The Political Challenge of Islamic Economic Development in The Jokowi’s Government, Indonesia

Abstract

Indonesia in developing its Islamic economic system is closely bound up with the political situation of its time. The New Order is the government that established the first Islamic bank in Indonesia, but its relationship to political Islam has been strained in the past so it is delayed up to 1992.
 The era of reform marked by better relations between political Islam and the state has had an impact on progress in the field of Islamic financial institutions.
 However, in the development of the last 5 years, there has been no visible progressive policy that has led to the accelerated growth of Islamic finance, especially Islamic banking, which has stopped at 5% market share of conventional banking.
 The era of President Jokowi is the first government to formulate the Sharia Economic Master Plan 2019-2024 within the framework of state policy. This paper focuses on the opportunities and challenges for the realization of the master plan based on previous political policies and the reality of the political issue of the 2019 election results or the second period of Jokowi and the potential of Islamic economic resources in Indonesia.