Deep Dive: UMS Lecturer Educates Indonesian Diaspora in Japan on Sharia Investment Literacy Amid Illegal Investment Surge

The event organized by a Universitas Muhammadiyah Surakarta (UMS) lecturer for the Indonesian diaspora in Japan reflects broader patterns in Indonesia's economic and cultural landscape. Indonesia, the world's largest Muslim-majority nation, has seen rapid growth in Islamic finance, with Sharia-compliant products gaining popularity amid a surge in illegal investment schemes that prey on retail investors. Muhammadiyah, one of Indonesia's largest Islamic organizations founded in 1912, emphasizes modernist Islamic education and runs UMS as part of its network of universities, positioning it to extend financial literacy efforts transnationally. From a geopolitical lens, this initiative highlights Indonesia's soft power projection through its diaspora, numbering over 10 million globally, including a significant community in Japan estimated at around 100,000. Japan, with its advanced economy and aging population, hosts Indonesian workers and students who remit billions annually to Indonesia, making them prime targets for scams originating from or targeting Southeast Asia. The cross-border education addresses vulnerabilities in migrant financial decision-making, where cultural affinity for Sharia principles intersects with Japan's secular financial markets. Key actors include UMS as the educational provider, the Indonesian diaspora as beneficiaries, and implicitly Indonesian authorities monitoring illegal investments. Strategically, this counters the rise of Ponzi-like schemes disguised as high-yield investments, which have defrauded millions in Indonesia and abroad. Culturally, Sharia literacy resonates in Japan’s Indonesian community, fostering resilience against fraud while aligning with Indonesia's push for global halal economy leadership. Implications extend to bilateral Indonesia-Japan ties, enhancing people-to-people connections amid labor migration agreements. For the diaspora, it means better protection of remittances crucial for family support back home. Regionally, it signals Indonesia's proactive stance on financial security for its expatriates, potentially influencing similar programs in other host countries like Saudi Arabia or Malaysia. Outlook suggests expanded virtual literacy campaigns as digital scams proliferate.