Salaam Gateway talked with M. Anwar Bashori, Head of the Department of Islamic Economics & Finance, Bank Indonesia, about ISEF 2021, and what to expect for next year’s event as Indonesia positions itself as a future hub of the Islamic economy.

Key figures from ISEF 2021:

- Total transactions reached Rupiah 25.8 trillion ($1.82 billion), a significant increase from the previous year's Rp 5.03 trillion ($354.22 million).

- Some 240 halal certificates were issued, particularly for PPH Assistance Certification, Self-Declare Halal Certification, and Fashion Designer Competency Certification.

- ISEF attracted 970 exhibitors and MSME actors. A total of 4,451 people participated in six types of competitions.

- Online access to ISEF 2021 platform reached 119 countries with 293,401 visitors since April 2021.

Salaam Gateway (SG): What was ISEF’s main theme this year?

M. Anwar Bashori: ‘Magnifying halal industries through food and the fashion market for economic recovery’ was the main theme. It is aligned with current Islamic economy conditions in Indonesia as we prepare to be the centre of the Sharia economy. This theme represents the great potential of the two leading sectors in Indonesia’s Sharia economy in accelerating the economic recovery.

SG: What advantages did the hybrid nature of ISEF 2021 - being in-person and virtual – bring to the overall event this year?

Bashori: Alhamdulillah, ISEF this year was a blessing, and the COVID-19 pandemic did not dampen spirits. Although there were many limitations, there were blessings through the increased use of digital technology. The hybrid implementation provides a new spirit for the participants, especially for businesses in promoting their products. The hybrid model made it easier for businesses to conduct business meetings with potential investors. The implementation of a hybrid ISEF successfully reached business agreements and business transactions of Rp 25.8 trillion ($1.82 bn).

SG: Let’s talk about the number of transactions carried out at ISEF, which were significantly up on 2020. While the pandemic no doubt had a role in this, what do you attribute such a jump in transactions to?

Bashori: The increase was driven by three key strategies - synergy, innovation, and digitalization. The synergy with Financial Services Authority (OJK) was strengthened through Sharia financing distributions. As a result, October has been named as the Month of Sharia Financing. Sharia businesses, especially those who are members of cooperatives, are being assisted through technical guidance for fund management of Sharia Micro, Small and Medium-sized Enterprises (MSMEs) Cooperatives by LPDB – KUMKM (Revolving Fund Management Agency – Cooperative MSME).

SG: What impact did the isef.co.id platform have?

Bashori: The platform was one of the reasons behind the increase in online transactions for halal products at ISEF this year. Another thing that contributed is the use of QR Indonesia Standard (QRIS) which continues to grow rapidly to support national economic activities. One of the advantages of QRIS is the availability of the no face-to-face feature, which allows customers to make remote payments for products purchased from merchants. In addition, QRIS can also be used to make donations or ZISWAF payments. (The platform is open until the end of 2021).

SG: What were the key highlights of ISEF 2021?

Bashori: Outcomes that can accelerate the national economic recovery. Firstly, increasing Sharia financing through facilitating linkages of Islamic financial institutions with businesses in the halal industry, especially halal food and sustainable modest fashion. Secondly, strengthening competence for both business owners in the halal industry and Islamic financial institutions. Thirdly, scaling up halal business transactions through a series of exhibition and business linkage among domestic and global Sharia businesses. Finally, improving Islamic social funds management through a series of facilitation activities to increase literacy, engagement, call to action, collections and distributions of zakat, infaq, sadaqah and waqf (ZISWAF).

SG: What was on ISEF’s agenda?

Bashori: There were 194 agendas, ranging from national and international forums, to talk shows and workshops, tabligh akbar (large-scale Qur'anic recitation), business meetings, business coaching, business linkage, various investment deals, entrepreneurship training, Halal Indonesia showcases and exhibitions of halal products, Muslim fashion parades as well as various competitions and cultural performances.

SG: How many Indonesian modest fashion designers were involved in ISEF?

Bashori: ISEF collaborated with 420 fashion designers and presented fashion parades and presentations that emphasized the principle of thayyiban (goodness) in their creative production with a total of 797 looks of clothing and accessories. In the future, Indonesia could become a major player for this sector. Bank Indonesia has committed itself to developing the sustainable and ethical fashion concept as one of the priority sectors in empowering the national Sharia economy. One of the strategies is strengthening the halal value chain to develop the ecosystem of Indonesia's Muslim fashion. This effort involves fashion business entities such as the textile industry and fashion designers to form an inclusive business chain. Bank Indonesia is conducting mapping, identification, model building and development to make a more integrated upstream and downstream model.

SG: ISEF also took place around Indonesia. Going forward, will ISEF expand such activities beyond Jakarta?

Bashori: To reach more people outside Jakarta, every year we conduct Road to ISEF activities which consist of the Sharia Economic Festival (Fesyar) in Sumatra, Java, and the Eastern region, with hosts changing every year, except for Java, as Surabaya will always be the host for that region. There are also Road to Fesyar activities held in each province. Going forward, Bank Indonesia hopes that ISEF will not only become a trendsetter for the national Sharia economy’s development, but also become a global event and a joint-platform for domestic and international stakeholders.

SG: What can we expect from ISEF 2022? Will you focus on other parts of the Islamic economy, as you did this year with modest fashion?

Bashori: The Sharia economy is certainly not just about halal food, Muslim fashion, Islamic banks, Sharia capital markets, and other Islamic social financial institutions. It is more than that, as Islamic economics covers all aspects of the economy. In the future, we will definitely see other Islamic economy sectors brought to ISEF, while still maintaining halal food and modest fashion as our priority.

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