VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Vice President Ma'ruf Amin delivered his keynote address to an online discussion on Sharia Business and Academic Synergy (SBAS), on December 9, 2020. (Asdep KIP Setwapres) - 

The sharia economy is believed to enable the nation implement the recovery of its economy battered by the COVID-pademic, toward a just, sustainable, and green economy.

To develop the sharia economy at its full potential, the government in 2020, issued a presidential decree on the National Committee for Sharia Economy and Finance (KNEKS).

The Indonesian government, in fact, has mobilized innovative financing instruments, such as the issuance of Green Sukuk since 2018 to fund climate change action and support targets of the Sustainable Development Goals (SDGs).

The government has also set up the Environmental Fund Public Service Agency (BPDLH) to manage environmental financial resources and facilitate the development of trade and carbon pricing, according to Finance Minister Sri Mulyani Indrawati.

Indonesia is currently preparing a regulation on carbon pricing to serve as a guideline in formulating domestic policies and an institutional framework for setting carbon prices.

Meanwhile, according to Vice President Ma'ruf Amin, Indonesia needs to apply aggressive strategies to drive Islamic-based economic and financial development, as the nation is eyeing to be the world's biggest producer of halal products by 2024.

The government is strongly committed to developing sharia economy, focusing on developing halal industry, sharia financial industry, sharia social fund, and developing and expanding sharia business, he reiterated, while speaking during a meeting with the Sharia Economy and Finance National Committee (KNEKS) on April 26, 2021.

Amin quoted the State of Global Islamic Economy Report 2019-2020 that highlighted an improvement in Indonesia's ranking as the world's producer of halal products, from 10th and rising up to fifth-largest scoring 49, after Malaysia, the United Arab Emirates, Bahrain, and Saudi Arabia.

The newly-formed PT Bank Syariah Indonesia Tbk (BSI) is expected to rank among the world's top 10 Islamic banks, as its assets surpassed Rp240 trillion. Islamic banking assets in 2020 grew by 10.9 percent, while conventional ones only clocked a 7.7-percent growth.

The government is upbeat hat the Islamic-based economy would improve and boost the nations economic growth amid the COVID-19 pandemic//ANT