Java Regional Sharia Economic Festival

8th East Java Economic Forum 2021

Promoting the Sharia Economy as a new source of growth and accelerating the economic recovery of East Java.

The event on Monday, September 28, 2021, opened with remarks from the Dean of the Faculty of Economics and Business Universitas Airlangga, Prof. Dr. Dian Agustia, Dra., Ak.,M.Si.,CMA., CA and from the chairman of the ISEI Surabaya branch, East Java coordinator, Dr. Eko Purwanto, SE, M.SI,.

This event invited two speakers, namely Prof. Dr. Raditya Sukmana SE., MA and Abu Amar Fauzi, SS, MM. It began with material by Prof. Raditya Sukmana who discussed the Optimization of Waqf in Accelerating the Economic Recovery of East Java. In his presentation, he explained the potential assets in East Java that can be optimized using waqf such as the East Java coastline which can be used to generate wave-powered electricity.

He also explained that he proposed improving the pricing of various commodities using waqf. The state budget is already overwhelmed by the need to fund national development. Implementing waqf to support development through the community would have a significant impact. The difference between non-waqf-based and waqf-based financing lies in the distribution of profits to the funder. Waqf-based financing results in a 0% fee for the waqif because it is waqf-based. With lower costs, the output of the recipients, or MSMEs, can be lower. In other words, they can produce products at competitive prices.

The second presentation was delivered by Mr. Abu, who discussed digitalization efforts to boost the Islamic economics and finance in East Java. He explained the three dimensions of digitalization: business inclusion, business optimization, and business activation. Digitalization in Indonesia is not yet evenly distributed; some businesses have been able to adapt to these changes. Others face obstacles, such as expensive internet or Wi-Fi, unstable networks, and a lack of digital literacy.

Mr. Abu explained that the solution for Indonesia regarding the above problems is to increase connectivity through infrastructure development and improvements, as well as creating healthy competition between internet providers.