Islamic Production Theory: Production and Distribution Costs

Abstract

Production theory in Islamic economics is a concept that regulates production activities based on sharia principles with the aim of creating benefits, justice, and community welfare. In contrast to conventional production theories that are oriented towards profit maximization, production in Islam places moral values, ethics, and social responsibility as integral parts of the production and distribution process. This research aims to analyze the concept of Islamic production theory, production costs, and distribution mechanisms from an Islamic economic perspective. The research uses a qualitative approach with the library research method. Data was obtained from various secondary sources in the form of scientific journals, books, regulations, and literature related to Islamic economics, then analyzed using content analysis techniques. The results of the study show that the production process in Islam must be based on the principles of halal, justice, efficiency, and sustainability by utilizing resources optimally without causing environmental damage or exploitation of labor. The cost of production is seen as an economic sacrifice that must be managed efficiently and transparently, while distribution is directed to realize the equitable distribution of welfare through a mechanism that is fair and free from the practice of usury, gharar, and monopoly. Thus, Islamic production theory provides an economic paradigm that is not only oriented towards the achievement of profits, but also on social responsibility, business sustainability, and the achievement of Islamic sharia goals (maqāṣid al-shari'ah).