Wednesday, 21 Augst 2019 | 11:34 WIB

Sharia Economy Can Spur National Economic Growth

Indonesia President Joko Widodo (setkab)

JAKARTA, NETRALNEWS.COM - Indonesia President Joko Widodo has launched the Indonesian Islamic Economics Masterplan (MEKSI) 2019-2024 which will provide guidance for the Indonesian state over the next five years to become the main sharia economic player in the world.

The launching was held at Saleh Afiff Building, Ministry of National Development Planning, Jakarta.

The President, in his speech, said that Indonesia has a great opportunity to transform into one of the strongest economies in the world in the coming 2045. A number of studies that have been carried out both at home and abroad state that.

"However, getting there is not easy. There are many challenges, many big problems that we have to solve," the President said.

The Head of State continued, one of the main keys to make this happen was Indonesia as the country with the largest Muslim population in the world, namely the Islamic economy. Thus, national economic growth and the welfare of the people must be carried out with one of them advancing the Islamic economy in the country.

"The key is Islamic economics. Islamic economics is a motor of national economic growth, Islamic economics is a source of people's welfare," he said.

At the world level, Islamic economics has a huge global economic contribution. In the next 2023, the contribution is estimated to be worth at least USD 3 trillion. It is a potential that must be utilized by our country.

"Unfortunately, according to the Global Islamic Economy Indicator, in 2018 Indonesia is still ranked 10th in the ranking of countries that implement Islamic economics," he said.

"We are still behind Malaysia, the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Jordan, Qatar, Pakistan, Kuwait. This is our great work together, "said the President.

Therefore, through the National Sharia Finance Committee formed by President Joko Widodo in 2016, the government seeks to generate national Islamic economic potential and make Indonesia the center of Islamic economics at the global level.

"The time has come for us to awaken the potential of Islamic economics in Indonesia and make Indonesia the center of the world's leading Islamic economy. Because we are indeed the country with the largest Muslim population in the world," the President said.

MEKSI 2019-2024 formulates four main steps and strategies to realize this. First, strengthen the halal value chain with a focus on sectors that are considered potential and highly competitive. Second, strengthen the Islamic finance sector in the country.

The third is to strengthen the MSME sector as the main driver of the halal value chain. While the fourth is to strengthen the digital economy, which is mainly through electronic commerce so as to encourage the achievement of other sharia financial strategies.

"We will continue to strengthen the halal value chain with a focus on the food and beverage sector, fashion, tourism, media, recreation and pharmacy and cosmetics. As supporters we will strengthen Islamic finance, we will continue to strengthen our MSMEs, we strengthen our digital economy, "said the President.

With the MEKSI 2019-2024 that has been formulated, President Joko Widodo hopes that all parties have the same passion and vision in implementing Indonesia's sharia economic development policy to achieve the goals that have been aspired.

"I am sure God willing, that when we are all committed to running the Indonesian sharia economic masterplan, Indonesia will soon become the center of Islamic economics in the world," he said.