What Islamic Economics Will Be Implemented?

 Sharia economics (sometimes referred to as "Islamic economics") can be applied at two levels: as an economic sector encompassing the concrete, empirical activities of production, distribution, and consumption, and as an economic system encompassing a framework of values, rules, and institutions governing ownership and decision-making. The economy reflects the actual practices of society, while the economic system provides the underlying principle structure.

In Indonesia, the country with the largest Muslim population, the implementation of Sharia economics is still partial, focused on the financial sector such as banking, insurance, sukuk, and halal products, without completely replacing the conventional economy. Academic discourse rarely discusses it as a national system, emphasizing real sectors such as agrarian agriculture, which have taken root at the grassroots level. Indonesia's position in the Global Islamic Economy Indicator (GIEI) demonstrates the strength of the halal and Islamic financial sectors, but it has not yet dominated the overall economic system.

So, to what extent is Sharia economics implemented: limited to sectors or as a national system? For sectors, the "push the wave" strategy leverages community roots such as agriculture and fisheries. However, as a system, the challenge is like climbing a steep wall, requiring comprehensive regulations to overcome legal fragmentation and limited public understanding.

Research demonstrates the resilience of Islamic systems, such as profit-sharing in Islamic banks, which has withstood the global crisis. Zakat, infaq, sedekah, and waqf instruments can alleviate poverty if institutionalized in a transparent and accountable manner, emphasizing social justice and equitable distribution, unlike conventional economics.

Despite its development since the 1990s, ambiguity remains: is the Islamic economy merely a constellation of sectors (banking, the halal industry, Islamic MSMEs) or a reform of the national system? Strong stances and policies are needed for full integration, leveraging Indonesia's potential as a global role model.

Islamic economic development in Indonesia is currently driven by market demand (demand-driven) rather than intrinsic value (value-driven). Various initiatives such as Islamic banking, the halal industry, and waqf instruments are more oriented towards responding to the needs of the world's largest Muslim consumer base, such as halal certification for exports or Islamic financing for MSMEs, which reflects Indonesia's strong position in the Global Islamic Economy Indicator. However, this often neglects essential Islamic values ​​such as distributive justice, the prohibition of usury as a fundamental ethical principle, and comprehensive social inclusion, thus becoming merely commercial adaptations without profound systemic transformation.

Consequently, this development is vulnerable to global market fluctuations and has yet to establish a solid value framework to replace the conventional economic paradigm. Without an emphasis on values ​​such as institutionalized zakat for wealth redistribution or genuine mudharabah for trust-based partnerships, Islamic economics risks becoming trapped as a mere "niche market," rather than a national economic system rooted in economic monotheism and the maqasid of sharia. A values-driven paradigm is needed to realize Indonesia's potential as a global role model.

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