CONSUMPTION THEORY DURING THE COVID-19 PANDEMIC IN ISLAMIC ECONOMICS

Abstract

Consumption is an essential economic activity, often considered the most important one. In simple terms, the basic principle of consumption states that humans will consume anything, in any quantity, as long as their budget allows and they can obtain maximum satisfaction. However, the current situation during the Covid-19 pandemic has worsened economic conditions. Government policies such as lockdowns and large-scale social restrictions (PSBB) caused lower-income groups to lose their sources of livelihood, leading to decreased purchasing power. Even during the new normal period, various restrictions continued to limit activities across many sectors, contributing to increasing household consumption behavior that tends to become greedy and self-centered. To prevent this, cooperation and coordination among various stakeholders are needed to control the circulation of goods in the market. Society is also expected to act wisely, purchase based on actual needs, and cultivate empathy toward those in greater need to maintain stability during the pandemic.

The concept of efficiency in conventional economics focuses on maximizing the satisfaction of wants, while Islamic economics aims to maximize the fulfillment of needs. Muslim consumers affected by the Covid-19 pandemic tend to cope better by quickly adjusting to changes in demand. Their consumption habits are guided by Islamic teachings that prohibit extravagance (israf), wastefulness (tabdzir), and emphasize halal consumption, which brings the pleasure of Allah SWT. Many consumers continued performing charitable acts such as infaq and demonstrated mutual assistance (ta’awun) throughout the pandemic. Thus, their consumption activities remained directed toward achieving maslahah, aiming for success both in this world and the hereafter.