Determinants of small and medium enterprise empowerment in Islamic political economic perspective

The purpose of this study is to analyze and find out the political economy of Islam in Indonesia, the research method used is literary analysis with a historical qualitative approach. The data source comes from Islamic political economic theories. Books and Scriptures according to Chapra and Ibn Khaldun, as well as scientific journals and Islamic economic theses. The results of this study indicate that Islamic Economics is more individualized behavior based the Al-Qur'an and al-Hadith so that it can be practiced ideally by formulating Islamic economic concepts that are categorized as good and positive. The politics of Islamic Economic Policy in the review of the transaction is a Mudharabah contract with a "profit and loss sharing" system, namely profit sharing and loss sharing ar categorized as good and positive.