This research examines the contribution of the Islamic financial system to national economic development, its role in preventing financial crises, and the challenges in its implementation in Indonesia. Using a qualitative descriptive approach, the study analyzes secondary data from scholarly journals, policy reports, and financial statistics. The findings indicate that Islamic finance significantly supports national development through mechanisms such as real-sector investment, inclusive financial access via microfinance, and infrastructure funding using sukuk instruments. Its principles, such as the prohibition of riba (usury) and gharar (speculation), promote financial stability, reducing systemic risk and preventing economic crises. Theoretically, the study reinforces the understanding of Islamic finance as a robust alternative system resilient to financial instability. Practically, it offers recommendations for policymakers and industry practitioners, including enhancing financial literacy, developing innovative financial products, and expanding human resource capabilities. The novelty of this study lies in its exploration of Islamic finance as both a complementary and primary tool for economic resilience and sustainable growth in Indonesia. The findings bridge theoretical perspectives with actionable strategies, providing insights into optimizing Islamic finance to achieve national economic goals.
Natalia et al. (2025) studied this question.