Digital Transformation of the Islamic Economy and the Acceleration of Equitable Prosperity: A Meta-Analysis from Indonesia

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FORMOSA NEWS

Malang— Digital Transformation Accelerates Equitable Prosperity in Indonesia’s Islamic Economy, Study Finds. The research conducted by Marlina Ekawaty and Mochammad Rizki Hanafiansyah, and published in January 2026 in the International Journal of Business and Applied Economics.

The research conducted by Marlina Ekawaty and Mochammad Rizki Hanafiansyah found that digital transformation is the main driving force in accelerating equitable prosperity in Indonesia’s Islamic economy sector. The results show that the use of digital technology in Islamic finance, zakat management, mosque management, and the halal industry is able to expand financial inclusion and improve the distribution of public welfare in a more equitable manner. These findings are considered important because they provide concrete direction for the development of a value-based Islamic economy in the digital era.

This research emphasizes that digital innovation is not merely a tool for modernization, but also a strategic instrument to strengthen social justice. Amid the challenges of economic inequality and limited access to financial services, technology becomes a bridge that connects small communities with the formal sharia-based economic system.

Digitalization and the Future of the Islamic Economy

Indonesia’s Islamic economy has grown rapidly over the past decade, supported by Islamic banking, philanthropy institutions, halal industries, and community-based enterprises. However, many of these sectors have long struggled with limited access, low efficiency, and uneven welfare distribution.

Before digitalization, zakat and waqf were often collected manually and distributed locally, limiting their impact. Islamic banking services were also concentrated in urban areas, leaving rural and low-income communities underserved.

The rapid expansion of digital technology has changed this landscape. Mobile banking, fintech platforms, QRIS Syariah, online donation systems, and data-driven beneficiary mapping now allow Islamic economic institutions to operate more efficiently and transparently.

According to the researchers, digital transformation has created new opportunities to expand access to Sharia-compliant financial services while strengthening accountability and public trust.

Research Method: Reviewing Ten Years of Studies

The study applied a meta-analysis approach by synthesizing findings from 10 national and international journal articles published between 2015 and 2025.

The selected studies examined digital transformation in:

• Islamic banking and finance
• Zakat, infaq, and sadaqah (ZIS) management
• Islamic fintech
• Mosque management through social enterprises
• Halal industrial zones

Data were collected through documentation and systematic review of previous research. Each article was analyzed to identify patterns, benefits, and challenges related to digitalization in the Islamic economic sector.

This method allowed the researchers to draw comprehensive conclusions based on a decade of academic evidence rather than relying on a single case study.

Key Findings: Technology Strengthens Welfare Distribution

The analysis produced several major findings that explain how digital transformation accelerates prosperity distribution.

1. Expanding Financial Inclusion

Digital banking, fintech platforms, and mobile applications have made Islamic financial services more accessible to underserved populations.

People who previously lacked access to formal banking can now open accounts, transfer funds, and apply for financing through smartphones. This reduces barriers for micro-entrepreneurs, farmers, and informal workers.

The study shows that financial inclusion is one of the strongest contributions of digital Islamic finance to social welfare.

2. Improving Zakat and Philanthropy Management

Digital zakat platforms have transformed how ZIS funds are collected and distributed. Online payment systems, donor dashboards, and beneficiary databases improve transparency and efficiency.

Institutions such as BAZNAS now use digital systems to target recipients more accurately and distribute aid faster. This directly benefits mustahik communities and strengthens public confidence in Islamic philanthropy.

The research identifies zakat digitalization as one of the most powerful tools for poverty reduction in the Islamic economy.

3. Empowering Communities Through Mosques

Mosque management has also evolved through the Islamic Social Enterprise model. With digital donation platforms and online business management tools, mosques can establish productive units and optimize assets.

Instead of relying solely on donations, mosques now support local businesses, training programs, and social services. This shift turns religious institutions into centers of economic empowerment.

According to the study, digitally enabled mosques play a strategic role in strengthening grassroots welfare.

4. Enhancing Halal Industry Competitiveness

In the halal sector, technologies such as blockchain, Internet of Things (IoT), and artificial intelligence improve supply chain transparency and efficiency.

These tools help ensure halal compliance, reduce fraud, and increase export competitiveness. As a result, halal industrial zones generate more jobs and support regional development.

The study notes that digitalization positions Indonesia to become a global leader in halal production and trade.

Persistent Challenges in Digital Transformation

Despite its strong potential, the research also identifies several obstacles that limit the impact of digital transformation.

Regulatory Uncertainty

Many new technologies, including blockchain and AI, still lack clear Sharia-compliant regulatory frameworks. This creates uncertainty for institutions and investors.

Low Digital and Financial Literacy

In rural and low-income communities, limited digital skills and Islamic financial knowledge reduce the effectiveness of online services.

Without proper education, people may hesitate to use digital platforms or misuse them.

Infrastructure Gaps

Unequal internet access and limited technological infrastructure remain major barriers, especially outside major cities.

Cybersecurity Risks

As financial transactions move online, the risk of data breaches and fraud increases. Weak security systems can undermine public trust.

The researchers emphasize that addressing these challenges is essential for sustainable digital growth.

Implications for Policy and Society

The findings offer important lessons for policymakers, financial institutions, and religious organizations.

For Policymakers

The government needs to develop adaptive regulations that balance innovation with Sharia compliance and consumer protection. Clear legal frameworks will encourage responsible digital expansion.

For Islamic Financial Institutions

Banks and fintech providers should invest in secure systems, user education, and inclusive product design to reach marginalized communities.

For Philanthropic Organizations

Zakat and waqf institutions are encouraged to strengthen digital reporting, data management, and donor engagement to maximize social impact.

For Communities

Improved access to digital Islamic finance helps households save, invest, and manage risks more effectively. Over time, this supports poverty reduction and social mobility.

Researchers’ Perspective

Marlina Ekawaty and Mochammad Rizki Hanafiansyah argue that digital transformation is not merely a modernization trend, but a strategic instrument for social justice.

They highlight that technology works best when combined with strong governance, ethical standards, and community participation.

“Digital innovation must align with Sharia principles and public accountability to ensure long-term welfare,” the authors emphasize.

They also call for closer collaboration between government agencies, financial institutions, universities, and religious authorities.

Author Profiles

• Marlina Ekawaty, S.E., M.Si., Ph.D. - Universitas Brawijaya
• Mochammad Rizki Hanafiansyah, S.E., M.E. - Universitas Brawijaya

Research Source

Marlina,Hanafiansyah. Digital Transformation of the Islamic Economy and the Acceleration of Equitable Prosperity: A Meta-Analysis from Indonesia
International Journal of Business and Applied Economics (IJBAE)Volume 5, Nomor 1, 2026, Halaman 421–436
DOI:https://doi.org/10.55927/ijbae.v5i1.591                                                                                      URL: https://nblformosapublisher.org/index.php/ijbae