THE STRATEGIC ROLE OF MUHAMMADIYAH IN DEVELOPING THE SHARIA ECONOMIC ECOSYSTEM IN INDONESIA

Abstract

Muhammadiyah has significantly contributed to developing Indonesia's sharia economic ecosystem through a multidimensional approach encompassing entrepreneurship, Islamic philanthropy, and Islamic financial institutions. In entrepreneurship, Muhammadiyah has established a robust economic network via initiatives such as Baitul Maal wat Tamwil (BMT) and empowerment programs for Micro, Small, and Medium Enterprises (MSMEs), fostering financial inclusion and local economic growth. In Islamic philanthropy, Muhammadiyah has pioneered digitalized zakat, infaq, and sadaqah (ZIS) collection and community-based economic movements, such as Solidarity Buying, through its philanthropic institution, LAZISMU. Additionally, Muhammadiyah has played a key role in advancing Islamic financial institutions, enhancing access to sharia-compliant financial services. This literature study examines Muhammadiyah's role in Indonesia's economic development, highlighting its positive impact on societal welfare despite challenges such as resistance to change and limited human resources. The findings underscore the importance of stakeholder collaboration to strengthen the sustainability and scalability of Muhammadiyah's economic programs. By integrating Islamic values with modern economic practices, Muhammadiyah exemplifies a model for sustainable and inclusive economic development in Indonesia.