Bappenas: Indonesia's Economic Productivity Can Be Supported by Sharia Finance
The sector has so much potential.
REPUBLIKA.CO.ID, JAKARTA -- Director of Financial Services and SOEs of the Ministry of National Development Planning/National Development Planning Agency (PPN/BAPPENAS) Rosy Wediawaty believes that Indonesia's economic productivity can be sustained by strengthening the sharia economy and finance.
“I am convinced that economic productivity can be sustained by strengthening the economy and finance of sharia. Sharia economy will be a very potential new form of growth that we need to optimize together,” he said virtually during Sharia Economics And Finance International Seminar - Polices for the Prabowo Goverment, Jakarta, Tuesday (3/9/2024).
According to him, the reason that underlies optimism about the economy and finance of sharia is because the sector has such great potential.
Over the past five years, Indonesia's exports of halal products showed a better growth trend compared to imports of halal products. For example, in 2022, Indonesia's global halal product exports increased by about 9.05 percent compared to 2021. Throughout the period 2017-2021, the share of the halal value chain showed an increasing trend with a contribution of approximately 25.44 percent to Gross Domestic Product (GDP) in 2021. However, in 2022 it experienced a significant decline, and again increased in 2023 with a contribution of almost 23 percent to GDP.
Indonesia's Muslim-friendly tourism sector is also said to have great potential to be developed. Based on Global Muslim Travel Index (GMTI) 2023. Indonesia ranked first because it excels in access, communication, environment, and services of Muslim-friendly tourist destinations.
Indonesia's excellence is highlighted in service indicators such as halal restaurants, playgrounds, airports, hotels, cultural sites and attractions, communication skills, marketing, and stakeholder awareness.
Consistently, Indonesia's sharia finance also grew positively by 76.5 percent during 2017-2019, although the share of the sharia financial market showed a slowdown in growth overall as well as per sector.
The consumption of Islamic social funds derived from assets, other religious funds, as well as productive enterprises shows an increasing trend from 2022-2023. This effort can be used as a source of development financing. However, strategic measures are needed to accelerate the growth of such assets in the future, considering that according to the study, there is a potential annual zakat collection of up to Rp 327 trillion.
On the occasion, he also presented the direction of sharia economic and financial policy of the National Long Term Development Plan (RPJPN) 2025-2045.
First, strengthening the economy and finance of sharia in support of national economic development is done through improving Indonesia's sharia financial position at the global level, then increasing the role of sharia social funds in the framework of poverty alleviation and reducing socioeconomic inequality.
Then, the strengthening of the ecosystem of the sharia industry, especially the food and beverage industry, Muslim fashion, cosmetics and pharmaceuticals, tourism, and the creative economy that includes halal raw materials, strengthening the industrial value chain, entrepreneurship and halal industry, as well as Small and Medium Micro Enterprises (MSMEs).
Finally, strengthening the regulation of Sharia economic and financial institutions and Sharia economic and financial infrastructure.
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