A New Wave of Indonesian Nationalism? Islamic Economy as a Challenge against Capitalism and Western Modernity
Minako Sakai, School of Humanities and Social Sciences. University of New South Wales
The growing interest in Islam has created various types of Islamism in Southeast Asia, and Indonesia is no exception. This paper will focus on the development of the Islamic economy (ekonomi syariah) as Islamic activism in Indonesia. Following the establishment of the first Islamic bank, Muamalat Bank of Indonesia in 1991, the development of the Islamic economy over the last two decades is evident in the growth of related institutions and organisations including Islamic business associations, Islamic economist associations, educational institutions, philanthropic organisations, and publishing and media. The paper will examine the visions and hopes held amongst these new Islamic businessmen and professionals actively involved in the development of the Indonesia’s Islamic economy. The paper will show that since the Asian financial crisis which hit Indonesia in the late 1990s, Muslims have become highly critical of Western-oriented capitalism as the basis of Indonesia’s economic and social development. They are instead turning to the Islamic economy as an alternative development route, which might potentially challenge the current orientation of Indonesia’s social and economic development, liking Indonesia closer to the Muslim World.
