One of the important economic issues facing the nation of Indonesia in recent years is the excess liquidity in the economy. The proportions, foreign ownership, which reached Rp 28.94 trillion, or about 9.25 percent of the total this problem is quite serious considering the major impact it caused among others the lack of funding for the real sector due to money just spinning in the financial markets and the vulnerability of the domestic economy on external issues.
Liquidity and Islamic economics Basically, the excess liquidity will be difficult to occur in the Islamic economic system because public funds in Islamic banking will automatically flow into the real sector through Islamic financing instruments based on real sector (Al Jarhi, 2004).
Under these conditions, one of the principal elements in the Islamic economic system, namely the government (regulators), it took over and played a key role in the economy supported by the Islamic banking itself. What can be done by the government? As an authority fiscal policy, the government actively to absorb excess liquidity in the economy through Islamic securities instruments, such as sukuk.
To overcome the problem of unemployment and poverty are a major problem of this nation, the government within the next 3-5 years should focus on increasing investment in tradable sectors in the economy, such as agriculture, mining, and manufacturing industries. During this growth gap between the tradable sector and non-tradable (such as telecommunications and services), with the tradable sector growth is below the value of Indonesia's GDP growth in the year 2007.
ILIF Islamic securities are instruments issued by governments to finance development projects based on Ijarah scheme, such as the construction of the housing sector. Another instrument is the Government Investment Issues (GII), as issued by Malaysia. This method is by using a variety of appropriate schemes of sharia, such as mudarabah, Musharaka, Ijarah, and greetings.
Funds raised by Islamic monetary instruments, in addition to absorbing excess liquidity, can also be channeled to Islamic banks to finance real sector activities. However, due to Bank Indonesia is not a commercial institution that can place the funds in Islamic banks, the placement of funds in question can be transferred to the government through the purchase of Sukuk or Islamic securities other.
First, the government has the authority and ability more than the Islamic banks and conventional banks to absorb and manage large amounts of excess liquidity. Second, the guarantee fund management by the government to provide certainty for investors rather than managed by the private sector. Third, the less optimal banking intermediary function could be addressed through the government's role so that the excess liquidity problem can be solved and real economic activity to get the funds as expected. Finally, the rise of Islamic investment instruments and the involvement of Islamic banks in it will have an impact on the growing Islamic banking industry, the market for Islamic finance, Islamic insurance, and other Islamic financial institutions.