Indonesian Political, Business & Finance News

From National Policy to Regional Awards: The Transformation of the Adinata Syariah Award

| | Source: REPUBLIKA Translated from Indonesian | Economy
From National Policy to Regional Awards: The Transformation of the Adinata Syariah Award
Image: REPUBLIKA

Indonesia’s sharia economy is no longer in the introductory phase but has entered a stage of consolidation and system strengthening. This is reflected in the institutionalisation of the sharia economy within the national policy direction, both in the country’s long-term and medium-term development plans.

The sharia economy narrative in the 2025-2045 National Long-Term Development Plan (RPJPN) emphasises strengthening aspects of sharia finance, sharia social finance, the halal industry, and the sharia ecosystem infrastructure. This policy direction aims to maximise the potential of the sharia economy and affirm Indonesia’s position as a global sharia economy hub.

This policy is further operationalised in the 2025-2029 National Medium-Term Development Plan (RPJMN) as a Priority Programme. The goal is to increase the contribution of the sharia Gross Domestic Product (GDP) from 46.72 percent in 2023 to 56.11 percent in 2029. The implementation of this policy is carried out through five Priority Activities: the development of halal industries and MSMEs, halal exports, the halal ecosystem, sharia finance, and sharia social funds.

Decentralisation

Support for the sharia economy has also been internalised by regional governments. Based on data from the National Development Planning Agency (Bappenas) and the National Committee for Sharia Economy and Finance (KNEKS), 26 provinces have included the sharia economy policy direction narrative in their Regional Long-Term Development Plans (RPJPD).

Meanwhile, 23 provinces and 125 regencies/cities have included this policy narrative in their Regional Medium-Term Development Plans (RPJMD). Furthermore, 19 provinces and 171 regencies/cities have also incorporated sharia economy achievement metrics into their RPJMD documents.

The data above shows that the sharia economy is beginning to move from a national programme towards a regional development agenda. This is where the government’s role becomes crucial to ensure that the implementation of the sharia economy is more measurable, connected, and tangibly felt in the regions.

However, the practice of developing the sharia economy in the regions still leaves challenges that need to be observed. One crucial issue is the gap between planning and implementation. In several areas, the sharia economy still risks stopping at the document level and has not been translated into integrated programmes with real impact.

Furthermore, the speed and capacity of regions to act are not yet uniform. At this point, a central-regional synchronisation instrument is needed. In this context, the Adinata Syariah Award becomes one of the catalysts bridging this gap. It ensures that the national institutional framework for the sharia economy is translated through a concrete approach at the regional level.

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