Bank Indonesia (BI), the country’s central bank, presented the Seventh Indonesian Sharia Economic Festival (ISEF) last Friday. The occasion took place in a practical or online way, being the first of its kind in the country.
Created in 2014, it is a foreign opportunity that aims to bring together stakeholders in the country’s Sharia (Islamic) economy, which includes businesses, public officials and government agencies, local associations and Islamic boarding schools (called pesantren).
Perry Warjiyo, the governor of BI, said the ISEF was introduced to the “halal price chain,” which comes with only products that Muslims can use or consume. These pieces would likely come with halal food and beverages, cosmetics and also some products from the tourism industry. The ISEF will also target sharia-compliant projects involving local charities.
Warjiyo commented:
“This year, we are strengthening the new era of the digitization of the Sharia economy. We are strengthening the virtual economy, the synergy of Sharia and the financial economy in the midst of the pandemic.”
In April 2020, the linkAja virtual wallet platform introduced its application, a Sharia-compatible service. The company is said to have partnered with some 1,000 mosques and 242 waqf agencies.
Indonesia’s sharia monetary sector is expected to be valued at around $3.8 billion through 2023, according to estimates in the Global Islamic Economy Report.
As reported by the Jakarta Post, the progression of the Sharia-compliant Indonesian economy has been as immediate as the country’s largest financial technology sector. The Indonesian Financial Services Authority (OJK) shows that only 12 of the country’s 161 financial technology lending platforms comply with Sharia. This, according to the knowledge received in May 2020 from the OJK.
Ma’ruf Amin, Vice President of Indonesia (at a virtual convention held last Friday):
“For the first time, [the event] will use virtual communication technology. All seminars and discussions will be held in a practical way and the festival will also be positioned practically on an Internet platform. For me, it’s a real adaptation.
The COVID-19 epidemic is accelerating the transition to fully virtual platforms and services. This is because many Americans and companies have been invited to practice remotely, and many physical advertising sites have been shut down to prevent the spread of the virus.
Ma’ruf noted that the progression of the Sharia economy and monetary sector in Indonesia required the progression and adoption of virtual technology.
The vice president added:
“The economic actors of Sharia law will have to adapt to this situation, as the use of virtual generation and online payment strategies is surely necessary.”