Implementing a sharia economy in Indonesia requires an appropriate institutional environment, namely a "sharia economic system." The problem is, we are currently reluctant to discuss this economic system. The enthusiasm of several decades, starting in the 1960s among academics, has not been rekindled, when many proposed the Pancasila Economic System or People's Economy as our economic system.
"People's Economy," "Pancasila Economy," and "Sharia Economy" actually have strong parallels (Syahyuti, 2024). Although Sharia Economics or Islamic Economics is certainly an older practice, and its science should also be older (dating back to the 7th century in Medina), However, its scientific discourse in Indonesia was later (it became popular in the 1980s), while People's Economy began in 1930, and Pancasila Economy around 1965.
Furthermore, upon closer examination, People's Economy and Pancasila Economy share a strong parallel, supporting each other as two complementary entities. This can be traced back to 1945, when Sukarno presented the initial idea of People's Economy at the Investigating Committee for Preparatory Work for Independence. In that speech, Sukarno based People's Economy on the principles of Pancasila. Then, in 1980, People's Economy was conceptualized as Pancasila Economy. The foundational values, objectives, economic principles, and the role of the state are the elements that connect the two. "In the Pancasila economic system, the economy is of the people, by the people, and for the people."
Sharia economics has an inclusive character. A representative scientific review of business ethics from various interfaith perspectives found that the Islamic business ethics perspective, derived from two primary sources: the Qur'an and the Hadith, states that business as a human activity is both material and immaterial. Similarly, business ethics from a Christian perspective does not accept the separation of work and life (Wong and Senjaya, 2024), which aligns with Hindu business ethics, where economic activity is essentially about fulfilling the dignity of humankind as a divine creation.
In addition to an Islamic economic system, a new measurement tool, namely the Islamic Gross National Product, is also needed. This measurement is not solely based on GDP figures but also considers social justice, community welfare, and environmental sustainability. Islam emphasizes the equitable distribution of wealth, social inclusion, and business ethics in accordance with Sharia principles. Sharia economics is suitable as an alternative model for a new GDP, as it offers a values-based approach with four main pillars: a rabbaniyah economy (based on divinity), an akhlaki economy (based on morals), a humanitarian economy (oriented towards human welfare), and a middle-ground economy (tawazzun) that balances individual and societal interests.
This idea has been initiated in recent years by the National Committee for Sharia Economics and Finance (KNEKS). In the latest RPJMN (2024-2029), KNEKS successfully incorporated Sharia economic and financial indicators. At various events, KNEKS claimed this proposed "Sharia GRDP" was the first of its kind in the world.
Regarding regulations and programs, Appendix 1 of Presidential Regulation No. 12 of 2025 concerning the 2025-2029 RPJMN found 18 entries for "Sharia economy." "Sharia economy" is one of four economic phrases: "Sharia Economy," "Digital Economy," "Green Economy," and "Blue Economy." The vision is to make Indonesia the global center of the Islamic economy. However, the impression that arises is that we are developing the Islamic economy primarily because of the market (demand-driven) or that it is still merely a form of "market-driven Islamic economics" or "value-driven Islamic economy," not yet a genuine path of Islamic propagation.
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