The Privatization of State-Owned Enterprises in Islamic Perspective: Case of Indonesia

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Sebastian Herman
Sebastian Herman
α International Islamic University Malaysia International Islamic University Malaysia

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The Privatization of State-Owned Enterprises in Islamic Perspective: Case of Indonesia

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Abstract

In Indonesia, the last few years have seen the privatization of many industries previously owned by the state. The surge was requirement of International Monetary Fund (IMF) to lend its fund in order to support Indonesian economy after monetary crises between 1997 and 1999. However, this phenomenon causes some novel polemics amidst stakeholders. Most of nation”s wealth is brought by multinational companies to overseas without rendering great benefit to citizen. Therefore, inhabitant cannot savour many adventages from their abundant natural resources. In line with this privatization case, Islam as a way of life which is universal and comprehensive has a particular discussion on assets ownership that should be utilised according to its status. There are three concepts of ownership in Islam, namely individual, public and government ownership. The main objective of this paper is to point out the best scheme of natural resources ownership, whether should be owned by public, private or state based on siyāsah sharī”ah approach. The author utilizes descriptive qualitative methodology to find the appropriate pattern of natural resources management in Indonesia, particularly firms which manage the basic need of human being.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Sebastian Herman. 2019. \u201cThe Privatization of State-Owned Enterprises in Islamic Perspective: Case of Indonesia\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 19 (GJMBR Volume 19 Issue B6): .

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Issue Cover
GJMBR Volume 19 Issue B6
Pg. 19- 32
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: M29
Version of record

v1.2

Issue date

November 12, 2019

Language
en
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In Indonesia, the last few years have seen the privatization of many industries previously owned by the state. The surge was requirement of International Monetary Fund (IMF) to lend its fund in order to support Indonesian economy after monetary crises between 1997 and 1999. However, this phenomenon causes some novel polemics amidst stakeholders. Most of nation”s wealth is brought by multinational companies to overseas without rendering great benefit to citizen. Therefore, inhabitant cannot savour many adventages from their abundant natural resources. In line with this privatization case, Islam as a way of life which is universal and comprehensive has a particular discussion on assets ownership that should be utilised according to its status. There are three concepts of ownership in Islam, namely individual, public and government ownership. The main objective of this paper is to point out the best scheme of natural resources ownership, whether should be owned by public, private or state based on siyāsah sharī”ah approach. The author utilizes descriptive qualitative methodology to find the appropriate pattern of natural resources management in Indonesia, particularly firms which manage the basic need of human being.

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The Privatization of State-Owned Enterprises in Islamic Perspective: Case of Indonesia

Sebastian Herman
Sebastian Herman International Islamic University Malaysia

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