This paper explores how Islamic movements adapt to the dynamics of state policies, market systems, and increasingly complex social changes in the modern context. The study examines the transformation of Islamic movements through the lens of governance and governmentality theories, focusing on how Islamic actors utilize digitalization to strengthen their positions in political, economic, and social arenas. The methodology employed is a qualitative approach using secondary data analysis from relevant literature, case studies of Islamic movements in various countries, and digital discourse analysis. This study finds that digitalization is not only a means to disseminate religious ideologies but also a tool for creating new markets based on Islamic values, such as halal e-commerce and sharia fintech. Moreover, Islamic movements leverage digitalization to advocate for policies that are more responsive to the needs of their communities. The use of digital media allows Islamic movements to build cross-border networks, foster global collaborations, and create new spaces for more inclusive activism. On the other hand, this adaptation also presents new challenges, such as the potential manipulation of information, strict state surveillance, and societal polarization due to the use of digital technology. Furthermore, this phenomenon highlights the importance of digital literacy for Muslim communities to optimize the use of technology without losing the Islamic values that form the foundation of their identity. The findings contribute to understanding the relationship between Islamic movements, state policies, and markets in the digitalization era.
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