A Nexus between Identity Awareness and Decolonization Process of Local Economy: Indonesian Experience

This paper will examine four significant economic events – namely, Indonesian government’s measure to nationalize the existing foreign enterprises in 1950s; debate in between 1949-1957 in searching of an appropriate ideology to be adopted as framework in devising economic policies; the rise of Sharia-compliant bank in early 1990s; and the emergence of Islamic co-operative financial institution called Bay al-Mâl wa al-Tamwîl (BMT), in relation to the advancement of people awareness of their right identity. The finding says that reality stated that decolonization movement in Indonesia from bottomup that is contrary from ideal studies, and it is always connected with real identity that the decolonized people are certain with. By then, identity awarness is the way to the decolonisation process that will impact to Islamization of economics in Indonesia.