The growth of the halal industry in Indonesia has not been fully\naccompanied by the development of Islamic finance, particularly Islamic\nbanking. Challenges regarding regulation, taxation, and the dominance of\nconventional banking remain significant issues in the development of the\nsector.<\/p>\n
This was stated by the Director of Sharia Ecosystem Infrastructure of\nthe National Committee for Islamic Economy and Finance (KNEKS), Sutan\nEmir Hidayat, during the Indonesia Update 2026 conference in Canberra,\nAustralia, on Saturday (19\/09\/2026).<\/p>\n
Emir presented a paper titled \u2018The Indonesian Path of Islamic Economy\nand Finance: Contested Governance and Uneven Implementation\u2019,\nco-authored with Adelina Zuleika, Ishmah Qurratu\u2019ain, and Ryanda Al\nFathan.<\/p>\n
In the study, Emir and his team examined the development of Islamic\neconomy and finance through an ecosystem approach. \u201cThis approach\nencompasses Islamic finance, the halal industry, Islamic social finance,\nas well as various supporting infrastructures at both national and\nregional levels,\u201d Emir stated in a written release on Saturday\n(19\/09\/2026).<\/p>\n
The study indicates that Indonesia has made progress in building more\nintegrated Islamic economic and financial policies. However,\nimplementation remains uneven across different sectors.<\/p>\n
In the Islamic finance sector, specifically banking, structural\nchallenges persist because Indonesia\u2019s financial system has historically\nbeen dominated by conventional banking.<\/p>\n
Emir and his team also assessed that existing taxation policies and\nregulations do not yet fully accommodate the specific characteristics of\nIslamic financial transactions. This condition is one of the factors\ncausing the development of Islamic banking to proceed more slowly\ncompared to the growth of the real halal sector.<\/p>\n
Beyond regulatory issues, the study highlights the importance of\ncoordination between central and regional governments. The formation of\nRegional Committees for Islamic Economy and Finance (KDEKS) in various\nprovinces is one of the efforts to translate national policies into\nregional development priorities.<\/p>\n
However, implementation varies due to differences in institutional\ncapacity, human resources, budgets, and development priorities in each\nregion.<\/p>\n
Emir and his team emphasised that the challenges of developing the\nIslamic economy and finance do not end with policy formulation. Such\npolicies must be translated into more integrated economic outcomes and\nmore equitable benefits.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/halal-industry-grows-but-islamic-banking-still-faces-challenges-1789804435", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }