Indef: Sharia Economic Development Requires an Integrated Ecosystem
The development of the sharia economy must be accompanied by the construction of an integrated ecosystem so that its vast potential can propel Indonesia to become a world leader in the halal economy, according to Handi Risza, Vice Chair of the Center for Sharia Economic Development (CSED) at the Institute for Development of Economics and Finance (Indef).
Handi explained that the market share of Indonesia’s sharia financial industry currently hovers around 7 percent, a figure that does not yet reflect the country’s enormous potential. He noted that the development of the national halal industry also still lags behind several other countries, including the United Arab Emirates, which has successfully built a more comprehensive halal ecosystem.
Handi assessed that the acceleration of the national halal economy must rest on three main pillars: capital, governance, and inclusivity (CGI). From the capital aspect, he said, Indonesia still faces limitations in innovation and the variety of sharia financial products compared to countries like Malaysia. On the governance side, strengthening regulation, institutions, and inter-agency coordination remains a pressing task. Meanwhile, inclusivity demands that the benefits of the sharia economy be felt more widely by the public through the empowerment of the real sector, including the optimisation of ziswaf instruments (zakat, infaq, alms, and waqf).
‘These three pillars can only be realised if supported by strong commitment and political will from the government so that the halal industry can become one of the main drivers of national economic growth,’ he stated during a public discussion event organised by Paramadina University in collaboration with CSED Indef, titled ‘The Future of Indonesia’s Halal Economy’.
Meanwhile, Paramadina University Rector Didik J Rachbini affirmed the university’s commitment to strengthening the development of the sharia economy and finance through education, research, and strategic collaboration. ‘Paramadina University already has a Master’s Programme in Sharia Financial Management and a Doctoral Programme in Sharia Financial Management. We will continue to develop both programmes as part of our academic contribution to strengthening the national sharia economic ecosystem,’ he added.