Strengthening Local Industrial Clusters Based on Islamic Economics To Enhance West Java's Competitiveness in The Era of Global Disruption

Purpose—This paper aims to examine an Islamic-based policy model for strengthening local industrial clusters as a strategic instrument to enhance West Java’s competitiveness in the era of global disruption. By integrating Islamic values such as justice, inclusiveness, cooperation (ta’awun), and sustainability, the study highlights how industrial clusters can contribute not only to economic growth but also to equitable and ethical regional development. Design/Methodology/Approach—A mixed-methods research design was employed, combining qualitative policy analysis with a quantitative Analytic Network Process (ANP) framework to identify priority strategies and stakeholder roles. Primary data were collected through expert interviews, focus group discussions, and regional case studies, while secondary data were sourced from national and international industrial reports. The ANP model was utilized to capture interdependencies among policy dimensions, including innovation, human capital, infrastructure, digital readiness, governance, and Islamic economic principles. Findings —The results indicate that innovation capability, digital adoption, and collaborative governance, when reinforced by Islamic values of fairness and sustainability, are the most critical drivers for cluster resilience and competitiveness. Strengthening linkages among enterprises, universities, government institutions, and community actors in West Java fosters adaptability and creates inclusive, halal-based industrial ecosystems. Furthermore, policy simulations suggest that integrated digital infrastructure, targeted capacity-building programs, and halal industry development significantly accelerate West Java’s economic growth trajectories, particularly in manufacturing, halal food, and creative industries. Originality/Value —This study contributes to the literature by developing a comprehensive Islamic-based cluster policy model that integrates global disruption factors with Islamic economic values. It advances the discourse on regional competitiveness by demonstrating how Islamic principles can enrich industrial cluster development, ensuring that economic progress aligns with inclusivity, justice, and sustainability. Research Limitations/Implications—The study is limited to selected regional case studies in Indonesia; Future research could adopt a comparative cross-country design to validate and generalize the model in broader contexts. Practical Implications—The findings provide actionable insights for policymakers, regional governments, and industry stakeholders to formulate adaptive cluster-based strategies, strengthen innovation networks, and mitigate the risks of global disruption. Social Implications- By reinforcing local industrial clusters, the proposed model fosters inclusive economic growth, enhances employment opportunities, and empowers communities to actively participate in sustainable regional development. Keywords— Islamic Economics, Industrial Clusters, Regional Competitiveness, Policy Model, Global Disruption, Analytic Network Process (ANP)