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Muhammadiyah: A Pioneer of Social Entrepreneurship in Indonesia

by Persyarikatan Muhammadiyah
6 months ago
in Economy, News, Socio-Culture
Reading Time: 2 mins read
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Muhammadiyah: A Pioneer of Social Entrepreneurship in Indonesia

MUHAMMADIYAH.OR.ID, YOGYAKARTA – President of Muhammadiyah Haedar Nashir highlighted a long history of Muhammadiyah as a pioneer of social entrepreneurship in Indonesia. Since its establishment, Muhammadiyah da’wa has been intertwined with entrepreneurial endeavors. 

“The growth of Muhammadiyah during Ahmad Dahlan’s era, with the expansion of branches across the country, was often correlated with entrepreneurial regions. In Kotagede, Klaten, Solo, Surabaya, Banyuwangi, Semarang, Pekalongan, Garut, Tasikmalaya, Bandung, Jakarta, Padang Panjang, Makassar, and many other areas, these were predominantly entrepreneurial regions,” Haedar explained in the Talk Show and Launch of the Book Bangkitnya Kewirausahaan Sosial: Kisah Muhammadiyah (The Rise of Social Entrepreneurship: Muhammadiyah Story) conducted by the Indonesian Chamber of Commerce and Industry (KADIN) and Museum Muhammadiyah at Universitas Ahmad Dahlan on Monday, January 13. 

Muhammadiyah’s early success can be attributed to its entrepreneurial spirit. “We can see that the early development of Muhammadiyah was very rapid. By 1922, we had reached Aceh, and by 1926, we were in Merauke. These developments were driven by an individual who was not only an Islamic scholar but also an entrepreneur,” he explained.

The organization’s independence has been a characteristic of its work, as seen in the self-reliant establishment of schools, hospitals, and social institutions. 

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“Muhammadiyah now operates 167 universities, 126 hospitals, and 363 clinics across Indonesia, all founded on the principles of self-reliance and efficiency,” said Haedar.

“Muhammadiyah’s institutions have always been self-sufficient. While we do partner with the government in some areas, it is part of the government’s recognition of Muhammadiyah as a valuable partner in addressing national issues,” Haedar said.

He also outlined two key values that drive Muhammadiyah’s work ethic: ujrah, which refers to fair compensation for professionals, and ajra, or spiritual rewards. “These principles reflect the balance we aim for, ensuring our efforts are both professionally managed and spiritually fulfilling,” he added.

An Advanced, Modern, and Professional Organization 

Haedar described Muhammadiyah’s ongoing efforts to modernize and professionalize, ensuring it remains relevant in today’s world. Since taking on the role of the President of Muhammadiyah in 2015, he and his team have worked to expand Muhammadiyah impact both nationally and internationally.

Among its accomplishments are the establishment of Muhammadiyah Australia College in Melbourne, which was entirely self-funded, and the acquisition of a 15-hectare property. The movement has also opened a university in Malaysia and is exploring opportunities in other sectors, such as mining. 

“These initiatives demonstrate how Muhammadiyah vision of being a modern and professional organization translates into real-world achievements,” Haedar said.

Haedar emphasized the importance of balancing material success with spiritual well-being. “Religion teaches us to seek happiness in this world without forgetting the afterlife. Do good in the world as God has done good to you, and never cause harm,” he said, explaining that this philosophy guides Muhammadiyah approach to community welfare and environmental preservation. 

Besides, Haedar called for greater involvement from the younger generation, urging them to embrace entrepreneurship while staying rooted in Islamic values. 

Tags: Social Entrepreneurship
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