This study examines the strategic role of Indonesia's leadership in the Parliamentary Union of the Organization of Islamic Cooperation (PUIC) during 2025–2026 to accelerate economic integration among Muslim-majority countries. Despite the large population and shared cultural and religious ties, intra-OIC trade remains stagnant due to regulatory fragmentation and weak legislative coordination. Drawing on neofunctionalism theories, this research highlights five key agendas proposed by Indonesia: harmonizing investment regulations, synchronizing legislative priorities, enhancing transparency in strategic projects, clustering key economic sectors, and developing joint investment packages. This article employed a qualitative descriptive approach, utilizing secondary data from relevant literature on PUIC. The findings suggest that Indonesia’s leadership demonstrates how neofunctionalist spillover dynamics may apply in non-European contexts, but face institutional fragmentation challenges within the PUIC framework. Specifically, findings indicate conditional potential for transforming the PUIC into a catalyst for collective economic governance, provided that structural constraints and deep-seated policy fragmentation are effectively addressed. This condition strengthens the global economic position of the Islamic world.
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