Muhammadiyah Withdraws Funds from BSI: A Call for Islamic Economic Justice

TIMESINDONESIA, KUALA LUMPUR – Muhammadiyah, with its extensive network in education, healthcare, and social services, is a cornerstone in supporting the welfare of Indonesian society. Bank Syariah Indonesia (BSI), part of the Islamic financial institution network, aligns with Islamic economic principles emphasizing justice, sustainability, and blessings. 

However, Muhammadiyah’s decision to withdraw funds from BSI has sparked various speculations and evaluations, especially concerning the contribution of Islamic banks to the economy of the Muslim community. Muhammadiyah, one of the largest Islamic organizations in Indonesia, has long been a pioneer in advocating for an economy based on Sharia values.

Advertisement

The recent issue of Muhammadiyah's fund withdrawal from BSI has garnered significant attention from both economic and social perspectives, provoking various reactions and debates within the community, creating a shockwave among Islamic economic practitioners. This action is not merely a financial move but an alarm for all Islamic economic practitioners to reassert the principles of justice and trust that form the foundation of this economic system.

Muhammadiyah, as the second-largest Islamic organization in Indonesia, wields significant influence not only in the religious sphere but also in social and economic aspects. The fund withdrawal from BSI, an Islamic bank, raises questions about its impact on the Muslim economy and the relevance of Islamic banking in this context. However, this decision also carries a positive message. 

It serves as a reminder that Islamic economy is not just about financial profit but also about maintaining trust and accountability. If one institution fails to meet these standards, there are many other options available. Muhammadiyah demonstrates that there are other Islamic banks that can still meet their expectations, ready to manage funds according to the correct Sharia principles.

Muhammadiyah's decision to withdraw funds from BSI can be understood as a response to the evolving economic and social situation, and a consideration of the Sharia values they uphold. The economic perspective of the Muslim community in this context includes several important aspects that need to be considered.

First, the Sharia principles that underlie the operations of BSI and other Islamic organizations play a crucial role. These principles include the prohibition of usury (riba), investments that comply with Sharia, and attention to social and economic justice for the Muslim community. Withdrawing funds from financial institutions that do not fully adhere to these principles can be seen as a cohesive and consistent action in applying Islamic values in daily life.

Second, from a microeconomic perspective, the withdrawal of these funds can impact BSI’s liquidity. Although the impact might be limited given BSI’s large scale and diversified funding sources, it underscores the importance of public trust, including from religious institutions, in Islamic financial institutions. Transparent fund management that aligns with Sharia values can enhance public trust and encourage greater participation in the Islamic banking system.

Third, the macroeconomic aspect also deserves attention. Muhammadiyah, with its extensive network, has the potential to influence national economic policies through actions such as withdrawing funds from certain financial institutions. This reflects the significant role of religious social organizations in building a more inclusive and sustainable economic ecosystem.

From a broader perspective, this fund withdrawal also highlights the need for better education on Islamic economic principles among the public. A better understanding of Sharia-compliant investments, finance, and banking can help the community make wiser choices in selecting financial institutions that align with Islamic values. 

It is important for the government, financial institutions, and the general public to understand and respond to these dynamics wisely, to advance an inclusive and sustainable financial system in Indonesia.

However, this withdrawal also raises questions about its long-term consequences. What impact will it have on the stability of the overall Islamic financial system? Will this encourage positive changes in the governance of Islamic banking in Indonesia? These questions sharply focus on whether Islamic banking is merely a symbol of Sharia or genuinely implements Sharia principles.

The decision to withdraw funds from BSI indicates that there is something wrong with the management and policies of the Islamic bank. If there are indications of political elements threatening the trust principle in the bank’s management, Muhammadiyah has the right and duty to take firm steps to maintain the integrity of the Islamic economy. 

If Muhammadiyah feels "disturbed" by various considerations, it is only natural for them to decide to withdraw and relocate their funds. Moreover, if there are indications that the Islamic bank plans to change its management by incorporating political elements and misusing funds for certain interests, and neglecting the principle of trust, this could make Muhammadiyah feel "frustrated."

This action should be a reflection for all Islamic economic practitioners. It is time to return to Sharia, strengthen the commitment to justice and trust, and ensure that every step taken is always on the right track. If not, the hard-earned trust can collapse in an instant. Muhammadiyah’s fund withdraws is a clear alarm that must be taken seriously.

This is not just about BSI but about the future of the Islamic banking economy as a whole. All parties must reform, reaffirm their commitment, and adhere to the fundamental principles of Islamic economy and banking, not just for slogans, and work harder to uphold Islamic economic justice. Only in this way can we ensure that the Islamic economy continues to grow and develop in a true and sustainable manner. (*)

**) Ikuti berita terbaru TIMES Indonesia di Google News klik link ini dan jangan lupa di follow.