The establishment of the Faculty of Islamic Economics and Business was a positive response to to the transformation of the State Islamic Institute (IAIN) into the State Islamic University (UIN). The chronological establishment of the Faculty began with the issuance of the Working Group Decree (POKJA) No. 02/Ba.0/A/2011 of the State Islamic University Sunan Kalijaga Yogyakarta dated January 24, 2011, as amended by the Working Group Decree (POKJA) No. 505a/Ba.0/A/2011 dated September 12, 2011, on the initiation of the preparation of a proposal submitted to the University Senate for the opening of the Faculty of Islamic Economics and Business.

On July 25, 2011, the University Senate approved the establishment of the Faculty of Islamic Economics and Business at the State Islamic University Sunan Kalijaga Yogyakarta, with some revisions to the proposal. The approved proposal, which included three study programs—Islamic Economics, Islamic Management, and Islamic Accounting—was presented before the Directorate General (Dirjen) on November 24, 2011, and received approval.

On December 14, 2012, a Center of Excellence Workshop, attended by the Director General of Islamic Education, further solidified the establishment of the Faculty of Islamic Economics and Business (FEBI). Subsequently, on February 14, 2012, the Director of Islamic Higher Education made a note to align with Minister of Religious Affairs Regulation No. 36 of 2009. Lastly, on March 21, 2012, the Faculty of Islamic Economics and Business received approval through Decree No. 522, marking the official opening of the faculty. The issuance of Decree No. 522 paved the way for the initial enrollment of new students for the academic year 2012/2013, offering two study programs: Sharia Economics and Sharia Banking through the New Student Admission (PMB) path at the State Islamic University Sunan Kalijaga Yogyakarta.

Currently, significant developments are underway, as evidenced by the transfer of the Sharia Financial Management program from the Faculty of Sharia and Law, and the introduction of the Sharia Financial Accounting program for the Bachelor’s program (S1) and the Sharia Economics program for the Master’s program (S2). The Master’s program, which initially offered a single concentration in Sharia Economics, expanded in 2016 to include the Sharia Economics S2 program with concentrations in Sharia Economics, Sharia Banking, and Sharia Financial Management.

Analyzing, evaluating, and reflecting on the establishment process and subsequent developments can provide inspiration and motivation for future progress. The various forms of collaboration, programs, and best practices that have been implemented can serve as valuable references for the replication and advancement of the Faculty of Islamic Economics and Business at the State Islamic University Sunan Kalijaga Yogyakarta in the future.