JK Says Islamic Economics Cannot Be Monopoly and Speculative

JAKARTA - The 10th and 12th Vice President of the Republic of Indonesia (RI) Jusuf Kalla or JK reminded that Islamic economics should not be monopolistic and should not be speculative, because it is contrary to its essence.

"Islamic economics is in accordance with its times. So we should not feel that Islamic economics must return to the sixth to 13th centuries at that time," said JK, quoting Antara.

He made this statement in his speech at the 5th Congress of the Indonesian Islamic Economists Association (IAEI), in Jakarta, Thursday Night, May 15.

On that occasion, JK also explained that to implement the Islamic economic system, one must understand the essence and principles that exist. For him, the essence of Islamic economics is for welfare, happiness, fairness, and openness.

"From that essence comes behavior, namely no monopoly, no speculation, must be honest, open, and compete fairly. So there is no cheating in Islamic economics," said the Chairman of the Indonesian Mosque Council (DMI).

From that explanation, JK said again, he concluded that Islamic economics is easy.

"But don't make it easy. Even if there is an assumption that it is difficult, don't make it too difficult. Let's just do things that are not prohibited," he said again.

He gave an example of the issue of usury which is always debated.

JK argued that usury has an essence if there is a loan transaction that makes the borrower oppressed.

For example, when having to pay with high interest so that they are unable to.

"For example, if the interest is up to 20 percent or above, that is already burdensome and oppressive. But for example in KUR the interest is at 6 to 7 percent, I don't think that is burdensome," he said.

Moreover, he continued, there is no economy that runs if the interest is too high.

JK further reminded that Islamic economics is related to muamalah which is the sunnah of the Prophet Muhammad SAW.

According to him, Islamic economics is between the principles of capitalist economics and socialist economics.

"Islamic economics takes the goodness of capitalism and socialism, so it supports fair, honest trade, no monopoly, and no speculative practices," said JK again.