Convesional and Shariah Business

Nowadays, the Islamic business or as-known-as shariah business become more popular.Even, many manufactures and company has been change their system into this one.Because of the highly demand, some company make some produt with shariah economy as a basis, like assurance, bank,etc.Even, there is a rumour that in the future, the world will completely leave convesional economy  behind and use shariah business.What is shariah business ?And, why is shariah economy become more popular?Is it true that the method give more benefits than the convesional?Let’s try to expose and find the answer then..

Economy,the mainly human do for their sake’s in order to struggle to life.Economy is a social studies which studies the activities that related with production and consumtion to goods and services.As effort, people must do economic activity so that they can have interest.In Islamic economy or Islamic business have a base; Koran and hadis.This is the difference between Islamic business and convesional business.

Islamic business refers to the body of Islamic studies literature that "identifies and promotes an economic order that conforms to Islamic scripture and traditions," and in the economic world an interest-free Islamic banking system, grounded in Sharia's condemnation of interest (riba). The literature has been developed "since the late 1940s.The central features of Islamic economic literature have been summarized as the following: "behavioral norms" derived from the Quran and Sunna, zakat tax as the basis of Islamic fiscal policy, and prohibition of interest. The  halalan tayyiba principle is one of the  shari’ah rule intended to protect the decency of human life as to promote best dietary habit granted by Allah SWT.This principle has been practiced openly and with full awareness by Sabasun.  Although incurring loss and with reduced profit at the beginning but in the end, Sabasun management has managed to break even and made profit by focusing on existing products and continuously become the customers focal point.

Based on a journal written by Lim and Lisa, “Singapore Budget”, In Singapore, a new enhanced-tier FSI award, FSI-Islamic finance (FSI-IF), will be introduced to grant a 5% concessionary tax rate on eligible income from qualifying Shariah-compliant lending and related activities (financing activities permissible under Islamic law), as well as fund management and other investment advisory activities, subject to conditions. The incentive is subject to application and approval. The approval period is from April 1,2008, to March 31, 2013. This is intended to encourage banks to offer Islamic financing and increase Singapore's competitiveness vis-à-vis other countries that are trying to become an Islamic financial hub (e.g., Malaysia). Further, U.S. banking groups that are considering setting up an Islamic financial center to tap into the increasing pool of "petro dollars" in the Middle East may consider Singapore.

            Singapore has irested to applied shariah busiess slowly.Because, The enhancement of existing incentives for the financial services industry is aimed at strengthening Singapore's attractiveness as a location for a regional financial center. The budget is expected to offer more flexibility to U.S.-based financial institutions, hedge funds, and private equity funds in their investment strategies and increase the potential range of product offerings by U.S.-based financial institutions.That means Singapore trust this system will make benefits, especially because of the main fundamental of shariah business, cause benefit to each other.Besides, the process in shariah business is more open-ended and clean than the convesional.It’s also true that this is used because of its contribute more for tax in country.Based on Islamic rules, we must obedient to ulil amri or government.

            The process of Shariah business prohibit Riba and use the money from unknown source.This is mainly because, something haram will only make distortion and annoyance the process in next step because people just thinking about money, money, and benefits.Then, that process is none other than convesional business.In konvesional, the purity and halalan tayyiban process doesn’t consisted.That makes people whose mixed up with this does’nt care about the other business or about their competitor.Then, many of them use tricky methods or dropping over each other.Or, if the company is clean and have’nt that attitude, in their process business there are’nt estimate for zakat, infaf or prepare poor box to help other people.They mostly use money just for their sake’s and the benefits will be given to the owner.In shariah business, there are some part of the money that must given to poor people.This makes the difference.Because, in islam, money and wealth like water, flow.Flow, like a flowing spring, so that the property we have won’t be bad and keep clean.Because, we should’t treasuring up wealth if unnecessary.

            Comparing conventional and Islamic banks and controlling for other bank and country characteristics, there are  few significant differences in business orientation, efficiency, asset quality, or stability. While Islamic banks seem more cost-effective than conventional banks in a broad cross-country sample, this finding reverses in a sample of countries with both Islamic and conventional banks. However, conventional banks that operate in countries with a higher market share of Islamic banks are more cost-effective but less stable. There is also consistent evidence of higher capitalization of Islamic banks and this capital cushion plus higher liquidity reserves explains the relatively better performance of Islamic banks during the recent crisis.

Shariah business have the halalan tayyiba concept as base of the process according to Koran and sunna.The halalan tayyiba concept must be understood integratively by way of its’ internal and external aspect. It is important that this concept be absolutely understood as it is a standard to measure quality of consumerism.  It has to be applied in the field of consumerism by all parties involved whether it is consumer, government, manufacturer, supplier or businessman.  However, there are not many of those in the production or manufacturing business are giving consideration to it. From marketing point of view, Sabasun has single handedly introduced a few distintive steps in boycoting products from Israel and the United States of America in retaliation / consideration of injustice to the Palestinian especially and to  the Muslim countries in general such as Iraq and Afghanistan by limiting the shelf space and choosing not to offer or sell those products all together even though they are commonly available in the market. Resulted from a sense of  brotherhood, struggle and reliance on Allah SWT, Sabasun has taken a risk that will not be taken by any other big scale hypermarket retailer. Thus, the concept of halalan tayyiba has been in practice in full speed (the maximum) at the Sabasun premise and it can serve as a model to other businessmen who have similar aspiration.

Referensi:

·  1.Law, Guf.” Companies in Islamic (Shariah) Law”http://gulf-law.com/uaecolaw_shariah.html(diakses tanggal 23 September 2012).

·   2.Haribest,.“Shariah Business.”http://bintersyari.com/indonesia/2011/07/hello-world.html( diakses tanggal 23 September 2012).

·  3.Warga, warta.”Bank Syariah dan Bank Konvesional”http://wartawarga.gunadarma.ac.id/2012/05/bank-syariah-dan-bank-konvensional/(diakses tanggal 24 September 2012).

·  4.Febianto, Irawan.” Shariah Compliant Model of Business Entities”http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1891024 diakses tanggal 24 September 2012).