Maqāṣid Sharīah Paradigm in Wealth Preservation and Regional Stability Through Local Currency Protection within ASEAN

Abstract

The use of Local Currency Settlement (LCS) which was decided at the conclusion of the 42nd Asean Summit in Labuan Bajo is a policy that will facilitate trade transactions between Asean countries and can increase the use of each country's local currency and reduce dependence on the US dollar. The purpose of this study is to find out and describe why Indonesia encourages ASEAN countries to use the LCS in the region and to analyze the results of the 42nd Asean Summit in the perspective of maqāṣid sharīah through the concept of hifẓ al-māl (wealth preservation). The design used in this study is a literature review and field research. A literature review study is a method applied to collect data or sources related to a particular topic which can be obtained from various sources such as journals, books, the internet and other literature. While field research by adding interviews with Islamic economists or academics or religious and government leaders. The results of this study indicate that Local Currency Settlement (LCS) agreements can realize economic independence and stability in the ASEAN region through the ease and efficiency of settlement of transactions carried out bilaterally and regionally by using each country's local currency and increasing trade, investment, and other transactions between Asean Countries. The agreement in the LCS policy is in line with the basic principles of maqāṣid sharīah through hifẓ al-māl which also implements the qiyām or qawām system (balance within self, family and society) in protecting wealth so as to achieve independence and economic stability in a broader scope both nation, state, region and globally.