Economic Security in Developing Muslim Countries: The Case of Indonesia

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.