Implementation Of Islamic Economic Growth Theory In Achieving Sustainable Development In Indonesia

Abstract

Sustainable development has become one of the main priorities for Indonesia as a developing country facing various social, economic, and environmental challenges. This study analyzes the implementation of economic growth theories, such as linear theory, structural change, international dependency, neo-classical, and Islamic economic growth theories, in supporting sustainable development in Indonesia. This approach aims to address challenges such as reliance on raw commodity exports, regional development disparities, and excessive exploitation of natural resources. The study employs a literature review method to understand the relevance and application of economic growth theories in the Indonesian context, with a focus on achieving the Sustainable Development Goals (SDGs). The findings indicate that, despite the implementation of various policies such as infrastructure development, industrialization, and economic diversification, challenges like social inequality and vulnerability to global market fluctuations remain significant obstacles. Furthermore, the Islamic economic perspective offers a holistic approach, emphasizing a balance between material and spiritual aspects, equitable distribution, and sustainability.