First off, I’d like to state that I based this ecobabbling (lol) with Mr. Ascarya’s late research back in 2010 about Social Value’s Effect Towards Islamic Money Demand in Indonesia (rough translation, the real thing titled as Analisis Pengaruh Social Values Terhadap Jumlah Permintaan Uang Islam di Indonesia).
Here goes my blab . . .
As we all know, we use fiat money as our medium of exchange in Indonesia, as in currency (not demand deposits kind of money). It’s by any means not the kind of money Rasulullah used back in the day (full-bodied money) like dinar/dirham, but well that’s how it is in Indonesia. Many people think that the case for the gold standard system simply does not stack up for past era, much less nowadays. But well, that’s another thing.
We know that Indonesia isn’t officially named oneself as a Muslim Country. Our current President even stated that he finds USA as his second country. Not another Muslim Country, I mean. Thus, we find no reason not to use fiat money and not to insist in using full-backed money (back to the gold standard economy era).
But in the journal that Gustiani, Ascarya, and Effendi wrote about how social values (such as zakat, infaq, sadaqat) affect Islamic Money Demand (both currency and deposits) they include Indonesia’s currency as one of the variable in Islamic Money Demand, while we all know nothing such as Islamic Money (as in currency) in Indonesia. Only the deposits ones (saving/demand/time).
Well, just saying.
Maybe it’s too fast for us to evaluate Islamic Money Demand kinda thing in a country that only holds Dual Banking System at its hands, not Dual Monetary System. Or we can limit the research area only in Islamic Deposit in Indonesia, not Islamic Money in general.
P.S. No offense, dudes. Half of the things i wrote i did that in not so sober state (half-asleep).