Expert: Sharia economic development must be oriented towards value creation

Jakarta - The Head of the Center for Sharia Economic Development (CSED) at the Institute for Development of Economics and Finance (INDEF), Nur Hidayah, stated that the development of the sharia economy in Indonesia must be oriented towards value creation in order to be globally competitive. “Indonesia’s sharia economic potential is large but has not been maximised,” Nur Hidayah said in Jakarta on Tuesday during a National Seminar titled “Mid-Year Notes on the Indonesian Sharia Economy 2026”. According to her, a study conducted by INDEF found that Indonesia’s sharia economic potential is very significant, especially as Indonesia is the country with the largest Muslim population in the world. Therefore, based on the research findings, sharia economic development must shift its orientation from mere growth to value creation. Moreover, Nur Hidayah noted that the domestic halal market is also extensive, the growth of sharia financial assets continues to show an increase, and there is strong regulatory support from the government. “All of this potential must be maximised so that the existing potential can be converted into global competitiveness,” she said. Nur Hidayah added that the “value-based economy” approach and the practice of “value-based intermediation” emphasise that the success of the sharia economy is measured by its contribution to public welfare, environmental sustainability, and real sector development, not just the size of assets or profits. Thus, coordination among stakeholders, increased downstreaming of the halal industry, and the optimisation of digital technology and Islamic social finance instruments can accelerate the sharia economy as a driver of national development.