Maqasid Ash-Shariʻah Framework and the Development of Islamic Finance Products: The Case of Indonesia
DOI:
https://doi.org/10.30993/tifbr.v12i2.150Keywords:
Maqosid al-Shariah Framework, Islamic Finance Product, Micro-Maqosid, Macro-Maqosid.Abstract
The objective of this research is to discuss the concept of Maqasid ash-Shariʻah as well as to propose new concept of Maqasid ash-Shariʻah framemork that will give many benefit in Islamic financial product development. Using a qualitative approach and using literature review, this study concludes that, the purpose of sharia can be in the form of micro and macro as well. Both of these goals must be able to be realized by Islamic finance, primarily through its products. In order to realize these two objectives, the process of the development of Islamic financial products is not only the concern of the sharia council, but also involving microprudential and macropruedential authorities. Therefore, here, the process of establishing Islamic financial products may involve Bank Indonesia, OJK, LPS, as well as DSN. The big goal is that every product can actually generate maslahah, both at micro and macro levels.
References
Ahmed, H. (2011). Product Development in Islamic Banks. Edinburgh: Edinburgh University Press Ltd.
Ahmed, H. (2011b). Maqasid al-Shari’ah and Islamic Financial Products: a Framework for Assessment. ISRA International Journal of Islamic Finance, Vol. 3 (1): 149-160.
Al-Ashqar, S. (2004). Al-Waadhih fi Usul al-Fiqh, Jordan: Dar al-Nafais.
Al-Ghazali, M. (1998). Al-Mustasfa Min ‘ilm Al-usul. Beirut: Dar al-Kutub al-Islamiyyah.
Al-Mubarak, T. and Noor, M. O. Applications of Maqasid al-Shari’ah and Maslahah in Islamic Banking practices: An analysis. IIUM Textbook.
Al-Syatibi. (1991). Al-Muwafaqat fi Usul al-Syari’ah. Beirut: Dar al-Kutub al-Ilmiyyah Vol.2.
Antonio, M.S. et al. (2012). An Analysis of Islamic Banking Performance: Maqashid Index Implementation in Indonesia and Jordania. Journal of Islamic Finance, Vol. 1 (1): 012 – 029.
Asutay, M. (2012). Conceptualising and Locating the Social Failure of Islamic Finance: Aspirations of Islamic Moral Economy vs. the Realities of Islamic Finance. Asian and African Area Studies, Vol. 11(2): 93-113.
Asutay, M. and Astrid F.H. (2015). Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt. International Journal of Islamic Economics and Finance Studies, Vol. 1(1): 5.
Auda, J. (2013). Maqosid a-Shariah as Philosophy of Islamic Law. London: IIIT.
Ayub, M. (2007). Understanding Islamic Finance. West Sussex, England: John Wiley & Sons.
Chapra, M. U. (1998). Relevance and Importance of Islamic Economics. In M. Kahf (Ed.), Lessons in Islamic Economics, Vol. 1: 99-114. Seminar Proceedings No. 41. Jeddah: Islamic Research and Training Institute (IRTI).
Chapra, M. U. (2008). The Islamic Vision of Development in the Light of the Maqasid Al-Shariah. Occasional papers series 15. London: The International Institute of Islamic Thought (IIIT).
Dusuki, A.W. and Said B. (2007). The Framework of Maqasid Al-Sharīʿah and Its Implication for Islamic Finance, Islam and Civilisational Renewal. Pluto Jurnal: 331.
Dusuki, A.W. (2009). Challenges of Realizing Maqasid al-Shari’ah (Objectives of Shari’ah) in Islamic Capital Market: Special Focus on Equity-Based Sukuk. International Islamic Management Conference on Islamic Capital Market, Organised by Centre for Islamic Management Studies University Sains Malaysia; 28th & 29th October 2009, USM, Penang. Pp. 2.
Elahi, Monzur-E-M. (2010). The Objectives and Intents of Islamic Shari`ah as a Paradigm of Development Strategies and Policies. IIUC Studies, Vol. 7: 321-336.
Hurayra, M.A. (2015). Achievement of Maqasid-al-Shari`ah in Islamic Banking: An Evaluation of Islamic Bank Bangladesh Limited. Global Journal of Computer Science and Technology: A Hardware & Computation, Vol. 15 (1): 9.
Ibn Ashur, M. A.T. (2006). Treatise on Maqasid al-Shari'ah (M. E.-T. El-Mesawi, Trans.). Washington: The International Institute of Islamic Thought.
Ibn Qayyim, A.J. (n.d.). I‘lām al-Muwaqqī‘in (Vol. 3). Cairo: Idārah al-Tibā’ah al-Munīriyyah.
Kamali, M.H. (2009). Maqasid al Shari`ah Made Simple. Occasional Papers Series 13. The International Institute of Islamic Thought, London & Washington.
Khallaf, A.W. (1990). ‘Ilm Usul al-Fiqh. Cairo: Maktabah al-Da’wah al-Islamiyyah: 84
Lahsasna, A. and Sulaiman, R. (2010). Realizing Maqasid al Shari’ah in Islamic Financial Planning. Paper presented at the 4th Islamic banking, accounting and finance seminar (IBAF 2010).
Lahsasna, A. (2013). Maqasid al-Shariah in Islamic Finance. Kuala Lumpur: IBFIM.
Laldin, M.A. et al. (2013). Islamic Legal Maxim and Their Aplication in Islamic Finance. Kuala Lumpur: ISRA.
Laldin, M.A. and Hafa, F. (2013). Developing Islamic finance in the framework of maqasid al-Shari’ah: Understanding the Ends (maqasid) and the Means (Wasa’il). International Journal of Islamic and Middle Eastern Finance and Management, Vol. 6 (4): 278-289.
Mohamad Y.I. et al. (2015). The Practices of Islamic Finance in Upholding the Islamic Values and the Maqasid Shari’ah. International Review of Management and Business Research, Vol. 4 (I): 286-294.
Mohammad, M. O. and Syahidawati S. (2013). The Objective of Islamic Economic and Islamic Banking in Light of Maqasid Al-Shari’ah: A Critical Review. Middle-East Journal of Scientific Research 13 (Research in Contemporary Islamic Finance and Wealth Management): 75-84.
Ahmed, H. (2011b). Maqasid al-Shari’ah and Islamic Financial Products: a Framework for Assessment. ISRA International Journal of Islamic Finance, Vol. 3 (1): 149-160.
Al-Ashqar, S. (2004). Al-Waadhih fi Usul al-Fiqh, Jordan: Dar al-Nafais.
Al-Ghazali, M. (1998). Al-Mustasfa Min ‘ilm Al-usul. Beirut: Dar al-Kutub al-Islamiyyah.
Al-Mubarak, T. and Noor, M. O. Applications of Maqasid al-Shari’ah and Maslahah in Islamic Banking practices: An analysis. IIUM Textbook.
Al-Syatibi. (1991). Al-Muwafaqat fi Usul al-Syari’ah. Beirut: Dar al-Kutub al-Ilmiyyah Vol.2.
Antonio, M.S. et al. (2012). An Analysis of Islamic Banking Performance: Maqashid Index Implementation in Indonesia and Jordania. Journal of Islamic Finance, Vol. 1 (1): 012 – 029.
Asutay, M. (2012). Conceptualising and Locating the Social Failure of Islamic Finance: Aspirations of Islamic Moral Economy vs. the Realities of Islamic Finance. Asian and African Area Studies, Vol. 11(2): 93-113.
Asutay, M. and Astrid F.H. (2015). Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt. International Journal of Islamic Economics and Finance Studies, Vol. 1(1): 5.
Auda, J. (2013). Maqosid a-Shariah as Philosophy of Islamic Law. London: IIIT.
Ayub, M. (2007). Understanding Islamic Finance. West Sussex, England: John Wiley & Sons.
Chapra, M. U. (1998). Relevance and Importance of Islamic Economics. In M. Kahf (Ed.), Lessons in Islamic Economics, Vol. 1: 99-114. Seminar Proceedings No. 41. Jeddah: Islamic Research and Training Institute (IRTI).
Chapra, M. U. (2008). The Islamic Vision of Development in the Light of the Maqasid Al-Shariah. Occasional papers series 15. London: The International Institute of Islamic Thought (IIIT).
Dusuki, A.W. and Said B. (2007). The Framework of Maqasid Al-Sharīʿah and Its Implication for Islamic Finance, Islam and Civilisational Renewal. Pluto Jurnal: 331.
Dusuki, A.W. (2009). Challenges of Realizing Maqasid al-Shari’ah (Objectives of Shari’ah) in Islamic Capital Market: Special Focus on Equity-Based Sukuk. International Islamic Management Conference on Islamic Capital Market, Organised by Centre for Islamic Management Studies University Sains Malaysia; 28th & 29th October 2009, USM, Penang. Pp. 2.
Elahi, Monzur-E-M. (2010). The Objectives and Intents of Islamic Shari`ah as a Paradigm of Development Strategies and Policies. IIUC Studies, Vol. 7: 321-336.
Hurayra, M.A. (2015). Achievement of Maqasid-al-Shari`ah in Islamic Banking: An Evaluation of Islamic Bank Bangladesh Limited. Global Journal of Computer Science and Technology: A Hardware & Computation, Vol. 15 (1): 9.
Ibn Ashur, M. A.T. (2006). Treatise on Maqasid al-Shari'ah (M. E.-T. El-Mesawi, Trans.). Washington: The International Institute of Islamic Thought.
Ibn Qayyim, A.J. (n.d.). I‘lām al-Muwaqqī‘in (Vol. 3). Cairo: Idārah al-Tibā’ah al-Munīriyyah.
Kamali, M.H. (2009). Maqasid al Shari`ah Made Simple. Occasional Papers Series 13. The International Institute of Islamic Thought, London & Washington.
Khallaf, A.W. (1990). ‘Ilm Usul al-Fiqh. Cairo: Maktabah al-Da’wah al-Islamiyyah: 84
Lahsasna, A. and Sulaiman, R. (2010). Realizing Maqasid al Shari’ah in Islamic Financial Planning. Paper presented at the 4th Islamic banking, accounting and finance seminar (IBAF 2010).
Lahsasna, A. (2013). Maqasid al-Shariah in Islamic Finance. Kuala Lumpur: IBFIM.
Laldin, M.A. et al. (2013). Islamic Legal Maxim and Their Aplication in Islamic Finance. Kuala Lumpur: ISRA.
Laldin, M.A. and Hafa, F. (2013). Developing Islamic finance in the framework of maqasid al-Shari’ah: Understanding the Ends (maqasid) and the Means (Wasa’il). International Journal of Islamic and Middle Eastern Finance and Management, Vol. 6 (4): 278-289.
Mohamad Y.I. et al. (2015). The Practices of Islamic Finance in Upholding the Islamic Values and the Maqasid Shari’ah. International Review of Management and Business Research, Vol. 4 (I): 286-294.
Mohammad, M. O. and Syahidawati S. (2013). The Objective of Islamic Economic and Islamic Banking in Light of Maqasid Al-Shari’ah: A Critical Review. Middle-East Journal of Scientific Research 13 (Research in Contemporary Islamic Finance and Wealth Management): 75-84.
Downloads
Published
2018-09-04
Issue
Section
Articles
License
Tazkia Islamic Finance and Business Review (TIFBR) is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website), as it can lead to productive exchanges, as well as earlier and greater citation of published work (See the Effect of Open Access).
