Edict on bank interest not final

Edict on bank interest not final

The Jakarta Post
Jakarta

The ban against bank interest issued by the edict commission of
the Indonesian Ulema Council (MUI) is not yet final, the
council's chairman said on Saturday.

It would need approval from the MUI board of executives before
it could take effect, according to MUI chairman Sahal Mahfudz.

"When it becomes an edict, then MUI is the authority that will
issue it, not the edict commission," Sahal said in a post-Idul
Fitri gathering in Semarang.

He said MUI would hold another meeting to discuss the edict,
which was announced at the conclusion of the MUI national meeting
in Jakarta last Wednesday. Sahal was absent from the meeting.

Sahal said the edict on bank interest was a non-binding
agreement among ulemas or the MUI edict commission. Opposition
voices were rife following the announcement of the edict,
including from Muhammadiyah chairman Ahmad Syafii Maarif who said
the edict would not be realistic.

According to Sahal, an edict would only be legally binding if
it was approved by the National Sharia Council and the MUI.

Sahal, however, said the edict would not necessarily be
revoked as it would not affect the entire banking system.

"The edict will only be applicable in areas where there are
sharia banks. So, it shouldn't be a big deal," he said.

He urged the sharia banking sector to intensify its promotion
of its existence so that the public became aware of it.

He said before the legitimate edict was issued, it would be up
to the public to consider whether bank interest is haram
(unlawful according to Islamic law) as the public had the right
to choose according to their beliefs.