The webinar on Tuesday (02/11) carried the theme "Potential of Halal and Sharia Industry in Indonesia and East Java". By inviting 3 speakers, namely Mr. Muhammad Ghorifin, Secretary of One Pesantren One Product (OPOP), Mrs. Achsania Hendratmi, Lecturer of FEB UNAIR and Coordinator of UNAIR Business Incubator, and Mrs. Nisful Laila, Vice Dean II of FEB and central administrator of IKA UNAIR. The event was opened with a prayer reading and remarks from Mr. Rudi Purwono as Dean of FEB UNAIR. This time the event invited Mr. Achmad Room Fitrianto as moderator.
The first speaker, Mr. Muhammad Ghorifin, explained why halal products are currently a pressing issue in Indonesia. First, halal certification has been recognized by the World Trade Organization, and because the WTO has recognized it, halal products are an indication of a product that is fit for consumption. Second, the Muslim population is predicted to reach 26% of the world's population by 2030. Third, the halal product market in Asia-Pacific is 62%, Africa 15%, the Middle East 20%, and Europe-US 3%. This means that halal products have become a global lifestyle. This is why the growth of the Islamic economics is considered crucial.
In terms of Islamic boarding school-based economic potential, Indonesia has 27,722 Islamic boarding schools spread throughout Indonesia. More than 6,000 of these are located throughout East Java. This represents a potential or opportunity that can be utilized in the growth of the Islamic economics in East Java. Mr. Ghorifin also explained that OPOP itself is a program to improve community welfare based on Islamic boarding schools through the empowerment of students, Islamic boarding schools, and alumni of Islamic boarding schools. There are three pillars in OPOP: santripreneur, pesantrenpreneur, and sociopreneur. Santripreneur is a program to empower students to improve their skills and understanding in producing products. Pesantrenpreneur is a program that aims to produce superior halal products. Sociopreneur is a program for Islamic boarding school alumni that synergizes with the community.
Figure 1.1 World view of Halal products
Next, the second speaker, Ms. Nisful Laila, discussed the Islamic finance sector for the development of the halal industry. She stated that during the pandemic, Islamic financial assets in Indonesia grew 22.71% year-on-year (yoy) from Rp1,468.07 trillion in 2019 to Rp1,801.40 trillion in 2020. Indonesia ranks third in sukuk, a global benchmark.
Figure 1.2 Development of Islamic finance in Indonesia
In her explanation, Mrs. Nisful Laila stated that in the halal industry, Indonesia leads with the highest investment activity in the halal industry (M&A, Venture Capital, Private Equity) and maintained its top position during the 2019/2020 pandemic, despite a decline in activity during the pandemic. Halal product transactions in e-commerce also showed growth in almost all sectors, dominated by fashion, personal care and cosmetics, and halal food and beverages. This certainly indicates that the prospects for sharia businesses amid the Covid-19 pandemic are quite optimistic with the use of digital technology. One of the development focuses and main objectives of the sharia development sector in 2020-2024 is the National Halal Fund. This is one of the pillars and main programs in the Indonesian Sharia Economic Masterplan to support the growth of the halal industry and accelerate the growth and production of export-oriented halal products. The NHF is a crucial instrument in strengthening the halal value chain from upstream to downstream, particularly in improving the quality and quantity of halal products and services, from raw materials, processing, distribution channels, to financing.
The final speaker, Ms. Achsania Hendratmi, discussed the potential and advantages of the halal industry that can be developed in Indonesia and East Java. She stated that Indonesia is a major consumer in the halal industry, which also presents a challenge for Indonesia, which is only a consumer, not a production center. She also mentioned several key strategies in the 2019-2024 Indonesian Sharia Economic Masterplan: strengthening the value chain, for example, by establishing an international halal center. Second, strengthening the digital economy, for example, by establishing an incubator to facilitate the growth of start-ups. Third, strengthening the sharia economy, for example, by establishing a state-owned sharia bank, Bank Syariah Indonesia (BSI), which was established in early February. And fourth, strengthening MSMEs, for example, by providing integrated financing facilities for MSMEs.
Figure 1.4 National Halal Economy Framework
Several forms of assistance can be provided to MSMEs, including providing financing facilities and mentoring. First, synergy between Islamic financial institutions to educate micro-enterprises and facilitate financing. Government financing subsidy programs must be coupled with Islamic peer-to-peer lending for micro-enterprises, and capital-based financing must be facilitated by providing advanced technology-based stock market investments, such as blockchain.