Strategies for Strengthening the Sharia Economy to Promote Regional Economic Development

Abstract

This study aims to analyze strategies for strengthening the sharia economy as an effort to promote regional economic development in Indonesia. Based on the authors’ observations, regional economic challenges reveal several weaknesses, including institutional and regulatory gaps, underdeveloped sharia sectors, limited integration with the real sector, inadequate formation of sharia industrial clusters, and insufficient human resource development. The research employs a literature review method using a descriptive analytical approach drawn from various relevant scholarly sources. The findings indicate that strategies to strengthen the sharia economy can be implemented through five key approaches: (1) the formulation and harmonization of regional regulations with central policies to support the sharia economic ecosystem; (2) the standardization of sharia-based products and services; (3) innovation and digitalization within the sharia financial sector; (4) the establishment of an integrated halal certification system to enhance the competitiveness of local micro, small, and medium enterprises (MSMEs); and (5) the development of supporting infrastructure for sharia economic growth. The study concludes that Indonesia possesses substantial potential for developing the sharia economy, given its demographic advantage as the world’s largest Muslim-majority nation. Specifically, for West Java Province, the implementation of these strategies may act as a catalyst for accelerating sustainable regional economic growth. The research emphasizes the importance of synergistic collaboration among the government, business actors, academia, and the wider community to optimize the potential of the sharia economy as a foundation for inclusive and equitable regional development.