Awaiting the Birth of BPES

REPUBLIKA.CO.ID, One of Prabowo-Gibran’s campaign promises in the 2024 presidential election was to position Islamic economics as an important pillar of economic development. Several government ministries and institutions, along with Islamic economics experts, have recommended the establishment of the Islamic Economic Development Agency (BPES) to realise the strengthening of the role of Islamic economics in development. BPES is constructed as a transformation of the National Committee for Islamic Economics and Finance (KNEKS).

Although it has produced many works and achieved accomplishments, the committee-based structure of KNEKS is considered to have limitations in technical execution and broad administrative authority. So far, KNEKS has tended to produce policies and socialise them through government ministries and institutions.

KNEKS often faces obstacles in coordinating and implementing Islamic economic policies. A stronger institution is needed to carry out coordination and implementation functions for Islamic economic policies.

BPES is envisioned as a permanent, ministry-level body that is independent in managing its budget and has stronger coordination and execution authority. There are several important points regarding the presence of BPES.

First, accelerating economic growth. Islamic economics requires acceleration, not just linear growth. BPES is expected to be able to cut bureaucracy in developing the real halal sector and supporting Islamic finance. The acceleration of the halal industry must be directed towards increasing foreign exchange and national economic growth.

Second, promoting upstream-to-downstream integration. Uniting the pieces of the Islamic economic puzzle—from production, halal certification, financing, to access to international markets—in one coordination chain. The utilisation of local resources and global marketing is woven into one Islamic economic development policy.

Third, strengthening economic sovereignty. The need to strengthen Indonesia’s bargaining position in determining global halal standards. Indonesia has become an important reference in global halal standards. This important position must be played to strengthen production and secure national consumption. Halal policies must be directed towards reviving local production and fulfilling national needs. Halal policies will strengthen national economic sovereignty.