Purbaya Proposes Expansion of LPDP Scholarships for Islamic Economics
Finance Minister Purbaya Yudhi Sadewa has proposed an expansion of the Education Fund Management Agency (LPDP) scholarship scheme to focus on attracting top-tier talent in the field of Islamic economics. This scheme is intended to be more inclusive, reaching various segments of society through preparatory programmes before they pursue further studies at the world’s leading universities.
The proposal was presented by Purbaya during a regular meeting of the Daily Board of the Indonesian Islamic Economics Experts Association (IAEI) in Jakarta on Saturday (6/6/2026). He emphasised that the government is committed to supporting the development of Islamic economics through policy instruments and State Budget (APBN) financing, provided that the proposed programmes are structured and deliver a tangible impact on national development.
“The development of Islamic economics must be oriented towards substance, rather than mere symbolism,” Purbaya stated in a briefing received on Monday (8/6/2026).
He cited the community banking system in Germany, which shares similar principles with Islamic economics, as an example. According to him, such experiences prove that Islamic economic principles can serve as an effective foundation for strong, inclusive, and sustainable economic development.
Responding to the proposal, the General Chairman of IAEI, Nasaruddin Umar, acknowledged that the greatest current challenge is the low level of Islamic economic literacy among the public, despite Indonesia being the world’s largest Muslim-populated nation. Consequently, collaboration between think tanks, regulators, industry, and the community remains a priority.
“IAEI must serve as a centre for the development of Islamic economic thought and strategy in Indonesia. Ideas from academics, scholars, and experts must be translated into real policies that benefit the wider community,” Nasaruddin asserted.
The need to increase human resource capacity through these scholarships is becoming increasingly urgent, particularly in light of the State of the Global Islamic Economy (SGIE) Report 2025/26. The report noted that Indonesia’s ranking has dropped to fourth place globally in the Global Islamic Economy Indicator (GIEI).
While Indonesia holds the top position in the modest fashion sector and ranks third in halal food and media & recreation, the nation still lags in the crucial Islamic finance sector, which has yet to break into the global top five. The IAEI aims to make 2026 a year of organisational acceleration through the implementation of a national Islamic economics roadmap, focusing on institutional improvement, human resource capacity building, research, and the strengthening of international networks.