Summary: This paper explores Indonesia’s transformation toward a New Economy, a development paradigm that integrates economic growth with social justice and environmental sustainability. Departing from the conventional growth-driven model centered on quantitative indicators such as GDP, the New Economy emphasizes value creation through innovation, digitalization, inclusivity, and ecological balance. Using recent national data and policy developments, this study identifies three central pillars shaping Indonesia’s new economic direction: the green economy, inclusive economy, and digital economy. These dimensions collectively aim to promote sustainable growth that is both equitable and resilient. The analysis highlights major opportunities, including rapid digital expansion and demographic potential, alongside persistent challenges such as unequal access to technology, limited human-capital readiness, and fragmented intersectoral coordination. The paper proposes practical policy recommendations focusing on human-capital development, digital infrastructure, regulatory reform, and ESG-based investment incentives. From an Islamic economic perspective, the New Economy aligns with foundational principles of ‘adl (justice), mīzān (balance), and khilāfah fi al-arḍ (stewardship of the Earth), underscoring that true progress is measured not by material accumulation but by the harmonious welfare of humanity and the environment. The study concludes that Indonesia’s successful transition to the New Economy depends on inclusive governance, sustainable innovation, and the moral integration of economic and ethical values.
Introduction
National economic development has traditionally been measured through quantitative indicators such as Gross Domestic Product (GDP), export volumes, or foreign investment inflows. Yet in the era of globalization and natural resource scarcity, such a paradigm has become increasingly insufficient. Economic growth can no longer be evaluated solely through numerical figures. Progress must instead be assessed by how effectively it preserves the environment, promotes social justice, and strengthens the equitable well-being of society. Consequently, formulating the concept of a New Economy becomes a crucial step for Indonesia to ensure a balanced direction of development, one that harmonizes economic, social, and environmental values.
The New Economy, as reflected in recent Indonesian media discussions, positions the balance between economic growth, social…
