The Alignment of Sharia Economics and People-Centered Economics

Since Pancasila Economics aligns with Sharia Economics, and People-Centered Economics  ("Ekonomi Kerakyatan") aligns with Pancasila Economics, it follows that People-Centered Economics also aligns with Sharia Economics; the three operate in tandem. People-Centered Economics and Sharia Economics share several fundamental similarities, despite originating from different philosophical foundations. Both economic systems emphasize the importance of social justice—specifically through equitable distribution and community empowerment (in the case of People-Centered Economics). People-Centered Economics places the people at the heart of economic development.

Similarly, Sharia Economics encourages active community participation in economic activities, in accordance with Sharia principles. Both systems also agree on the need to avoid harmful economic practices; neither condones practices that disadvantage the public. People-Centered Economics stresses the importance of avoiding monopolies and exploitation, while Sharia Economics prohibits riba (usury/interest) and gharar (uncertainty) in economic transactions. Ultimately, the shared goal is the well-being of the community or the ummah (Muslim community), even if the methods and strategies for achieving this may differ slightly.

Another important point of convergence lies in the recognition that economic activities should serve broader social and moral objectives rather than merely maximize profit. People-Centered Economics views economic development as a means of improving human welfare, reducing poverty, creating employment, and strengthening social cohesion. Likewise, Sharia Economics regards wealth as a trust (amanah) that must be managed responsibly for the benefit of society. Economic success is therefore measured not only by growth and material accumulation, but also by its contribution to justice, human dignity, and social harmony. In both systems, economic policies are expected to produce tangible benefits for the wider community rather than concentrate advantages in the hands of a few.

Furthermore, both approaches acknowledge the strategic role of collective institutions in achieving inclusive development. Cooperatives, community enterprises, mutual-aid organizations, and other forms of collective action are central to People-Centered Economics because they enable communities to participate directly in economic decision-making and benefit-sharing. Similarly, Sharia Economics promotes institutional mechanisms such as zakat, waqf, Islamic cooperatives, and profit-and-loss sharing partnerships that strengthen social solidarity and economic inclusion. As a result, both frameworks offer complementary pathways toward a more equitable economic order—one that balances individual initiative with social responsibility, economic efficiency with justice, and material prosperity with ethical values.

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