Website: http://febi.uin-suka.ac.id

The transformation from the institute level (IAIN) to become University level (UIN) based on the President Decree No. 50 Tahun 2004 on June 21st 2004 by the President of Republic Indonesia constitute some consequences. UIN Sunan Kalijaga obly to develop the scholarly in a larger spectrum as an answer to public demand by keeping the Islamic spirit as the university’s characteristic.

Academically, UIN Sunan Kalijaga is obliged to extend “Integration and Interconnection” Economics that still considered “seculer” with Shariah rule and principles which is relying on the Holy Quran and As-Sunnah. The development of Islamic economics will be based on the Islamic literature and existing conventional literature which is more established in the current systems. The realization of this integration and interconnection will ensure the realization of “rahmatan lil alamin” and “maqosid shariah”.

In addition, due to the high public’s demand, UIN Sunan Kalijaga had been responding by launched some faculties, namely; Faculty of Science and Technology, Faculty of Social Sciences and Humanities, Faculty of Islamic Economics and Business. The launching of those faculties and new programs proof that UIN Sunan Kalijaga consider that basically in Islam the science development is universal without any dichotomy; among religious sciences (hadarah an-nas) and among nature sciences and social sciences (hadarah al-‘ilmi). The last faculty which is launched by UIN Sunan Kalijaga, specifically, is to answer the high demand of Industry (Islamic Bank, Islamic Capital Market, Islamic Insurance etc.) and society.

The scientific construction in UIN Sunan Kalijaga tries to exclude the scientific barrier, which is supporting the axiom “Integration and Interconnection”, trade mark of UIN Sunan Kalijaga. The spirit of “Integration and Interconnection” is evidence at the institutionally level that academically, UIN Sunan Kalijaga can answer the global dynamic changing and the need of society. Understanding and applying science and Islamic principles is as a realization of cross fertilization. It is the most important element toward the center of excellence Faculty of Economy and Islamic Business which is developed with its own characteristic to build a new civilization in economic and business which is based on Islamic values, namely: brotherhood (ukhuwah), justice (‘adalah), welfare (maslahah), balance (tawazun), and universalism (syumuliah).

Based on these values, Islamic Economy can be accepted and developed for some decades in Indonesia, conseptual and practical. The rise of Islamic Financial Institution is one of the signals that the concept Islamic economy is acceptable. For example, Islamic banking and Islamic capital market is becoming the centre of attention because of its growth. Moreover, there are also many implementation of Islamic economy in non-Islamic financial institution such as Zakat institution that managing zakat, infaq, and shodaqoh (government or private); research and consultant institution of Islamic Economy; even in many ministries like the Ministry of Religiuos Affair and the Ministry of Finance (sukuk, ZISWAF management, etc.). Overall, there are some evidence that Islamic Economy has been extending in many aspect; study and practice. This opportunity must be followed up by the education institution.

A simple impression comes up in the theorema of the Islamic economy will be complicated when it faces the real condition in the economy of the ummah. Hence, there are many works and efforts that become the responsibility of the stakeholders of the Islamic Economy related to the practical matter in business environmental and managerial such as corporate governance, economics philosophy of the company and business with its all derivation.

The challenge is, there are many Islamic values which are not actualized in economy and business for example the transactions that not applied based on the principle of understanding each other, illicit transaction objects, the function of money is not only as medium of exchange and a measure of value but also as the commodity, usury (riba) transaction/economic activity, gharar transaction, maysir activity, transaction/economic activity containing illegitimate, transaction/economic activity contains time value of money, and there is price distortion on demand and supply.

However, in the development of the Islamic Economic and Business there are challenges both globally and regionally. Those challenges, directly or indirectly, will bring effect to the existence of the Islamic Economic and Business in the world’s economic order. Those are: Global Business, E-Marketing, the minimum of trade co-operation among the Muslem countries, the minimum amount of Islamic investment, the small amount investment in Indonesia from Muslim, financial crisis, capital market and the money market which is dominated by the speculator, uncondusif working ethics and custom with manipulation, corruption, and discrimination, and so on, good corporate governance, and the powerless conventional banking industry in Indonesia and in the world.

Therefore, in a micro scale, UIN Sunan Kalijaga in 2012 officially starts to open the Faculty of Economic and Islamic Business based on the Decree of the Directorate General of Islamic Education, Ministry of Religious Affair No. 522 on March 21st 2012 and therefore has recruit new students and the kulliyah has started in academic year 2012/2013. The establishment of the Faculty of Economic and Islamic Business can be explained chronologically as below:

1. The Decree of the Working Team (POKJA) No. 02/Ba.0/A/2011 UIN Sunan Kalijaga on January 24th 2011 updated with the Decree of the Working Team (POKJA) on September 12th 2011 about the Opening of the Faculty of Economic; by this decree the team set a proposal to the University Senat.
2. University Senat Meeting on July 25th 2011 that decided to agreed (with the note on the renewed proposal) the opening of the Faculty of Economic in UIN Sunan Kalijaga. By this decision, the POKJA team revised the proposal.
3. The proposal presentation of the Opening of the Faculty of Economic to the Directorate General of Islamic Education (Dirjen Pendis) on 24th November 2011 with the supervision of The Head of Directorate General of Islamic Education (in that time was Prof. Dr. H Mohammad Ali, MA), the proposal is revised to “Proposal of the Opening of the Faculty of Islamic Economic and Business, with three programs namely, Islamic Economy, Islamic Management, and Islamic Accounting.
4. Workshop of the Center of Excellence of the Faculty of Islamic Economics and Business on Desember 14th 2012 which was attended by The Head of Directorate General Islamic Education and he confirmed and encouraged UIN Sunan Kalijaga as the eldest islamic university to become the center of excellence of the development of Islamic economy through the opening of the Faculty of Islamic Economics and Business (FEBI).
5. The proposal presentation of the Opening of the Faculty of Islamic Economic and Business in front of the Director of Higher Education, the Ministry of Religious Affair Republic of Indonesia on Febuari 14th 2012 which decided to accept the Proposal of the Opening of Faculty of Islamic Economic and Business with the note “revision the program proposed must be appropriate with PMA No. 36 on 2009”.
6. The submission of the Revised Proposal of the Opening of the Faculty of Islamic Economic and Business with the supervision of the Director of Higher Education (Dikti) on Februari 22nd 2012 with two new programs based on PMA No. 36 on 2009, those are Sharia Economic (Ekonomi Shariah) and Sharia Banking (Perbankan Shariah).
7. Decree No. 522 about the Opening of the Faculty of Islamic Economic and Business from the Directorate General Islamic Education, the Ministry of Religious Affair on March 21st 2012.

By all above steps, finally, Directorate General Islamic Education issued the Decree of Directorate General of Islamic Education No. 522 about the Opening of the Faculty of Islamic Economic and Business, on March 21st 2012. The Rector of UIN Sunan Kalijaga followed up this decree by first, arrange the managers of FEBI (temporarily while waiting for the SOTK UIN Sunan Kalijaga from the Ministry of Empowerment of State Apparatus) which consisting of Pjs.Dean (Dr. Ibnu Qizam, SE, M.Si, Ak), Pjs. Deputy Dean (Dr. Misnen Ardiansyah, M.Si), and two Pjs Head of Department they are Pjs.The Head department of Shariah Economic (M. Ghafur Wibowo, SE, M.Sc), and Pjs the Head department of Sharia Banking (Joko Setyono SE, M.Si) for the admission of the new students for academic year 2012/2013.

To become an excellent faculty in Islamic Economics and Business, there are at least four important pillars to be developed, including: 1) research quality, 2) graduate employability, 3) international outlook which is determined by the international study program and the number of international student, 4) lecturing quality which determined by the ratio of the lecturer and the students (based on The Times Higher Education Supplement (THES)). Therefore, FEBI has a high commitment to develop as a high education institution which has excellence in those four things. In addition, the curriculum of FEBI is set to make its alumnus with a high moral integrity in their personality and broad-minded and entrepreneurship-skill.

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