BOGOR DISTRICT, West Java, June 2 (Bernama-ANTARA) — Indonesia needs to intensify its efforts to boost its Islamic economy and aim for the top global spot, Coordinating Economic Minister Airlangga Hartarto affirmed.
Speaking at an Islamic boarding school (pesantren) in Bogor, West Java, on Saturday (June 1), he cited the State of the Global Islamic Economy (SGIE) 2023 report, which showed that Indonesia’s Islamic economy is currently ranked third, behind second-placed Saudi Arabia and leader Malaysia.
“This does not make sense, considering our population of 280 million. Meanwhile, the populations of Malaysia and Saudi may be equal or less compared to that of West Java. Hence, we need to boost our Islamic economy to make it the world’s number 1,” he remarked, reported ANTARA news agency.
Hartarto noted that the ecosystem of Islamic economy and finance in Indonesia has been showing developments, especially in the fields of Islamic investment, halal food and beverages, modest fashion, pharmacy, cosmetics, and Muslim-friendly tourism.
Standing among countries with the largest Muslim population, Indonesia still wields huge potential to further develop its Islamic economy and finance. The potential is reflected in the existence of around 4.8 million pesantren students and 39.6 thousand pesantrens across the country, he said.
He underlined that as many as 12,469 pesantrens, or nearly 40 per cent of the total existing pesantrens, have the potential to contribute to the economy through agriculture, farming, fishery, as well as micro, small, and medium enterprises.
“As a religious educational institution, a pesantren also shares the responsibility to empower people socially and economically,” he opined.
Hartarto emphasised the importance of endorsing inclusive finance, which serves as a critical component in actualising a more inclusive society.
In this regard, he noted that the government had issued Presidential Regulation No. 114 of 2020 that aimed to accelerate the broadening of people’s access to financial products through intensified coordination between the central and regional governments, financial services industry, community organisations, and educational institutions.
“I hope that we will manage to achieve the target of boosting our financial inclusion rate to 90 per cent by cooperating with pesantrens,” he added.
— BERNAMA-ANTARA
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