Study tour Indonesia 2007

Lecture 2; Muslim Organizations

During our last day in Yogyakarta we got a more thorough look at the roles of

Nahdlatul Ulama (NU) and Muhammadiyah in human development in Indonesia, past and present. Combined, the members from the two organizations constitute 80% of the Muslim population in Indonesia, and both of them are involved in various development activities around the country.

NU has been supporting entrepreneurship since it was founded by Hasyim Asy'ari in 1918. They then issued a statement saying that economic development would help to stop the spreading of sin. In the 1930’s, the organization approved the use of its symbol on products, founded Lanjah Waqfiah, meant to manage alms giving, and the Syirkah Mu'awanah Cooperation to help strengthen the economy of its members. This was followed up with the Nusumma Bank, established in 1990 to help small/medium entrepreneurs. It currently operates in four provinces on Java. Other than this, NU has various autonomous NGOs that range from empowerment of farmers and fishermen, family welfare, labour, and empowering the economy of the community as a whole. On top of this come businesses and pesantren run by NU kyais.

Muhammadiyah has a bit different approach to development than NU. The organization is a bit more hands off, with a more reformist way of thinking that inspires their members to take initiative themselves to start businesses. Already in 1916, 47% of the members were working in the business sector in the country, and the organization is often identified as a business community. The Muhammadiyah Economy Network, or JAMIAH, is instrumental in developing Muslim industrial centres in cities on both Java and Sumatra.

Both organizations run hospitals and clinics that reach far into the rural areas of the country. Additionally, many Muhammadiyah schools have medical departments that contribute to the health service development.

After the government imposed a family planning programme to try to raise the life expectancy in the country, many people in both organizations were sceptical, and saw it as part of an anti-Islamic policy. But they agreed to support the program, and the support from these two groups has been key factors in the success of this program.

• Critic of religious organizations’ role in development

 

Though there can be no doubt both organizations contribute to the development of Indonesia, there have been and are still both problems and challenges to be met, and both organizations have been criticized for a number of reasons.

During the Suharto rule, the government implemented programmes that mainly focused on GDP development and macro economics that came in direct competition with the more community based programmes from NU and Muhammadiyah. This is still the case to some degree; the corrupt and market oriented state policies don’t work well with the smaller development programmes. There is also a tendency that institutions in both organizations are getting more profit oriented, thus less attractive for people to attend. This is especially the case for those run by Muhammadiyah.

Another criticism against these and other religious institutions is that even though they are doing a lot of work for the communities, they use too much time and energy on arguing and preaching. Issues like Islamic law, pornography, globalization, etc. tend to turn away the focus from the development agenda.