Islam and Financial Capitalism : A Case Study in Indonesia

Arin Mamlakah Kalamika; Muhamad Supraja; Kuskridho Ambardi

doi:10.47814/ijssrr.v8i3.2523

Arin Mamlakah Kalamika Department of Sociology, Faculty of Social and Politic, Universitas Gadjah Mada Yogyakarta, Indonesia
Muhamad Supraja Department of Sociology, Faculty of Social and Politic, Universitas Gadjah Mada Yogyakarta, Indonesia
Kuskridho Ambardi Department of Sociology, Faculty of Social and Politic, Universitas Gadjah Mada Yogyakarta, Indonesia

DOI: https://doi.org/10.47814/ijssrr.v8i3.2523

Keywords: Islam, Islamic Banking, Finance, Capitalism, Sharia.

Abstract

This study investigates the key issues within the Sharia banking system and its products, which have contributed to the rise of critical civil society movements. From the beginning, Islamic economics within Sharia financial institutions was believed to follow a capitalist framework. This view is not only shared by the public but also by many experts, who argue that Sharia banking mirrors, and even supports, capitalism. Research Methods: Using a case study approach, this research analyzes Bank Syariah Indonesia to assess the alignment of its practices with Islamic economic principles. Findings: in practice, Sharia banking products and systems, like conventional banks, focus on surplus value. This suggests that, despite its Islamic label, Sharia banking operates similarly to conventional banking, driven by profit motives. The study offers critical insights into the ongoing debate about whether Sharia banking genuinely embodies Islamic economic values or merely functions as a capitalist financial model under the guise of Islamic principles.

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