KNEKS and the Strengthening Sharia Economic Ecosystem

In recent years, Indonesia’s sharia economic and financial ecosystem has entered a more structured and directed phase. The integration of the sharia economic agenda into the National Long-Term Development Plan (RPJPN) 2025–2045 and the elaboration of Asta Cita in the National Medium-Term Development Plan (RPJMN) 2025–2029 demonstrate that the sharia economy is no longer a peripheral theme, but rather one of the pillars for strengthening national economic resilience and self-reliance. Behind this ecosystem consolidation, the National Committee for Sharia Economics and Finance (KNEKS) works as a policy orchestration instrument, stitching together various cross-sectoral initiatives to move in one consistent direction.

Within this landscape, the narrative that simplifies KNEKS as merely a ‘mass organisation funded by the state budget’ is not only erroneous but also misleading. The issue goes beyond a terminological mistake; it reflects a failure to understand how the state, through KNEKS, positions sharia economics and finance as part of Indonesia’s long-term development strategy.

KNEKS was established through Presidential Regulation No. 28 of 2020 as a non-structural state institution led by the President, with the Vice President serving as Daily Chair. Its mandate is clear: to accelerate, expand, and advance the development of sharia economics and finance, while ensuring this agenda is integrated into the national development planning system. In the construction of constitutional law, this position places KNEKS as a public policy organ, not a private entity such as a civil society organisation.

With this design, KNEKS exists to synergise the work of ministries and agencies, local governments, business actors, academics, and the community. The sole objective is to ensure that the sharia economy truly becomes part of the national development foundation, rather than merely a collection of sectoral initiatives operating in isolation. Equating it with a mass organisation blurs the boundary between a state organ and a private association, while ignoring the lengthy process of institutionalising the sharia economy at the national level.

One indicator that the sharia economic ecosystem is now more settled is its successful integration and deep rooting within the state’s long- and medium-term planning documents. The direction for strengthening the halal industry, sharia finance, sharia social finance, and the regulation and institutionalisation of the sharia economy has been confirmed in the RPJPN 2025–2045 and subsequently elaborated in the RPJMN 2025–2029. This means that sharia economic development is no longer merely a discourse, but a development commitment with budgetary, programmatic, and performance indicator consequences.

At the regional level, the ecosystem consolidation is also moving systematically. Dozens of provinces have accommodated sharia economic and financial content in their Regional Long-Term Development Plans (RPJPD) 2025–2045. Institutionally, Regional Sharia Economics and Finance Committees (KDEKS) have been formed in 31 provinces to act as orchestrators of sharia economic development at the local level. KNEKS ensures that central and regional policy directions are interlinked, so that the development of the halal industry, sharia financial institutions, and sharia social funds in the regions is not disconnected from the national agenda. Consequently, the ecosystem that is formed does not stop on paper, but descends to the level of implementation in the regions.

This strengthening ecosystem did not emerge by itself. It was born from a series of technocratic efforts, policy advocacy, and consistent program stewardship. First, KNEKS stewards the direction and design of sharia economic policy through the preparation of roadmaps and strategic documents which are then integrated into the RPJPN and RPJMN. In this way, the sharia economy is positioned as an instrument to broaden sources of growth, strengthen inclusion, and deepen the national economic structure, in line with the government’s development priorities. Second, KNEKS strengthens the halal value chain ecosystem. The development of the halal industry, the sharia financial sector, MSMEs and entrepreneurship, as well as the strengthening of regulation and governance, are pursued in an integrated manner. This approach ensures that the sharia economy is not narrowed down to financial activities alone, but encompasses the entire value chain: from production to consumption, from financing to the distribution of halal goods and services.