Implementation of islamic economic system in Arek cultural society

The purpose of this study is to show the application of Islamic economic in the reality of cultural society in their daily economic activities, in general cultural society have an unique system to organize their live, based on local wisdom that uphelds by the society through the generation. This article will explain that local wisdom is part of al-urf, one of ushul fiqh method to determine a the legal status of an act in shari’a perspective. The researchers used qualitative research, the data were obtained through in-depth interviews, and observations with informants representing important figures. The final result of this study shows that many proof that the implementation of the cultural economic system of Arek society in Malang Regency that carried out by the community is in accordance with the principles of Islamic economics.