Reconfiguring Islamic Economic Resources in Indonesia: Toward an Integrated and Sustainable Framework

Abstract

Indonesia, home to the world’s largest Muslim population, possesses substantial Islamic economic resources that can significantly contribute to inclusive and sustainable development. These resources encompass Islamic banking, Islamic social finance instruments such as zakat and waqf, and the expanding halal industry. Despite consistent institutional growth and regulatory support, the overall contribution of these sectors to national economic transformation remains suboptimal due to structural fragmentation, limited integration, and governance challenges. This study analyzes the institutional configuration, sectoral performance, and integration dynamics of Islamic economic resources in Indonesia. Using a qualitative descriptive approach based on policy analysis and secondary data review, the research evaluates how Islamic commercial and social finance interact within the broader development framework. The findings indicate that while Islamic banking and sovereign sukuk demonstrate steady asset growth, market share remains relatively modest. Zakat and waqf hold significant untapped potential, particularly in productive asset management and poverty alleviation programs. The halal industry provides strong multiplier effects but requires stronger financial ecosystem integration. The study concludes that optimizing Islamic economic resources requires regulatory harmonization, digital integration, and strengthened institutional coordination to enhance their contribution to sustainable economic development.