The world of Indonesian Islamic economics recorded a new history with the successful holding of the V Congress of the Indonesian Association of Islamic Economists (IAEI) on May 15-16, 2025 at Puri Agung, Grand Sahid Jaya Jakarta. This congress was not only a place for gathering and discussion of Islamic economists, but also marked the re-election of Sri Mulyani Indrawati as Chairman of IAEI for the period 2025-2030 by acclamation.
As a figure who also serves as Minister of Finance of the Republic of Indonesia for the period 2024-2029, the election of Sri Mulyani Indrawati brings fresh air and great hope for the development of Islamic economics in Indonesia. We congratulate the success of the IAEI V Congress and the re-election of Sri Mulyani Indrawati as the captain of IAEI. Hopefully this mandate can be carried out with full responsibility for the advancement of the ummah's economy.
It is no coincidence that Sri Mulyani Indrawati, who has a strategic role as Minister of Finance, is also re-elected to lead IAEI. This dual position puts her at a very important point to encourage the acceleration of Islamic economic growth in Indonesia. The combination of her economic expertise, her national and international leadership experience, and her commitment to the values of Islamic economics provide a strong foundation to bring about significant change. The presence of Sri Mulyani Indrawati as Chairperson of IAEI as well as Minister of Finance is a positive signal that Islamic economics can be a major pillar in national economic development in the future.
This condition opens new hope for the role of Islamic economics in supporting Indonesia's economic development. Islamic economics, with its principles based on justice, balance and sustainability, has great potential to become a driving force for an inclusive economy. However, the challenges faced are not light. Based on data revealed in the IAEI V Congress recommendation document (page 26), the market share of Islamic finance and economics in Indonesia is still at around 7%. This figure is very small when compared to the dominance of the capitalism-based economy. More strikingly, this figure is an extraordinary paradox considering that 85% of Indonesia's population, or around 238 million people out of a total population of 280 million, are Muslims. This reality reflects that the great potential of Muslims has not been optimally utilized in the context of Islamic economics.
This challenge is also a great hope carried by Sri Mulyani Indrawati. As Chairman of IAEI 2025-2030 and Minister of Finance 2024-2029, she is in a very strategic position to overcome this gap. With the right policies, cross-sectoral coordination, and support from various stakeholders, Sri Mulyani Indrawati has the opportunity to significantly increase the market share of the Islamic economy. This task is not only about increasing statistical figures, but also ensuring that the Islamic economy can provide tangible benefits to society, such as improved welfare, reduced social inequality, and strengthened national economic resilience.
To make this happen, Indonesia can learn from neighboring Malaysia, which has managed to achieve an Islamic economic and financial market share of nearly 30%. Malaysia's success is inseparable from targeted strategies, such as strengthening Islamic financial regulations, developing innovative financial products, and massively educating the public about the benefits of Islamic economics. Malaysia has also succeeded in creating an ecosystem that supports the growth of the Islamic economy, from banking, capital markets, to the halal industry. Malaysia's experience can serve as a mirror for Indonesia to formulate concrete steps, such as expanding access to Islamic finance in the regions, improving Islamic economic literacy, and encouraging collaboration between the government, academics, and industry players.
More than just inspiration, Indonesia must set clear and measurable targets. In the next five years, until the end of Sri Mulyani Indrawati's tenure as Chair of IAEI in 2030, Indonesia's share of the Islamic economy and finance market should reach at least 20%. This target is not just an ambitious number, but a realistic performance measure given Indonesia's demographic potential and Sri Mulyani Indrawati's strategic position as a policy maker. This 20% achievement will be an indicator of success in utilizing the momentum to strengthen the Islamic economy, as well as showing that Indonesia is able to catch up with countries like Malaysia.
The IAEI V Congress has set a number of recommendations that can guide Sri Mulyani Indrawati and the ranks of IAEI in the next five years. One of them is to strengthen the role of IAEI as a think tank capable of providing research-based solutions for the development of Islamic economics. In addition, the Congress also emphasized the importance of synergy with the government, especially the Ministry of Finance, to create policies that support the growth of the Islamic economy. With Sri Mulyani Indrawati's strategic position, this synergy has a great opportunity to materialize, paving the way for the acceleration of Islamic economic development in Indonesia.
Real hope now rests on the leadership of Sri Mulyani Indrawati. Being elected unanimously in the IAEI V Congress is proof of the great trust of Islamic economists in her vision and capabilities. The challenge to increase the market share of the Islamic economy from 7% to at least 20% in the next five years is not easy, but with her strategic position, the support of the IAEI community, and learning from best practices such as Malaysia, the target is not impossible. Good luck, Mrs. Sri Mulyani Indrawati, and congratulations on carrying out the mandate to bring Indonesia's Islamic economy to a brighter future. Hopefully the steps taken can bring great benefits to the ummah and the nation, with the achievement of 20% market share as one of the anticipated milestones.
