Economic Security in Developing Muslim Countries: The Case of Indonesia

Abstract

This study examines the evolving concept of economic security in developing Muslim-majority countries through an in-depth case study of Indonesia. As the world’s most populous Muslim-majority nation and a rising middle-income economy with a robust democratic framework, Indonesia offers a distinctive model for understanding how Islamic economic principles can be integrated into national development strategies. The study explores how Indonesia balances economic growth and social equity while navigating the structural challenges typical of the Muslim World and the Global South, including commodity dependence, institutional constraints, and global economic volatility. Furthermore, the study pays particular attention to the role of Islamic finance, Shariah-compliant financial innovations, and the normative influence of Islamic values in shaping inclusive and ethical development outcomes. The Indonesian case challenges conventional paradigms of economic security, which tend to focus on external vulnerabilities, by foregrounding internal dimensions such as poverty alleviation, social justice, and governance quality. Hence, through a synthesis of development economics and Islamic economic thought, the study highlights Indonesia as a critical site of theoretical and policy experimentation. It argues that Indonesia’s experience not only provides practical lessons for other developing Muslim countries but also contributes to a broader reconceptualization of economic security that is grounded in ethical, institutional, and socio-political dimensions of development.

Keywords

• Economic Security
• Developing Muslim Countries
• Indonesia
• Islamic Economics

Gelişmekte Olan Müslüman Ülkelerde Ekonomik Güvenlik: Endonezya Örneği

Öz

Bu çalışma, gelişmekte olan Müslüman çoğunluklu ülkelerde evrilen ekonomik güvenlik kavramını Endonezya örneği üzerinden derinlemesine incelemektedir. Dünyanın en kalabalık Müslüman çoğunluklu ülkesi ve güçlü bir demokratik çerçeveye sahip yükselen bir orta gelirli ekonomi olarak Endonezya, İslami ekonomik ilkelerin ulusal kalkınma stratejilerine nasıl entegre edilebileceğini anlamak için önemli bir model sunmaktadır. Çalışma, Endonezya’nın emtia bağımlılığı, kurumsal kısıtlamalar ve küresel ekonomik dalgalanma gibi İslam Dünyası ve Küresel Güney’e özgü yapısal zorlukların üstesinden gelirken ekonomik büyüme ve sosyal eşitlik arasında nasıl denge kurduğunu araştırmaktadır. Çalışma, ayrıca İslami finansın, Şeriat uyumlu finansal yeniliklerin ve İslami değerlerin normatif etkisinin kapsayıcı ve etik kalkınma sonuçlarını şekillendirmedeki rolüne de özellikle dikkat çekmektedir. Endonezya örneği, yoksulluğun azaltılması, sosyal adalet ve yönetişim kalitesi gibi iç boyutları ön plana çıkararak dış kırılganlıklara odaklanma eğiliminde olan geleneksel ekonomik güvenlik paradigmalarına meydan okumaktadır. Dolayısıyla kalkınma iktisadı ve İslami iktisat düşüncesinin bir sentezini yapan bu çalışma, Endonezya’yı teorik ve politika deneylerinin kritik bir alanı olarak vurgulamaktadır. Çalışma, Endonezya’nın deneyiminin sadece diğer gelişmekte olan Müslüman ülkeler için pratik dersler sunmakla kalmayıp, aynı zamanda ekonomik güvenliğin daha geniş bir şekilde yeniden kavramsallaştırılmasına katkıda bulunduğunu savunmaktadır.

Anahtar Kelimeler

• Ekonomik Güvenlik
• Gelişmekte olan Müslüman Ülkeler
• Endonezya
• İslam Ekonomisi

Kaynakça

1. Amin, S. (1976). Unequal Development: An Essay on the Social Formations of Peripheral Capitalism. Sussex: Harvester Press.
2. Ascarya, A., & Yumanita, D. (2008). Comparing the Efficiency of Islamic Banks in Malaysia and Indonesia. Bulletin of Monetary Economics and Banking, 11(2):95-119.
3. Askari, H., Iqbal, Z., Krichene, N., & Mirakhor, A. (2015). Introduction to Islamic Economics: Theory and Application. Wiley.
4. Asutay, M. (2007). A Political Economy Approach to Islamic Economics: Systemic Understanding for an Alternative Economic System. Kyoto Bulletin of Islamic Area Studies, 1(2), 3-18.
5. Asutay, M., & Turkistani, A. (2015). Islamic Finance: Political Economy, Values and Innovations. Berlin: Gerlach Press.
6. Baldwin, D. A. (1997). The concept of security. Review of International Studies, 23(1), 5-26.
7. Bappenas. (2019). The Indonesia Masterplan of Sharia Economy 2019-2024. Ministry of National Development Planning, Indonesia.
8. Basri, M. C., & Rahardja, S. (2010). ASEAN Economic Bulletin 27(1), 77-97. DOI:10.1353/ase.2010.0017 BAZNAS. (2021). National Zakat Statistics 2021. Badan Amil Zakat Nasional.

9. Bhambra, G. K. (2007). Rethinking modernity: Postcolonialism and the sociological imagination. Palgrave Macmillan.
10. Booth, A. (2016). Economic Change in Modern Indonesia: Colonial and Post-colonial Comparisons. Cambridge: Cambridge University Press.
11. BPS. (2023). Statistical Yearbook of Indonesia 2023. Badan Pusat Statistik (Statistics Indonesia).
12. Bush, R. (2009). Nahdlatul Ulama and the struggle for power within Islam and politics in Indonesia. ISEAS Publishing.
13. Buzan, B., Waever, O., & De Wilde, J. (1998). Security: A New Framework for Analysis. Lynne Rienner.
14. Chapra, M. U. (1992). Islam and the Economic Challenge. The Islamic Foundation, The International institute of Islamic Thought.
15. Chapra, M. U. (2008). The Islamic Vision of Development in the Light of Maqasid Al-Shariah. The International Institute of Islamic Thought.
16. Chapra, M. U. (2016). The Future of Economics: An Islamic Perspective. Leicester: The Islamic Foundation.
17. Cox, R. W. (1981). Social Forces, States and World Orders: Beyond International Relations Theory. Millennium, 10(2), 126-155.
18. Doyle, M. W. (1997). Ways of war and peace: Realism, liberalism, and socialism. W.W. Norton.
19. Dusuki, A. W., & Abdullah, N. I. (2007). Maqasid al-Shari'ah, maslahah, and corporate social responsibility. The American Journal of Islamic Social Sciences, 24(1), 25-45.
20. El-Gamal, M. A. (2006). Islamic Finance: Law, Economics, and Practice. Cambridge: Cambridge University Press.
21. Errico, L., & Sundararajan, V. (2002). Islamic Financial Institutions and Products in the Global Financial System: Key Issues in Risk Management and Challenges Ahead. IMF Working Paper 02/192.
22. Feener, R. M. (2013). Shari’a and Social Engineering: The Implementation of Islamic Law in Contemporary Aceh, Indonesia. Oxford: Oxford University Press.
23. Fitrani, F., Hofman, B., & Kaiser, K. (2005). Unity in diversity? The creation of new local governments in a decentralising Indonesia. Bulletin of Indonesian Economic Studies, 41(1), 57-79.
24. Galtung, J. (1971). A Structural Theory of Imperialism. Journal of Peace Research, 8(2), 81-117.
25. Gill, S. (1995). Globalisation, Market Civilisation, and Disciplinary Neoliberalism. Millennium, 24(3), 399-423.
26. Hamzah, M. (2024). The Role and Legal Aspects of Infaq, Sadaqah, and Waqf in Realizing Economic Equality and People’s Welfare. Al-Iqtishadiyah: Ekonomi Syariah dan Hukum Ekonomi Syariah, 10(1), 107-124.
27. Harvey, D. (2005). A Brief History of Neoliberalism. Oxford University Press.
28. Hassan, M. K., & Lewis, M. K. (2007). Handbook of Islamic Banking. Cheltenham & Northampton, MA: Edward Elgar.
29. Helleiner, E. (2014). The Status Quo Crisis: Global Financial Governance After the 2008 Meltdown. New York: Oxford University Press.
30. Hill, H. (2008). Globalization, Inequality, and Local-level Dynamics: Indonesia and the Philippines. Asian Economic Policy Review, 3(1), 42-61.
31. Ikenberry, G. J. (2001). After Victory: Institutions, Strategic Restraint, and the Rebuilding of Order After Major Wars. Princeton University Press.
32. Iqbal, M., & Llewellyn, D. T. (Eds.). (2002). Islamic Banking and Finance New Perspectives on Profit-Sharing and Risk. Cheltenham & Northampton, MA: Edward Elgar.
33. Iqbal, Z., & Mirakhor, A. (2011). An Introduction to Islamic Finance: Theory and Practice. Wiley.
34. Iqbal, Z., & Mirakhor, A. (2011). An Introduction to Islamic Finance: Theory and Practice. Wiley Finance.
35. IRTI. (2020). Islamic Social Finance Report 2020. Jeddah: Islamic Research and Training Institute.
36. Jones, B. F., & Liu, X. (2024). A framework for economic growth with capital-embodied technical change. American economic review, 114(5), 1448-1487.
37. Kahf, M. (2022). Towards a New theory of Finance: can ıslamic finance be it?. İstanbul: Istanbul Sabahattin Zaim University.
38. Kamali, M. H. (2008). Shari’ah Law: An Introduction. Oxford: Oneworld Publications.
39. Keohane, R. O., & Nye, J. S. (1977). Power and Interdependence: World Politics in Transition. Boston: Little, Brown.
40. Khan, M. M, & Bhatti, M. I. (2008). Islamic banking and finance: On its way to globalization. Managerial Finance, 34(10), 708-725.
41. KNEKS. (2019). The Islamic Economic Masterplan 2019-2024. Jakarta: KNEKS.
42. KNEKS. (2024). Indonesia Sharia Economic Outlook (ISEO) 2024. Komite Nasional Ekonomi dan Keuangan Syariah.
43. Mearsheimer, J. J. (2001). The Tragedy of Great Power Politics. New York: W.W. Norton & Company.
44. Ministry of Finance, Republic of Indonesia. (2022). Green Sukuk Report 2022. https://www.djppr.kemenkeu.go.id
45. Mirakhor, A., & Askari, H. (2010). Islam and the Path to Human and Economic Development. New York: Palgrave Macmillan.
46. Narlikar, A. (2020). Poverty Narratives and Power Paradoxes in International Trade Negotiations and Beyond. Cambridge: Cambridge University Press.
47. Nasr, S. H. (2007). Islamic Science: An Illustrated Study. Kazi Publications.
48. Nye, J. S. (2004). Soft power: The means to success in world politics. PublicAffairs.
49. Obaidullah, M. (2008). Introduction to Islamic microfinance. New Delhi: IBF Net Ltd.
50. Obaidullah, M., & Khan, T. (2008). Islamic Microfinance Development: Challenges and Initiatives. Islamic Research & Training institute Policy Dialogue Paper No. 2.
51. Otoritas Jasa Keuangan (OJK). (2023). Indonesian Islamic Finance Report 2023. Jakarta: OJK.
52. Rodney, W. (1972). How Europe Underdeveloped Africa. Bogle-L’Ouverture Publications.
53. Rofik, M., Boulanouar, Z., Yuli, S. B. C., & Wardani, D. T. K. (2025). Revisiting the impact of Islamic finance on economic growth: a decomposition analysis using Indonesia as a testing ground. International Journal of Islamic and Middle Eastern Finance and Management 18(4), 765-786.
54. Russett, B., & Oneal, J. R. (2001). Triangulating Peace: Democracy, Interdependence, and International Organizations. New York & London: W. W. Norton & Company.
55. Shirazi, N. S. (2014). Integrating Zakat and Waqf into the Poverty Reduction Strategy of the IDB Member Countries. Islamic Economic Studies, 22(1), 79-108.
56. Siddiqi, M. N. (2004). Riba, Bank Interest and the Rationale of its Prohibition. Islamic Development Bank, Islamic Research and Training Institute.
57. Siddiqi, M. N. (2006). Islamic Banking and Finance in Theory and Practice: A Survey of State of the Art. Islamic Economic Studies, 13(2), 1-48.
58. Stiglitz, J. E. (2002). Globalization and Its Discontents. New York & London: W. W. Norton & Company.
59. Taha, A., Aydin, M., Lasisi, T. T., Bekun, F. V., & Sethi, N. (2023). Toward a sustainable growth path in Arab economies: an extension of classical growth model. Financial innovation, 9(1), 1-24.
60. Till, G. (2009). Seapower: A Guide for the Twenty-First Century. London & New York: Routledge.
61. Wallerstein, I. (2004). World-systems Analysis: An Introduction. Duke University Press.
62. Waltz, K. N. (1979). Theory of International Politics. Addison-Wesley Publishing Company.
63. Wilson, R. (2009). The Development of Islamic Finance in the GCC. Kuwait Programme on Development, Governance and Globalisation in the Gulf States, London School of Economics.
64. Zahirah, P., Marlinda, M., Muliadi, M., & Hadi, R. (2025). Islamic Finance as a Catalyst for Economic Growth: Insights from Indonesia. Share: Jurnal Ekonomi dan Keuangan Islam, 14(1), 227-257.