Indonesian Political, Business & Finance News

2026 Sharia Economic Regional Action Plan to Serve as Collaboration Contract Between Regions and Industry

| | Source: REPUBLIKA Translated from Indonesian | Economy
2026 Sharia Economic Regional Action Plan to Serve as Collaboration Contract Between Regions and Industry
Image: REPUBLIKA

October 2026 is approaching rapidly. The obligation for halal certification is no longer merely a topic of discussion, but a legal mandate being actively pursued by businesses, local governments, and the central government. In many provinces and regencies/cities, regional development planning documents—ranging from long-term development plans (RPJPD) and regional medium-term plans (RPJMD) to regional work plans (RKPD) and agency strategic plans (Renstra)—are already in place.

The Regional Action Plan (RAD) for Sharia Economic Development serves to integrate all these instruments while collaborating on key regional components. It features clear outcome indicators, such as increasing the number of halal-certified products, as formulated within the national Sharia economic and financial indicator framework by Bappenas. In this context, the greatest challenge today is not the existence of documents, but how all parties—central government, regional authorities, and stakeholders—can collectively transform the RAD from mere planning text into real, consistent, and measurable collaborative work.

From the perspective of law and regional autonomy, the existence of the RAD demonstrates that local governments are not merely passive executors of central policies. Instead, regions are utilising development planning instruments to translate national mandates into local priorities. Therefore, the issue of halal certification should not be viewed solely as an administrative or technical licensing matter, but as a component of regional economic development strategy, consumer protection, and the strengthening of local product competitiveness.

In this process, the National Committee for Islamic Economy and Finance (KNEKS) essentially acts as an orchestrator and facilitator. Its role is to help align national policy directions with regional initiatives, while ensuring that the Sharia economic and financial outcome indicators formulated by Bappenas are effectively translated into field actions. Consequently, discussions regarding the RAD are not intended to judge regional performance, but to affirm that this document can serve as a collaboration contract that enables all parties to work in unison.

The reality on the ground varies; some regions are highly progressive, while others are still seeking the best approach. Some RADs, due to various limitations, remain stronger in documentation than in implementation. While programme lists exist and coordination meetings are underway, outcome indicators have not yet fully moved as expected. This highlights the need to strengthen one key concept: collaboration. This does not mean assigning blame, but rather inviting all regional stakeholders to align under a single roadmap and direct their energy towards the same indicators.

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