The head of DSN-MUI’s sharia business and economy department, Moch. Bukhori Muslim, said that at least 10 hospitals were in the process of obtaining sharia certification as Muslims increasingly want services and products aligned with Islamic principles.

“There is increasing demand from people who want to adopt the halal lifestyle, so there should be [authorities] who set up the standards. According to Kyai [religious teacher] Ma’ruf Amin, our sharia standards for hospitals are the foremost in the world,” Bukhori told The Jakarta Post recently, quoting the vice-president-elect who is also chairman of the board.

The DSN-MUI is tasked with issuing edicts surrounding sharia-compliant products and services, as well as issuing sharia certifications to institutions, while monitoring their implementation. Initially established to regulate the financial sector, the board has in recent years started providing guidelines for the health and tourism sectors.

Sharia certification for hospitals, which started in 2016, has sparked debate lately after a Twitter user brought to public attention a sharia-certified public hospital in Tangerang, Banten. Criticisms arose since the hospital is public. It is owned by the government and hence should not lean toward a certain religion, some argued.

The board has certified two other public hospitals, Dr. Zainoel Abidin and Meuraxa Kota Banda Aceh, both in Aceh, alongside 13 privately owned hospitals across the country. Bukhori said another public hospital in Kalimantan might be seeking certification as well, adding that such certification could give added value to the hospitals regardless of their ownership.

“The added values are in terms of the protected rights of patients and workers, as well as of their spiritual needs, not only for Muslims, but also those of other religions,” he said.

Only hospitals with certification from the Indonesian Commission for Hospital Accreditation (KARS) are eligible to apply and the board has 174 evaluation points that cover the financing of the hospitals, the burial services they provide to patients of all religions and other things.

Products provided by the hospitals, including medicines, must obtain halal certification from the MUI’s Food and Drug Analysis Agency (LPPOM) and for certain treatments patients must be tended by same-sex nurses and doctors to prevent “malpractice and unwanted things from happening”, Bukhori said. He ensured, however, that these rules may not apply during an emergency and that each hospital had a board of sharia advisors with whom it could consult on a daily basis.

“The good thing about sharia is that it is flexible,” he said. “In normal conditions, the law narrows, but in narrowed conditions, the law expands.”

These hospitals, consequently, have to use sharia banks, which have been growing in number in the country.

The government and observers have repeatedly pointed out that sharia-compliant economics could be a key to achieving financial inclusion and help boost the country’s overall economy. 

Bukhori noted that the real sectors should be synergized with the financial sectors for the sharia economy to reach its full potential. Aside from hospitals, there are currently five hotels, a pay-television provider and six health product providers that have bagged sharia certification from the DSN-MUI. 

“When [people] are sick or want to travel, when [the services] are sharia-compliant, [the sectors] can improve sharia banks and insurance. The financial and real sectors should move together,” he said.

Although about 88 percent of Indonesia’s population of some 260 million people are Muslims, Islamic finance is struggling to penetrate the market. Data from the Financial Services Authority (OJK) shows that as of June last year, the market share of Islamic banking was 5.7 percent. The figure pales in comparison to neighboring Malaysia’s 24 percent.

Halal Lifestyle Center chief Sapta Nirwanda said that despite more Muslims adopting the halal lifestyle, the financial sector’s growth lagged behind that of the real sector.

“Sharia banks’ products are not yet relevant in meeting the needs of businesses and the market. They should start adjusting to the demands of the market,” Sapta said.

Sapta highlighted, however, that Indonesia remained a major consumer rather than a producer in the halal industry despite its large potential. The 2018 Global Islamic Economy report revealed that consumption of halal products and services in Indonesia was worth US$218.8 billion in 2017.

As part of the government’s efforts to boost the halal industry, Law No. 33/2014 on halal product assurance is to take effect later this year. The law would require that all products that enter, circulate and are traded in Indonesia be halal-certified by the Halal Certification Agency (BPJPH). Halal certification was previously voluntary.

“It’s not [a commodification of religion] because businesses are trying to facilitate Muslims who are increasingly adopting the halal lifestyle. With such certification, Muslims feel confident using the products and services. The products are also not only exclusive to Muslims,” Sapta said.

He said the popularity of the Islamic lifestyle had grown over the past six years, driven by economic growth and increased collective awareness thanks to easy access to Islamic knowledge.

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