As the times evolve, businesses are increasingly varied. One that is currently being highlighted is a business based on Islamic law and principles, namely sharia business. Yes, sharia business is becoming an increasingly popular topic in Indonesia and the world. This is because more and more people are aware of the importance of choosing products or services that are halal and in accordance with sharia principles. This business is run by the principles of Islamic sharia, which places justice, transparency, and benefits for all parties as the top priority. The results of the Global Islamic Economy Indicator (GIEI) report in 2022 itself show that in the scope of the world’s Islamic economy, Indonesia is ranked fourth after Malaysia, Saudi Arabia and the United Arab Emirates. More specifically, in the halal food sector Indonesia is ranked second; then in modest fashion is ranked third; and ranked ninth in the pharmaceutical and cosmetic sector. No wonder, with all the potential, starting a sharia business can be a promising opportunity in Indonesia. Moreover, despite having religious elements, the application of the business is universal and can be applied by anyone. In this article, we will discuss the definition, characteristics, principles, and examples of sharia business in Indonesia. Hopefully it can be an inspiration and useful information for KH Pals who also want to start this type of business, huh!
What is Sharia Business?
Sharia business is a business activity by selling products for profit based on sharia. The word sharia itself means the provisions or provisions that have been outlined by Islam. The meaning of business according to Islamic law is not only focusing on buying and selling activities, but also paying attention to the concept of halal, trading morals, products traded, contracts and muamalah worship in entrepreneurship.
Difference between Sharia Business and Conventional Business
Actually, business activities between sharia and conventional are not much different. The difference lies in the guidelines and limitations set based on Islamic law. Generally, conventional businesses only focus on maximizing temporary profits. Meanwhile, sharia business pays more attention to aspects of benefit and religious regulations, in addition to transaction returns.
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In addition, sharia transactions also consider the concept of halal and haram in terms of products, transactions, marketing, and muamalah contracts. Because basically, sharia transactions are not just buying and selling activities for profit alone, but also as a form of worship to God.
Sharia Business Characteristics
Typically, Islamic businesses have several characteristics including:
There is an Akad
Islam pays great attention to contracts, including in buying and selling transactions. Without a clear contract, a business transaction becomes haram in Islam. For example, in banking contracts, Islam does not recognize the term interest but uses the concept of profit-sharing contracts. In fact, if you look at it, the two banking products both take profits. It’s just that the transaction contract at the beginning is different. So that in business activities, there must be a sale and purchase contract in accordance with the principles of muamalah that have been regulated in Islam. This aims to strengthen the agreement between the seller and the buyer.
Halal
One of the differences between conventional and sharia business is related to halal and haram laws. Perhaps in conventional business there are no restrictions on products that can be sold, but according to sharia business law, not all products can be traded. In sharia transactions, the types of halal products that are used as objects of sale are products with intrinsically halal content (not containing pork, liquor, drugs, and so on). In addition, the product must also be obtained by halal means, not stolen goods, the results of corruption, or contraband.
Does not contain elements of Gharar, Maysir, and Riba
Islam has clearly regulated the practice of buying and selling and products that contain elements of usury (interest), maisir (gambling), and gharar (uncertainty) which are clearly prohibited by Islam. This is because these three things have the potential to harm one party. Moreover, in Islam, every human being is obliged to be fair and not tyrannical towards others in doing business.
Examples of Sharia Business in Indonesia
Now, KH pals know what is meant by sharia business, its characteristics, and how it differs from conventional business. For those of you who are interested in entering the business world, here are some examples of sharia businesses that you can try:
Halal Culinary
As a country with the largest Muslim population, culinary businesses that promise to be halal are in high demand. This is because consuming halal food and drinks is an obligation for every Muslim. This can be an opportunity for KH Pals to sell products by prioritizing halal. It will be even better if you manage to get a halal certificate from MUI, so that your products are more guaranteed and reliable.
Religion Travel & Tourism
The large Muslim population in Indonesia makes religious tourism and travel one of the potential sharia business examples. Moreover, every year, there are hundreds of thousands of people queuing to go on Hajj and Umrah to the holy land. If you want to open a religious travel and tourism business, make sure you have completed the facilities and services for travel users. In addition, always prepare cold funds to avoid demands when a travel user wants to cancel a trip.
Islamic Daycare
Nowadays, many parents are so busy with work that they don’t have time to guide their children spiritually. Therefore, Islamic daycare is one example of a sharia business that you can try. During the daycare process, you will need to provide religious guidance to the children, such as guidance on prayer, prayers, and Quran recitation.
Islamic Distro
Opening an Islamic distro business can be an interesting option. You can sell products in accordance with Islamic values, such as clothes with Islamic designs, calligraphy, and so on. If possible, expand your distro business by selling online through e-commerce platforms and social media.
Halal Cosmetics
Cosmetics such as makeup and skincare have become the main needs of women. But unfortunately, there are still many cosmetic products that have not included a halal label so that the law becomes unclear. This condition makes the halal cosmetics business an example of a sharia business that is worth running. You can sell existing halal cosmetic products or make your own products with ingredients that are guaranteed halal.
How to Start a Sharia Business?
Starting an Islamic business requires special attention to the ethical and legal aspects of Islam. Here are some tips that can help you start an Islamic business:
Understand Sharia Principles
Before starting an Islamic business, it is important to understand the principles of Islamic sharia related to business and economics. Understand the prohibitions and recommendations associated with business practices in Islam.
Choose a Sharia-compliant Business Type
Avoid businesses that involve usury, gambling, or other haram activities. In choosing a business, don’t forget to conduct market research to understand the needs and preferences of Muslim consumers.
Create a Clear Business Plan
Create a comprehensive business plan that includes vision, mission, market analysis, marketing strategy, and financial projections. Ensure that your business applies transparency in every aspect of the business, especially in terms of price, product quality, and transaction process.
Choose Sharia Financing
Another thing to consider is the financing system. Choose financing that complies with sharia principles, such as musyarakah or mudharabah financing, rather than using a conventional interest system.
Fulfill Halal Legality
Finally, ensure that all products and services offered meet halal standards. Apply for halal certification from a recognized and legitimate institution. This ensures that your products comply with Islamic law and are safe for consumption by Muslims.
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This is the explanation about sharia business. It is important to remember that this business is not only religious, but also universal, it can be run by anyone who wants to do business with integrity and responsibility.
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If you are interested in starting a sharia business, consider consulting with legal and business consulting experts, such as Kontrak Hukum. We can help you to provide guidance related to business and halal legalities needed by sharia businesses such as halal certificates and other documents. To view our services as needed, visit our KH Services – Starting a Business page. If you have any other questions, feel free to consult for free at Ask KH or send a direct message (DM) to Instagram @Kontrakhukum.
