Book Review: Inclusive Welfare: On the Role of Islamic Social-Public Finance and Monetary Economics

Inclusive Welfare: On the Role of Islamic Social-Public Finance and Monetary Economics, by Solikin M. Juhro, Ferry Syarifuddin, and Ali Sakti, is a substantial and timely contribution to the literature on Islamic economics and finance. Published by Springer in 2025, the 446-page book is openly accessible and examines how Islamic economic principles, social-public finance, and monetary economics can contribute to achieving more inclusive and equitable welfare. The authors, who are affiliated with Bank Indonesia, approach the subject not only from a theoretical perspective but also from the standpoint of economic and public policy.

The central argument of the book is that economic development should not be measured solely through growth, income, or material prosperity. Instead, the authors place human welfare, justice, equality, and social participation at the heart of economic development. Drawing on the Islamic concept of maqāṣid al-sharīʿah, the book presents an economic system in which financial activity should contribute to broader social objectives rather than simply maximizing profit. This perspective makes the book particularly relevant to contemporary discussions about inequality, poverty, financial inclusion, and sustainable development.

One of the book's strongest contributions is its detailed examination of Islamic social-public finance. The authors explain how instruments such as zakat, infaq, sadaqah, and waqf can form an important part of an economic system designed to reduce poverty and strengthen social welfare. Rather than treating charitable finance as separate from mainstream economic policy, the book presents the social sector as an important component alongside the government and private sectors. Its discussion of Islamic social-public finance extends from its theoretical foundations to historical practices during the early Islamic period and contemporary examples, particularly in Indonesia and other countries.

The book is also valuable for its discussion of the philosophical foundations of Islamic finance. The authors emphasize that Islamic finance is not simply a technical alternative to conventional banking. It is connected to moral principles, social responsibility, justice, equality, and sustainable development. This human-centered approach distinguishes Islamic finance from systems primarily concerned with financial returns. The book therefore provides a useful framework for understanding why Islamic finance can be viewed as part of a broader Islamic moral economy rather than merely a collection of Shariah-compliant financial products.

Another important section addresses Islamic monetary economics. The authors examine money, inflation, exchange rates, interest rates, investment, finance, and monetary policy from an Islamic perspective. They argue that Islamic monetary economics deserves consideration as a distinct field rather than simply being treated as an adaptation of conventional monetary theory. The discussion of Islamic monetary policy is particularly significant because it considers how monetary frameworks can be designed around principles that differ from conventional approaches.

A major strength of the book is therefore its combination of Islamic principles, economic theory, historical evidence, and contemporary policy considerations. Rather than presenting Islamic finance as an abstract religious concept, the authors attempt to demonstrate how its principles could be applied to real economic problems. The final chapter, Realising Inclusive Welfare: Lessons Learned, brings together the major arguments and considers how Islamic social-public finance and monetary economics can contribute to more inclusive welfare.

There are, however, some limitations. The book is primarily concerned with Islamic economics and public policy, rather than providing a detailed jurisprudential analysis of individual financial contracts. Readers specifically interested in fiqh al-muʿāmalāt, such as the detailed legal treatment of murābaḥah, ijārah, muḍārabah, mushārakah, or sukuk, may need additional sources. In addition, the book's strong focus on Indonesia provides valuable practical examples but may mean that some of its policy discussions require adaptation when considering other Muslim-majority economies.

Overall, Inclusive Welfare is a valuable and contemporary reference for anyone interested in Islamic finance, Islamic law, economic justice, poverty reduction, monetary policy, and sustainable human development. Its most important contribution is its argument that Islamic economics should be understood not simply as an alternative financial system but as a broader approach to achieving inclusive welfare and human flourishing. The book is especially relevant to current debates about whether economic systems can combine financial development with social justice and ethical responsibility. Its 2025 publication date, substantial 446-page scope, and full open-access availability also make it a particularly useful resource for academic research.