West Java MES Prepares Sharia Economic Movement Based on Cooperatives and MSMEs

The Islamic Economic Society (MES) of West Java is strengthening its ranks, with a new board for the 2026-2029 period inaugurated on Saturday (25/7) in Bandung. The new board was installed by the Daily Chairman of the MES Central Board, who is also the Minister of Cooperatives, Ferry Juliantono. The Minister urged MES West Java to change its organisational direction. If previously the sharia economy focused more on literacy and education, the new board has been asked to shift towards real implementation through the development of cooperatives, MSMEs, and sharia-based businesses. West Java MES Chairman Harry Maksum expressed his readiness to embrace the directive. “The organisation is now tasked with becoming a driver of a productive economy that directly touches the community. We are directed by the Daily Chairman to focus more on implementation, business implementation,” he said. The Daily Chairman also requested MES West Java to form cooperatives and other business entities, as well as to inventory Muslim entrepreneurs. One of the programmes being prepared is the establishment of mosque-based sharia cooperatives. According to Harry, the government has opened up opportunities for financing support for these cooperatives. “The Minister hopes MES will dive into business. Even gathering mosque sharia cooperatives, later financed by the Minister and the Head of Danantara. One mosque could receive IDR 1 billion,” he stated. According to him, the challenge for the sharia economy is no longer low public understanding, but rather the minimal use of sharia financial services. A National Survey on Financial Literacy and Inclusion shows that sharia financial literacy has reached around 43 percent, while the inclusion rate is only about 13 percent. “This means that many people understand the sharia economy, but few use sharia financial instruments. Out of 100 people, only about 13 utilise them. So there is a gap we must close,” Harry emphasised. Therefore, West Java MES will oversee various productive economic programmes, ranging from strengthening sharia cooperatives and empowering MSMEs to building economic infrastructure such as diesel fuel stations and ice factories for fishermen. “The point is the programmes are operational. MES is now encouraged not just to talk about concepts, but to truly be present in running business activities that benefit the community,” he continued. Meanwhile, the West Java Provincial Government also supports the push for the sharia economy to enter the real sector. Regional Assistant for Economy and Development Sumasna, representing the Governor of West Java, assessed that economic growth is insufficient if it has not succeeded in reducing unemployment and poverty. Although West Java’s economy grew by 5.79 percent in the first quarter of 2026, higher than the national figure, the open unemployment rate still reached 6.64 percent and the poverty rate stood at 6.78 percent. The government also highlighted the rampant practice of high-interest loans or ‘Bank Emok’ that still ensnares the public. “Our economic growth is high, but access to the benefits of that growth is not yet inclusive. There are sectors that are growing rapidly, but cannot yet be felt evenly by the community,” Sumasna explained. Previously, Minister Ferry Juliantono assessed that the sharia economic movement had been stuck in seminar rooms for too long. He stressed that the measure of success for the sharia economy is the ability to create new businesses and open up employment opportunities. “The literacy phase is sufficient. Now is the time to actively participate in the real sector,” he asserted. He asked MES to map out potential Muslim business actors to be developed. The government is also preparing mosque-based cooperatives with Baznas, the Indonesian Mosque Council, the Ministry of Religious Affairs, and Danantara as centres of community economic activity. For Ferry, cooperatives are the main instrument to break the community’s dependence on loan sharks and ‘Bank Emok’. “Fighting Bank Emok is not enough with a fatwa declaring it haram. What is needed is to provide a real alternative for the community,” he said. The government is also preparing the Merah Putih Village/Sub-district Cooperatives as financing distributors, including KUR, while simultaneously shortening the distribution chain of various strategic commodities. “The Merah Putih Village/Sub-district Cooperative is the state’s new infrastructure to cut distribution chains that are too long,” he explained. He acknowledged that this step would face opposition from groups that have so far benefited from economic rent-seeking practices. “My enemies are indeed increasing. But because the President supports it, I am brave,” he stressed.