Airlangga Says Indonesia is Ready to Seize Top Spot in Sharia Economy with Halal Industry Support

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto expressed his hope that Indonesia can become the world's leading country in the sharia economy.

According to Airlangga, the sharia economy and finance are important pillars that the government continues to develop, and according to the State of the Global Islamic Economy Report, Indonesia ranks third in the global sharia economy.

He stated that the development of the sharia economy in Indonesia can rely on sectors such as the Muslim fashion industry, Muslim-friendly tourism, and halal cosmetics and pharmaceuticals.

He cited the example of the estimated global demand for Muslim fashion reaching USD20 billion, or around IDR289 trillion.

"I would add that in the clothing sector, for example, the demand for Muslim clothing is USD20 billion, or around IDR289 trillion. Furthermore, the Indonesian food and beverage industry is the only country that implements full sharia compliance," he said.

Airlangga stated that in the food and beverage sector, Indonesia is the only country that implements sharia principles comprehensively. Unlike other countries where the halal label is only optional, in Indonesia, halal products are mandatory.

Airlangga explained that the economic value of the halal food and beverage industry, including its entire production chain, reaches approximately USD109 billion, or the equivalent of IDR1,000 trillion.

He emphasized that by strengthening compliance with Sharia principles, Indonesia has the potential to rise from third to first place in the near future.

"So, if we continue to push for Sharia compliance, in the not-too-distant future, we can move from third to first. This is our shared responsibility. We will hear from the Governor of Bank Indonesia next year about the number one declaration," he said at the opening ceremony of the 2025 Indonesia Sharia Economic Festival (ISEF) on Wednesday, October 8.

Airlangga stated that in the 2025-2045 National Medium-Term Development Plan (RPJMN), the government has made the development of the Sharia economy one of its top priorities.

"The government also continues to promote the sharia economy as a priority in the 2025-2045 National Medium-Term Development Plan (RPJMN). We need to strengthen several aspects for independence and inclusive economic growth. We must implement several strategies to ensure the continued development of the sharia financial ecosystem and the halal industry," he explained.

Airlangga added that these include expanding financing through the Sharia People's Business Credit (KUR) and optimizing the use of bank bullion, which the President launched through Bank Syariah Indonesia and pawnshops.

He cited Indonesia's significant potential in the gold industry, with a production capacity of nearly 110 tons per year, which could become an important sharia economic asset, especially for Islamic boarding schools (pesantren).

"Therefore, this can certainly serve as the foundation for the sharia economy, and it's important for Islamic boarding schools to store their savings in gold. If Islamic boarding schools store and conserve gold, then of course, they will be able to withstand global economic turmoil, as gold is both recession-proof and turbulent. This is what we need to continue to promote," he explained.

Airlangga stated that over the past ten years, the distribution of Sharia People's Business Credit (KUR) has reached IDR75 trillion with 1.3 million borrowers.

Furthermore, he stated that improving Islamic financial literacy through the Indonesian National Digital Finance Program (DNKI) and expanding access to Islamic finance across all regions is a government focus.

Airlangga also highlighted the importance of digitalization and integration of the halal certification system (Sih Halal) as an accelerating step, with the issuance of 5.9 million halal certificates out of a target of 10 million this year.

"So, by synergizing access to financial literacy and digital transformation, we are also promoting a robust and highly competitive Islamic finance and halal industry," he concluded.