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Economic growth

Sharia Economy Emerges as New Source of Growth in Eastern Indonesia

Strategic Insights

— 1 min read

The sharia economy has taken center stage in Eastern Indonesia, particularly in West Kalimantan, where initiatives are underway to drive growth, unlock opportunities, and foster economic transformation. The Sharia Economic Festival (FESyar) 2025, held in Pontianak, brought together local communities, Islamic boarding schools, and micro, small, and medium enterprises (MSMEs) to promote the values of the sharia economy. The event showcased the potential of halal industries, including traditional cuisine, Muslim-friendly tourism, and modest fashion, which can become a new hub for growth in Indonesia.

Key Takeaways:

  • The Sharia Economic Festival (FESyar) 2025 in Pontianak, West Kalimantan, attracted over 44,000 visitors and featured 16 Safe and Healthy Halal Culinary Zones (Zona KHAS) and facilitated halal certification for MSMEs throughout Eastern Indonesia.
  • Business matching MSMEs with sharia financial institutions resulted in Rp15.8 billion in financing, showcasing the potential for economic growth and development in the region.
  • West Kalimantan has massive potential to develop halal products, including key commodities such as palm oil, rubber, coffee, aloe vera, and fish products, which can be processed into value-added halal products.
  • The region's access to international trade through the Entikong and Aruk border-crossings unlock compelling trade opportunities for halal product exports to Malaysia, Brunei, and the ASEAN region.
  • The 'Green Space x Plastic Pay' collaboration demonstrated an innovative concept of sustainability, recycling over 4,200 plastic bottles and reducing the carbon footprint by up to 450kg.
  • The FESyar KTI 2025 also hosted a Training of Trainers (ToT) event for 456 journalists covering the sharia economy to boost public literacy.

Statistics:

  • Rp15.8 billion in financing was allocated to MSMEs through business matching with sharia financial institutions.
  • 16 Safe and Healthy Halal Culinary Zones (Zona KHAS) were featured at the FESyar KTI 2025.
  • 44,000 visitors attended the series of activities, including the Sharia Fair, Sharia Forum, and various competitions.
  • 4,200 plastic bottles were recycled through the 'Green Space x Plastic Pay' collaboration.
  • A 450kg reduction in carbon footprint was achieved through the 'Green Space x Plastic Pay' collaboration.

Sources:

  • Bank Indonesia press release
  • Remarks by Regional Assistant 3, Alfian, Deputy Governor of West Kalimantan, Krisantus Kurniawan, at the closing ceremony of FESyar KTI 2025
  • Head of the Sharia Economy and Finance Department of Bank Indonesia, Imam Hartono

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