The development of the halal industry has continued to show tangible results in recent years. Various initiatives have turned into action plans. Director of the Department of Economics and Sharia Finance of Bank Indonesia (BI) Anwar Bashori said the development of the Islamic economy has been getting stronger since surviving in the midst of a pandemic. "Our priority halal sectors have proven to show higher growth than national economic growth, including halal export values," said Anwar. Indonesia's Islamic economy in 2020 experienced a contraction of -1.72 percent, better than the contraction of the national gross domestic product (GDP) which was -2.1 percent. According to the State of Global Islamic Economy (SGIE) Report 2020/2021, the share of Indonesia's halal food exports to global halal food exports is also in the range of 15-18 percent in the last five years. In the midst of a deep global recession, Indonesia's sharia economic growth is supported by priority sectors of the halal value chain (HVC). Two priority sectors of HVC were able to grow positively despite the growth rate, namely agriculture and halal food. "The growth of these two sectors can withstand a deeper contraction in the growth of the priority HVC sectors," he said.
The real sector of the Islamic economy, especially the halal industry, can rise in line with the development of the Islamic finance sector. According to Riyanto, Islamic banks do not have to take the same segment as conventional banks, namely providing financing to large corporations. Islamic banks can also work on segments in the real sector of the Islamic economy such as tourism. The real sector of the Islamic economy, especially the halal industry, can rise in line with the development of the Islamic finance sector. Riyanto also sees that a halal industry will develop faster if it is supported by government policies that provide similar opportunities in proportion to conventional ones. The legal and institutional umbrella must be clearly established. Riyanto said that there was no sharia economic law that could provide the legal basis for all real sectors. Currently, only Law No. 33 of 2014 concerning Halal Product Guarantees is still in implementation sluggishly. The tourism sector had Permen Parekraf No. 2 of 2014 concerning Sharia Hotel Guidelines, but it was annulled in 2016 on the grounds of deregulation from the President. "Actually, deregulation is for those who have regulatory obesity, while in the real sector of the sharia economy there is still very little regulation. Even though the government can only have policy programs and allocate budgets if there is a legal umbrella," said Riyanto.
Bank Indonesia noted that the estimated share of goods and services based on sharia principles produced by the domestic economy reached around 97 percent. However, this is much higher than the share of financing according to sharia principles to total economic financing. "There is still a link and match gap in financing by Islamic finance for the Islamic sectors," said BI Department of Economics and Finance Director Anwar Bashori. The connectedness of the halal industry and other sharia economic sectors, such as sharia finance and social finance, is certainly the key to success for the progress of the national sharia economy. Therefore, Anwar continued, the Islamic finance sector needs to increase its capacity and reach. Chairman of the Board of the Financial Services Authority (OJK) Wimboh Santoso said that Islamic finance was encouraged to become fuel for the halal industry. The Islamic finance sector controls 10.11 percent of the total national financial assets. OJK seeks to develop the Islamic finance industry so that it will grow more competitive. "Because it has been proven to be more durable in times of crisis," said Wimboh. He believes the proportion of Islamic banking can be higher in the future. As of August 2021, the Islamic banking industry has disbursed Rp 396.8 trillion. This value increased from IDR 383.9 trillion as of December 2020.
The MSME sector that produces halal products is also encouraged to use Islamic financial facilities, among others, through sharia KUR. Based on data from the KUR Program Credit Information System (SIKP) on November 5, 2021, the distribution of sharia KUR reached Rp 12.36 trillion to 237,617 MSMEs. This value increased by 257.5 percent from the same period last year which amounted to Rp. 4.8 trillion to 119,668 debtors. The growth of MSME financing in Islamic banking continues to increase. Funding through the Islamic capital market is increasingly being expanded by the presence of digital financial players, such as fintech. Sharia fintech noted that funding in the MSME sector continued to increase. Not only from sharia peer to peer lending, but also sharia securities crowd funding.
Source: https://www.republika.id/posts/23576/mengeratkan-kolaborasi-sektor-ekonomi-syariah
