An Islamic Value-Based Framework for Indonesia's Regional Monetary Governance
Keywords:
Value-based governance, Islamic economics, monetary integration, ASEAN, maqashid al-shari'ahAbstract
Purpose— This study examines the integration of Islamic economic principles into the framework of regional monetary governance, with a specific focus on Indonesia's role within ASEAN. It aims to bridge the gap between conventional economic theories of monetary integration, such as the Optimum Currency Area (OCA), and the ethical-normative foundations offered by Islamic finance. The research seeks to assess how value-based governance rooted in concepts like amanah (trust), adl (justice), and maqashid al-shari'ah can contribute to a more stable, equitable, and culturally resonant model for monetary cooperation in Southeast Asia.
Design/methods— Employing a qualitative case study design, this research centers on Indonesia as the primary analytical subject within the ASEAN-5 context. The methodological approach involves a comparative policy analysis and an institutional review, drawing from historical precedents, contemporary monetary practices, and doctrinal sources in Islamic economics. The analysis interprets the potential of value-based instruments, notably the symbolic framework of the Dinar and Dirham, within modern regional monetary architecture.
Findings— The study concludes that Islamic economic principles offer a significant complementary framework to conventional OCA theory for regional monetary integration. Key findings indicate that values such as monetary stability, risk-sharing (ta'awun), and the prohibition of exploitation (zulm) align with and can strengthen the goals of reducing volatility and building collective resilience. Indonesia, given its socio-economic weight and religious demographic, is strategically positioned to champion this integrative approach. However, realizing this potential necessitates concurrent institutional fortification—such as enhanced policy coordination and regional financial safety nets—alongside the cultivation of ethical governance frameworks to ensure legitimacy and sustainability.
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