Strengthening Islamic Ecosystem Strategies for Encouraging Indonesian Economic Transformation

Abstract

This study aims to analyze the role of the Islamic economy and design strategies for strengthening the Islamic economic ecosystem in driving the transformation of the Indonesian economy. Indonesia has a great potential to develop an Islamic economy. On the other hand, the existing Islamic economic ecosystem is still not greats enough to transform Indonesia's economic fundamentals. This research method uses a qualitative approach, with literature studies, the first step is reviewing the narrative of the potential of the Islamic economy in Indonesia, economic transformation, and Islamic economic ecosystems. The second stage is a meta-analysis of the results of the narrative review, which observes the synthesis to produce a strategy design for strengthening the Islamic economic ecosystem. The results of this study illustrate that Indonesia has great potential in the development of the Islamic economy in terms of the number of the Muslim population, halal tourism, development of Islamic finance, halal food, Muslim fashion product markets, and also economic digitization. Economic transformation is an economic development step that must be driven by the potential of the Islamic economy, especially in terms of Islamic finance. Therefore, the key to Indonesia's economic transformation is to create a greats Islamic economic ecosystem. Integrating all economic potentials, improving the performance of Islamic financial institutions, and encouraging the SME's performance based on the Islamic economy is the strategy.