Islamic Economic Challenges Facing Global Economic Developments

Islamic Economic Challenges Facing Global Economic Developments

Islamic economic development is increasingly clear today, with characterized by the development of Islamic financial institutions in Indonesia both banking and non-bank institutions. Not only is it in the world of education, the emerging Islamic economics programs at several universities in Indonesia. Islamic economic development is increasingly widespread answer to this is a reflection of the passion and desire of Muslims in Indonesia will be an economic system that can lead to the prosperity of the nation and rid the nation of Indonesia's economy collapsed by several reasons, including the economic crisis, poverty, unemployment, as well as economic reforms in a country which is still full of this damage, as well as the beginning of the economic revival of Islam in Indonesia and around the world, for example in Bank Muamalat Indonesia established in 1992

            When discussing the development of Islamic economics can not be separated from the discussion of global economic changes, such as the crisis in the Middle East and Europe. Economic, political, social and macro-economic environment that characterizes national. The impact of the situation abroad became the main cause. Greece's credit as an example dropping the euro currency and market conditions also dropped the money and capital markets. Many foreign investors began to withdraw their money because of fears of the European crisis. In addition to the European crisis, the crisis in the Middle East also has an impact on foreign investors from the Middle East because of the conditions in the Middle East is uncertain. Also at the level of ASEAN itself, the will dicanangkannya ASEAN Economic Community (AEC) As one of the pillars of the ASEAN Vision 2020 of course, would be a lot of preparation for Indonesia. Based on the AEC Scorecard report published by the ASEAN Secretariat in 2009, the State is considered to reach the highest level of MEA implementation is Singapore with a value of 93.52%. From 10 member countries, Indonesia ranks 7th with a value of 80.37%. This reflects the fact that Indonesia has not fully prepared for the MEA. Establishment of the single market as the main characteristic of the entire MEA led to ASEAN countries, especially Indonesia would not want to compete to be the exporting country in order to balance the State's trade balance in the midst of foreign products begin to flood Indonesia.

            In addition to these global issues, there are also some specific issues that developing Islamic economics in Indonesia, after the issue became gold pawning gold gardening had a conversation a few months ago, and eventually held the gold pawn resetting this so as not to give rise to speculation and usury. The issue of Islamic banking is still only a few topics in the media related to the development of Islamic economics. According ASBISINDO general secretary, Ahmad K Permana said that there are three major issues in Islamic banking, among others, the availability of products and standardization issues of Islamic banking products, the level of public understanding of Islamic banking products, as well as the availability of human resources related issues of Islamic banking. Islamic banking given the fastest-growing Indonesia is 38% compared to the growth of Islamic banking world is around 10% whereas the existing human resources are still taking of human resources in conventional banks are only given a few times training in Islamic banking. Furthermore Islamic banks are still many challenges to become Indonesia's economic system. Islamic banks have not been in the interests of national issues, this is different from Malaysia that has been fully supported by the government.

The development of Islamic banking and finance institutions is progressing very rapidly and showed toughness in the monetary crisis and data showing fantastic progress. When a conventional bank into liquidation, Islamic banks can survive the system for the results, so it is not required to pay interest on a certain amount to the customer as the conventional banks. FDR Islamic banks are always high, menunjukkan bahwa third party funds are invested in productive enterprises to small and medium-sized communities.

            Global economic developments and the growing interest in the economic society with Islamic banking, Islamic economy got a big challenge as well. According to the First Chairman of the Association of Indonesian Islamic Economics (IAEI) and Deputy Secretary General of the MES Centre, Mr Agustianto mention that there are at least five issues and challenges facing Islamic economics today. First, is the lack of qualified Islamic economists who dominate modern economic sciences and Islamic sciences are integrative. Second, a test of the credibility of the economic and financial system, three, sets of rules, laws and policies, both nationally and internationally are not sufficient. Fourth, the limited college who teaches Islamic economics and institutions still lack tranining and consulting in this field, so that the economic and human resources in the field of Islamic finance is still limited and does not have adequate knowledge of Islamic finance. Fifth, the role of government, both the executive and legislative branches, is still low to the development of Islamic economics, because of their lack of understanding and knowledge about Islamic economics.

By: Muhimatul khoiroh (11220067)