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Sharia Economics Not Only Sharia Financial Institution

Author (s): 
Bhinadi, Ardito

Market share of sharia banking is lower than that of conventional banking despite muslim is majority in a country. As muslim, we should prefer dealing with sharia banks to dealing with conventional banks. It is interesting to study further, why the market share of sharia financial institutions is smaller than conventional financial institutions. This paper aims to analyse muslim preference to sharia bank and develop the comprehensive strategy of sharia economics. The low market share of sharia bank in Indonesia is caused by: 1) muslim’s knowledge and understanding upon sharia economics is still limited and not well-spread (knowledge problem); 2)  sharia financial institution is unable to fulfil economy transaction needs among economic agents (product problem); 3) people who understand sharia economics consider that sharia financial institution does not fully apply sharia principles (still contains riba and haram) (sharia compliance problem). The main challenge to let sharia economic color the general economy is the low knowledge and application of sharia principles from the economic agents. Not only sharia financial institution developing, but also transactions in economic activities, such as trading, service, partnership, and other activities are also expected to be based on sharia principles. Comprehensive strategy is needed for sharia economics developing which consists of philosophic, strategic and implementative strategy. Government, ulama, educational institution, islamic society organization, economic and financial institution, and Muslim as an individual have important roles in sharia economic developing. The effort to make sharia principles as guidance in regulation and policy making as well as in implementation of every economic activity is the challenge of sharia economic developing in future. Without cooperation among stake holders, it will take very long time for sharia economic to develop.

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