Indonesia Seeks to Become Global Islamic Economic Hub

Fauziah Rizki Yuniarti, Izzudin Al Farras Adha () and Lintang Titian Purbasari
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Fauziah Rizki Yuniarti: The Institute for Development of Economics and Finance (INDEF)
Lintang Titian Purbasari: The Institute for Development of Economics and Finance (INDEF)

INDEF Policy Brief, 2022

Abstract: Indonesia has the potential to grow, develop, and become a global hub for the Islamic economy. Indonesia's position in the Global Islamic Economy Indicator (GIEI) 2021 is in the 4th position. Several dominant sectors in the ranking are halal food because they occupy the second position, up two steps from the previous one. The provisions to achieve this are indeed already in place, such as Indonesia's the largest Muslim population in the world, belief in religion is an inseparable thing in life, experiencing a demographic bonus and enormous population growth, untapped potential for philanthropic funds, and occupying a position as the most generous citizen, and many people still in the category of unbanked and underbanked. Thus, the recommendations are first to ratify the Sharia Economic Bill (Sharia Economic Bill). Second, formulating clear and comprehensive regulations on halal industrial estates (KIH) will allow KIHs to be significant in number and have a massive impact on the ecosystem. Third, the addition of a new HS code (Harmonized System) for halal products as an enabler for the growth of the sharia economic industry. Fourth, incorporating more sharia economic issues into the national agenda (National Long-Term Development Plan (RPJPN) 2025-2045 and National Medium-Term Development Plan (RPJMN) 2024-2029). Fifth, include the halal industry in the national research agenda (National Research Priority (PRN)). Finally, the infrastructure must be prepared to support the halal certification process.

Date: 2022
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