Strategy Toward Indonesia as the Global Center of Islamic Economy in 2029

Dr. Abdul Wadud Nafis, LC., MEI

Indonesia holds a strategic position in the global Islamic economic landscape. With a Muslim population exceeding 230 million, the country possesses a highly potential base of consumers, entrepreneurs, and human resources to build an economy rooted in Islamic values. However, Indonesia remains in the developing stage in the global Islamic finance and halal industry sectors, still lagging behind countries such as Saudi Arabia, Malaysia, and the United Arab Emirates.

The government has set an ambitious vision to establish Indonesia as the global center of the Islamic economy by 2029. To realize this vision, a comprehensive strategy is required—one that integrates regulatory, institutional, technological, and societal participation aspects.

Methodology

This study employs a descriptive qualitative method with a literature-based approach. Data were collected from reports by Bank Indonesia, the National Committee for Islamic Economy and Finance (KNEKS), and recent academic studies on the development of Islamic economics at national and global levels. The analysis focuses on identifying driving factors, barriers, and sustainable strategies for implementation.

Findings and Discussion

1. Strengthening Islamic Economic Policies and Regulations
   The government must reinforce the legal framework for Islamic economics to ensure greater integration with the national financial system. Harmonization among regulatory bodies such as the Financial Services Authority (OJK), Bank Indonesia (BI), and KNEKS is crucial to avoid overlapping policies.
2. Enhancing Islamic Financial Literacy and Education
   The level of Islamic financial literacy among Indonesians remains relatively low. Therefore, it is essential to integrate Islamic economic education into formal curricula, provide training for MSME actors, and conduct extensive public awareness campaigns.
3. Developing the Islamic Finance and Halal Economy Industries
   Halal industries such as food, fashion, pharmaceuticals, and tourism serve as the main drivers of the Islamic economy. The government must strengthen the halal value chain and ensure internationally recognized halal certification.
4. Innovation and Digitalization in Islamic Financial Services
   Utilizing digital technology through Islamic fintech can broaden financial access for the public. Digitalization enhances efficiency, transparency, and financial inclusion across all social strata.
5. Global Collaboration and Islamic Economic Diplomacy
   International strategies should focus on expanding cross-border cooperation in Islamic economics. Indonesia must strengthen halal diplomacy and position itself as a global reference center for Islamic economic standards.
6. Empowering MSMEs and Community-Based Islamic Economy
   MSMEs are the most promising sector for applying Islamic economic principles. Through microfinance based on Islamic contracts and business mentoring, MSMEs can become the backbone of the people’s economy.
7. Synergy Among Government, Academia, and Religious Scholars
   These three pillars play vital roles in balancing spiritual values with economic interests. Their synergy will ensure that policy directions remain aligned with maqāṣid al-syarī‘ah (the objectives of Islamic law).

Conclusion

Achieving Indonesia’s vision to become the global center of Islamic economy by 2029 requires a comprehensive strategy encompassing regulation, education, technology, and global collaboration. Strengthening the halal industry, digitalizing Islamic finance, and empowering sharia-based MSMEs form the main foundation. With the support of the government, financial institutions, academia, and society, Indonesia’s aspiration to lead the global Islamic economy is not utopian but a realistic and measurable vision.

References

Bank Indonesia. (2023). Laporan Ekonomi dan Keuangan Syariah Nasional. Jakarta: Bank Indonesia.

KNEKS. (2024). Strategi Nasional Ekonomi dan Keuangan Syariah Indonesia. Jakarta: Komite Nasional Ekonomi dan Keuangan Syariah.

Chapra, M. U. (2016). The Future of Economics: An Islamic Perspective. The Islamic Foundation.

OJK. (2023). Statistik Perbankan Syariah Indonesia. Jakarta: Otoritas Jasa Keuangan.

Karim, A. A. (2020). Ekonomi Islam: Suatu Kajian Kontemporer. Jakarta: Rajawali Press.