REPUBLIKA.CO.ID, JAKARTA -- Erick Thohir, Chairman of the Islamic Economic Society (MES), has expressed optimism about Indonesia’s economic growth, particularly in the sharia sector. He highlighted that Indonesia’s economy has consistently grown at an average rate of five percent over the past decade, with household consumption—accounting for 53 percent of total economic growth—serving as the primary driver.  

“Over the last 10 years, Indonesia’s economy has grown by an average of five percent annually. A significant portion of this growth is attributed to the purchasing power of the population, which remains one of the largest contributors to economic expansion,” Erick stated during a speech titled “Colored Synergy, Create a Powerful Mosque,” organized by Republika in collaboration with Nippon Paint at Masjid At-Tin, Jakarta, on Friday, March 14, 2025.  

Erick emphasized Indonesia’s demographic advantage, with 40 percent of its population aged between 15 and 40 years old, representing a productive workforce. This, he argued, provides a strong foundation for sustained economic optimism.  

“We must remain optimistic, not only about economic growth but also about the development of our communities,” he added.  

Erick underscored the critical role of the financial sector in building a robust sharia economy. He reflected on the situation five years ago, when conventional banking dominated Indonesia’s financial system.  

“Four years ago, I discussed with MES Secretary General Mr. Iggy the necessity of establishing a strong financial foundation, including sharia-compliant banking, to support economic growth. Despite being home to one of the largest Muslim populations globally, Indonesia’s banking system was predominantly conventional at the time,” Erick explained.  

However, the establishment of Bank Syariah Indonesia (BSI) has marked a significant shift. Today, BSI ranks as the fifth-largest bank in Indonesia, surpassing many conventional banks and playing a pivotal role in supporting entrepreneurs, micro, small, and medium enterprises (MSMEs), and industries such as halal food production.  

“With the presence of sharia banking, we are now able to channel financial resources to support entrepreneurs, MSMEs, and other sectors like the halal food industry. This demonstrates the growing momentum of Indonesia’s sharia economy,” Erick noted.  

Expanding the Sharia Economic Ecosystem

Beyond banking, Erick highlighted the growth of the halal food sector and religious tourism as key components of a strengthening sharia economic ecosystem. He emphasized that the development of this ecosystem would create a sustainable circular economy, particularly beneficial for Indonesia’s predominantly Muslim and productive-age population.  

“We are witnessing the proliferation of halal food products across the country. Additionally, religious tourism holds immense potential, with numerous historical Islamic sites, such as the Grand Mosque in Banten, a remarkable relic from the 15th century built by Sultan Maulana Hasanuddin,” Erick remarked.  

Erick also stressed the importance of sharia banks operating independently, without reliance on conventional banking holdings. This aligns with recent regulations from the Financial Services Authority (OJK) and Bank Indonesia, which require conventional banks with Sharia Business Units (UUS) to separate them into standalone entities.  

“One of our key priorities is ensuring that sharia banks operate independently, as mandated by OJK and Bank Indonesia regulations. This separation is crucial to fostering a committed and healthy sharia banking sector, free from the dual influence of conventional and sharia operations,” Erick explained.  

Looking Ahead

Erick expressed hope that the growth of sharia banks would intensify competition within the sector, leading to improved funding turnover and further strengthening the sharia economic ecosystem. He views this as a strategic step toward enhancing the sharia economy’s contribution to Indonesia’s national economic growth.  

“As more sharia banks emerge and compete, we can expect greater efficiency and innovation in the sector. This will not only bolster the sharia economy but also significantly contribute to the overall growth of Indonesia’s economy,” Erick concluded.  

The initiatives outlined by Erick Thohir reflect a concerted effort to position Indonesia as a global leader in the sharia economy, leveraging its demographic advantages, expanding financial infrastructure, and promoting key sectors such as halal food and religious tourism.

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