IPB University Sharia Economics Expert Proposes the Establishment of a National Sharia Economic Agency

Dr Irfan Syauqi Beik, Sharia Economics Expert at IPB University, suggested strategic steps to strengthen the national sharia economy and finance. One of them is the establishment of the National Sharia Economic Agency.

The Dean of the Faculty of Economics and Management (FEM) IPB University highlighted the importance of Islamic economics and finance in the midst of unstable global economic conditions. He explained that many countries are looking for new sources of growth to restore their economies, and one of the answers is the Islamic economy. 

“Sharia economy offers great opportunities that have not been fully utilized in Indonesia,” he said during the Java 2024 Sharia Economy Festival held by Bank Indonesia East Java, some time ago.

Amid the global push for digitalization and innovation, Dr Irfan proposed the establishment of a National Sharia Economic Agency as a strategic step to encourage the development of the halal industry and enhance Indonesia’s position as an international sharia economic hub. According to him, this body will have two main functions: coordination and execution.

The coordination function involves setting up relationships with existing authorities such as zakat, waqf, and the financial industry, without taking over their roles. While the execution function focuses on mastering and developing the halal industry, including the promotion of Indonesian halal products in the international market. 

“This agency must be able to take advantage of the global market and make Indonesia the center of international sharia economic transactions,” said Dr Irfan.

He also emphasized the need to take advantage of digital advances and innovation to strengthen the Islamic economy. He pointed out that although Indonesia is in third place in the global ranking of the sharia economy, the market potential is still huge, especially in the halal industry sector which is still growing.

“Currently, we are likely become consumers than suppliers in halal technology and products. We need to change this,” he added.

The importance of this step is further clarified by the recent regulation that recognizes the role of the Islamic economy in the National Long-Term Development Plan (RPJPN) 2025-2045. With regulatory support, Dr Irfan hopes that these strategic steps can be implemented to strengthen Indonesia’s position in the global market and ensure inclusive economic growth. (MW/Rz) (IAAS/NAU)