Basic Principles of Islamic Economics and Their Implementation in Modern Life

Abstract

This study aims to comprehensively examine the basic principles of Islamic economics and their implementation in various dimensions of modern life. Islamic economics, as a system based on the Qur'an and As-Sunnah, offers an alternative paradigm that is more just, godly, and humane amidst the various pathologies of the conventional economic system. Through a qualitative approach with a systematic literature review method , this study analyzes the epistemological foundations, normative principles, as well as the challenges and opportunities for implementing Islamic economics in the context of modern Indonesian and global life. The results of the study identify five main pillars of Islamic economics: tawhid, 'adl, nubuwwah, khilafah , and ma'ad, which integrally form the framework of a unique and comprehensive Islamic economic system. The implementation of these principles includes the development of Islamic banking, Islamic financial instruments (sukuk, productive zakat, waqf), Islamic business governance, and the Islamic fintech ecosystem . The study also found a significant gap between the normative idealism of Islamic economics and practical realities in the field, caused by various structural, cultural, and institutional factors. This study concludes that accelerating the implementation of Islamic economics requires a holistic approach that integrates regulatory reform, strengthening Islamic financial literacy, product innovation, and internalizing Islamic ethical values in everyday economic behavior.