Indonesia launches national Islamic finance center to boost local halal industries
Indonesia launches national Islamic finance center to boost local halal industries
JAKARTA: President Joko Widodo opened on Tuesday the Indonesia Islamic Financial Center, a new special area in Jakarta dedicated to strengthening the country’s Shariah economy and helping local industries tap into the global halal market.
Indonesia is the world’s largest Muslim-majority country, with about 87 percent of its 270 million population professing Islam. Its government has lately been working to further develop the local halal industry to harness the potential of the domestic market.
“Indonesia has a huge chance, a potential to become a global halal hub, the center of the global halal ecosystem, as long as we strengthen our Shariah economy ecosystem,” Widodo said during the opening ceremony.
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“Indonesia’s Shariah banks, an important part of the Shariah economy ecosystem, must continue to grow with modern management, must be competitive (and) professional to reach the potential markets we have — our 236 million Muslim population — while also growing to become the standard of Shariah banking in Indonesia, in the ASEAN region, and in the world.”
The IIFC comprises Indonesia’s biggest Islamic bank, Bank Syariah Indonesia, and Danareksa, a state-owned holding company.
The center will serve as a platform for the development of local industries — from Muslim fashion to halal tourism and food.
“(The center) will support all aspects so we don’t lose our potential to other regions or countries,” Widodo said.
BSI’s tower at IIFC — the construction of which is to be completed next year — will be a “center for business and halal ecosystem literacy,” the bank’s director Hery Gunardi said.
“We are ready to develop and accelerate the nation’s goal of becoming a sustainable global hub and establishing an Islamic ecosystem.”
Indonesia was ranked third in the 2023 Global Islamic Economy Indicator, which measures the strength of the Islamic economy in 73 countries. It was placed just behind Malaysia and Saudi Arabia.
“This area will become a platform to strengthen the Shariah economy ecosystem that will also boost the growth of our national economy,” State-Owned Enterprises Minister Erick Thohir said.
Through the halal industry, among other avenues, “Indonesia has great potential to become the largest Islamic economy country in the world,” he added.