Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Political Economic Policy and Islamic Intellectual Capital: Impact on the Growth of Islamic Financial Industry in Indonesia

Author(s): Jubair Situmorang, Anton Hindardjo

The purpose of this study is to determine the effect of political economy policies and Islamic intellectual capital on the growth of the Islamic finance industry in Indonesia. The research method used is literature study. The point of view used is the technical Islamic political economy which is the area of power and power (Siyasah Maliyah or known as Tadakhul addaulah/state intervention) and Islamic intellectual capital which aims to create a good life (alhayat at-tayyibah). The results of the study explain two findings. First, the reason for sound political and economic policies is that the intervention of political authorities has not made the development of the Islamic finance industry progress as expected. The implications of the existing policies are not in line with expectations of equal distribution of wealth, thus hampering efforts to eradicate poverty. Second, the reason for the need for Islamic intellectual capital is because literacy and awareness of Islamic intellectual capital towards the Islamic financial industry have not increased significantly. As a result, state policies that are able to properly control the Islamic financial industry cannot be fully utilized. This research shows that human capital that adheres to sharia rules is the basis for good political economy policy makers. With a broad view of social and economic life, it will be able to create a leader character who is honest, trustworthy, responsible, and cannot be trusted in formulating political and economic policies. This can encourage the achievement of the goals of economic welfare through the Islamic financial industry.

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