Devi Asmarani, Jakarta – Islamic organisations are making their mark on Indonesia's economy with growing operations in the retail, manufacturing and banking sectors. By applying their own brand of 'Islamic management', these groups believe they can be financially self-sufficient to achieve their religious cause.

Take Muhammadiyah, Indonesia's second largest Islamic organisation, for instance. Previously, Muhammadiyah ran schools and hospitals. But when donations declined due to the 1998 economic crisis, it embarked on a plan of rapid business expansion and diversification.

In 1999, the group established PT Solar Global International (SGI). The organisation owns 60 per cent of SGI, while its members own the remaining 40 per cent.

First, SGI issued Katam, a smart card for Muhammadiyah members that can be used like an ATM card, in cooperation with the state-owned Bank Negara Indonesia. It also issued an insurance card. Next, Muhammadiyah set up PT Solar Sahara Investment (SSI). Then, a chemical factory was purchased for US$1 million, and more money was injected to develop its retail and fishery businesses.

The group also owns a distributor of spare parts for cars and exports furniture and fresh produce to the Middle-East. Its regional and provincial branches also run their own small- and medium-scale enterprises.

Muhammadiyah's counterpart, Nahdlatul Ulama, the country's strongest Muslim group, is also not a stranger to the business world. It has been running cooperatives for small- and medium-size enterprises. Its operations range from banking, plantations and food production to the publishing industry.

But in terms of Islamic spirit, the Hawariyun business group may take pride in leading the race. Set up in Jakarta in January 1997, Hawariyun originated from Darul Arqam, a militant religious group based in Malaysia that was later outlawed there and in Indonesia.

Darul Arqam's members regrouped and jumped on the business bandwagon. Now, they run schools, hospitals, construction companies, plantations, publications and travel agencies. Its Suq Al-Anshar division operates in the retail, food and beverage, and manufacturing industries. The group's vice-president Abdurrahman Effendi recently said: "Economic activity is our way of getting closer to God now."

Hijab-clad women and men in turbans tend to its supermarket and dozens of retail outlets. Un-Islamic products such as cigarettes and alcohol are not sold. Hawariyun's business ethics are drawn strictly from the Quran: no savings in banks, no monopoly and no unpaid loans. Its employees are required to pray five times a day.

The Association of Indonesian Islamic Intellectuals is also an active player. It owns Bank Muamalat, the first Islamic bank in the country, and runs publishing, construction, supplier and insurance companies.