{"id":281480,"date":"2024-01-02T09:17:32","date_gmt":"2024-01-02T02:17:32","guid":{"rendered":"https:\/\/unair.ac.id\/gibran-speaks-on-sgie-unair-expert-explains-economic-challenges-and-opportunities\/"},"modified":"2024-01-03T15:59:26","modified_gmt":"2024-01-03T08:59:26","slug":"gibran-speaks-on-sgie-unair-expert-explains-economic-challenges-and-opportunities","status":"publish","type":"post","link":"https:\/\/unair.ac.id\/en\/gibran-speaks-on-sgie-unair-expert-explains-economic-challenges-and-opportunities\/","title":{"rendered":"Gibran speaks on SGIE, UNAIR expert explains economic challenges and opportunities"},"content":{"rendered":"\n

UNAIR NEWS<\/span><\/span><\/strong> \u2013 The term \u201cSGIE\u201d became a talking point at the water cooler <\/span>during<\/span> the election debate, <\/span>on <\/span>Friday, December 22, 2023. Vice presidential candidate Gibran <\/span>Rakabuming<\/span> Raka raised a question to his rival, Muhaimin Iskandar about <\/span>how to improve Indonesia<\/span>\u2019<\/span>s ranking in SGIE.<\/span> Gibran<\/span>\u2019<\/span>s discussion about SGIE in the debate <\/span>piqued<\/span> the <\/span>attention <\/span>of<\/span> the <\/span>society, including <\/span>Dr.<\/span> Imron <\/span>Mawardi<\/span> SP <\/span>MSi<\/span>, an expert in Sharia Economics from the Faculty of Economics and Business<\/span> Universitas <\/span>Airlangga<\/span>.<\/span><\/span>\u00a0<\/span><\/p>\n\n

SGIE<\/span> or SGIER stands for State <\/span>of the <\/span>Global Islamic Economy Report<\/span>. It is<\/span> an official report released by <\/span>DinarStandard<\/span>, a research institution based in Dubai. Imron<\/span> revealed that<\/span> DinarStandard<\/span> frequently<\/span> assesses the progress of the Islamic economy worldwide. Approximately 80 countries are included in the evaluation within the SGIE Report.<\/span><\/span>\u00a0<\/span><\/p>\n\n

The SGIE Report includes six indicator<\/span>s: <\/span>1) <\/span>Islamic finance<\/span>,<\/span> 2) <\/span>halal food<\/span>,<\/span> 3) <\/span>halal vision, <\/span>4) <\/span>halal tourism or Muslim-friendly tourism, <\/span>5) <\/span>halal pharmacy and cosmetics, and <\/span>6) <\/span>halal media and recreation.<\/span><\/span>\u00a0<\/span><\/p>\n\n

\u201c<\/span>Six indicators are<\/span> used to capture the <\/span>Sharia economic index in various countries. About 80 countries are evaluated by the Global Standard or the Global Islamic Economy Index (GIEI)<\/span>,\u201d he said.<\/span><\/span>\u00a0<\/span><\/p>\n\n

Apart from GIEI, <\/span>several other organizations\u2014including Thomson Reuters, Islamic Financial Report, <\/span>etc.<\/span>\u2014have published publications on <\/span>the development of <\/span>Sharia<\/span> economics worldwid<\/span>e.<\/span><\/span>\u00a0<\/span><\/p>\n\n

Indonesia on the SGIER<\/span><\/span>\u00a0<\/span><\/strong><\/h4>\n\n

Further, Imron underlined Indonesia\u2019s position on the SGIER in the past five years. He believed <\/span>Indonesia has a good trend position, as <\/span>seen<\/span> by its <\/span>steadily<\/span> improving ranking.<\/span><\/span>\u00a0<\/span><\/p>\n\n

\u201cIn 2018, Indonesia was ranked 10th, then climbed into the top five in 2019. In 2022, Indonesia reached the fourth position, and most recently this year, it has listed the top three,\u201d he said. <\/p>\n\n

Despite achieving the third position with a 68.5 index score in the SGIER 2023, Imron noted that the score is still far behind Malaysia, which has achieved 220 as the top rank. <\/p>\n\n

T<\/span>he <\/span>score <\/span>disparity is due to Indonesia<\/span>\u2019<\/span>s greater focus on marketing rather than production within the halal economy.<\/span> \u201c<\/span>In the research conducted by <\/span>DinarStandard<\/span>, the focus is not limited to marketing alone, but also on how a country supports the halal economy,<\/span>\u201d<\/span> he said.<\/span><\/span>\u00a0<\/span><\/p>\n\n

From those indicators, Indonesia has varied rankings. \u201c<\/span>In terms of halal vision, Indonesia ranks 3<\/span>rd<\/span><\/span> place. I<\/span>n halal food<\/span>,<\/span> ranks<\/span> 4th place, followed by media and recreation in 5th place<\/span>. In <\/span>halal pharmacy and cosmetics, Islamic finance, and Muslim-friendly tourism<\/span>, we<\/span> are in 6th place<\/span>,\u201d he said.<\/span><\/span>\u00a0<\/span><\/p>\n\n

Within the top 10 in each indicator, Imron expected that Indonesia would be able to take advantage of all available prospects and not be limited to the product market. <\/p>\n\n

\u201c<\/span>If Indonesia wants to <\/span>maintain<\/span> consistency, it should maximize opportunities. For example, <\/span>the most potential area is the halal food sector. Looking at the size of business in the global halal market, where about 62 percent is halal food production, Indonesia should ideally maximize its contribution as a producer<\/span>,\u201d the Sharia Economy expert said.<\/span><\/span>\u00a0<\/span><\/p>\n\n

\"\"<\/figure>\n\n

Challenges and Opportunities for Indonesia<\/span>\u2019<\/span>s Economy<\/span><\/span>\u00a0<\/span><\/strong><\/h4>\n\n

Furthermore, Imron suggested the need for improvements in infrastructure and the enforcement of regulations to support these potentials. <\/p>\n\n

\u201c<\/span>Indonesia has <\/span>formulated <\/span>the Halal Product Assurance Law<\/span> (UU JPH)<\/span>, but it has not been fully realized. <\/span>The<\/span> UU JPH is a supporting tool in enhancing the <\/span>capacity<\/span> of Indonesia<\/span>\u2019<\/span>s halal products. Indonesia can increase its production contribution by doing this. I think the government should be concerned about reinforcing regulations to increase Indonesia<\/span>\u2019<\/span>s contribution to the global halal industry<\/span>,<\/span>\u201d<\/span> he said.<\/span><\/span>\u00a0<\/span><\/p>\n\n

In line with <\/span>the <\/span>regulations, infrastructure is also an important sector in driving Indonesia to become a global producer of halal products. He cited an example of a meat-based product that still has limited halal certification. <\/span>I<\/span>n the field of halal tourism, good infrastructure <\/span>facilitate<\/span>s<\/span> accessibility to tourist destinations.<\/span><\/span>\u00a0<\/span><\/p>\n\n

Imron also highlight<\/span>ed<\/span> the importance of cooperation with Islamic countries.<\/span> He recommended that the government work with <\/span>several countries<\/span> that sell halal goods in B2B (business to business), G2G (government to government), industry, or B2G (business to government) partnerships.<\/span><\/span>\u00a0<\/span><\/p>\n\n

\u201cFor instance, Saudi Arabia has a strong psychological connection with Indonesia, given that our country is the largest contributor to Hajj and Umrah pilgrims. Unfortunately, Indonesia has not yet become a producer of halal products there. We have a significant role in our relations with Saudi Arabia,\u201d he said.<\/p>\n\n

Imron revealed that the prospects of the global halal market continue to rise each year. \u201cWe see that its development has a fairly high average. DinarStandard reported that the media sector experienced a growth of 92 percent, tourism increased by about 13.1 percent, and halal food grew by 58.5 percent,\u201d he said. <\/p>\n\n

Furthermore, the trend of Islamic consumer spending has reached 1.62 trillion US dollars in 2022 and escalating to 2.29 trillion US dollars within ten years. This notable rise in Islamic consumer purchasing, Imron believed, may <\/span>provide<\/span> fresh prospects for economic expansion in Indonesia.<\/span><\/span>\u00a0<\/span><\/p>\n\n

Author: Aidatul Fitriyah<\/a><\/p>\n\n

Editor: Khefti Al Mawalia<\/p>\n","protected":false},"excerpt":{"rendered":"

UNAIR NEWS \u2013 The term \u201cSGIE\u201d became a talking point at the water cooler during the election debate, on Friday, December 22, 2023. Vice presidential candidate Gibran Rakabuming Raka raised a question to his rival, Muhaimin Iskandar about how to improve Indonesia\u2019s ranking in SGIE. Gibran\u2019s discussion about SGIE in the debate piqued the attention […]<\/p>\n","protected":false},"author":79,"featured_media":281039,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[48,50],"tags":[],"class_list":["post-281480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-experts","category-news-en-2"],"yoast_head":"\nGibran speaks on SGIE, UNAIR expert explains economic challenges and opportunities<\/title>\n<meta name=\"description\" content=\"Gibran\u2019s discussion about SGIE piqued the attention of society.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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