INDONESIA - ARTICLES - Utilization of Zakat as a Fiscal Component in Islamic Economic System

Maksimalisasi Zakat Sebagai Salah Satu Komponen Fiskal Dalam Sistem Ekonomi Islam (Utilization of Zakat as a Fiscal Component in Islamic Economic System)

Azharsyah Ibrahim

State University of Ar-Raniry - Faculty of Law - Ar-Raniry State Institute of Islamic Studies

May 22, 2012

JURISPRUDENSI Jurnal Syari'ah, Januari-Juni 2011

Abstract:     

In economics, fiscal policy is defined as the use of government expenditure and revenue collection (taxation) to influence the economy. Governments use fiscal policy to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment, and economic growth. Fiscal policy in an Islamic state should have an ideological orientation. This means that fiscal policy in an Islamic economy has to be evolved in the ideological framework of Islam and cannot be value-neutral. This paper aims to comprehensively study the potency of zakah in Indonesia and its potential use as a stabilization device in Islamic economic system. Data for this research are gathered through related-literatures including books, journal articles, internet sites and other related resources. The research found that the potency of zakah in Indonesia is increasing year of year. The Indonesia Magnificience of Zakah calculated that Indonesia has IDR 27,2 trillion in 2010 while Asian Development Bank estimated up to IDR 100 trillion. Thus, Indonesia has very big potency to use zakah as a fiscal component because some part of zakah proceeds could be withheld in an inflationary situation and these funds could be released to increase purchasing power in a period of depressed economic activity.

Note: Downloadable document is in Indonesian.- source SSRN

INDONESIA - TAKAFUL - 17 Year Operating Takaful Islamic Insurance

Jakarta (25 / 8). PT Syarikat Takaful Today Indonesia has aged 17 years in operating the Sharia in Indonesia. In the age of the various kinds of insurance business they have to live like life insurance and general insurance.
PT Syarikat Takaful Indonesia (Company) was established on February 24, 1994 at the initiative of team formation Takaful Insurance Indonesia (DELIVER) led by the Association of Indonesian Muslim Intellectuals (ICMI) by Abdi Nations Foundation, Bank Muamalat Indonesia Tbk., PT Asuransi Jiwa Tugu Mandiri, the Department Financial Affairs, as well as some Indonesian Muslim businessmen. Through these two subsidiaries namely PT Asuransi PT Asuransi Takaful Family and General Takaful, the Company has provided insurance protection that applies the principles of sharia in Indonesia's first pure. (source)

UK - EVENTS -SPEECH - Deputy Governor's Keynote Address at the ISRA-IIBI 2nd Annual International Thematic Workshop 2010: "The Polemics of Governing Law in Islamic Finance"

Speaker : Dato' Muhammad bin Ibrahim Venue : The Thomson Reuters Building, London Date : 29 November 2010 Language : English

Let me first thank the organizers for inviting me to speak at this ISRA-IIBI 2nd Annual International Thematic Workshop 2010. Although I very much regret not being able to be in London in person, I am thankful for the many advances of modern technology for the opportunity to briefly address all of you this morning. I am also happy to note that this event is a continuation of international collaboration between the organizers, the International Shariah Research Academy for Islamic Finance (ISRA), the Institute of Islamic Banking and Insurance (IIBI) and Thomson Reuters, following the success of the inaugural workshop held last year. The theme of this year's workshop, 'The Polemics of Governing Law in Islamic Finance: Recent Developments and the Way Forward', is most apt. With the emergence of Islamic finance as a new growth area in the global financial landscape, this Workshop provides an excellent forum to exchange views and information on topical legal issues in Islamic finance. As Islamic financial activities are increasingly crossing national boundaries, it is critical for more such dialogues to take place at an international level, in order to gain wider perspectives that can contribute to the development of a legal framework for Islamic finance that is internationally facilitative.

FINANCE - MALAYSIA - Appointment of Members of The SAC Shariah Advisory Council Bank Negara Malaysia (Member from Indonesia)

Bank Negara Malaysia wishes to announce the new members of the Shariah Advisory Council (SAC) for a period of three years, effective 1 November 2010. Pursuant to section [53] of the Central Bank of Malaysia Act 2009, the appointment of the SAC members was assented by the Seri Paduka Baginda Yang di-Pertuan Agong.

EVENT - SMU International Islamic Law and Finance Centre - 1 Day Seminar "Learn from the Experts"

 SMU International Islamic Law and Finance Centre

1-day "Learn from the Experts" Seminar 

12 November 2010

LAW - SHARIAH - CONTRACTS - Malaysia sets up committee to enhance its legal framework as `The laws of choice' for Islamic finance transactions

IN a move to position and strengthen its existing legal framework as ‘the Laws of Choice’ for Islamic financial transactions, Bank Negara Malaysia, the central bank, last week established a Law Harmonization Committee (LHC) comprising members from among key government stakeholders, including the Attorney General's Chambers as well as industry players and experienced Islamic finance legal practitioners.