Encourages The Development Of Indonesia's Halal Industry, The National Committee For Sharia Finance Prepares A Number Of Programs In 2023

Director of Business and Entrepreneurship of KNEKS, Putu Rahwidhiyasa in a seminar entitled Towards the Center for the World Halal Industry: Prospects and Challenges of Sharia Economics and Finance. (Photo: VOI/Maria Trisnawati)

JAKARTA - The government through the National Committee for Sharia Finance (KNEKS) will carry out a number of priority programs for the development of the sharia economic ecosystem. One of them is strengthening the chain of Indonesian halal value (halal value chain).

KNEKS Business and Entrepreneurship Director Putu Rahwidhiyasa said his party interpreted the 2019-2024 Islamic economic and financial master plan into 13 priority programs and 17 regular programs.

"Alhamdulillah, out of 13 priority programs, the term has 'netes' are 10 priority programs," said Putu in a seminar entitled 'Towards the Center for the World Halal Industry: Prospects and Challenges of Sharia Economics and Finance' held by Infobank with KNEKS, in Jakarta Thursday 24 November.

One of the priority programs that KNEKS has implemented to support the strengthening of the halal value chain in Indonesia, is to develop halal product certification. Halal certification companies are dominated by the food sector by more than 90 percent of other sectors.

In addition, companies are halal certified in the pharmaceutical sector and the cosmetic sector continue to increase every year. "There are four priority focuses for halal certification that we call safe and healthy halal culinary zones, one of which is at Rasuna Garden food Street Jakarta," said Putu.

Then, KNEKS together with the Ministry of Tourism and Creative Economy (Kemenparekraf) encouraged the digitization of Muslim-friendly tourism through digital Islamic events in 2022 and the issuance of Muslim-friendly tourism guidelines in five favorite destinations.

"Currently, there are three halal industrial areas that have been operating, the first in Cikande Banten, the second in Sidoarjo, East Java in Riau and several other halal industrial areas are applying to become halal Industrial Zones," he said.

For the development of halal products, Putu said, his party has also compiled a code table design against the harmonic system (HS) for 1,780 mandatory products and 1,361 products, except for halal certification (KMA 1,360) as a reference for the identification of export and import halal commodities.

There are 548 notifications for export of goods (PEB), 1,988 certificates, 98 types of products, 29 destination countries. As of October 2022, 47,318 halal certificates have been issued with a total product of 758,866. There are 30 Halal Inspection Institutions, 155 Halal Product Process Assistance Institutions (PPH) and 19,409 PPH Assistance Personnel.

Meanwhile, for the development of the Sharia Finance Industry, KNEKS will carry out five strategic steps, namely implementing the Employment Social Security Syariah Service and socializing the Jamsosnaker service to employers.

Next, KNEKS will also strengthen and develop the Islamic banking industry by the BPD Sharia Business Strengthening Workshop and monitoring the conversion and spin off processes of BPD.

Third, KNEKS will also innovate Islamic financial products and services through regional sukuk.

"Later on, there will be the issuance of Government Regulations related to Regional Sukuk and will encourage the issuance of Regional Sukuk by the Provincial Government (West Java Provincial Government) and good luck," added Putu.

Fourth, KNEKS also encourages regulation of sharia securities companies and implements the Islamic Investment Bank model in the form of the first Islamic securities company in Indonesia.

And fifth, KNEKS will implement the Sharia Government and Business Entity Cooperation (KPBU) mechanism through the socialization and advocacy of Sharia PPPs to Ministries/Institutions and local governments, increasing sharia financing for PPP projects and monitoring the Sharia PPP process at KPBU in Komering, Lombok and Ternate Hospitals.

"Some of what we have done is a toll road in Semarang to Jepara based on the Sharia PPP and several other projects," concluded Putu.