I Wayan Dipta, Deputy Production and Marketing at Indonesia's Cooperatives and Small & Medium Enterprises Ministry, believes Indonesian halal food products (halal refers to those products that are produced in accordance with Islamic law) have great potential on the international market over the next 15-20 years due to the growing number of Muslims worldwide.
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5 August 2020 (closed)
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Today's Headlines Islam in Indonesia
A new large mosque - named Hasyim Asy'Ari Grand Mosque - was opened on Saturday (15/04) on Jalan Daan Mogot in West Jakarta. At the inauguration Indonesian President Joko Widodo emphasized the new mosque has to become a friendly and moderate Islamic symbol in Jakarta and Indonesia, acknowledging the diversity and pluralistic nature of the country, and strengthening the spirit of moderate and tolerant Islam. Although Indonesia has a clear Muslim-majority population, it is also home to millions of Christians, Catholics, Hindus and Buddhists.
After having banned the sale of alcoholic drinks in minimarkets, Indonesia may see the birth of another law concerning alcohol. Several secular and Islamic political parties seem to back a bill prohibiting the sale, production, distribution and consumption of drinks that contain over 1 percent alcohol. This bill is among the 37 so-called priority bills expected to be passed this year. Although the new bill had been first proposed in 2012 by two Islamic parties - National Development Party (PPP) and Prosperous Justice Party (PKS) - it had laid on the shelf.
In a bid to enhance monitoring on Indonesia’s financial services sector, to deepen financial markets, and to widen people’s access to financial services, the Financial Services Authority (OJK) has introduced 20 new rules ranging from corporate governance to microfinance. The institution also revised Islamic banking rules involving asset quality and capital adequacy in an effort to increase the role of Islamic banking (sharia banking) in Indonesia’s financial system. Authorities target that Islamic banks hold more than 15 percent of the market by 2023.
Having the world’s largest Muslim population and experiencing sustained economic growth at a pace of +5 percent implies that Indonesia harbours great potential for Islamic finance (sharia banking). However, Indonesia is yet to tap the full potential of the Islamic financial services market. As an illustration, with a figure of USD $24 billion, Indonesia’s Islamic banks only held 4.9 percent of the country’s total banking assets in 2013. This is small compared to Malaysia (where Islamic banking holds a 20 percent market share).
Latest Columns Islam in Indonesia
While the re-election of President Joko Widodo has done much to the quell anxieties over Islamist challenges to Indonesia’s pluralist and relatively-moderated socio-religious and political climate, the question of Islamist opposition potential remains salient for many.
A total of 13 Indonesians were caned (a punishment under the Islamic Sharia law) at a local mosque in Banda Aceh in Indonesia's province of Aceh on Monday (17/10). These people (seven men and six women) allegedly exhibited behavior that is not allowed by Aceh's local Sharia law. Such behavior includes "too close contact" between unmarried people (such as touching and kissing). Over the past two days pictures of the caning spread in international media, accompanied by concerns about this brutal punishment and the state of human rights in Indonesia.
Ahead of the Islamic Ramadan and Idul Fitri celebrations, consumption tends to increase in Indonesia. One of the products that is searched for by Indonesian consumers (those who adhere to Islam) is Muslim fashion such as clothes and the veil. In fact, the Indonesian government wants the nation to become Asia's center for Muslim fashion by the year 2018 and the world's Muslim fashion leader by 2020. Muslim clothes are also envisaged to become a key export product. Currently, Indonesia's Muslim fashion exports are still rather insignificant.
Syariah banking or Islamic finance is a large untapped potential in Indonesia, a country where about 13 percent of the total global Muslim population live. With nearly 90 percent of the 250 million people in Indonesia adhering to Islam, the market share of syariah (sharia) finance is remarkably low. At USD $24 billion, Islamic banks in Indonesia only held 4.9 percent of the country’s total banking assets in 2013, hence making Indonesia’s Financial Services Authority (OJK) decide to launch a five-year roadmap in a move to boost syariah banking.
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