The Contribution of the Sharia Economy to GDP Continues to Increase

The contribution of the sharia economy to the national economy continues to increase. This is evident from the increase in the share of halal value chains (HVCs) in the gross domestic product (GDP) from 2016 to 2020.

Based on data from Bank Indonesia (BI), the share of HVCs in GDP reached 24.3% in 2016. This figure then increased to 24.86% last year.

This increase is supported by an increasingly focused national sharia economic development policy. One example is the enactment of Presidential Regulation Number 28 of 2020 concerning the National Committee for Sharia Economy and Finance (KNEKS).

However, the performance of the sharia economy was eroded by the pandemic that arrived in 2020. HVC growth decreased from 5.71% in 2019 to -1.72%.

The decline occurred due to large-scale social restrictions (PSBB) that hampered the productivity of several industrial sectors. However, a number of priority HVC sectors that were still able to operate during the PSBB managed to grow positively.

These sectors were agriculture, which grew by 1.85%, and halal food, which grew by 1.58%. Meanwhile, Muslim fashion experienced a contraction of 8.87%, and Muslim-friendly tourism (MFT) fell by 12.53%.