No. 26/39/DKom
The sharia economy and finance (eksyar) in Indonesia maintained positive growth in 2023, supported by key sectors in the Halal Value Chain (HVC), which posted 3.93% (yoy) growth. Overall, the major HVC sectors support almost 23% of the national economy, with respective contributions by agriculture and halal food and beverages, Muslim friendly tourism (MFT) and modest Muslim fashion. According to the State of the Global Islamic Economy (SGIE), the sharia economy and finance in Indonesia has moved up the SGIE rankings, breaking into the top three this year. That was the key takeaway of the Indonesia Sharia Economic and Financial Review (KEKSI) 2023, entitled Sharia Economy and Finance Synergy Strengthening National Economic Resilience and Revival, launched today (26/02/24) in Jakarta. KEKSI 2023 describes the development milestones and strategies for the sharia economy and finance in 2023, as well as the outlook and development policy direction for 2024.
At the KEKSI 2023 launch ceremony, BI Deputy Governor, Juda Agung, explained that Bank Indonesia projects the sharia economy and finance in 2024 to grow in the 4.7-5.5% (yoy) range, supported by Islamic financing disbursed by sharia banks that is forecast to grow 10-12% (yoy). This is in line with the implementation of several national strategic initiatives, such as mandatory halal certification in accordance with the Halal Product Assurance (JPH) Act, innovation in the Islamic social finance sector, collaborative programs between government ministries and agencies, as well as massive digitalisation of the sharia economy and finance. Furthermore, Deputy Governor Juda Agung restated Bank Indonesia's firm commitment to development of the sharia economy and finance to support economic growth through three main programs. First, development of key sectors, particularly halal food and beverages and modest Muslim fashion. Second, strengthening commercial finance and Islamic finance, while deepening the sharia money market through Bank Indonesia Sukuk (SukBI) and Bank Indonesia Forex Sukuk (SUVBI) instruments. Third, increasing literacy by holding Sharia Economic Festivals (FESyar) in three regions of Indonesia, namely Sumatra, Eastern Indonesia and Java, as well as the Indonesia Shari'a Economic Festival (ISEF) as an international event, while strengthening Indonesia's leadership at international forums.
Member of the OJK Board of Commissioners, Friderica Widyasari Dewi, pledged OJK support and commitment to realise Indonesia's vision of becoming a centre of the global halal industry. Seeking to optimise the multiplier effect of the sharia economy and finance, while enhancing HR competencies and improving sharia financial and economic literacy, OJK has specifically prepared several programs, including the Working Group on Sharia Financial Literacy and Inclusion (Pokja LIKS), Sharia Financial Fair (SYAFIF), Financial Education and Business Matching Forum for Islamic Students and MSME (FEBIS), as well as collaboration with the National Islamic Economy and Finance Committee (KNEKS), professional associations and sharia financial services industry. Similarly, Expert Staff from the Ministry of Finance in Financial Services and Capital Markets, Arief Wibisono, explained how the sharia social economy plays a major role in multiplying the benefits of the sharia economy and finance towards inclusive and sustainable national economic growth.
The KEKSI 2023 launch coincided with the National Seminar on the Sharia Economic and Financial Outlook (ShEFO) 2024, as a forum to discuss the challenges and opportunities in the Islamic finance sector and priority sectors of the sharia economy and finance to strengthen national economic resilience and revival. Various leaders/representatives from PT. Bank Syariah Indonesia (BSI), Indonesia Sharia FinTech Association (AFSI), Indonesian Economist Association (ISEI), National Islamic Economy and Finance Committee (KNEKS), Indonesia Muslim Entrepreneur Community (KPMI), Indonesia Fashion Chamber (IFC) and Indonesia Muslim Friendly Tourism Association (PPHI) also participated in the seminar as speakers. The seminar produced several recommendations concerning the need to strengthen the intermediation function of the Islamic finance sector towards priority sectors of the sharia economy, while promoting synergy and collaboration among all parties. ShEFO 2024 is a collaborative effort between Bank Indonesia, the Ministry of Finance of the Republic of Indonesia, Financial Services Authority (OJK), National Islamic Economy and Finance Committee (KNEKS), Indonesian Banking Development Institute (LPPI) and Indonesian Economist Association (ISEI).
KEKSI 2023 is available for download in digital format via the official Bank Indonesia website.
Jakarta, 26th February 2024
Communication Department
Erwin Haryono
Assistant Governor
