The Objective of the Islamic Economic System in Fulfilling Basic Human Needs

Abstract

Persistent structural poverty and wealth inequality in Indonesia reveal a systemic failure within the conventional economic paradigm. This study analyzes the Islamic economic system's orientation toward fulfilling basic human needs, drawing on the thought of Sheik Taqiyuddin an-Nabhani, specifically as articulated in his book Al-Nizham al-Iqtishadi fi al-Islam (The Economic System in Islam). Employing a library research method with a descriptive-analytical qualitative approach, data were gathered from primary and secondary sources; their credibility was subsequently verified through internal and external criticism before being analyzed using critical interpretation and comparative techniques. The findings indicate that an-Nabhani radically deconstructs the capitalist economic paradigm, which prioritizes macro-aggregate growth (GDP) above all else. In contrast, the Islamic economy emphasizes equitable wealth distribution through an individual-focused (fardan) paradigm, wherein the state is obligated to guarantee the provision of basic individual needs food, clothing, and shelter as well as collective needs security, healthcare, and education free of charge. The study’s implications underscore that Indonesia's current economic failures, such as the high cost of higher education (under the PTN-BH model) and disparities in healthcare services (under the BPJS system), stem from the neglect of the public ownership structure (milkiyah ammah), which has instead been privatized by corporations. Consequently, economic reform in Indonesia necessitates a paradigm shift: moving away from the privatization of natural resources and toward state control of public assets to strengthen the Baitul Mal (public treasury) and ensure equitable social welfare.