Jakarta, Indonesia Sentinel — Muhammadiyah, one of Indonesia’s largest Islamic organizations, has been named the richest Islamic organization in the world, with assets valued at an astonishing $25 billion. According to a February 2025 report from TimeNews, the organization owns vast properties, businesses, and institutions that play a critical role in Indonesia’s social and economic landscape.
Founded in 1912 by Islamic reformist KH Ahmad Dahlan, Muhammadiyah has grown into a massive organization with a diverse portfolio, including schools, hospitals, banks, and universities. The group is known for its commitment to education, social services, and economic self-sufficiency.
A Real Estate Empire Larger Than Singapore
One of Muhammadiyah’s most striking assets is its land ownership. The organization controls approximately 21 million square meters (5,190 acres) of land—28 times the size of Singapore. Unlike undeveloped land holdings, these properties are home to thousands of institutions, including:
- 19,951 schools
- 13,000 mosques and prayer halls
- 765 sharia-based rural banks
- 635 orphanages
- 457 hospitals and clinics
- 437 Islamic financial institutions (Baitul Mal)
- 176 universities
- 102 Islamic boarding schools (pesantren)
More than 25 million people benefit from Muhammadiyah’s extensive network of social and economic initiatives, making it one of the most influential non-governmental organizations in Indonesia and the broader Islamic world.
Beyond Philanthropy: Expanding into Business
In addition to its charitable work, Muhammadiyah has entered the business world, recently launching its own air conditioning brand, AC Muhammadiyah (AC MU). This move signals the organization’s increasing focus on economic self-reliance, a principle long embedded in its philosophy.
Muhammadiyah adheres to the founding principle of KH Ahmad Dahlan: “Sustain Muhammadiyah, do not seek personal gain from it.” This ethos has guided the organization’s growth into a financial powerhouse while maintaining its mission of social service.
A Controversial Move into the Mining Industry
In 2024, Muhammadiyah took a bold step by accepting an Indonesian government offer to manage a mining business under an Izin Usaha Pertambangan (IUP), or mining business license. The decision was reached after months of internal deliberation and debate.
During a plenary meeting in Jakarta on July 13, 2024, Muhammadiyah’s leadership, led by Chairman Haedar Nashir, announced the acceptance of the IUP. The decision was met with mixed reactions. While supporters see it as an opportunity for Muhammadiyah to influence ethical and sustainable mining practices, critics question the environmental and ethical implications.
Why Muhammadiyah Entered the Mining Sector
Muhammadiyah leadership outlined several reasons for its decision:
- Stewardship of Natural Resources – Muhammadiyah views Indonesia’s natural wealth as a divine gift that should be managed responsibly for the benefit of society.
- Economic Empowerment – The organization aims to leverage mining revenues to fund education, healthcare, and poverty alleviation programs.
- Sustainable and Ethical Mining – By entering the industry, Muhammadiyah hopes to set an example of responsible mining that prioritizes environmental sustainability and social welfare.
- Avoiding Exploitation – The organization believes that if left in the hands of purely profit-driven corporations, Indonesia’s mining sector could lead to greater social disparities and environmental damage.
Establishing a Business Structure
To ensure professional management, Muhammadiyah established two entities:
- A Strategic Company to oversee the business structure and policies.
- An Operating Company to manage day-to-day mining activities, staffed by industry experts and academic professionals from Muhammadiyah-affiliated universities.
Muhadjir Effendy, a senior Muhammadiyah official and former Indonesian minister, was appointed to lead the mining project. He emphasized that the organization would conduct rigorous feasibility studies and initial surveys before launching full-scale operations.
Muhammadiyah has pledged to operate in full compliance with Islamic principles and Indonesian law. The organization has also stated that if the venture results in more harm than benefit, it is willing to return the mining license to the government.
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Public Reactions and Future Challenges
Muhammadiyah’s move into the mining sector has sparked national debate. Supporters see it as a strategic shift toward economic independence, while skeptics worry about the potential environmental and social consequences. The organization will face significant challenges, including:
- Balancing economic and social responsibilities – Ensuring that mining profits directly benefit Muhammadiyah’s humanitarian and educational missions.
- Environmental accountability – Avoiding the pitfalls of ecological degradation that have plagued Indonesia’s mining industry.
- Transparency and governance – Managing operations without compromising the organization’s integrity and reputation.
The Future of Muhammadiyah’s Economic Influence
Muhammadiyah’s transformation from a religious organization into an economic force raises critical questions about the role of faith-based groups in business and governance. As it expands its financial empire, the organization must navigate complex ethical, environmental, and economic challenges.
If successful, Muhammadiyah could redefine the intersection of Islam, philanthropy, and business, setting a precedent for how religious organizations can operate sustainably while maintaining their core humanitarian mission. The world will be watching as Muhammadiyah takes on this unprecedented challenge.
(Becky)
