Strengthening the Sharia Economy in Indonesia, KNEKS will be transformed into a Sharia Economic Development Coordinating Body
To strengthen sharia economic institutions in Indonesia, the government will change the National Committee for Sharia Financial Economics (KNEKS) into the Sharia Development Coordinating Body.
This was conveyed by the Minister of National Development Planning, Suharso Monoarfa, after attending a meeting with the Minister for Administrative Reform and Bureaucratic Reform, Abdullah Azwar Anas, Thursday (04/07/2024).
To change KNEKS to BKPS, the government has prepared an academic text and a Draft Presidential Regulation (Perpres). The Minister also stated that the Vice President of the Republic of Indonesia had given directions to form BKPS.
One of the reasons for the urgency in strengthening sharia economic institutions is the global sharia economy which is predicted to continue to grow. According to the Minister, Muslim consumer spending in 2027 is predicted to be US$ 3.1 trillion.
On the other hand, Indonesia ranks 8th among countries that are exporters of halal products in the world, with an export value reaching US$ 13.38 billion. According to him, this value is far from China’s export value of US$ 31.81 billion.
The minister said that China is the largest exporter of halal products in the world, followed by India in second place with an export value reaching USS 26.37 billion. According to him, Brazil ranks third with an export value of US$ 20.85 billion.
Apart from the above, the Minister also said that sharia finance in Indonesia is still lagging behind.
“Of the 4 sharia financial sectors, Indonesia has not been able to become the top leader of Gulf countries such as Saudi Arabia, Iran and the UAE which dominate the global sharia financial sector. “Apart from that, Malaysia also dominates several sharia financial sectors and is always above Indonesia,” he explained.
The four financial sectors in question are sharia banking, sukuk, sharia insurance and sharia mutual funds. The Minister stated that strengthening the sharia economy needs to be carried out considering its important role as a source of inclusive economic growth.
The Minister hopes that the change of the National Sharia Financial Economic Committee (KNEKS) into the Sharia Development Coordinating Body can have a positive impact on the development of the sharia economy in Indonesia.
Source: Bappenas
