MAQASID AL-SHARIAH PHILOSOPHY IN MONETARY REGIME TOWARDS INCLUSIVE SUSTAINABLE GROWTH

Abstract

This paper studies on the Maqasid al-Shariah philosophy with the aim establish an appropriate Islamic monetary regime in achieving the aspiration of Shariah that promote inclusive and sustainable growth of the ecosystem.From the analysis, this study shows that Islamic monetary mechanism and instruments as well as Islamic financial institutions (IFIs) operations are still exposed to the practice that are prohibited in Islam and also influenced by monetary policy tools and transmission channels set by the Central Bank.  The study supports and affirms the establishment of an Islamic monetary system that transmits the monetary policy through channels with interest free and risk sharing Islamic instruments. For that, an equitable distribution of wealth for social Islamic justice as well as a balance inclusive and sustainable economic well-being would be attained.