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Indonesia wants to become No. 1 in Islamic economy: SOEs minister
Indonesia takes over from United Arab Emirates to rank third in the 2023 State of the Global Islamic Economy (SGIE), behind Malaysia and Saudi Arabia.
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Kangkong Halal Tourism Town aims to become the new religious tourist destination in Mataram, Lombok, developing new destinations to complement the Hubbul Wathan Islamic Center Mosque (pictured). (Shutterstock/File)
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tate-Owned Enterprises (SOEs) Minister Erick Thohir said Indonesia had improved in Islamic economy, ranking third globally in the 2023 State of the Global Islamic Economy (SGIE) that has been issued recently.
Erick, who also leads the Sharia Economic Society (MES), said Indonesia secured third place after Malaysia and Saudi Arabia, relegating the United Arab Emirates (UAE) to the fourth rank.
“Alhamdulillah [thank God], yesterday there was a lot of discussion about us being in fourth place, and we have ascended to third place by toppling the UAE. In the future, we want to become number one in the world,” said Erick on Tuesday, as quoted by Antara.
Erick attributed Indonesia’s ascension to the big five to the significant development in the country’s Islamic economy sectors, such as sharia finance, halal food and drinks, halal cosmetics and fashion, and Islamic media and tourism.
The minister said Indonesia had the potential to become the global halal industry leader due to its significant Muslim population.
Read also: RI halal industry lags despite having world's largest Muslim population
“Since the beginning, MES has stayed committed to cooperating with the government, SOEs, the private sector and all related actors to continue developing Indonesia’s halal industry,” said Erick.
United States-based research and advisory firm DinarStandard published the 2023 SGIE report on Tuesday, emphasizing significant developments in the global sharia economic trends.
The report publishes several key points from these economic trends, such as a total of US$25.9 billion investment in Islamic economy-related companies worldwide and the possibility for Islamic finance assets to reach the value of $5.96 trillion by 2026.
DinarStandard also noted several opportunities for expanding the global sharia economy, such as Islamic decentralized finance (DeFi) and blockchain, leisure and spiritual retreats, artificial intelligence-powered tourism, biopharmaceutical and vaccine growth and live commerce.
DinarStandard CEO and managing director Rafi-uddin Shikoh said Muslim spending globally had increased from $1.62 trillion in 2012 to $2.29 trillion a decade later.
