Why study Islamic business today?

In the 21st century there is rarely major debate about the philosophical and theoretical underpinnings of contemporary economic strategy and practice. The theories of Adam Smith, David Ricardo and other major contributors to the classical school of economic thought, dominate the paradigm that shapes the study of economics and business in most western countries. This is particularly the case in the field of International economics, business and trade.

While in Western countries this may be the most relevant solution when looking at the future of the global economy, in many developing countries, in particular those with significant Muslim populations there is a revival of discussion and debate about possible alternatives, in particular the relevance of the study and application of Islamic economic theory. In recent years several countries have adopted new laws that allow the legal implementation of Islamic banking practice alongside other national banking systems and laws, for example in Indonesia and Pakistan.

International Economics theory and international business practice requires ongoing research and development in order to understand our complex global economy. The basic tenets of Western economic thought in general do not include discussion or analysis of philosophies of Islamic economics.

Why should people be studying Islam in Indonesia?

Contrary to popular belief, the majority of the world's 1.6 billion Muslims actually live outside the Middle East. In fact, Indonesia - the fourth most populous nation in the world - has more Muslims than any other country. Religion in Indonesia has a far-reaching impact on its society - from the level of people's day to day lives to the level of government policy making. Today, Islam is the most influential religion in the political and social life of most Indonesians. Islam has been accepted, in many social forums, as an essential part of people's daily lives as well as an important factor influencing political and economic policies. At the same time there is a great diversity of religion, ethnicity, language and culture and the Indonesian people have always demonstrated an extraordinary capacity for tolerance and acceptance of these differences. The Islamic business and economic system has been an item of concern for pious Muslim academicians as well as businessmen for centuries. It is not a philosophy investigated only by Muslim academicians, but has also become a field of great interest to non-Muslim academicians. More recently, Islamic economic theory and practice has been viewed as a key part of a broader movement to achieve a more just Islamic order, in many different aspects of social life, not only in the field of economics.

Over the last few decades there has been a wide ranging discussion of the possibility of applying Islamic approaches to business and financial policy which has culminated in recent years in the adoption of new laws that have begun to integrate Islamic economic theory (particularly that influencing financial and banking policy) into mainstream finance and banking practice. The Indonesian government introduced new laws in 1992 that allowed the possibility of a dual banking system, that is the introduction of an Islamic banking system alongside the regular banking system. In 1998, the Indonesian government introduced the Islamic Banking Act. Subsequently Islamic banks have grown rapidly. This growth has encouraged the development of non-bank Islamic financial institutions, including in the field of Islamic insurance, Islamic capital market, Islamic mortgage and Islamic microfinance institutions. More than 2000 Islamic microfinance institutions have emerged throughout last decade. The development of Islamic economics and business studies has been rapid in many Muslim countries. However, this development is different in every country, as each different has its own unique culture, social and political history and circumstances. Islamic studies in Middle Eastern countries make a contribution mostly on a practical level to developments in Islamic culture and society. Studying Islamic economics in Indonesia is very different. As the largest Muslim country in the world, you have the opportunity to access the developments in Islamic thought and knowledge, as well as the practical developments of South Asian Muslim cultures, and more specifically to understand Indonesia's role in Islamic economic developments.

The development of Islamic economics and its application in Indonesia have experienced rapid growth and had a far-reaching effect on Indonesian economic developments. It is expected to increasingly influence the economic and business relationship between Indonesia and other countries, especially between Indonesia and their nearest neighbors. It should be emphasised that there is a need for mutual understanding between academicians both in Australia and Indonesia, in particular about developments in the Islamic movement, and those pertaining specifically to economics matters.

This new "Islamic business" program will provide a great learning opportunity for Australian academicians and students. It provides a framework to study and understand the complexity of this modern Muslim society. This program will assist us to broaden our views of Indonesia as a multi-cultural and multi-religious nation.

What makes the "Islamic Business Study" program unique?

Universitas Islam Indonesia (UII) is the oldest private university in Indonesia. Founded just weeks before the declaration of independence of Indonesia in 1945, its leadership included several of the young members of the leadership of the independence movement including Muhammad Hatta, the first vice-president o the new Republic of Indonesia.

Founded as a university, not as a school of Islamic study, it has combined a unique strategy of rigorous academic investigation in its major fields of study as well as having a dedicated commitment to abiding by Islamic law in the study and practical application of all fields of study. At the same time it has a committed academic program of study in the fields of Islamic teaching, Islamic law and Islamic business. Several of UII's academic staff from the faculty of economics are part of the leadership of this new movement of "Islamic economics".

The atmosphere at the International Program and at the Faculty of Economics as a whole is very open and welcoming to people from all countries, cultures and religions. Islamic values and customs shape the daily lives of the majority of our students and at the same time are not in any way exclusive to those who hold different cultural or religious beliefs. UII itself does not prescribe one particular kind of Islam, nor does it associate itself with one branch of the acknowledged Islamic movements in Indonesia, but rather is pluralistic in its approach to the study and practice of Islam. Our students are always excited to have the opportunities to open discussions with new people with different life experiences both professionally and personally that visit our campus. Our teaching staff and students come from a diverse range of cultural and academic backgrounds and the intellectual atmosphere can be described as modern and liberal as well as being significantly influenced by Islam. This diversity of opinion in fact helps to ensure there is always a rigorous academic discussion and debate. In Indonesia there have been many lively debates and new developments in the field of modern Islamic thought in the last 20 years, many of these developments being part of the process of the struggle for democratization in Indonesia.

The Faculty of Economics has its own campus in Condongcatur, Jogjakarta. It is easily accessible by public transport and all other important services and facilities required by students are located in close proximity to the campus. In the surrounding area there is affordable quality student accommodation, as well as cheap eating-places. The students at the IP FE UII have already participated in the ACICIS buddy support program for new students with great success. Any international students studying at our faculty would be provided with academic and personal support, both formally through the staff of our International program and through a program organized specifically by the students of the International program to support new international students.