Sharia Economics Potential To Boost MSME Growth

JAKARTA - The National Committee for Sharia Economics and Finance (KNEKS) stated that the micro, small and medium enterprise (MSME) sector is the main component of the main driver of the people's economy in Indonesia.

Director of Sharia Ecosystem Infrastructure KNEKS Sutan Emir Hidayat said the position of MSMEs could be more central through strengthening the halal industry and advancing the sharia economy.

"Sharia finance plays an important role in providing capital and facilitating digital payments to accelerate the growth of MSMEs and the digital ecosystem of the halal industry," he said in an official statement quoted on Wednesday, December 22.

According to Sutan, MSMEs are also the sector that absorbs the largest workforce in all business clusters in Indonesia. Therefore, the more advanced the halal industry and the sharia economy, the more opportunities will be opened to expand employment opportunities.

This, he said, must be followed by the role of the central and local governments in maximizing training and business incubation which can lead to job creation for the wider community.

"We hope that Islamic economics and finance can be used by vulnerable groups, especially people with disabilities, and we hope that the concept will provide more access for them," he said.

Sutan added, as a country with the largest Muslim population in the world and the largest number of Islamic financial institutions in the world, Indonesia is a broad market in the Islamic economy.

"Indonesia needs to position itself as a key player and producer in the sharia economy through innovation, technology, and the right government support," he said.

To note, one of Indonesia's strategies to support the National Economic Recovery (PEN) is through the development of a sharia economy in the MSME sector.

The government revealed that MSMEs have absorbed more than 90 percent of the national workforce and accounted for more than 50 percent of gross domestic product (GDP).

"Thus, this sector certainly has a big advantage in strengthening the halal industry and advancing the sharia economy in Indonesia," concluded Sutan Emir Hidayat.