Government Policy From An Islamic Economic Perspective: Empirical Study In Indonesia

Presenters: Achmad Tubagaus Surur, Muhamad Shulthoni, Hendri Hermawan Adinugraha
Affiliation: State Islamic University of K.H. Abdurrahman Wahid, Pekalongan
Room: 3 (Online)

ICIES News- At the 4th International Conference on Islamic Economics Studies (ICIES) 2024, researchers from the State Islamic University of K.H. Abdurrahman Wahid, Pekalongan, presented their empirical study on Indonesian government policies through the lens of Islamic economics. The study, titled “Government Policy From An Islamic Economic Perspective: Empirical Study In Indonesia,” was presented by Achmad Tubagaus Surur, Muhamad Shulthoni, and Hendri Hermawan Adinugraha.

The research aims to provide a comprehensive overview of the Indonesian government’s economic policies and their alignment with the Islamic economic framework. Utilizing a qualitative research design with a library research approach, the study integrates both descriptive and exploratory elements. Data were collected from various sources and analyzed using content analysis techniques to ensure accurate and precise results.

Key findings from the study include:

  • The Indonesian government has implemented extensive fiscal and monetary policies to mitigate the adverse effects of the global economic crisis on the domestic economy.
  • Indonesia, as the largest Muslim-majority country, holds significant potential to become the world’s leading producer of halal products. However, this potential remains underutilized.
  • The development of the halal industry is central to the strategies and challenges facing the growth of Islamic finance and economics in Indonesia.
  • To foster the growth of the halal industry, the government has established halal industrial areas or zones within broader industrial regions.
  • The Sharia financial sector is being developed to create a stable and modern economic framework that supports trade and industry.
  • Efforts are underway to transform waqf (endowment) as part of the development of Sharia social funds.
  • Expansion and development of Sharia-compliant business activities are also a key focus.

The presentation highlighted Indonesia’s commitment to aligning its economic policies with Islamic principles and the potential for significant growth in the halal sector. The researchers emphasized the importance of creating a supportive infrastructure for the halal industry and developing Sharia-compliant financial instruments to enhance economic stability and growth.

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