling, food or alcoholic beverages, pornography, and prostitution.

Islamic economics also got a tough challenge from conventional economics. This happened because of economics developed in the Western world based on the freedom of the individual in making contracts with terms not to harm one another. Conventional economics concepts need diredefinisi Western version that can be tailored to the needs of Islamic shariah. Among those concepts are:

1. Concept Assets

The problem that arises in the concept of property is that conventional economics does not recognize any value in material possessions. As far as it may cause economic value, everything can be recognized as assets. Not surprisingly, illicit goods such as liquor and pork, including property authorized to be used as a business commodity.

2. Money Concepts

The discussion in the fiqh mu'amalat assume that the money used for the public is the real money (real money) of gold and silver. And since the colonial era, the gold and silver is no longer used as a medium of exchange. Instead of paper money being a medium of exchange prevailing in society. The scholars differed on this bill law. No one thinks that banknotes are not accepted in Islamic because it was not the real treasure and some are able to receive it.

3. Concept of Interest and Usury

In economics, interest is an assumption that is no longer a matter of debate though until now economists are still difficult to find a justification to it. In the science of fiqh mu'amalat term is not known although the discussion of the usury laws may be said to have been completed and the scholars agreed ban. With the concept of paper money (abstract money), the concept of interest and usury becomes bekelanjutan discussion.

4. The concept of Time Value of Money

Most of the theory of financial management that is built on the concept of time value of money and assumes that the value of money now relatively greater than in the days to come. While on the other hand, no explanation is found in fiqh mu'amalat despite tough trading tentangn debate (Ba'i mu'ajjal), including not a few discussions among scholars.

5. Concept Capital

Capital in terms of economics are all things, both physical and abstarak, which has economic value and productive. Included in this sense is money and intellectual property right. In mu'amalat classical fiqh, capital limited understanding of physical objects. Money can only serve as a medium of exchange. If he wants to be used for capital gain he must first be converted into physical form .

6. Concept Institute

Economics did not question any individual entity or abstract entity. Unlike the case with an object to fiqh mu'amalat mukallaf individually. This will take effect for the analysis of ownership and with ownership hubungannnya.

The fundamental difference between conventional disciplines of economics and fiqh mu'amalat necessitated a second thought to synergize into one discipline. In all likelihood is the redefinition of the knowledge economy, where the subject matter of economics will grow in the presence of materials science mu'amalat fiqh, or will be reduced in the presence of certain material restrictions are considered irrelevant to the Shari'ah. An example of this is the discussion of the theory of consumer behavior (consumer behavior) is limited by the assumption of Shariah prohibition of commodities and services of non-halal, or the theory of production (production theory) are coupled with the assumption that capital as a factor of production that does not include money in it.

The second possibility is the redefinition of the fiqh mu'amalat where bahasannya material increases with the legal analysis of the modern economic concepts like the time value of money, capital market instruments or transactions in the foreign exchange market. To pass judgment on those concepts required a fundamental understanding of the origin and relation to the overall economy.

So, which one do you choose?, a system that brings happiness to the world, or both?, you are in the right to decide.

Referrences :
http://www.mmugm.ac.id/index.php/2012-02-16-08-40-56/pemikiran-manajemen/2913-
http://www.salehdaulay.com/index.php/fikrah/ekonomi/item/98-posisi-ekonomi-islam-di-antara-ekonomi-konvensional-dan-fiqh-mu%E2%80%99amalat-kritik-epistemologis-terhadap-ilmu-ekonomi-islam