ASIATODAY.ID, JAKARTA – Indonesia has become a global sharia economic power.
The Ministry of Finance of the Republic of Indonesia reported that Indonesia’s sharia economy rose one rank from 2021 and is now in third place in the world in 2022 where the United Arab Emirates (UAE) is already below Indonesia.
According to Arief Wibisono, Expert Staff to the Indonesian Minister of Finance for Financial Services and Capital Markets, Indonesia’s sharia economy is increasingly developing and has great potential at the world level, even recognized in the 2023 Global Islamic Economy Indicator (GIEI) released by DinarStandard in Dubai at the end of last year .
“Indonesia is ranked third, after Malaysia and Saudi Arabia,” he said at the launch of KEKSI 2023 & SheFO 2024, which was monitored online, Monday, February 26 2024.
This is reflected in the increasingly large market share of the sharia financial industry in the national industry. Where the sharia financial market contributed 20.52%, sharia banking contributed 7.27%, and the sharia Non-Bank Financial Industry (IKNB) reached 5% of the national financial industry. In fact, as of September 23 2023, said Arief, Indonesia’s total sharia financial assets including sharia shares reached IDR 2,452.57 trillion or grew 6.75%.
However, with the majority of Indonesia’s population being Muslim, the share of sharia financial assets in national finance is still very low, namely 10.81%.
Arief emphasized that sharia economics is one of the capital for Indonesia with a majority Muslim population to realize Advanced Indonesia 2045.
“The halal industrial sector has enormous potential as an alternative driver of the world economy. “State of Global Islamic Economic report, the halal lifestyle market will grow from $1.62 trillion to reach $2.21 trillion in 2022,” he explained.
Quoting a report released by DinarStandard, consumer spending in the global sharia economic sector will grow 9.5% annually or year-on-year (yoy) in 2022, with Malaysia maintaining the top position.
Even though it is in third position, Indonesia is recorded as occupying first position for countries with more than 10 investment transactions in the 2022/2023 period with a total of 48 investments. Meanwhile, Malaysia only had 17 investments.
“With this achievement, Indonesia needs to achieve its potential as a world center for halal products. “Indonesia must not only be a consumer, but also a producer,” said Arief.
Still in the same report, Indonesia was listed as the top 5 OIC importers along with the UAE, Saudi Arabia, Turkiye and Malaysia. Meanwhile, exporters of halal goods come from China, India, Brazil, the United States and Turkey.
On the same occasion, Deputy Governor of Indonesia Juda Agung also highlighted this. It is a challenge for Indonesia to provide a domestic supply of halal products.
“At the global level, we may still be far behind in the context of providing halal products. “Encouraging the growth of sharia financial innovation is still the main homework,” he added. (AT Network)
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