September 18, 2026
By Achmad Nurjaman Jatnika
Depok – At the 5th ICMWEB, organized by the Faculty of Economics and Business, Farid Azhar Nasution, Vice Chairman of the LPS Board of Commissioners, delivered a keynote presentation titled “Navigating a Power-Based World Order through Fiscal Justice, Sustainability, and Islamic Finance.” In his address, he laid out a framework for how Indonesia and the broader Muslim world can respond to global economic pressures, grounded in three key principles.
He proposed three main pillars for Indonesia and the Muslim world to respond effectively: fiscal justice, which prioritizes the fair distribution of economic gains; sustainability, which emphasizes responsible use of natural resources; and Islamic finance, which can support more inclusive and resilient economic systems.
In his view, when geopolitical shocks create extraordinary corporate profits while public budgets absorb rising fuel and food subsidies, fiscal justice requires burden-sharing.
“If extraordinary profit comes mainly from external shocks rather than from higher productivity or better business performance, part of that extraordinary gain should ideally be returned to society and the public,” he said.
This aligns with the Islamic principles of justice (‘adl) and public interest (maslahah), ensuring that wealth does not concentrate solely among the wealthiest. Several European countries, including the United Kingdom, Spain, Italy, Germany, and the Czech Republic, implemented energy windfall taxes in 2022.
Farid Azhar also said that windfall revenues should not be treated as permanent income. Additional funds, he said, should be used to protect vulnerable households through targeted cash transfers and to fund energy transition projects and green infrastructure.
He also identified opportunities within these global challenges. He emphasized that geopolitical shocks do not necessarily leave a country weaker; if managed correctly, they can act as a catalyst for more inclusive and sustainable growth. “We cannot control geopolitical shocks, but we can control how we respond to them,” he said.
