From Fragmented Sectors To An Integrated Islamic Economic Ecosystem In Indonesia : A Thematic Literature Review Of Strategic Challanges and Policy Priorities

Abstract. Indonesia’s Islamic economy encompasses Islamic finance, halal industries, micro, small, and medium-sized enterprises (MSMEs), digital services, and Islamic social finance. However, these sectors require stronger coordination to create an integrated ecosystem. This article examines the structural challenges and policy priorities associated with strengthening Indonesia’s Islamic economic ecosystem. It employs a qualitative thematic literature review of scholarly publications from 2020 to 2025, complemented by official policy reports. Seven themes are examined: financial literacy and inclusion, productive Islamic financing, halal value-chain integration, MSME capacity and certification, digital transformation, zakat and waqf, and governance and sustainability. The synthesis indicates that financing access alone is insufficient without market access, business capabilities, digital readiness, and an understanding of Sharia contracts. Digital communication can support customer trust and market access, but it does not automatically resolve financial literacy barriers. The article proposes a conceptual framework connecting these components through coordinated governance, institutional collaboration, and policy priorities oriented toward sustainable economic development.