The global Islamic economy continues to show rapid growth amidst global economic uncertainty. Countries such as Saudi Arabia, the United Arab Emirates, and Malaysia are competing to become the world's halal financial and industrial centers . Indonesia, as the country with the largest Muslim population in the world, is predicted to have great potential to become a major player in the global sharia economy. But the question is, has this great potential really been converted into real economic power? To discuss this, we are joined by the Dean of the Faculty of Economics and Management, IPB University, Mr. Irfan Shoki Big. Mr. Irfan or maybe Mr. Prof. I call him. Just Irfan. Mr. Irfan. Mr. Irfan. Yes If we are currently, the global halal industry is indeed growing quite widely globally amidst the current uncertain geopolitical conditions. Saudi Arabia, the United Emirates, and Malaysia are trying to take this blame for Indonesia itself. Yes Before we discuss how big a change we need to make to become a major player in the halal industry, why should we start now, sir? Yes Why now? That's the main problem. Yes starting now, we are actually starting later than others. Okay. Because why should we start now? Because first of all, we see that in facing this economic uncertainty, Indonesia needs to optimize all the potential resources it has. Okay. And one of the potential resources it has is how ee is related to the development of the sharia economy. Good. And talking about sharia economics is not just about banking, we are talking about the halal industry there and we are also talking about the social financial aspect of sharia, namely ZISAf. Well, with this great potential, it is hoped that at least we can mitigate the increasing economic uncertainty due to today's current situation. So, because of that, we have to mobilize all resources and efforts optimally to optimize the existing potential. Well, among them is the first ee ee halal value change sector , where its contribution to our GDP will also increase. Yes, from 25% in 2020, last year it rose to 27% and this year it is estimated to increase. Why? Because globally, economic growth projections are still around 3% and could even fall below 3% if the Middle East situation is not resolved. Hey. In fact, the growth of the halal industry shows an increasing trend of 8 to 10% every year. Okay. Yes. With a value of more than 3 trillion dollars. Okay. Well, if we dissect it more deeply, we are still behind. Because from the OAIC Halal Economy Report, for example, it turns out that 78% of ee supply for the halal food and beverage industry is supplied from Muslim minority countries. The Muslim minority countries that are members of the OIC are only 22% and of that 22%, Indonesia's share is only 4%. Okay. So, if we can actually increase it from 4% to 8% through an integrated system from upstream to downstream, coupled with strengthening our trade diplomacy, the effect will be tremendous. One fold more is actually approaching with the existence of industry. That's right. That's right. Well, this is just halal food and drink. Not to mention other things that we are lagging behind in, such as pharmaceuticals, where 95% of them are in minority Muslim countries. So, what I'm saying is that if we want to strengthen the domestic economy and create new, more equitable sources of economic growth that reach all levels, then the opportunity lies in the halal industry. Okay, so we have to get serious now. And the real advantage of today's government is that it is supported by a strong legal basis. We have a national RPJP law that regulates the next 20 years of economic development, in which sharia economics is one of the pillars. So, legally, the legal framework is already strong. It just depends on how the government orchestrates the halal industry so that it is well integrated from upstream to downstream. The legal framework is clear, the market exists, and the contribution to our GDP is already visible. That's right. That's right. Well, it was previously stated that coordination between institutions and ministries was the missing link. Why, ee, what is the name of our sharia industry and economy? I said that it can't be managed optimally. Is this loophole a difficult problem for the government now even though there is a legal umbrella? Yes Actually, if we talk about whether it is difficult or not, this is relative, but in my opinion, it should not be difficult. It should be, it should be, it should be because it's clear. That's right. Well, it just remains to be seen how to strengthen the orchestration. So BPJPH is currently focusing on certification, but what about the Ministry of Manpower and Transmigration when it comes to international trade? What about the Ministry of Foreign Affairs, for example, in terms of diplomacy? What then about the Ministry of Industry in developing halal industrial areas? building for example a food zone, drink zone, special zone, halal, safe and healthy culinary. How to drive the regional economy, how to drive tourism. Yes So actually all parties have to use the Malay language in a lumus manner, right? I see that there are sectoral egos related to how each ministry's program is related to the halal industry itself, which causes the lack of a solid orchestration. I don't want to call it sectoral egos, but there is a need to strengthen coordination, which I think is one of the main keys so that this opportunity can be captured well and can drive the domestic economy. Well, that's what I think is one of the challenges. Good. This halal sector is incredibly large, sir. That's right. Industry, food, beverage, finance, tourism, tourism, what are they called? Everything is connected like that. According to Prof.'s observations. alone, who is actually the right person to orchestrate all this? If we just said that each institution and ministry has its own, what was mentioned earlier, ee, strengthening, right? So, who is actually responsible for orchestrating all of this so that it doesn't go their separate ways? Yes, institutionally, we have a national committee on sharia economics and finance, which is led by the president . But I see that perhaps the institutional settings do need strengthening. Hey. Well, so, if I may suggest, this should be led directly by the President to orchestrate all of this and then, if I may suggest, the KNKS should be appointed as an agency, later it will become an extension of the president to monitor and ensure that all programs for developing the sharia economy, A to Z, are implemented well. Not only does commitment mean it has become the body it should be. That's right. That's how it should be . So that later the President can also get relevant information, which is real time and also updated. So , when intervention policies are needed and specifically the police to drive the development of the sharia economy more strongly, I think that will be very easy to do. So this is indeed a job that requires direct intervention from the center. So. President. Good. Residents actually have a big impact on our efforts to develop our sharia economy. Well, that's right. Yes If we say this is the K portion, Professor said that okay, almost 80%, ee, the distribution of halal food and drinks in the world is actually by Muslim countries, right? Meanwhile, the Muslim majority country is only 20%. Well, if we look at the facts on the ground, that's how it is. Meanwhile, now Saudi Arabia, the United Emirates, and Malaysia have started to enter there. So, what will Indonesia's portion be in the global halal industry? What will it actually be like? If it is true that the president finally intervened directly and tried to orchestrate it all. Yes Where's our change? Yes Actually, there are many markets that we can think of. This is the closest thing to Hajj now . Dam 200,000 goats. Not just the tail, okay? Okay, now the question is, whose production was the 200,000 sheep and goats that our people paid for ? Where do the animals come from? This is the simplest example. This is just talking about the dam that went on the Hajj. Not yet, next week we will sacrifice 1 million goats, not yet cows. The question is who will produce all this? What does it mean? When we talk about just two events, the annual Hajj and Qurban event already involves trillions in profits . Yes And if we can build a stronger livestock industry, we haven't even talked about other strategic government programs yet. From here alone the need is very great. So that means we have the same opportunity as the Ministry of Hajj. Imagine our Hajj pilgrims ate 132 meals, but last year the seasoning was 100% Indonesian from us. Yes But the meat isn't there yet. Well, the rice is new this year. Rice and spices. But the others haven't. This is just talking about eating, not talking about anything else. So this means that the space and opportunities are very large and halal awareness is increasing. Okay. And those growth centers are everywhere now. Apart from the Middle East, even though there is unrest, they still need to eat. So it's impossible to have a war but not need to eat, for example. So, we have to take advantage of this situation, and we can only do that if we improve our management procedures and develop the halal industry itself. Well, so this is what I think is very important. Well, I hope that if possible, from upstream to downstream, besides domestically, also ee for the ability to fill the foreign market . We compete with Australia, we compete with New Zealand. Hey. Is it true that our brothers in the Middle East don't want to buy our products? Yes, compared to other products. Well, I think we should take advantage of this opportunity to go home. Good. With the opportunity that we can get there, but how big is our position to actually enter that realm with Okay, let's look at the current conditions, Mr. Ril is like that now. Meanwhile, the market has started to open there, you know . With our current condition, how much can we collaborate with the countries that Yes. First, we have to be optimistic, okay? So don't be pessimistic that we lost a lot in the beginning, there was no problem, okay? But the important thing is to get going now. Well, then the second thing is how do we develop it. Well, talking about this development, I think the halal industry cannot do it alone. It must be supported by other sectors. It must be supported by the financial sector, it must be supported by various mechanisms ee innovative financial schemes . and also he can utilize the third resource that we have, namely zakat and waqf . Where we can develop zakat and waqf . For example, at the IPB campus, we are developing a livestock endowment to support the development of our food security and food sovereignty . Hey. Well, it turns out that it can be orchestrated like that, that with a waqf basis, we can develop the livestock ee industry in one ecosystem, yes, on an integrated micro scale. So I see there are big opportunities. Imagine the potential of zakat and waqf alone, if combined, it would be 500 trillion every year. This means that when religious awareness and humanitarian awareness are combined into an economic force, the effect will be very powerful. So I see there are many opportunities, there are many things that we can do, yes, which actually requires the right orchestration and also an institution that also carries out monitoring. Besides, we also need to provide education because our problem is that sometimes Indonesian people need to be educated. So, when we talk about halal food, it's not just about the way of slaughtering, whether it's halal or haram. This is a large ecosystem, and the traders or business owners must also be convinced not to consider halal certification as a burden, but rather as an opportunity because to enter the international world, we won't be able to enter the halal market if we are not halal certified. Good. E so that's how it is talking about legal issues ee legal ee that's the standing, sir. That's it. Actually, people nowadays, okay, we can see it clearly from the masses in the field, when we have a food product, yes, there are concerns about asking for a halal certificate because of a number of bureaucratic requirements that many people consider to be quite difficult. Is that still heard today? And is bureaucracy one of the problems that causes education to not be delivered massively within the country itself? Yes. Yes, it's true that our bureaucratic problems are one of the challenges, but that doesn't mean that with a bureaucratic situation like that, we should n't continue to push and encourage. Well, I think the most important thing is how we can develop the right literacy strategy . ee strategy how to effectively educate the public that these things actually have enormous value, have enormous potential and can be an instrument to lift our economy. Okay. Well, this is what I think we need to continue campaigning for so that awareness will emerge. So, once awareness arises, all parties, both from the supply side and from the demand side, will continue to strive to improve and enhance their own ee. For example, when awareness of halal tourism increases, what can be done from the supply side? What can travel do? How many foreign tourists are looking for halal tourism in Indonesia? In fact, if we look at neighboring countries, the number of tourists, or halal tourists, who are looking for halal tourism, is in the tens of millions in Malaysia. Yes, Malaysia has tens of millions. Why don't we do things like just fly a little from KL to Jakarta, only 2 hours from KL to our various destinations. So, we should have the right strategies to capture this huge market potential. Okay. But people will also see whether this is halal or not, right? What is the proof that if I enter here it is halal or is that so? Yesterday, I stayed at a hotel in Singapore. The food and the restaurant were halal certified. The halal certification wasn't just a claim, but there was evidence that it was indeed halal certified, making it comfortable and enjoyable to eat and so on. This means we have to do things like this. This awareness must be truly widespread so that it is connected, so that travel will know, then all accommodation and tourist destinations can make adjustments to ensure that what they offer is truly halal services, not just by claims but by evidence, which evidence includes the certification process. Certification is actually important as a form of evidence, even outsiders also see us as all based on the latest Prof. Hehe. In the next 5 years, yes. The most realistic scenario that can or cannot first develop the halal economic ecosystem domestically and what must be done to be able to expand it to the global level? What's the most realistic scenario? Yes So I see there are three things that are most fundamental and they have to be done now because it's 2026. Okay. Hey what? Firstly, of course, literacy education is important because people are different. People who understand and those who don't. Hey. People who are motivated by knowing that will certainly have a higher fighting spirit and impact . Well, the second thing is how we improve the ecosystem , namely institutions, products, certification processes, and business processes from upstream to downstream, all the way to trade diplomacy. Well, this needs to be strengthened. Well, the third is from the regulatory side. Make flexible regulations, okay? ee the substance can be, but then there is an element of flexibility in it, yes. And if possible, regulations should also accommodate various existing EE instruments that can be developed. Yes, we have various instruments such as Islamic finance, Islamic commercial finance , Islamic social finance and so on. I. Well, this must be utilized as a unit that supports the development of this ecosystem. So , I hope the President can lead the process directly, and if possible, the National Committee for Sharia Economics can be upgraded to an agency that will be an effective tool to ensure all these processes run smoothly, provide input to the President, and also monitor the development of sharia in the future. Okay, Professor. Thank you very much for coming to Indonesia Bisnis this morning. Extraordinary. his insight. There is great hope that Indonesia can have a big role in the ee map of the sharia economic ecosystem in the world. Maybe we start with the FBI first because that is the one in high demand right now. Thank you, Prof. Once again, Prof. is here, Prof. You're welcome. May the peace, mercy, and blessings of Allah be with you too. And CN Indonesia business is back with more interesting information. first time with Sis