Indonesia Drops One Place in the Global Islamic Economy Ranking, Experts Highlight Weak Implementation
REPUBLIKA.CO.ID, JAKARTA – Indonesia’s position in the global Islamic economy ranking has fallen by one place. In the State of the Global Islamic Economy (SGIE) Report 2025/2026, Indonesia ranks fourth in the Global Islamic Economy Indicator (GIEI), behind Malaysia, the United Arab Emirates (UAE), and Saudi Arabia. In the previous year, Indonesia was in third place.
The Director of Infrastructure for the Sharia Ecosystem at KNEKS, Sutan Emir Hidayat, said that Indonesia’s declining position is mainly due to weaker rankings in several sectors. “One of the sectors that has fallen significantly is Muslim-Friendly Travel. It was previously in second place, but now it is no longer in the top five,” said Emir to Republika, Wednesday (3/6/2026).
He added that the halal pharmaceutical sector has also declined. “Halal pharmaceuticals, which were previously in second place, have now fallen to fourth place,” he said.
According to Emir, the development of other sectors has not been strong enough to improve Indonesia’s position. “Sharia finance and other sectors have not shown significant improvement,” he said.
At the same time, the UAE has recorded a significant increase, allowing it to overtake Indonesia. “The UAE has risen dramatically this year compared to Indonesia,” said Sutan.
The Professor of Islamic Economics at IPB, Irfan Syauqi Beik, believes that Indonesia’s declining ranking is a signal that the development of the Islamic economy requires stronger policy implementation, rather than just drafting planning documents. According to him, Indonesia has a large Muslim market, but it has not yet optimally utilised the opportunities in terms of halal product production and exports.
“We are large in terms of market and consumption, but the biggest profits are enjoyed by producers. Many non-Muslim countries have become major players in the global halal product supply chain,” said Irfan to Republika.
Irfan believes that the government needs to strengthen coordination and the institutional framework for Islamic economics in order to encourage the real sector, the halal industry, and exports of national halal products. According to him, Indonesia should not only be the largest market, but also a major producer in the global halal economy.
Meanwhile, the Professor of Sharia Accounting at Tazkia University, Murniati Mukhlisin, believes that the SGIE results show that Indonesia still has a strong foundation, but faces structural challenges that need to be addressed immediately. According to her, the readiness of the national halal ecosystem still faces problems in logistics, financing, and the integration of the halal value chain.
“Indonesia has a large domestic market and advantages in several halal sectors. However, the readiness of the halal value chain is still partial, so a more integrated ecosystem needs to be strengthened,” said Murniati to Republika.