Covid-19: Momentum for Indonesia to become the Center for Islamic Economics Awakening in the World

Abstract

The Covid-19 pandemic has brought the world economy into crisis. Many sectors have been affected, including the economic sector. When the role of the government financial sector and private finance has decreased, on the other hand, the role of the Islamic social finance sector is experiencing growth. Is Covid-19 becoming a momentum for Indonesia as the center of the world's Islamic economics awakening? This research uses descriptive quantitative and qualitative analysis. Indonesia as a country that has the largest Muslim population in the world has an important role to play in reviving the Islamic economy in the world. The opportunities for Indonesia as the center of Indonesia's awakening include the majority of the Muslim population with a demographic bonus, government support through various Islamic economic regulations and movements, the development of Islamic financial institutions, especially Islamic social finance, increasing public awareness in studying and practicing Islamic economics, developing technology and information in gain knowledge and practice Islamic economics and finance. The challenges of the Islamic economy in Indonesia are the penetration of Islamic financial institutions that are still small compared to conventional financial institutions, the need for human resources who understand economics and professionals in Islamic economics and finance, limited infrastructure to support economic development, and Islamic finance.