Islamic Economics towards the Sustainability of Economic Development

Abstract

Islamic economics, grounded in sharia principles, serves as a pivotal force in advancing sustainable economic development, prioritizing justice, environmental sustainability, and the enhancement of social welfare. One of the main pillars of Islamic Economics is the prohibition of usury, which has a significant impact on the distribution of wealth and economic stability. The principle of justice in Islamic Economics is reflected in mechanisms for sharing profits and losses, such as mudarabah and musharakah, where the involvement of all parties in sharing the results creates a more stable economic environment. This system encourages active participation and shared responsibility, reducing the risk of speculation that could undermine economic stability. The importance of sustainability is realized through Islamic ecological principles. The caliphate concept, which emphasizes human responsibility as custodians of nature, is the basis for environmentally friendly economic practices. In this context, Islamic Economics encourages sustainable use of resources, supporting economic growth that does not damage the environment. In facing global economic challenges, Islamic Economics also offers an alternative to conventional monetary policy. Monetary policy directed at the stability of the value of money and distributional justice is the main focus, avoiding the risk of inflation which is often associated with uncontrolled money creation. Thus, Islamic Economics is not only an alternative economic framework but also a solution that has a perspective of justice and sustainability in facing the challenges of contemporary economic development. By combining ethical values, fair distribution, and attention to the environment, Islamic Economics paves the way towards inclusive and sustainable economic development.