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Kalla advocates sharia system over capitalism
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
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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."
