Production Factors from the Perspectives of Islamic and Conventional Economic

From the results of the review of literature and research, the production concept according to the mixed economic system (Pancasila economic system), which has been running for centuries, has endangered humans, especially in Indonesia itself. According to BPS data per 2019 April, the total population of Indonesia has reached 269 million people, and from that number, the number of poor people has reached 25.14 million people or around 9.41% of the population. The gap between rich and poor is very significant. This proves that the system that has been implemented has increasingly created social problems and not brought prosperity to society because as a system, the owners of capital in this system are individuals and compete in the free market so that the strong will be stronger, while those who poor will increasingly become poorer. It cannot be denied, this conventional economic system has indeed succeeded in creating a modern and wealthy society but that is only in a small part, there are still many people who still live on the poverty line because they are unable to compete with the investors. This paper tries to describe the fundamental difference between the production factors from the perspective of conventional economics and Islamic economics. The results of the literature study explain that the system of Islamic economics in Indonesia began to become a concern in the early 1990s or precisely after Law of the Republic of Indonesia Number 7 of 1992 that was revised with Law of the Republic of Indonesia Number 10 of 1998 on Banking, in the form of a bank operating with the profit-sharing system or bank shari’a. The Islamic economic system is expected to cover the shortcomings of the existing system. According to Islamic economics, production concept is to give mashlahah to producers and consumers, maximally. Islamic economic allow people to obtain profit, with the condition, the way to gain the profit is under the concept of Islamic law in muamalah. The profit gained by the producer is profit plus blessings, wherein the blessing is the embodiment of all good things that benefit producers and consumers. The contribution of the Islamic perspective – the result of this literature study – can become input for producers, which they must follow the principles and values of Islam applied in muamalah when doing production to provide peace to humans in their life and the afterlife