In February 2025, Indonesia launched Danantara, a sovereign wealth fund tasked with managing $900 billion in state-owned enterprise (SOE) assets to propel economic growth.

Amid a turbulent economic landscape - marked by a weakening rupiah, a contracting equity markets space, and waning investor confidence - Danantara represents a bold bet on transforming Indonesia’s economy. 

Indonesian president Prabowo Subianto envisions it as a driver of propelling GDP growth from 5% to 8% by 2029, emulating giants like Singapore’s Temasek. Yet, public skepticism warns of governance risks and parallels to Malaysia’s 1MDB scandal. 

Potential to elevate Indonesia
Danantara’s ambitious scope - consolidating 65 SOEs, starting with seven giants like Bank Mandiri and Pertamina - offers a pathway to address Indonesia’s economic turbulence. By streamlining SOE operations, it could boost efficiency, reduce fiscal burdens, and unlock $20 billion in initial funding for high-impact sectors like infrastructure, renewable energy, and nickel downstreaming.

These investments could attract foreign direct investment (FDI), which is critical as investor confidence falters (e.g., LG Energy Solution’s $8.5 billion EV project withdrawal). 

If successful, Danantara could mirror Temasek’s role in Singapore, where state-led investments drive 5-6% annual GDP growth. For Indonesia, this could stabilize the rupiah, battered by global commodity price swings, and restore market momentum.

Beyond growth, the wealth fund could empower Indonesia to retain more economic value, addressing a longstanding issue for OIC nations often exploited by global corporations for low-value production. By investing in downstream industries like nickel processing, it could shift the country from raw material exporter to high-value producer, boosting national wealth. 

Its global advisory board, including billionaire and hedge fund manager Ray Dalio, signals intent to court international capital, positioning Indonesia as a regional economic powerhouse.

Risks that could compound challenges 
Danantara’s governance structure is a glaring concern, threatening to amplify Indonesia’s economic challenges. Unlike Temasek’s independent board, Danantara’s leadership raises fears of cronyism. National auditors (BPK, KPK) lack direct oversight, requiring House approval to probe finances. 

The appointment of Thaksin Shinawatra, Thailand’s former prime minister ousted in a 2006 coup and dogged by corruption allegations, to the advisory board further erodes credibility, calling Danantara’s integrity into question. This move risks alienating investors already wary after the Jakarta index responded negatively on the fund’s launch day.  

Weak governance could exacerbate currency volatility and capital flight, as seen in recent market trends. If Danantara bails out underperforming SOEs without reforms, it risks draining public funds - $325 trillion IDR from budget cuts is already committed. A 1MDB-like scandal, where political influence led to a $4.5 billion loss, could deepen the rupiah’s slide and deter FDI.

The Business Judgment Rule, shielding officials from liability, and optional supervisory committees heighten moral hazard, potentially turning Danantara into a political slush fund rather than an economic stabilizer.

Malaysia’s tale of triumph and tragedy
Malaysia, an OIC peer with a commodity-driven economy, offers a dual perspective on state-led investment through Khazanah Nasional Berhad and the 1MDB scandal - models of success and failure for Danantara to heed.

Khazanah, established in 1993, manages $40 billion in assets and has driven Malaysia’s economic growth (e.g., 5.6% GDP growth in 2022) by professionalizing SOE management and investing in technology and healthcare.

Unlike Danantara’s politically driven structure, Khazanah’s independent audits and professional board have attracted FDI, stabilizing Malaysia’s economy during commodity volatility. Its disciplined approach to high-return projects offers a roadmap for Danantara to boost Indonesia’s markets and rupiah. 

However, Khazanah’s early missteps, like bailing out Malaysia Airlines, warn Danantara against propping up inefficient SOEs without reforms, which could strain Indonesia’s budget amid 2025’s turbulence.

On the other hand, The 1MDB scandal, where $4.5 billion was siphoned off through corruption starting in 2009, underscores the perils of weak governance. Controlled by then-premier Najib Razak, 1MDB lacked independent oversight, leading to massive debt and a weakened ringgit. 
Thaksin Shinawatra’s advisory role in Danantara echoes 1MDB’s political entanglements, amplifying fears of elite capture.

To avoid 1MDB’s fate, Danantara must enforce rigorous audits and insulate its board from controversial figures, ensuring funds fuel growth, not enrichment.

Malaysia’s contrasting experiences highlight a clear lesson: professional governance is critical to economic success. Khazanah’s transparency offers Danantara a path to stabilize Indonesia’s economy, while 1MDB’s collapse warns of the catastrophic risks posed by political interference, which could deepen Indonesia’s currency and confidence crises.

High-stakes gamble
Danantara stands at a crossroads. If it adopts Khazanah’s professional governance and strategic focus, it could elevate Indonesia’s economy, stabilizing markets and attracting FDI to counter 2025’s turbulence. 

However, governance flaws - political leadership, Thaksin’s scandal-tainted appointment, and weak oversight - risk a 1MDB-like disaster, deepening currency woes and investor distrust. 

To succeed, Danantara needs transparent audits, a professional board free of controversial figures, and clear investment criteria, insulated from cronyism. 

As Indonesia navigates global headwinds, Danantara’s execution will determine whether it becomes a beacon of growth or a costly misstep. Policymakers must heed OIC lessons to ensure it lifts, not sinks, the nation’s prospects.
 

Rianovel Mere is a consultant and project manager at DinarStandard

Artificial intelligence (AI) is rapidly emerging as a transformative force within the Islamic economy, driving innovation across sectors from finance and food to tourism and education. 

By enhancing Shariah compliance, improving accessibility, and enabling personalized services, the technology is reshaping how the Islamic economy operates, while preserving its ethical foundations.

More broadly, the technology’s potential economic impact is substantial - AI could contribute up to $320 billion to the Middle East's economy by 2030, according to PwC.  

“The synergy between AI and the Islamic economy is immense,” says Badr Saidi, quality manager and technical auditor at Halal Consulting S.L., a Spain-based halal certification body.  

“By leveraging AI in areas like Shariah compliance, ethical finance, halal supply chains, smart cities, tourism, and education, we can drive sustainable growth while staying true to Islamic ethical principles.”

To succeed, Saidi emphasizes the need for collaboration between AI developers, Islamic scholars, and industry leaders to ensure technological advances align with religious values.

Transforming Islamic finance

AI’s most visible impact is unfolding in Islamic finance, where it is streamlining compliance processes, improving fraud detection, and fostering financial inclusion.

“With AI, Islamic banks and financial companies can better understand their customers - how they invest, what they need, and even their risk tolerance,” says Sara Husain Hammad, innovation and technology project manager at Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI). 

“This helps create personalized financial products that comply with Islamic guidelines while still being innovative,” she says.

AI-powered tools are already transforming traditional processes. According to Saidi, machine learning algorithms are now automating the verification of financial transactions to ensure they adhere to Shariah law, avoiding elements such as Riba (interest), Gharar (excessive uncertainty), and prohibited investments.

He adds that AI-driven robo-advisors are also curating tailored halal investment portfolios, while predictive analytics are optimizing Sukuk (Islamic bonds) issuance and improving fraud detection in Takaful (Islamic insurance).

Banks across the Muslim world are already deploying AI. Dubai Islamic Bank (DIB) is using AI tools to assess the Shariah compliance of companies and financial instruments. Bahrain Islamic Bank has launched a digital platform offering access to more than 1,800 Shariah rulings to help simplify complex regulations and encourage industry collaboration. 

Outside of the GCC, Bank Muamalat Malaysia has partnered with Google Cloud to to deploy generative AI and advanced data analytics to help it evolve into a fully digital Islamic institution. Egypt’s Faisal Islamic Bank has embraced AI to modernize and expand its services.

AI is also helping extend financial services to underserved communities. By analyzing alternative data - such as mobile payment history and social behaviour - AI can help individuals with limited credit histories, including those in rural areas or small business owners, to qualify for financing. This supports Islamic finance’s mission of ethical and inclusive banking.

“Combined with Islamic finance’s focus on ethical and community-centered banking, AI can open doors for more people to access financial services in a way that respects their beliefs,” says CIBAFI ‘s Hammad.

Securing the halal supply chain

Beyond finance, AI is shoring up the halal economy by ensuring product traceability, authenticity, and safety. One of the biggest challenges in halal certification is verifying that ingredients and production processes comply with Islamic dietary laws. 

“AI can assist in several ways, including in ingredient label analysis. AI-powered Natural Language Processing (NLP) can scan product ingredient lists and detect potential non-halal components like gelatin, alcohol, or animal-based enzymes,” says Saidi.

AI-powered blockchain platforms now provide end-to-end tracking of halal products, from source to shelf, while computer vision systems monitor production lines for contamination, he adds. Image recognition tools are detecting fraudulent halal logos, and IoT sensors help safeguard halal-certified goods during transportation and storage.

AI is also playing a crucial role in laboratory testing. Advanced spectroscopy and chemical analysis, supported by AI, can identify traces of non-halal substances in food, cosmetics, and pharmaceuticals with high accuracy. Meanwhile, AI-driven analytics are helping businesses forecast demand for halal products, ensuring better inventory management and reduced waste.

However, standardization remains a challenge. According to Saidi, differing certification criteria across countries make it difficult to create a universal AI model, and smaller enterprises may struggle with the costs of adopting these technologies.

Enhancing Muslim-friendly travel

The Muslim-friendly travel market is another area where AI is making strides. According to the State of the Global Islamic Economy Report 2023/24, AI is enabling personalized travel experiences and improving customer service with virtual assistants and predictive analytics.

“Platforms can now generate customized itineraries for Muslim travelers, factoring in prayer times, halal food, nearby mosques, and Muslim-friendly accommodations,” says Saidi.

The Saudi Tourism Authority is pioneering AI-powered services, having recently launched "Sara," a virtual tour guide offering real-time travel advice. The authority has also partnered with Visa to create a Tourism Data Lab to analyze visitor behaviour and spending trends.

Facilitating Islamic education

AI’s role in Islamic education is growing rapidly. NLP models can help scholars and students in deepening their understanding of Quranic and Hadith texts, while AI-based edtech solutions can offer personalized Islamic education and smart learning platforms for different age groups, according to Saidi.

Innovators are developing AI-powered Islamic chatbots, voice assistants, and digital Da’wah tools to facilitate knowledge sharing.

Startups are already making an impact. Pakistan’s Xeven Solutions recently launched Shahada GPT, offering Quranic translations, Hadith explanations, and halal guidance. Similarly, India-based QuranGPT answers religious queries. 

“The primary motivation behind developing QuranGPT was to bridge the gap between religion and modern individuals,” says Raihan Khan, an AI applications engineer and creator of QuranGPT. 

“Nowadays, people don’t want to spend hours flipping through books to find an answer or determine if something aligns with the teachings of the Holy Quran. QuranGPT simplifies this process by providing instant responses in natural language.”

However, combining AI with religious guidance carries significant risks. Without human oversight, AI can easily misinterpret Islamic teachings, spread misinformation, and inadvertently cause harm.

“While AI has the potential to enhance various aspects of the Islamic economy, its intersection with religion must be approached with extreme caution,” Khan warns.

“The biggest concerns lie in the inherent biases of AI models, the risk of misinformation, and the challenge of ensuring religious authenticity. Without strict monitoring, AI could do more harm than good in this space,” he adds.

Limited adoption

Despite AI's promise, adoption in the Islamic economy remains in its early stages. Most Islamic tech startups have yet to fully embrace AI, focusing instead on basic automation rather than sophisticated, AI-driven innovation.

“As of now, AI’s role in fostering innovation in the Islamic economy - particularly in tech startups or digital finance - is minimal,” says Khan. “While AI has the potential to enhance areas like Islamic banking, halal certification, and ethical investment screening, most Islamic tech startups have yet to fully explore or implement AI-driven solutions.”

There was a palpable silence at the end of a premier screening of the documentary ‘Before 1770’ held late last year, punctuated only by distant sobs and the ruffling of tissue packets emanating from the audience of largely Muslim Australians.  

The reason why the feature documentary - showcased in multiple screenings across the country - evoked such an impassioned response was because it represented the connection Australia and its First Nations people held with the Muslim world.  

This deep connection, starting sometime in the mid-1600s, lasted for centuries until 1907 when the last ‘Perahu’ (sailing boat) from Makassar visited Arnhem land in Northern Australia. 

The reason why it resonated strongly with Muslim Australians, was because it was an untold story omitted from Australian history books; a tale intricately linking them with Australia’s First Nations people and their legacy. 

Before White colonisation, Muslim Bugis and Makassar traders would sail with the monsoon winds via the Flores and Savu seas, arriving on the shores of Northern Australia in places like the Kimberley and Arnhem Land to meet First Nations trading partners like the Yolŋu people.  

They would trade in trepang, a type of sea cucumber which was a delicacy and an aphrodisiac they would sell to lucrative Chinese markets. While their motivations for visiting Australia might have been for trepang, this was all part of wider regional trade patterns which connected Arab, Indian and Chinese markets via the Malay Archipelago.

These same Bugis seafaring traders would find themselves immersed in mercantile activity in historic port cities dotted across the Indian ocean like Aden, Muscat, and even as far as Zanzibar.  

Australia for them, was just part of an ancient maritime silk road that swapped out camels for Perahu sailing boats that covered vast distances with monsoonal winds. 

Fast forward a hundred years or so with the rise of the modern global Islamic economy, the vibrant Australian Muslim community like the Bugis before them, are rekindling historic linkages with the Muslim world through trade, halal food and Islamic finance.  

Australia is a melting point of a vibrant and dynamic Muslim population base comprising more than 70 different ethnicities. Nearly a million Muslims - more than half under the age of 25 -reside in growth areas in all the major cities and help create robust networks for business and investment opportunities.  

Halal food is now an AU$2 billion industry that helps serve the local Muslim community as well as major export markets such as Indonesia, Malaysia, the UAE and Saudi Arabia. Over 70% of Australian abattoirs are now reported to be halal certified.  

Muslim students from around the world are fostering long-lasting linkages with Australia. More than 30,000 students from Malaysia, Indonesia, and Pakistan and over 15,000 from the GCC are enrolled across universities and higher education institutes in the country. The Brunei government sends hundreds of students on scholarships to Australian universities each year. 

Education services with Muslim-majority countries amount to nearly AU$4 billion annually, generating revenue as well as creating investment opportunities across several quarters, including student accommodation, migration and employment, and halal food services. 

Lastly, Islamic finance is perhaps an untapped gold mine for Australia, having remained under the radar of Islamic investors worldwide for decades. For enterprising investors, Australia emerges as an unexpected yet compelling destination for Islamic investment. 

For select Islamic investors, Australia is not a distant continent, rather a destination that is geo-strategically situated on the fringes of vibrant Southeast Asian economies and one that offers a unique combination of a well-regulated market alongside growth opportunities for Islamic-conscious capital. 

The recently signed Australia-UAE Comprehensive Economic Partnership Agreement is the first Free Trade Agreement between Australia and a Middle Eastern country, facilitating investments in local projects. Shariah-compliant real estate investment has gained ground too, with institutions such as the National Australia Bank (NAB) offering Islamic products, enabling Muslims to finance their projects.

This unique offering has facilitated numerous partnerships between Islamic investors from the GCC and Southeast Asia and the vibrant and entrepreneurial Muslim business community in Australia. 

Shariah-compliant fixed-income solutions is another area of opportunity with Australia one of the rare AAA rated countries in the world according to Moody's, S&P and Fitch. There is a slew of ASX100 companies that are investment grade and above, offering a huge opportunity for Islamic fixed-income products or Sukuk bonds. 

With ongoing tariffs and geopolitical realities, perhaps Australia is not as far away as one might believe. With its growing young and dynamic Muslim community, Australia offers a combination of economic stability, diverse investment sectors, and financial governance. Throw delicious halal food in the mix and we have a sweet spot of opportunities. 

Perhaps now is the time for Islamic investors to set their sails Down Under. 
 
Dr Imran Lum is the head of Islamic finance at a major Australian bank. He is the host of the ‘Muslim Money’ Podcast and the author of 'A Comparative Study of Riba and Islamic finance in Australia and the UK (Routledge)'.

The opinions shared here are his own and do not reflect the views of his employer
 

Pakistan is aiming to implement an interest-free Shariah-compliant banking system by January 2028. While the ambition reflects a momentous shift toward an Islamic values-based financial system, practitioners caution that unresolved challenges could undermine the transition.

Renewed political will
In April 2022, the Federal Shariat Court (FSC), the country’s constitutional Islamic religious court, ruled that the entire banking system must be completely free of riba – more commonly known as interest - by the end of 2027. The court instructed federal and provincial governments to amend relevant banking laws to comply with the Shariah legislation. 

The directive, however, wasn’t the FSC’s first attempt to push for a fully Islamic banking system. The religious court made an initial declaration in 1999, notes Dr Sanaullah Ansari, CEO of Al-Iqtisad Consulting, only for it to be delayed by later governments through appeals and legal reviews. 

“This process continued and finally, in April 2022, FSC ordered the government to convert the current conventional banking system by December 31, 2027,” he says. 

However, this time there is adequate political will to introduce Islamic banking, complemented by a clear roadmap accorded by the State Bank of Pakistan (SBP), the country’s central bank. Following the FSC’s decision, the SBP released its five-year plan (2023–2028), setting ambitious goals to transform the conventional banking sector. 

There are currently 22 banks operating in Pakistan, including six fully-fledged Islamic lenders. Many of the remaining conventional banks either operate Islamic windows or have started planning for a full conversion. United Bank Limited (UBL) and Faysal Bank have transitioned, while Bank of Khyber and National Bank of Pakistan are en route. Others like Bank of Punjab are also exploring the shift.

In parallel, the Securities and Exchange Commission of Pakistan (SECP) - the country’s financial regulatory agency - introduced the Shariah governance guidelines in January 2023.

These apply to non-banking financial companies, Takaful operators, and private pension funds, with the aim of deepening Islamic capital markets.

Sovereign debt, coordination mar outlook 
Pakistan is the second-largest Muslim-majority country in the world. However, despite strong numbers, financial inclusivity across the country is fairly tepid. The country’s sovereign debt profile is another critical factor; the IMF notes that government debt stands at 71.4% of the Southeast Asian nation’s GDP, much of which is denominated in conventional, interest-bearing instruments.

“Most of the government’s liabilities are in conventional form,” says Mohamed Damak, head of Islamic Finance at S&P Global Ratings. “The government could choose to issue only sukuks going forward to refinance all commercial debt and net new borrowings, assuming that the market appetite for these instruments will be there.”

Damak adds that a significant portion of the debt is in the form of multilateral loans, bilateral loans, and central bank swap lines, with some of the multilateral loans having very long-term tenors. “It remains to be seen if and how these can be converted or structured in a Shariah-compliant format,” he adds.

Farrukh Raza, CEO of Islamic Finance Advisory & Assurance Services (IFAAS), believes that renegotiation is likely to take time due to legal and risk concerns from creditors, as well as the complexity of restructuring existing debt. “Stakeholders need to stay focused and resolve these matters as soon as possible.” 

Despite steps taken by the SBP and SECP, several market practitioners highlight a lack of coordination between key institutions and an absence of clear, realistic timelines.

“There needs to be a more well-thought-out process with a realistic plan and determined goals,” says Raza. “There needs to be better coordination with policies and implementation among the different entities in the country.”

He outlines three critical requirements for a successful transition.

“There needs to be a political will to genuinely support this transition and all stakeholders to be aligned on making it happen,” he says. 

“Secondly, you need a well-structured roadmap with clear targets and timelines for everyone to understand and work towards. Thirdly, you need to create a national champion among state institutions to own, lead and deliver this transition.”

This lack of coordination is closely tied to insufficient communication. Public engagement has been limited, with few workshops, conferences, or awareness campaigns to educate stakeholders about what this transition entails, according to Ansari.

“While the SBP and SECP have done valuable work, the broader market is still unclear about how this transition will play out,” he says. “Without consistent messaging and cooperation between players, implementation by 2027 will be difficult.”

Changing perceptions
A significant challenge lies in public perception. Many consumers raise doubts on the veracity of the Islamic banking system, considering it a repackaged version of the conventional banking system. This lack of trust dents its uptake as well as its credibility. 

Ansari notes that many banking customers question whether there is a meaningful distinction between Islamic and conventional products. “Whilst a lot of work has been done to facilitate Islamic banking, there is still a perception that it is merely a replication of conventional banking,” he says.

Sceptics also point to challenges in countries that have adopted Islamic financial systems, including Iran, Sudan and Afghanistan, though Raza believes comparisons with those countries to be unfair. 

“It’s not fair to compare Pakistan’s transition with these countries because all of them remain challenged on the international stage,” he says. “The issues they face are political in nature and not due to their financial systems being Shariah-compliant.”

Creating goodwill through education and awareness in addition to a clear timeline and roadmap to assimilate these changes thus remains key. 

Southeast Asia’s tech landscape is bracing for a tectonic shift. Reports emerged this week that Grab Holdings Ltd., the Singapore-based ride-hailing giant, is raising capital to acquire GoTo Group, a consumer tech company and one of Indonesia’s most valuable startups. 

GoTo - born from the 2021 merger of Gojek and Tokopedia - has been a cornerstone of Indonesia’s digital economy. The GoTo ecosystem offers mobility, delivery and financial services, as well as extends e-commerce services through Tokopedia and banking solutions through its partnership with Bank Jago. 

The potential deal isn’t just a juicy headline for the daily’s business section; it’s a litmus test for the country to retain control over its technological destiny, especially after losing Tokopedia’s e-commerce arm to TikTok in early 2024 . 

At its heart lies a critical concept: platform power - the leverage a nation wields when it owns the enterprises driving its economy. 

As Jakarta weighs the implications, the stakes couldn’t be higher.

Homegrown brands feeling the heat
GoTo is no ordinary company. It’s an economic engine, contributing an estimated 2% to Indonesia’s $1.37 trillion GDP in 2023, according to World Bank figures - roughly $26 billion in annual impact. 

With two million drivers powering its Gojek arm and 14 million merchants on Tokopedia , GoTo processed ride-hailing and delivery transactions worth $3 billion in 2024 alone. The sheer scale of its business has made it a linchpin of Indonesia’s tech ecosystem, supporting livelihoods of multitudes, from urban drivers to rural sellers.

Cracks have begun to appear in its foundation, though. In January 2024, GoTo sold a controlling stake in Tokopedia to TikTok for over $1.5 billion, ceding one of its crown jewels to a Chinese tech giant after regulatory pressure forced TikTok to partner locally to resume e-commerce operations in Indonesia. 

The deal eroded GoTo’s e-commerce muscle, leaving Gojek as its primary driver. Once a symbol of Indonesia’s startup ambitions, GoTo’s reduced scope makes it a juicier target for Grab - and a stark reminder of how quickly platform power can slip away. 

As one of Southeast Asia’s rare unicorns - companies valued over $1 billion- GoTo still carries national weight, but the Tokopedia’s loss underscores the fragility of that status. 

Regional powerhouse in the making
For Grab, the acquisition makes strategic sense. Valued at $18 billion, the company reported $2.8 billion in revenue in 2024, an 18% jump year-over-year , and serves 43 million monthly users across  eight countries. Acquiring GoTo could create a $40–50 billion powerhouse, blending Grab’s regional reach with GoTo’s 60 million active users. Analysts see potential for a dominant player in Southeast Asia’s e-commerce market, projected to reach $280 billion by the end of the decade. 

The upside is tangible: expanded operations could generate thousands of new jobs, building on GoTo’s existing two million-strong driver base. 

Enhanced scale might also accelerate innovation - think AI-optimized logistics or seamless cross-border payments - positioning the combined entity to compete with global heavyweights like Amazon or Singapore’s Sea Group, which already claims 40% of Indonesia’s e-commerce via Shopee. 

For Indonesia, a stake in this regional titan could amplify its voice on the global stage, provided it retains influence post-deal.

Gig workers and national leverage at stake
The sheen fades when viewed through the lens of Indonesia’s gig economy.  

Gojek’s two million drivers are a case in point. A 2022 study in Jakarta found that 70% depend on the platform as their primary income, earning $150–$200 monthly after expenses  - near Indonesia’s minimum wage. Incentives have already shrunk amid rising competition. GoTo’s domestic roots have kept it attuned to these workers’ needs, balancing profit with local realities. 

A Grab-led future might shift that dynamic. Its track record offers clues: in Singapore, driver commissions fell, prompting protests. Extending that approach to Indonesia’s larger, less-regulated market could exacerbate pressures on an already fragile workforce. 

Platform power is a safeguard - when a platform prioritizes national interests, worker welfare potentially triumphs shareholder value. If GoTo’s ownership moves offshore, Indonesia risks losing that buffer, leaving gig workers exposed to decisions made far from Jakarta’s streets.

Shaping the future 
Indonesia isn’t powerless. Governments worldwide have tools to manage such shifts - antitrust reviews, local ownership mandates, or worker protection clauses. 

India offers a playbook: its Unified Payments Interface (UPI) processed $1.5 trillion in transactions in 2024 , bolstering domestic platforms while keeping foreign players in check. Jakarta could impose conditions on the Grab-GoTo deal - say, retaining a minority stake or mandating gig worker benefits - to preserve its power.

The country’s 2020 Omnibus Law already aims to boost digital investment - tweaking it to exert local control could be a start.

Timing matters, too. Indonesia’s digital economy is projected to reach up to $360 billion by 2030, per e-Conomy SEA 2024 Report , with GoTo as a key driver. 

Letting it slip away risks stunting that growth - or worse, ceding it to rivals. Regulators have flexed before: in 2023, they tightened rules on foreign e-commerce to protect local firms . A similar move now could ensure this merger doesn’t hollow out Indonesia’s tech ambitions.

This isn’t about blocking progress - it’s about shaping it. Platform power, in this context, is more than mere market share; it’s about sovereignty over a digital ecosystem that shapes – and funds - daily life. A handover to Grab risks diluting that influence, raising questions on the potential custodians of Indonesia’s tech future.

Solution: All stakeholders - regulators, startups, and the workforce - should be asking the same questions. And they must be aligned with national interests. 

Rianovel Mare is a consultant and project manager at DinarStandard

The halal food market in the United Kingdom has grown tremendously over the past several years, reflecting an increase in the country's Muslim consumer base and a rising interest in ethical and healthy eating options.  

The sector in the UK is now worth billions, with projections of continued growth. Major supermarkets and grocery chains, such as Tesco, Sainsbury's, Morrisons and Asda, offer halal-certified products all year round, with expanded offerings around the holy month of Ramadan and the Eid festival.

This seasonal time is currently one of the biggest commercial events in the calendar, reinforcing a commitment to inclusivity and highlighting the economic draw of this space. From a trade standpoint, halal is also showcased at many exhibitions and trade shows in the UK and abroad. 

However, this wasn’t always the case. Halal foods' commercial journey in the UK is one for the books, starting more than two decades ago, from a modest family shop and progressing to find shelf space at a retailer in 2007, as part of the world foods category. The products on offer at the time included halal meat counters, prepacked halal meat, halal chilled products, halal sweets & confectionery. 

It didn’t stop there. Having worked in the space for years, I know that the initial opportunity could create a domino effect across the UK retail landscape and there was much to be done. Being a Muslim, the halal agenda is lived daily, and I, for one, was passionate about driving this market.

This commitment helped me launched the first ever Ramadan and Eid event at a UK retailer in 2008 - lasting 12 weeks. The event provided an opportunity to display halal offerings throughout highly-frequented stores, supported with marketing campaigns. Other retailers followed suit, one of which I supported to launch a similar campaign. The launch of Haribo Halal Sweets and halal Ramadan countdown calendars in the UK were also a few of my endeavours. 

Fast forward to today, the halal food landscape has transformed. The dining out market is booming, with all manner of fare including Mexican, Far Eastern and Malaysian cuisines. Fast-food chains are massively growing, catering to a broader customer base, including non-Muslims. Brands like KFC and Nandos are betting big on halal outlets. Online shopping for halal products is also on the rise, with e-commerce platforms and specialized online retailers offering a gamut of halal products, especially at key times like Ramadan and Eid.

Challenges stymying sector growth
Whilst there are many opportunities for growth and expansion, key challenges such as misconceptions about halal practices and the need for consistent quality checks and certifications remain.

Retailers must navigate these challenges effectively to capitalise on the market's potential, recognising the cultural significance of halal practices and the dietary restrictions of Muslim consumers. This understanding can influence product selection and marketing strategies. 

Supply chain complexities and lack of education are some of the obstacles that hinder the progress of a thriving halal foods ecosystem. 

Supply chain – The halal supply chain is complex, and finding reliable suppliers offering halal-certified products consistently can be difficult. Retailers must ensure that suppliers meet quality standards and offer certifications, which would require ongoing monitoring and auditing. 

Any supermarket or independent shop offering halal products need to establish partnerships with reliable suppliers and manufacturers. This means having the resources but also the knowledge and awareness of different halal certification standards and processes.  

Education - It would be ideal for businesses offering halal products to conduct regular employee training and skilling/reskilling activities, apprising workers of cultural and religious sensitivities around halal practices. Offering customers timely information can help create a conducive shopping experience.

Building trust with the wider Muslim community is also essential. This could include outreach activities such as collaborations with local mosques and community organizations, and conducting community events and workshops to promote halal offerings and facilitate discussions around halal practices.

Understanding the customer - Probing deeper into the customer’s shopping habits would be another route to gaining valuable insights. Conducting regular market research to understand the varying facets of an average consumer’s shopping experience, such as his/her product preferences, purchasing habits, price and religious sensitivities, could help address preferences and concerns.

Facilitating online and in-store feedback to gather customer opinions and suggestions would also allow for adjustments based on consumer needs.

Addressing these challenges is critical for retailers aiming to successfully incorporate halal offerings and cater to a growing and diverse customer base. 

Noor Ali BEM is a UK-based world foods and halal category expert