Islamic Monetary and International Trade Research in Indonesia

Indonesia has an important role for the Islamic economy because of its large Muslim population. Indonesia is a country with the largest Muslim population in the world. About 87% of Indonesia's total population is Muslim. The presence of this large Muslim population creates a large market potential for Islamic economic-based products and services, including Islamic banking, Islamic insurance, Islamic investment, and other halal products. With a large Muslim population, Indonesia is a potential market for products and services that comply with Islamic economic principles. Islamic economics includes aspects such as fair buying and selling, avoiding usury (interest), promoting social justice, and prohibiting investment in sectors that are forbidden by Islam, such as alcohol and gambling. In Indonesia, the Islamic finance industry has experienced rapid growth over the past few years. Islamic banks, non-Islamic non-bank financial institutions and other sharia-based financial products are increasingly popular and attracting public interest. This growth has had a positive impact on the country's economy and opened up attractive investment opportunities. The Islamic economy contributes to the Indonesian national economy through various sectors, including banking, insurance, capital markets, halal tourism, and the halal food and beverage industry. This contribution helps drive overall economic growth and creates jobs for residents. With the large market size of the Islamic economy and its rapid growth, Indonesia has the potential to become a regional center for Islamic finance. This position can strengthen Indonesia's role in providing sharia financial services to neighboring countries and make a positive contribution to the sharia-based global economy and finance. However, it is important to note that Indonesia's success and role in the Islamic economy also depends on the efforts of the government and industry players in developing an Islamic economy that is competitive, has integrity, and is committed to the principles of Islamic economics. Thus, Indonesia can continue to be a key player in the Islamic economy regionally and globally. Based on these reasons, this chapter book was published to answer challenges related to Islamic economics and international trade in Indonesia