Kalla advocates sharia system over capitalism

Syofiardi Bachyul Jb ,  The Jakarta Post ,  Padang   |  Mon, 10/13/2008 11:36 AM  |  Headlines

Vice President Jusuf Kalla on Saturday said the current global financial crisis was caused by, among other factors, the capitalist system, and urged the development of the sharia financial system.

He also said Indonesia should take advantage of the crisis, despite also being affected.

"One of the causes of the current crisis is the capitalist system," he said. "Therefore we should develop a sharia economic system."

He did not elaborate further.

Kalla was speaking at the Minang Merchants Meeting, held at Pangeran Beach Hotel in Padang, West Sumatra.

The crisis has opened the way for Indonesia to buy back foreign-held shares in privatized state-owned companies at bargain prices.

"The government has ordered buybacks of all foreign-held shares in cement maker PT Gresik and coal producers," Kalla said.

"If (Indonesians) have ready cash, it is better they buy shares. In a year's time, it will be profitable.

"We must take advantage of the crisis."

Kalla said the current crisis differed from the 1998 financial crisis in that the earlier crisis greatly affected Indonesia, but the 2008 crisis is wreaking havoc in the United States and developed countries.

"The problem is, who will help the U.S.? Especially since the value (lost) is 100 times bigger than during the Indonesian crisis in 1998," he said.

"The impact is being felt by Americans, because almost all of them own shares. This also applies in Singapore."

In Indonesia, Kalla went on, only 1 percent of the 20 percent of shares decimated last week at the Indonesian Stock Exchange were owned by Indonesians.

"So what is the significance to us if the stock market crashes -- unless it was Tanah Abang or Senen markets in Jakarta, Pasar Baru in Makassar or Pasar Klewer in Surakarta that crashed," he said, referring to various non-stock markets in Indonesia.

The crisis also affects Indonesian exports only slightly, the Vice President said.

"We only export raw materials, including palm oil and rubber. People can reduce their leisure activities," he said.

"Our export value of Rp 1 trillion will decrease slightly."

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Asti (not verified) — Mon, 10/20/2008 - 2:12pm

With his statement in that meeting, he's succesfully shown one of his true characters shared with his fellow counterparts sitting in RI government. Hypocrisy that is. And if I were a voter in Indonesian election, I would ask myself, would I trust this very person to be in charge managing this huge country with 240 millions of population.

Schmerly (not verified) — Mon, 10/20/2008 - 8:18am

And this is the man they are pushing to be the next president! God help Indonesia if he ever gets the presidency.

Rindank (not verified) — Mon, 10/20/2008 - 5:42am

My request to you all is to read more about Islamic financial system not sharia law they are way off from this subject.i am a muslim and still have an uneasy thought about implementing sharia law as a whole but in today financial meltdown, islamic financial is little affected by this financial disaster because it forbid speculating/gambling especially with somebody life saving and interest which is only benefit the rich but suffocate the poor.
Islamic economy stand for fairness in its system that encourage business enterprise but putting a lot of regulation in how it behave.i learned that this system stand balance in the middle between capitalist free economic system and communist state welfare.
It is very very sad for me as an Indonesian to see my fellow countrymen go hungry and begging for other country for a gift,while the land it self has enough capacity to feed its citizen only because deliberate mismanagement.
If you are willing to read without connecting it to Islam/muslim as if you are introduce to a new economic system, i reckon you will amaze how this system works.
Regarding all the wealth of "Indonesian conglomerate" GIVE US BACK OUR WEALTH :)

Dato' Paduka Sri Mir Khan (not verified) — Sun, 10/19/2008 - 7:58pm

Sharia - Our Prophet Muhammad, may the blessings and peace of Allah be upon him, said: "There will certainly come a time upon mankind in which there will remain nothing useful besides a dinar and a dirham."

The Qur'an specifies that a means of payment must possess an inherent value that corresponds to its purchasing power. All types of promises of payment – our modern paper money is nothing other than that – are forbidden and cannot be used in payment transactions, because they are unavoidably rooted in interest and Muslims may not profit from interest.

To our united Ummah an Economic Secrecy in Islam
Wassalam

Iain (not verified) — Sun, 10/19/2008 - 6:48pm

Typical... Islam and Muslims are the world's best Monday Experts. Always have the answer after the result is in.

I'd like a Muslim, who supports Yusuf Kalla's comments, to post a comment on how they believe Sharia is superior to ALL Indonesians, how it would have protected Indonesia for the current Global Economic issues, and keep Indonesia's ambitious growth and development targets on track (which Jusuf himself championed at each press release).

The floor is all yours... whoever you are.

Tokhaji (not verified) — Sat, 10/18/2008 - 12:31am

I agreed with Wapres Yusuf Kalla all defend on the system start to look the real System( Sharia)

Widiarko (not verified) — Fri, 10/17/2008 - 10:09am

This capitalist does not exactly know what he is talking about. We simply reject to put our son and daughter into any experimental system for an irrational utopia.

Schmerly (not verified) — Fri, 10/17/2008 - 8:51am

What a sad little man Jusuf Kalla is, every time he opens his mouth he puts his foot in it!! why doesn’t he think before he speaks, that’s presuming he’s capable of rational thought!! Did he make his fortune using the “sharia economic system” I don’t think so.

Andy Whitehurst (not verified) — Tue, 10/14/2008 - 6:46pm

Yeah, right!! Sharia is the way to go!! Who wants democracy and freedom of speech, womens' rights and tolerance of other faiths when we can embrace laws of the stone age instead and chop of peoples heads if they don't agree with us?!!!

Jaka (not verified) — Tue, 10/14/2008 - 1:59pm

Quite a funny statement comes from someone who gains his power and wealth through capitalism.

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