STRATEGY FOR DEVELOPING THE ISLAMIC ECONOMY IN INDONESIA: A PERSPECTIVE ON ECONOMIC AND SOCIAL CHALLENGES

Abstract

 Islamic economics, grounded in Islamic principles, prioritizes justice, sustainability, and equitable wealth distribution., which differentiates it from conventional economic systems. Islamic economics encourages ethical practices by avoiding riba (interest), gharar (uncertainty), and maisir (gambling), as well as encouraging zakat (charity), waqf (endowment), and profit sharing. Indonesia, as the country with the largest Muslim population in the world, plays an important role in the Islamic economy and was ranked in the top three in the Global Islamic Economic Indicators (GIEI) in 2023. Although there has been significant progress in the sharia banking, halal food and tourism sectors, There are still challenges that must be faced, especially related to harmonizing various regulations and halal certification standards. This article explores the growth of the Islamic economy in Indonesia, emphasizing the challenges encountered and outlining strategies for advancement. These include enhancing financial regulations, improving the quality of halal products, and fostering collaboration across various sectors.