Aris Munandar S.Sos
Master Islamic Studies (Islamic Political Thought)
The expansion of BRICS membership to BRICS+ opens a new chapter in the world economic architecture. With the addition of Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia, the group, which originally consisted of Brazil, Russia, India, China, and South Africa, now represents almost half of the world’s population. However, behind the geopolitical and dedollarization issues that are often highlighted, there is another opportunity that deserves attention: the integration of Islamic finance as part of a more equitable global economic agenda.
Muslim countries that join BRICS+ have an established Islamic financial ecosystem. Saudi Arabia and the UAE are the world’s Islamic financial centers, while Iran has a national banking system that is entirely based on sharia principles. Their presence in BRICS+ opens up space for the birth of an alternative financial system that is more ethical, transparent, and in favor of the real sector. This is where the relevance of Indonesia’s role as the largest Muslim country with the foundation of a rapidly growing Islamic economy and an inclusive tradition of diplomacy emerges.
In the framework of international political economy, as Susan Strange and Robert Gilpin have argued, the structure of the global economy reflects the distribution of power between countries. BRICS+ emerged in response to that inequality, an attempt to balance Western dominance and create a multipolar system. Thus, the integration of Islamic finance in BRICS+ is not only a technical discourse, but also a symbol of resistance to the old financial hegemony.
From the point of view of Islamic economics, the Islamic financial system offers moral values that are often lost in the mechanism of global capitalism. M. Umer Chapra said that Islamic economics is based on maqasid al-shariah sharia goals that include justice, balance, and social welfare. The principle of financial without usury, the prohibition of excessive speculation, and fair risk sharing affirm its orientation on long-term economic stability. If applied consistently, this approach can strengthen the moral legitimacy of BRICS+ as an alternative economic bloc that is oriented towards values, not just power.
However, the integration of Islamic finance in BRICS+ certainly faces real challenges. Differences in legal and regulatory systems between countries are the main obstacles. Russia and China, for example, do not yet have legal infrastructure that supports Islamic finance. In addition, the terminology of Islamic finance is sometimes still considered sensitive in secular countries. On the other hand, Western countries may view this move as an ideological effort, not an economic innovation.
Nevertheless, the opportunities available remain significant. Islamic finance can be a pillar of ethical dedollarization, not just political economy. This system emphasizes contractual fairness, transparency, and investment in the productive sector. Instruments such as the BRICS Sukuk or the BRICS+ Islamic Investment Fund can be a concrete mechanism to strengthen cooperation between members without dependence on the Western financial system.
In this context, Indonesia’s position is very strategic. In addition to being a country with the largest Muslim population, Indonesia has a supportive institutional ecosystem, ranging from the National Committee for Sharia Economics and Finance (KNEKS), Bank Syariah Indonesia (BSI), to the Indonesia Sharia Economic Festival (ISEF) which is the largest event for sharia economic diplomacy in the region. Data from the Financial Services Authority (OJK) in 2024 shows that the national Islamic finance market share has reached 11.75% of the total Indonesian financial industry, with total assets of around IDR 2,660 trillion, growing by an average of 11% per year. Meanwhile, Islamic bank assets increased significantly, reaching Rp 835 trillion, far exceeding the average growth of conventional banking in the same period. However, when compared to the conventional financial system which still controls almost 88% of the market, the growth potential of Islamic finance is still very large. This means that Indonesia not only needs to strengthen its domestic foundation, but also expand its share of Islamic finance to the international level and BRICS+ can be a strategic platform for that.
This position provides space for Indonesia to appear as a mediator of the global Islamic economy. Indonesia can play a dual role: to be an ideological bridge between Islamic financial values and the global capitalist system, as well as a diplomatic liaison between the Islamic world and non-Muslim BRICS countries. With an inclusive approach, Indonesia can prioritize Islamic finance not as a religious symbol, but as an ethical solution to the recurring global financial crisis.
In the framework of Joseph Nye’s soft power, this step expands the dimension of Indonesia’s economic diplomacy. Islamic finance, which emphasizes ethics, transparency, and social balance, can be a new soft power instrument that strengthens Indonesia’s image as a moderate and innovative Muslim country. This approach is more subtle than traditional political diplomacy, but it has the potential to have a much deeper influence effect.
For this reason, several concrete steps can be considered. First, encouraging the establishment of the BRICS-Indonesia Dialogue on Islamic Finance forum, as an initial coordination space between countries regarding opportunities and regulatory harmonization. Second, establishing the BRICS+ Sharia Financial Study Center in Jakarta, which functions as a center for research and innovation of cross-border financial products. Third, initiating the issuance of BRICS Sukuk, which can be a symbol of multipolar sharia economic collaboration. And fourth, strengthening cross-agency coordination including Bank Indonesia, OJK, Ministry of Foreign Affairs, KNEKS, and ISEF so that sharia economic diplomacy runs synergistically.
These measures not only improve Indonesia’s bargaining position, but also strengthen the role of the Islamic world in the formation of a new global economic system. But of course, internal readiness is key. The government needs to ensure that Islamic financial policies, human resources, and regulations continue to be strengthened so that Indonesia is not just a spectator in the midst of this global transformation.
The integration of Islamic finance in BRICS+ should not be read solely as an economic project, but as part of an effort to build a more ethical and equitable world financial order. When managed with a mature vision, Islamic finance can be a bridge between morality and economic rationality, between Islamic idealism and global pragmatism. For Indonesia, this is an important momentum to show leadership with character: combining economic strength, values, and diplomacy. In the midst of geopolitical turbulence and global inequality, Islamic finance provides a new direction for the democratization of the world economy and Indonesia has all the capital to be a pioneer.