BI Optimistic Islamic Economy And Finance Stays Growing Amid Global Slowdown

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia (BI) continues to support the development and growth of the national Islamic economic and financial sectors amidst various global pressures and the impact of its propagation domestically.

This commitment was conveyed by Deputy Governor (BI) Juda Agung at the Sharia Economic and Financial Outlook (SHEFO) 2023 meeting earlier this week in Jakarta.

According to him, this year the central bank estimates that the Halal Value Chain (HVC) consisting of agriculture, halal food and beverages, Muslim fashion, and halal tourism will grow by 4.5-5.3 percent.

"This estimate will also encourage growth in Islamic banking financing by 14-16 percent," he said.

Juda explained, Bank Indonesia has conveyed five strengthening strategies for future Islamic economic and financial development. First, the development of halal value chain through strengthening the capacity of actors and sharia business models, including accelerating the halal certification process.

Second, the development of policy innovations and financial market instruments as an alternative to financing schemes and sharia funding, including the development of blended finance such as the integration of commercial and social sharia finance.

"Third, strengthening halal lifestyle, through the support of the Indonesia Sharia Economic Festival (ISEF) as a strategic initiator and encouraging the Indonesia International Modest Fashion Festival (IN2MOTIONFEST) to become the world's modest fashion reference," he said.

Fourth, the acceleration of the digitization of the sharia economy (exakyar) includes halal traceability by using blockchain technology from upstream to downstream and accelerating the digitization of ZISWAF to increase transparency and inclusiveness.

"And the fifth is atta'awun or synergy and collaboration as the key to the success of ex-ary development in the future," he asserted.

Juda added that commitment and synergy between stakeholders are needed so that the ideals of realizing Indonesia as the center of the exyar and halal producers of the world can be achieved.

"This forum is expected to provide views on the direction of future policies, raise innovative ideas and encourage synergy and collaboration in developing ex-years in the country," he concluded.