Islamic economy makes up 48% of Indonesia’s GDP

The contribution of Islamic business activities to Indonesia’s GDP has been estimated at 48%, local authorities reported at the 11th Indonesia Sharia Economic Festival (ISEF).

Speaking at the festival, opened in Jakarta on Wednesday, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said Sharia economics and finance play a strategic role in driving sustainable economic growth amid increasingly complex global challenges.

This year festival’s theme of “Synergy of Sharia Economy and Finance in Strengthening Resilience and Sustainable Economic Growth” is in line with the Indonesian Government's efforts to achieve 8% economic growth.

Meanwhile, Bank Indonesia Governor Perry Warjiyo outlined four steps to advance Indonesia's Islamic economy as a form of implementation of the law - the application of halal traceability, the introduction of Sharia Restricted Investment Account (SRIA) products, the launch of the digitalisation of Islamic boarding schools or pesantren products, and the adoption of a National Strategy for Education and Inclusion in Islamic Economics and Finance in Indonesia.

The 5-day festival draws businesses, manufacturers, and distributors of Halal products in the fields of Halal food and beverage, fashion, pharmaceuticals, and cosmetics. All products introduced at the event have been granted Halal certification and have symbols on their packaging to increase their recognition by buyers.

The event also includes a Halal Fashion Fair and an International Halal Cooking Competition. The first international competition of its kind attracts teams from 15 countries, aiming to honour Halal culinary culture and promote the development of Halal products in Indonesia.