Economics - Research Publications
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ItemIndonesian Islamic banking in historical and legal context(The Federation Press, 1999)Since its emergence in the 1960s, Islamic banking has emerged as a new trend in the field of international finance. Despite its popularity throughout the Muslim world, many are still unsure as to what exactly Islamic banking involves. This article from the book Law and Society in Indonesia explores critical questions such as who the Muslim thinkers and movements are that have influenced the development of Islamic banking as we know it today, with its strong emphasis on interest-free banking; when Islamic banks first started to appear in the modern era; and how it was that the Islamic concept of riba (usury) came to be understood as interest, thus providing the raison d’être for much of today’s Islamic banking industry. It also explores the theory of profit and loss sharing as the basis of Islamic banking, and the aspects of this theory which are put into practice in the day-to-day reality of Islamic commercial banking. Using the case study of Bank Muamalat Indonesia (BMI), Indonesia's first major Islamic bank, this article also examines the rise of Islamic banking in Indonesia. In particular, it discusses BMI’s rise and establishment as a competitive player in Indonesia's commercial sector. The case of BMI is explored in the light of earlier discussions of the broader historical and legal context of Islamic thinking and the rise of modern theories of ‘Islamic banking’.
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ItemRethinking citizenship rights of non-Muslims in an Islamic state: Rashid al-Ghannushi's contribution to the evolving debate( 1999)Of interest to Islamists of the twentieth century has been the question of minority rights in an Islamic state and of how non-Muslim minorities should be treated: in particular, should they enjoy equal citizenship rights and responsibilities with Muslims? Traditional Islamic law did not accord equal rights to non-Muslim protected minorities (ahl al-dhimma), placing Muslims above them in several key areas. Notwithstanding the law, however, early Muslim rulers exercised some pragmatic discretion according to the imperatives of their day. With the Islamic revival of the twentieth century, the traditional view has been adopted by several Muslim thinkers and leaders, though the traditional view is at odds with the concept of the nation-state. The nation-state is built on a secular premise, with no single religious group favoured over another. Within this context, a number of Muslim thinkers have attempted to reinterpret the traditionally held view of ‘citizenship rights’. This article will focus on the contribution of one such thinker, the Tunisian Islamist Rashid al-Ghannushi, who espouses somewhat ‘liberal’ views on the issue and argues for rethinking on a number of related aspects. Commencing with some background to the problem, the article explores the issue of citizenship rights as espoused by Ghannushi and notes the key importance of the concept of justice as their basis, in his view. Specific rights examined are: freedom of belief, including for Muslims who wish to change their religion; the holding of public office by non-Muslims; equal treatment for Muslims and non-Muslims in terms of fiscal duties and benefits. Throughout his arguments, Ghannushi emphasizes justice as central to the issue, and as the basis of interpreting and developing related rules and laws. Although Ghannushi’s views are not entirely new, he goes well beyond what has been acceptable in Islamic law, and his contribution should be considered important in the efforts at rethinking Islamic law in this area.
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ItemIjtihad and innovation in neo-Modernist Islamic thought in Indonesia( 1997)This article briefly explores three models of ijtihad (independent reasoning in Islamic jurisprudence) followed in contemporary Islam: text-based, eclectic and context-based ijtihad, and attempts to sketch the features of the environment within which each model functions. The key aim of the article, however, is to examine the context-based model of ijtihad which is utilized by neo-Modernist Muslims in Indonesia, to identify a number of their major concerns and to highlight the nature of the reform agenda the neo-Modernists are pursuing. Though this agenda may be seen by many Muslims to be problematic and even dangerous, it is gaining ground in Indonesia, particularly within the younger generation who have had the opportunity of combining traditional Islamic scholarship with modern Western education. The article examines these issues of interest on the basis of interviews conducted during 1995 in Jakarta with two leading Muslim intellectuals: Nurcholish Majid, the leading neo-Modernist thinker, and Abdurrahman Wahid, the leader of the largest Islamic organization in Indonesia, Nahdlatul Ulama.