MUHAMMADIYAH.OR.ID, BANTUL – Chairperson of the Muhammadiyah Council for Higher Education, Research, and Development Bambang Setiaji stated that Muhammadiyah continues to develop an Islamic-based economic model aimed at improving the welfare of the community. He further discussed Muhammadiyah economic framework from the perspective of progressive Islam Wasathiyah (moderation in Islam).
Embracing Small Businesses
One of the key points Bambang emphasized was Muhammadiyah financial independence, which is supported by approximately 21,000 Muhammadiyah social enterprises (AUM) operating independently. This financial strength allows Muhammadiyah to carefully select partnerships to ensure it maintains its long-standing values of self-reliance.
“Muhammadiyah financial position is strong, so we should be selective when having partnerships,” said Bambang in the preaching conducted on Tuesday, March 4, at Universitas Muhammadiyah Yogyakarta (UMY).
Bambang also referenced the “Small is Beautiful” concept introduced by German economist E.F. Schumacher, which highlights the importance of economies driven by small businesses. He suggested that Muhammadiyah should adopt this approach by empowering small businesses to contribute to the community’s economic growth.
“Muhammadiyah economy should be built on this principle, where small entrepreneurs play a significant role in strengthening the community’s economy,” added Bambang.
Wasathiyah Economy in Education
In the education sector, Muhammadiyah has implemented innovative collaboration models, such as a Muhammadiyah school in Australia. In this model, Muhammadiyah provides land and buildings, while teachers’ salaries are covered by the government. Bambang suggested that similar models could be expanded to improve access to quality education without creating a financial burden on the organization.
Economic Policy
Regarding economic policy, Bambang proposed the idea of a “State without Commercial Banks.” He argued that governments should not operate businesses for profit but should instead focus on providing public services that support the business activities of citizens. In this model, banks would prioritize job creation over profit-making, maintaining stable margins to foster economic growth.
“A bank’s success should not be measured by its profits, but by how many jobs it creates,” he explained.
Roles of Muhammadiyah School Alumni Network
Muhammadiyah economic strength also benefits from its alumni network, which spans various industries. Graduates from Muhammadiyah universities, vocational schools, and elementary schools contribute to different sectors, including the establishment of mosques in industrial areas, further integrating Muhammadiyah economic ecosystem.
Engaging Affluent Individuals
To accelerate Muhammadiyah economic growth, Bambang stressed the importance of engaging with affluent individuals, a concept he termed “Rangkul-lah Aghniya” (Embrace the Wealthy). He drew a parallel to the Prophet Muhammad’s approach after receiving his first revelation, when he sought support from others to build Islamic civilization.
“Just as the Prophet did not carry out his mission alone, we should embrace the wealthy to accelerate Muhammadiyah development,” stated Bambang.
Integrating Technology and the Creation of “Islamic Coin”
Bambang also addressed the role of technology and the lack of significant Muslim contributions to global innovation. Despite the global Muslim population exceeding two billion—larger than China’s 1.4 billion—Muslim-majority countries have yet to make substantial advancements in cutting-edge technology such as artificial intelligence (AI).
“We need to learn from China, whose technological advancements have been remarkable. Meanwhile, the Muslim world still lags behind in technological innovation,” he noted.
As an innovative step in Islamic economics, Bambang proposed the creation of an “Islamic Coin” as an alternative to digital currencies like Bitcoin. He pointed out that Bitcoin’s high volatility and speculative nature have led institutions such as the Indonesian Ulema Council (MUI) to classify it as bordering on gambling. A sharia-compliant digital currency, such as one backed by gold, could provide a modern financial solution that aligns with Islamic principles.
The ideas presented during this discussion reaffirm that Muhammadiyah is not only active in religious and educational efforts but also in advancing economic independence and fairness. By continuing to promote innovation and self-reliance, Muhammadiyah strengthens its position as a driving force for progress within both Muslims and the nation.
