CHALLENGES FACING THE ISLAMIC ECONOMIC SYSTEM IN INDONESIA
Keywords:
Islamic Economics, Challenges, Indonesian Economic System.Abstract
This study examines the main challenges in implementing the Islamic economic system in Indonesia, particularly in addressing the complexities of a diverse society and the dominance of the conventional economic system. Several identified obstacles include limited public understanding of Islamic economic concepts, regulations that do not yet fully support Islamic principles, a shortage of qualified professionals in the Islamic economic sector, and insufficient innovation in Sharia-compliant financial products. Furthermore, competition with the conventional financial sector and negative public perceptions of Sharia-based products have also hindered the development of the Islamic economy in Indonesia. This study employs a literature review approach and descriptive-analytical analysis to identify applicable strategies, including strengthening Islamic economic education and literacy, adjusting policies to better support Sharia principles, enhancing cooperation between educational institutions and Islamic financial institutions, and promoting innovation in the halal industry and Islamic financial technology sectors. The findings provide a comprehensive understanding of the complexity of the existing challenges and propose strategic solutions to strengthen the Islamic economy as an essential component of inclusive, equitable, and Islamic value-based national economic development.
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