Implementation of Principles, Innovations, and Challenges in the Development of Islamic Finance in Indonesia

Sahid Wahid — 2025-06-10

Islamic finance is an alternative economic system that is growing rapidly in Indonesia, based on Islamic principles such as the prohibition of usury, fairness in transactions, transparency, and social responsibility. This paper examines the main principles of the Islamic financial system, including the prohibition of usury and gharar, as well as the application of ethical and moral values in financial activities. In addition, this article also discusses various innovative Islamic financial products such as sukuk, microfinance, and Islamic insurance, which are designed to meet the needs of the community while still upholding Islamic principles. Despite significant growth, this industry still faces a number of challenges, including limited regulations that support innovation, low public literacy, tight competition with conventional systems, and a lack of competent human resources. Through a descriptive-analytical approach, this study shows that consistent application of Islamic principles, adaptive regulatory support, and increasing human resource capacity are the keys to strengthening and sustaining the Islamic financial system in Indonesia. This research is expected to be an academic contribution to the development of more inclusive and sustainable Islamic economic theory and practice.

Financial Management Literacy at the Takmir and Taklim Assembly of the Nurul Islam Kalangtubung Sudiang Makassar Mosque

Sugianto Sugianto — 2025-06-10

This Community Service activity aims to enhance financial literacy among Takmir (mosque administrators) and Majelis Taklim (Islamic study groups) to improve their financial management skills and accountability within the mosque. As non-profit religious organizations, mosques require proper financial governance to ensure the effective use of funds and foster public trust. The program focuses on addressing three core issues: (1) lack of awareness among mosque administrators and Majelis Taklim regarding the importance of financial accountability to the congregation; (2) limited knowledge of basic accounting principles for preparing financial reports; and (3) insufficient understanding of financial reporting as a key accountability tool.

The activity began with a pre-survey to identify specific challenges faced by the target groups. A pre-test was then conducted through interviews to evaluate participants’ initial knowledge of mosque financial management. The main activities included socialization, financial literacy education, Excel-based bookkeeping training, and mentoring. A post-test was also carried out to assess improvements in participants’ understanding. The program was implemented on Saturday, March 19, 2025, from 09:30 to 16:00 WITA at the Nurul Islam Kalantubung Mosque in Sudiang, Makassar City, with 25 mosque administrators and Majelis Taklim members participating. As a result of the training, participants demonstrated enhanced knowledge of financial management, gained the ability to prepare structured financial reports using Excel, and increased transparency and accountability. This led to a boost in public trust toward the mosque's financial governance.

Journal of Universal Community Empowerment Provision

Implementation of Principles, Innovations, and Challenges in the Development of Islamic Finance in Indonesia

Financial Management Literacy at the Takmir and Taklim Assembly of the Nurul Islam Kalangtubung Sudiang Makassar Mosque