Bank Indonesia Predicts Halal Value Chain to Grow by 5.3% in 2023

TEMPO.COJakarta – Bank Indonesia or BI forecasted that the country’s halal value chain (HVC) sector will keep rising in 2023. According to the BI Executive Director of the Communication Department Erwin Haryono, the Islamic economy and finance will continue to grow and support national economic recovery, especially amid various global pressures and their impacts on the country.

“BI estimates that the priority sector of HVC will grow by 4.5-5.3 percent,” he said in a written statement on Monday, February 6, 2023.

The growth, said Erwin, was followed by growth in sharia bank financing of 14 to 16 percent. The HVC sectors consist of agriculture, halal food and beverage, Muslim fashion, and Muslim-friendly tourism sectors.

Meanwhile, BI Deputy Governor Juda Agung said there were five strengthening strategies for the future development of Islamic economics and finance. First, developing the halal value chain through strengthening the capacity of sharia actors and business models, including accelerating the halal certification process.

Secondly, developing policy innovations and financial market instruments as an alternative to sharia financing and funding schemes, such as developing blended finance which is the integration of sharia commercial and social finance.

Thirdly, strengthening the halal lifestyle through the Indonesia Sharia Economic Festival (ISEF) as a strategic initiator, as well as encouraging the Indonesia International Modest Fashion Festival to become the world’s reference for Islamic modest fashion.

Fourthly, accelerating sharia economic’s digitization including halal traceability by using blockchain technology from upstream to downstream, as well as accelerating Zakat, Infaq, Alms, and Waqf (ZISWAF) digitization to boost transparency and inclusiveness.

“The fifth [strengthening strategy] is atta’awun or synergy and collaboration as the key to the success of future development of sharia economy,” said Bank Indonesia‘s official.