Transformation of Islamic Economic Discourse: Academic Perspectives and Policy in Indonesia

Abstract

This article investigates the discursive evolution of Islamic economics in Indonesia, focusing on the intersection of academic narratives and public policy. Employing a qualitative narrative approach, the research examines how Islamic economic thought has transitioned from theological idealism to policy pragmatism. The study utilizes document analysis of academic publications, institutional records, and regulatory texts, interpreted through theoretical frameworks including maqāṣid al-sharī‘ah, discourse theory, and critical realism. Findings reveal a dynamic interplay wherein academic scholarship shapes and is shaped by policy developments. The establishment of Islamic financial institutions, curricular reforms in Islamic economics education, and the incorporation of zakāt and waqf into state policy illustrate this interaction. Ideologically, the field has diversified, accommodating multiple interpretations and promoting hybrid models that combine ethical fidelity with institutional functionality. The study contributes to the theoretical refinement of Islamic economics and offers practical insights for governance, pedagogy, and economic planning in Muslim-majority societies.