Indonesia’s New Islamic Finance Center: A Gateway to Global Halal Markets

In a significant step towards becoming a global leader in halal industries, Indonesia launched the Indonesia Islamic Financial Center (IIFC) on September 17, 2024. The center, inaugurated by President Joko Widodo, aims to bolster Indonesia's Shariah economy and capitalize on its large Muslim population. This platform will support sectors like Muslim fashion, halal tourism, and food, positioning Indonesia to compete globally. Ranked third in the 2023 Global Islamic Economy Indicator, Indonesia now looks to establish itself as a global hub for the Islamic economy.

President Widodo emphasized the potential of the domestic market, noting that with 236 million Muslims, Indonesia has a unique opportunity to dominate the global halal ecosystem. Key institutions, such as Bank Syariah Indonesia (BSI) and Danareksa, will be critical players in achieving this vision.

Indonesia's government has also made strategic efforts to improve Shariah banking, aiming for these institutions to be modern, competitive, and capable of setting global standards. With ongoing construction of the IIFC’s BSI tower, scheduled for completion next year, the center will serve as a hub for business and halal ecosystem literacy. The government envisions this initiative as a crucial factor in expanding the country's influence in the Islamic finance sector regionally and globally.

Erick Thohir, Indonesia’s Minister of State-Owned Enterprises, echoed this sentiment, stating that the IIFC will be a vital force in driving the national economy while promoting a sustainable Islamic ecosystem. He believes Indonesia is well-positioned to become the largest Islamic economy worldwide, owing to its diverse halal sectors and growing expertise in Shariah finance