The Maslahah Concept in the Islamic Finance Institutions

Elsy Renie ,Thohir Luth ,Siti Hamidah ,Sihabbudin

doi:10.7176/jlpg/87-12

Abstract

The sharia economy has grown rapidly in Indonesia for the past three decades. Sharia finance is an inseparable part of the Islamic economy. The market share of sharia finance in Indonesia consists of sharia banking, sharia insurance, sharia finance, sharia mutual funds, government sukuk and sharia stocks. In addition, there are still Islamic social finance sectors such as zakat and waqf. The development of sharia finance in Indonesia has undergone improvements from the previous stages. Studies that initially revolved around halal - haram, and seemed to repeat the classic debates, began to open to the renewal of Islamic law. As Fazlur Rahman said that Islamic law (in terms of fiqh) is not a rigid, and sacred thing towards changes because Islamic law is required to be able to provide juridical answers to various demands and issues of human life, while the dynamics of life always tend toward changes. Therefore the study of Islamic law in Indonesia must always be opened and it pays attention to the social implications from the application of law thoughts, and how the objectives of Islamic law (Maqashid Syari'ah) are manifested in the development of modren syari'ah financial industry. This study is a normative research, with a historical and analytical approach. The researcher concluded that, the realization of Maqashid Syariah in Islamic finance was a necessity. The products, the governance and the management of financial companies must be in order of Hifz ad-Diin, Hifz nafs, Hifz Aqal, Hifz Maal, Hifz Nasab, to achieve the benefit for the people and the advance of national economic development. Keywords: Maqashid Syari'ah, Sharia finance, Islamic economy, Islamic law DOI : 10.7176/JLPG/87-12 Publication date :July 31 st 2019

Highlights

As a country with the largest percentage of Muslim population in the world, which reached 87.18%, Indonesia has an opportunity for the development of Indonesia's Islamic economy
MUI conducted studies that were used as guidelines in implementing sharia economy in Indonesia
The Syari'ah Financial Industry in Indonesia has proven to be a pillar of the national economy, it can be seen from the sukuk (State Islamic Securities) that have been able to finance infrastructure development in Indonesia, and attract foreign investors to invest in Indonesia

Summary

The Maslahah Concept in the Islamic Finance Institutions

ELSY RENIE* Candidate of Doctor Faculty of Law, Brawijaya University, INDONESIA M.T. Haryono No.[169], Ketawanggede, Lowokwaru, Malang, East Java 65145. THOHIR LUTH Professor of Law, Faculty of Law, Brawijaya University, INDONESIA. SITI HAMIDAH Associate Professor Faculty of Law, Brawijaya University, INDONESIA. M.T. Haryono No.[169], Ketawanggede, Lowokwaru, Malang, East Java 65145. SIHABBUDIN Associate Professor, Faculty of Law, Brawijaya University, INDONESIA. M.T. Haryono No.[169], Ketawanggede, Lowokwaru, Malang, Malang, East Java 65145

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