Islamic Perspectives on the New Millennium

6. Financial Activism among Indonesian Muslims

91 Financial Activism among Indonesian Muslims 6 FINANCIAL ACTIVISM AMONG INDONESIAN MUSLIMS Nur Ahmad Fadhil Lubis This chapter describes the dynamics of the Islamic perspective on the economy within the context of Indonesia. It argues that in modern times, particularly during the New Order period and the reformation afterwards, a significant number of Muslim intellectuals have been developing ideas on an Islamicinspired economic system, and some have been implemented together with the communities. Islamic economic discourse and activism are playing an important role in the economic recovery of Indonesia. It became one of the determinant factors in transforming the Muslims’ creed and religiosity. This will also play a role in determining the type of relationship between religion (Islam) and state in Indonesia. The perspective shall be discerned by looking into the increasing awareness and activism of Indonesian Muslims in economic and business matters, both at the conceptual-ideal level and in their implementation programmes. It starts with a brief introduction on Islam in Indonesia and the general issue of Islamicity in this developing nation-state. This is followed by a discussion of the economic challenges and Islamic ideals, as well as the efforts to transform certain Islamic values and principles into the national legislation. Some of these ideals have been put into practice and some programmes have been implemented, and this will be the focus of the next section. Lastly, I deliberate on the prospects of the resurgent activism. 91 Nur Ahmad Fadhil Lubis 92 ISLAMIC STATE OR ISLAMIC SOCIETY? Among the most controversial issues at stake for Muslims, and for researchers of Islam alike, is the seemingly simple question: “What is Islam?” Muslims may differ on the exact definition, let alone on the details, but they seem to agree that Islam means “submission to Allah”. One who submits to God (Allah) is a Muslim. One who does not is excluded from the community of the faithful. How far a Muslim submits himself or herself to the will of God depends on how he or she perceives the role and function of the religion in his or her life. Islam came to Southeast Asia quite late compared to the expansion of Islam in the Middle East, Central Asia, and North Africa. It was brought by Muslim traders whose religiosity was shaped more by Sufi inclination. The legal-normative stance came later, and with it came another wave of puritanism and a modernist movement. Many studies show that there has been an increasing inclination of Indonesian Muslims over the last few decades to follow God’s injunctions in all aspects of their lives. There are many formerly nominal Muslims who have become more aware and loyal to Islamic creeds and its norms of behaviour, not only in the field of ritual but also in socio-economic activities. Muslims in Indonesia gradually realize that their efforts to improve their worldly welfare is part of their religious duties. This will surely influence their position in the hereafter. Consequently, Muslims’ efforts to strengthen their role and to improve their condition in Indonesian government, economy, and society are on the increase. One of the crucial problems, which has caused debates and controversy, both among Muslim adherents as well as students of Islam, is the relationship between religion and state. This is an ongoing issue. Even if it is maintained only by a small fraction of Indonesian Muslims, many tend to hold the assumption that most Muslims want — some openly but most discreetly — to replace the present republic with an Islamic state. Subsequent developments in the country have remarkably changed the Muslim proportion and their perspectives on their nation-state. Many authors have observed that the 1980s witnessed the beginning of another Islamic revival of unprecedented proportion in Indonesian society (Woodward 1996, p. 291). The impact of this deepening Islamization was apparent in all segments of society. However, it is powerfully evident and subsequently significant among the urban middle class (Ramage 1995, p. 101). The growth of the middle class in the 1970s and 1980s had been facilitated by an economic expansion and welfare improvement brought about by the New Order government. 93 Financial Activism among Indonesian Muslims Leading Muslim intellectuals during the Soeharto period have tried to explain, or more appropriately to reinterpret, that Islam can be dibumikan (grounded in the soil), dipribumikan (indigenized), or even diindonesiakan (indonesianized) so it may function better in the country and contribute more for the population. Islam...