SOCIALIZATION OF SHARIAH BASED INVESTMENT; TECHNICAL, BENEFIT, AND FUTURE ECONOMIC (ENTREPRENEUR AT PERMAI IN PENANG ISLAND)

Abstract

Indonesia's economic development is greatly influenced by its migrant workers, who play a crucial role in protecting the nation from recession by contributing to the inflow of foreign currency. Despite their significant contributions, the government has shown limited concern for their support, and many Indonesians remain unaware of their impact. This paper explores the feasibility of financing Indonesian personnel to work abroad, comparing conventional and Islamic lending models. Malaysia has been a pioneer in developing Islamic finance, particularly through the introduction of the Shariah Index (SI) on April 17, 1999, by Bursa Malaysia (formerly the Kuala Lumpur Stock Exchange). The Shariah Advisory Council (SAC) designated 276 Main Board companies as Shariah-compliant securities, forming the core of the Bursa Malaysia SI, which serves as a benchmark for investors adhering to Islamic principles. Islamic finance in Malaysia has evolved beyond an alternative to conventional finance, becoming increasingly appealing to all Malaysians, with the Islamic capital market now accounting for 58% of the total capital market. This study also highlights the urbanization of human resources across borders, particularly in the Indonesian Community Association (PERMAI) in Pulau Penang, Malaysia, which includes expatriates, businessmen, lecturers, students, and workers contributing to both domestic and international economies.