Islamic Economics in Indonesia Criticized for Not Reaching Households

While Indonesia has made strides in developing its Islamic finance sector, a critical assessment reveals a significant gap: the principles of Islamic economics have yet to deeply penetrate the fundamental unit of society – the household. This observation, emerging from discussions involving the Indonesian Islamic Economists Association and Bank Syariah Indonesia, points to a need for a paradigm shift in our approach.

As articulated by Murniati Mukhlisin, a professor of Islamic Accounting at Tazkia University, the true essence of Islamic economics, aimed at elevating human dignity through a just system, must be cultivated from within the family. It is within the family that consumption habits, financial management, and economic decision-making are formed. Without this foundational strength at the household level, the growth of Islamic economics risks becoming merely an industrial sector, detached from its potential for widespread societal impact. This resonates with the historical emphasis on community-based economic self-reliance, a concept that can be powerfully realized through an inclusive, equitable Islamic economic model.

Furthermore, the path forward necessitates robust cross-sectoral collaboration. Academics, business practitioners, government bodies, and community organizations must unite to enhance financial literacy in Islamic principles. This collective effort is vital to ensure that understanding transcends mere theory and translates into tangible practice. While the Islamic banking industry continues its impressive growth—with Bank Syariah Indonesia's assets surpassing Rp 450 trillion—this expansion must be accompanied by demonstrable social benefits. The challenge remains ensuring that the fruits of Islamic economics are equitably distributed, fostering broad-based economic resilience rather than benefiting only a select segment of the population. From our perspective at Republika, this focus on the household is not just an economic strategy; it is a moral imperative to ensure that Islamic economic principles truly serve the welfare of all Indonesian families.

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Pendekatan syariah itu tujuannya mengangkat martabat manusia dengan sistem yang berkeadilan. Itu harus dimulai dari keluarga.