Energy Efficiency, Strengthen the Nation: Muhammadiyah's Strategy Amid Economic Turbulence
The Central Leadership (PP) of Muhammadiyah’s call for efficiency in electricity and water usage through Circular No. 5/EDR/I.0/B/2026 is more than just an administrative policy. Under the leadership of Prof Haedar Nashir and Prof Abdul Mu’ti, this appeal reflects the organisation’s mature strategy in responding to global economic pressures and the increasingly evident environmental crisis.
From an Islamic perspective, efficiency is part of fundamental values. Allah SWT states, which means, “Eat and drink, but do not be excessive” (QS al-A’raf: 31). The Prophet Muhammad SAW also emphasised, “Do not be excessive in using water even if at a flowing river” (HR Ibnu Majah).
This anti-israf value forms the theological and ethical foundation for Muhammadiyah in building a culture of thrift as part of social worship and civilisational responsibility.
Organisational Resilience Strategy
Energy efficiency implemented across all Muhammadiyah charitable enterprises, from schools, orphanages, mosques/prayer rooms, BMT/BTM, offices, to hospitals, is a strategic step in strengthening organisational resilience. In strategy theory, Michael Porter (1985) emphasises that cost efficiency is a source of sustainable competitive advantage.
Data from the Central Statistics Agency (2024) shows that energy costs remain a significant component in institutional expenditure structures. By reducing energy consumption, Muhammadiyah not only saves budget but also creates fiscal space to strengthen education and health services.
Furthermore, this step contributes to national economic stability. Energy efficiency efforts align with the Ministry of Energy and Mineral Resources’ policies (2023) in reducing the burden of energy subsidies and strengthening national energy resilience.
The late Buya Ahmad Syafii Maarif (2009) once reminded that the progress of the ummah relies on discipline, rationality, and simplicity. Energy efficiency is a concrete manifestation of that ethos, which must be practised in life.
Strategy Amid Economic Turbulence
However, efficiency is only the entry point. In facing global economic turbulence, from inflation, energy crises, food price surges, to geopolitical uncertainties, an organisation as large as Muhammadiyah requires a more comprehensive strategy. This is important and strategic so that Muhammadiyah remains existent in carrying out da’wah of amar ma’ruf nahi munkar.
First, adaptive strategy based on efficiency and priorities. Following Peter Drucker’s thinking (1993), organisations must be able to allocate resources selectively. Efficiency enables Muhammadiyah to focus the budget on high-impact programmes, such as improving education quality and health services.
Second, digitalisation and governance transformation. In the era of disruption, efficiency must be expanded through digitalisation of administration systems and energy management. This transformation not only reduces costs but also increases institutional transparency and accountability.
Third, diversification of funding sources. Dependence on conventional funding sources needs to be reduced through strengthening philanthropy, productive waqf, strengthening member contributions, and social business units. This model aligns with the ummah-based economy that has long been Muhammadiyah’s strength.
Fourth, strengthening green economy and sustainability. The World Bank report (2022) confirms that energy efficiency is the most effective step in reducing emissions without hindering growth. Muhammadiyah, as a religious organisation with educated and middle-class members, can take a strategic role as a pioneer in the green economy movement based on religious values.