Indonesia to establish Islamic economy agency to drive Shariah sector growth

Indonesia is set to establish a new Islamic Economy Agency (BES) to replace the existing National Committee for Islamic Economy and Finance (KNEKS), aiming to enhance policy innovation and strengthen coordination across the country’s Shariah economic ecosystem.

Former vice president Ma’ruf Amin made the announcement during the launch of the State of the Global Islamic Economy 2024–2025 Report in Jakarta. “God willing, the national committee will soon be rebranded as the Islamic Economy Agency. I have spoken with Mr. President (Prabowo Subianto) to fast-track this process,” he said.

Amin said the BES would act as an umbrella body to synchronize efforts among government institutions, industry associations, academics, and civil society focused on the Islamic economy. “This country has many entities focusing on the Islamic economy, such as the Sharia Economy Society (MES) and the Indonesian Association of Islamic Economy Experts (IAEI),” he added.

He noted that Bank Indonesia and the Ministry of Finance already have dedicated work units handling Shariah affairs, and that BES would be tasked with orchestrating these efforts to maximize impact.

KNEKS currently has regional offices in 33 provinces, including minority-Muslim regions like North Sulawesi, a sign of the country’s wide-reaching commitment to developing a robust Shariah economy. The upcoming transition to BES is expected to deepen this engagement.

Amin urged all stakeholders to align efforts to ensure that the Islamic economy contributes more meaningfully to national economic resilience in a challenging global environment.

“Let us all move forward with optimism to present the best to Indonesia and the world,” he concluded.