Ramadan and Sovereignty in National Development Financing

By Prof Mukhtasor, Chairman of the East Java Regional Board of Syarikat Islam

Political independence was achieved long ago, but is Indonesia truly sovereign in determining the direction of national development financing?

Ramadan presents an opportunity to reassess the nation’s economic self-reliance and create an ecosystem that strengthens the role of domestic capital in national development financing that is just, inclusive, robust, sovereign, and sustainable.

Ramadan is not merely a month of individual worship, but also a month of collective self-reckoning. It teaches discipline, integrity, and the courage to reconsider the course of our lives. In the context of nationhood, Ramadan should serve as an opportunity to assess: to what extent are we truly sovereign in determining the direction of our economic development?

We have been politically independent for nearly eight decades. However, economic independence has not always progressed in tandem. National development remains heavily dependent on external capital flows—whether in the form of investment or loans. Foreign capital is not an enemy, but excessive dependence is not a solid foundation for sovereignty.

Financial self-reliance as a foundation

President Prabowo Subianto’s agenda for energy, food, and water self-sufficiency, along with value-chain integration and national industrialisation, deserves appreciation. However, an agenda of this magnitude demands a more fundamental courage: building a financing system grounded in domestic strength.

The reality is that the financing ecosystem is not yet entirely equitable. Relatively speaking, foreign investment often receives regulatory certainty, risk guarantees, fiscal incentives, and even policy adjustments to keep projects attractive. Meanwhile, the potential of domestic capital—which is actually substantial—has yet to receive equivalent systematic support.

This nation’s internal funds are not insignificant. Waqf endowments, permanent education funds, cooperatives, community organisation funds, and national entrepreneurial capital are dispersed considerably.

The problem is not the absence of funds, but rather the lack of an institutional architecture to consolidate them for national development projects.