Reconstruction of the Concept of Present Value within the Framework of Maqashid al-Syariah

Abstract

The concept of present value is a key component in modern financial theory for evaluating the time value of money, but its dependence on interest rates contradicts Islamic teachings that prohibit usury. Therefore, in Islamic economics, it is important to reconstruct this concept in accordance with the principles of maqashid sharia, which emphasize justice, balance, and human welfare in economic practices. This study uses the Systematic Library Research method, which involves a systematic review of classical and modern literature in the fields of conventional economics, Islamic economics, and maqashid sharia theory. The analysis was conducted by identifying the fundamental differences between the conventional present value concept and the sharia value, then synthesizing them into an alternative model. This study introduces the Maqasid-Based Present Value Model (MBPV), which replaces conventional interest rates with three ethical parameters: Ethical Parameter (E), Maslahah Coefficient (M), and Real Growth Rate (g). This model evaluates the value of an investment not only based on time but also on its social and ethical contributions. The research findings highlight the need to integrate sharia maqashid principles into Islamic finance, ensuring that Islamic finance is not only free from usury but also promotes justice, social sustainability, and collective welfare