Inaugurated as Professor, Djawahir Hedjazziey Affirms the Status of Riba in the conventional banking sector

Main Auditorium, UIN News Online – Professor Djawahir Hedjazziey affirms the status of riba  imposed by the conventional banking and financial sector. He encouraged Muslim communities in the country to use Islamic banking and financial services that do not charge any interest on each transaction.

This was said by the Professor Djawahir Hedjazziey in his inauguration speech as Professor of Islamic Economics at the Auditorium Harun Nasution UIN Jakarta, Tuesday (01/12/2020). The Inauguration Ceremony was chaired directly by the head of the University Senate Abuddin Nata and the Rector of UIN Jakarta Amany Lubis. On the same occasion, Amelia Fauzia was also confirmed as Professor of Islamic Economic of FEB UIN Jakarta.

Djawahir explained that bank interest is a profit taken by the bank and is usually set at 5-10% within a certain period of time calculated from the total number of customer loans. “For conventional banks, interest is the backbone of the company's operational costs and profits,” he said.

According to Djawahir, there are two components of the bank interest, namely loan interest and deposit interest. As the main components of the cost and income factors, the two types of interest have an effect on each other. When the deposit interest is high, it will also increase the loan interest.

Quoting various statements of fiqh and islamic scholars, Djawahir concluded the definition of Riba as an additional taking both in buying and selling transactions or loans. Both the Koran and the hadith explicitly prohibit all kinds of Riba.

The ban on usury was also agreed upon by Islamic scholars and mass organizations in the country. Even the prohibition of Riba is also mentioned in other religious traditions such as Judaism and Christianity.

Referring to the status of usury on bank interest, Djawahir invites people to use banking and financial services that are free from ribawi practices. He invited all levels of Indonesian Muslim society to use Islamic banking and financial services that are free from riba.

In addition, Djawahir encouraged Islamic higher education institutions to use Islamic banking and finance in conducting financial transactions such as payment of salaries and student educational fees. Likewise, religious institutions such as mosques, prayer rooms, majelis taklim, pesantren and others to use Islamic banking and financial services.

“Scholars and intellectuals are expected to continuously provide enlightenment to the public on interest-free banking or financial services,” said Djawahir.

Furthermore, Djawahir also asked sharia economic practitioners to improve the quality of human resources, develop variations in financing, and expand network offices so that they can be more easily accessed by the public. “The government is also expected to support the Islamic banking and financial sector, both in the form of regulations, institutions, human resources and capital,” he said.

It is known that Djawahir was appointed as Professor of Islamic Economics through the Decree of the Minister of Research, Technology and Higher Education Number 35228 / 2019. In addition to teaching at the Faculty of Sharia and Law, Djawahir is also active in conducting various research activities and publishing his works in the form of books and journal articles. (usa/zm)