MUHAMMADIYAH.OR.ID, YOGYAKARTA — President of Muhammadiyah Haedar Nashir emphasized the importance of comprehensive reform, particularly in terms of people’s state of mind, to strengthen the economic pillar.
Haedar criticized the prevailing notion among some Muslims that business is inherently “dirty” and should be avoided.
Haedar asserted that all forms of business are permissible, except those explicitly prohibited, and profit-seeking is natural as long as it does not involve usury.
“The development of Muhammadiyah businesses should differ from capitalism, which is often criticized for its greed. Capitalism seeks maximum profit through exploitation,” said Haedar at the business gathering of Muhammadiyah-owned Enterprises (BUMM) attended by 82 representatives of Muhammadiyah institutions in SM Tower Yogyakarta on Friday, September 27,
However, Haedar proposed the concept of religious capitalism as a solution for Muhammadiyah. According to Haedar, religious capitalism has limitations that profits cannot be excessive although profit-seeking remains legitimate. The goal is to develop Muhammadiyah-owned enterprises ethically and sustainably.
“If we want to develop BUMM, the primary goal is still to make a profit, but the process should follow good business ethics, such as working hard, being disciplined, frugal, efficient, and diligent,” said Haedar.
Furthermore, Haedar stressed the importance of bureaucratic reform within the organization. He argued that bureaucracy should be more flexible and not burdened by regulations that hinder growth.
“Having too many rules can slow down progress. The system and ecosystem should be more flexible to allow businesses to grow and thrive effectively,” he emphasized.
Haedar also highlighted the significance of collaboration within the Muhammadiyah business network. He believes that synergy among Muhammadiyah institutions is essential. He does not want to see Muhammadiyah institutions operating independently, although coordination and mutual support are necessary. Larger institutions should help smaller units to develop strong internal dynamics and become self-sufficient.
“This synergy is crucial for Muhammadiyah to grow into a large conglomerate. Large Muhammadiyah institutions should pay attention to smaller ones, while smaller ones need to develop their internal potential or inner dynamic,” Haedar said.
Through mindset changes, bureaucratic reforms, and network synergy, Muhammadiyah has the opportunity to reinforce its economic sector as a vital pillar of the organization while upholding ethical values consistent with Islamic teachings.
