The Institutions of Islamic Finance in Baitulmal Essay

The Institutions of Islamic Finance in Baitulmal Essay

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Baitulmal means the Treasury, Baitulmal according to Fiqh is the exchequer of an Islamic state. Being public property, all the citizens of an Islamic state have some beneficial right over the Baitulmal, yet, nobody can claim to be its owner.
The institutions of Islamic finance in Baitulmal form have exist informally since the time of prophet Muhammad saw and continue to Rashidun Caliphate. However, Baitulmal in that time not exist fully because of the state income not growth so much. At that time, the income of state come from two sources, which are zakat and property that being obtained from war like ghanimah, jizyah and fai. The income that have be gather immediately divided for needy person like poor, orphan and else. This factor lead the role of Baitulmal easy.
Additionally, the existence of institutions of Baitulmal start on the reign of caliph Umar bin Al-Khattab. On that time, Islamic government success in conquest many state and place, this help the Islamic region to growth from this the effect from this conquest, many possessions that be collected and take a time to divide it. Khalifah Umar accept the idea from Khalid bin Al-Walid to build the national treasury followed to Al-Quran and Sunnah including ijtihad of sahabat. The early of establishment, known by Diwa. The institutions of Baitulmal have continually growth to the reign of Bani Umayyah
The establishment of Baitulmal is very important in help to development of Islamic economy. The most importantly, to help needy like poor and unlucky person. Beside that, Baitulmal is the one of source to reinforce the army of Islam that can protect the state from the threat of enemy. For example, in the reign of Khalifah Uthman, the source of Baitulmal used to strengthen...

... middle of paper ...

...tion to e-Bayanat dan e-Wakaf system. this also help main to give the information to their client and work more systematically. This is one from the method that Malaysia has done to growth the socioeconomic Muslim and to make the Baitulmal institutions be known as a institutions that give a chance to Muslim get a proper life. Baitulmal play a main role in develop and growth the economic system to be better.

Furthermore, main should provide some strategy to make the practices of Baitulmal be a reality. By analyze back the sources from zakat and Baitulmal should be combined to get the better revenue. The government also scan back the tax that be given is not breach the shariah principle. Most importantly, the government has to ensure that Baitulmal role not only small entity in MAIN but one institution that manages the national treasury expenses and expenditure.

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