THE ISLAMIC ECONOMIC SYSTEM IN INDONESIA: A STUDY OF CONTEMPORARY LITERATURE

This research aims to comprehensively describe the implementation and development of theIslamic economic system in Indonesia. This research method is qualitative research with aliterature review approach. The data sources used are scientific journals, books, researchreports, conference articles, and official documents related to the Islamic economic system inIndonesia. This research concludes that the Indonesian economic system faces variouschallenges that require a holistic and integrated approach. Economic inequality, inadequateinfrastructure, complicated regulations, dependence on natural resources, and the quality ofeducation and health are some of the main problems that need to be addressed. Despitesignificant efforts by the government and various parties to overcome these problems, muchremains to be done to achieve inclusive, sustainable, and fair economic growth for allIndonesians. The development of the Islamic economic system in Indonesia shows a positiveand dynamic trend. Even though it still faces challenges such as low financial literacy andcompetition with conventional systems, the prospects for the Islamic economy in Indonesiaremain bright, with great potential to make a significant contribution to the welfare of society.Reviewing the Islamic economic system in Indonesia in a contemporary context is essential tounderstanding how Islamic economic principles are applied and developed in a dynamiceconomic and social environment. It helps identify existing challenges and opportunities andprovides insight into how Sharia economics can contribute to more equitable, inclusive, andsustainable economic development in Indonesia. Thus, the implications of this research arerelevant to the development of Islamic economic theory and have a significant practical impacton public policy and business practice.