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HALAL ECONOMY

Indonesia Towards the Center of Global Sharia Economy

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PT Bank Syariah Indonesia Tbk (BSI) affirmed Indonesia’s commitment to become one of the centers of world Islamic finance, through the introduction of four programs to strengthen this ecosystem in Indonesia and abroad.

Minister of State-Owned Enterprises Erick Thohir has led the Ministries preparation of four featured programmes to form this ecosystem. First, developing the halal industry market within the country and abroad. The second one is developing the sharia financial industry. Third, friendly investment involving local entrepreneurs. And the fourth one, continuous growth of the sharia economy in rural areas.

Recognising Indonesian sharia economy potential, Minister Thohir expressed his desire for Indonesians not only to be consumers of imported halal goods but to be the producers. “We should be the producers and a global player. Yet that would be impossible if we do not have a strong sharia financial system,” said Thohir.

According to the indicator report from The State of Global Islamic Economy, Indonesia has continuously shown significant growth. In 2019, the country was one of the top 10 countries of the world’s sharia economy. In 2020, this rank was raised, placing Indonesia in the top five.

Thohir established the holding of the state’s sharia bank, Bank Syariah Indonesia (BSI). BSI is a result of the merger of 3 sharia banks namely BNI Syariah, BRI Syariah, and Bank Syariah Mandiri which was inaugurated on February 1, 2021. BSI is the largest Islamic bank and the 7th largest bank in Indonesia.

Vice President of the Republic of Indonesia Ma’ruf Amin said, BSI should be able to make Indonesia the center for the sharia industry and the world’s halal ecosystem. “Our hope is that BSI will not only take this role nationally, but also globally. Analogically, now Islamic banks are not just playing in a small pool, but are able to swim in the wide ocean,” said Ma’ruf, during a visit to the BSI representative office at Dubai, United Arab Emirates on November 4, 2022.

BSI President Director Hery Gunardi declared the bank’s commitment to fully support all initiatives to reinforce the ecosystem towards the goal of becoming the world’s sharia economy centre of gravity. BSI, he said, has persistently developed the country’s sharia financial ecosystem.

“Indonesia has big potential in halal industry,” Gunardi added. This is supported by the fact that more than 229 millions of its population are Muslim, which equals to 87.2% of the country’s total population. The halal food industry has the potential up to USD164,76 billion. Further potential can be found in clothing with USD20 billion, halal media USD9,52 billion, halal tourism USD10,48 billion, health industry USD4,76 billion, halal cosmetics and hajj and umrah USD3,81 billion. Other sharia businesses, such as investment, have potential around USD122,65 billion.

BSI has also started its business penetration in the global market. One of them is in the Middle East in line with cooperation with international conglomerates and start-ups in Dubai, United Arab Emirates, which also marks the expansion of the largest Islamic bank in Indonesia in the global arena. This step was an acceleration for BSI to be taken into account in the international community through increasing capabilities, competitiveness, and reputation. The presence of overseas business networks allows BSI to interact directly with important components of the global banking industry.

Gunardi hopes that BSI will be closer to global investors so that the company can contribute more in supporting the programs of the government of the Republic of Indonesia, both in funding infrastructure and development projects through the issuance of Global Sukuk as well as support for the development of national MSMEs.

BSI kept its positive performance in the third quarter of 2022, achieving USD218,36 million net profit, growing 42% (yoy). This performance was also supported by public trust, proven by 11.86% rise of third party funds that reached USD16,68 billion.

The financing side also grew significantly. BSI financing as a whole recorded USD13,59 billion, growing 22.35%. By segments, micro financing contributed the most with 37.32%. Consumer financing grew 25.26%, wholesale financing 21.79%, card financing 35.81%, and also gold pawn with 30.15% growth. Additionally, net NPF was only 0.43%.

Solid and healthy performance was also reflected by 11.53% asset growth. BSI also strived for cost efficiency, shown by better BOPO ratio of 74.02%. Until September 2022, there were already 4.44 million users of BSI Mobile, soaring 43% yearly. Based on customer profiles in BSI, as many as 97% have shifted to e-channel for banking activities. Cumulative transactions for BSI Mobile reached 187.20 million transactions.

Sustainable financing reached USD3,47 billion or 25.54% of total BSI financing. “Promoting sustainable financing is one of our commitments as part of our social and environmental responsibilities in various areas of this country as well as supporting the G20 Indonesia Presidency,” Gunardi added.


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HALAL ECONOMY

HLISB Introduces BizHalal To Support SMEs in the Global Halal Market

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In a significant move to empower Small and Medium Enterprises (SMEs) navigating the lucrative global Halal market, Hong Leong Islamic Bank (HLISB) has introduced BizHalal. This innovative, Shariah-compliant banking solution is designed to provide both financial support and Halal advisory services, aligning with Malaysia’s strategic vision to expand its Halal ecosystem.

What is BizHalal?

BizHalal is more than just a financial product; it’s a partnership between HLISB and the Halal Development Corporation (HDC), solidified through a recent Memorandum of Understanding (MOU). This collaboration underscores HLISB’s dedication to fostering growth and development within the Halal industry.

Strategic Goals and Historical Context

HLISB CEO, Dafinah Ahmed Hilmi, reflected on the bank’s ongoing commitment to the Halal sector since 2018 and expressed enthusiasm about how BizHalal will further stimulate the expansion of local Halal SMEs. The service package includes tailored financing solutions and expert advisory services, ensuring businesses are well-equipped to thrive in this dynamic market.

Market Potential and Economic Impact

The global Halal market, valued at USD 3 trillion in 2020, continues to grow, with projections placing Malaysia’s Halal industry at US$113.2 billion by 2030. Despite this potential, a gap remains between the market demand and supply, highlighting the critical need for increased investment and collaboration to tap into this burgeoning sector.

Partnership Impact

HDC Chairman, Khairul Azwan Harun, emphasized the importance of strategic partnerships like that of HLISB and HDC in closing the market gap and cultivating local Halal champions. These collaborations are pivotal in ensuring the sustainability and global competitiveness of Malaysia’s Halal SMEs.

Technological Integration

Acknowledging the role of technology, HDC has introduced the Halal Integrated Platform (HIP), which simplifies the certification process and enhances the operational efficiency of Malaysia’s Halal ecosystem. This digital approach not only streamlines operations but also broadens the accessibility of Halal certification for SMEs.

Support and Advisory Services

Under BizHalal, HLISB’s Halal Industry Specialists provide comprehensive support to customers. This includes a readiness assessment, advisory assistance, and integration into the Halal Digital Ecosystem. These services are crucial for both existing Halal-certified businesses and new entrants aspiring to obtain certification.

Inclusivity and Accessibility

BizHalal is accessible to all HLISB customers, supporting both current Halal-certified businesses and those seeking to achieve certification. Additionally, customers who avail of HLISB’s business financing facilities will automatically qualify for the BizHalal program, making it easier for SMEs to join and benefit from this initiative.

With the introduction of BizHalal, HLISB reaffirms its commitment to supporting the growth of SMEs in the global Halal market. This initiative not only aligns with Malaysia’s economic goals but also serves as a catalyst for the development of a robust, sustainable Halal ecosystem that can lead on the international stage.

This rewrite not only incorporates the key phrase “HLISB Introduces BizHalal To Support SMEs in the Global Halal Market” effectively for SEO but also enhances the article’s relevance and informative nature, making it more engaging for readers interested in Islamic finance and the Halal industry.


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HALAL ECONOMY

Top 8 Ways Halal Cosmetics Are Reshaping Fashion in 2024

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In recent years, the global cosmetic industry has witnessed a significant shift towards more ethical, sustainable, and inclusive products, with halal cosmetics emerging as a powerful trend reshaping fashion in 2024. This isn’t just a niche market anymore; it’s a burgeoning phenomenon that’s making waves across the fashion industry, influencing consumer choices and brand strategies alike. Here’s a look at the top 8 ways halal cosmetics are transforming the landscape of fashion today.

1. Expanding Consumer Base

One of the most significant impacts of halal cosmetics is their appeal to a broader audience. Initially targeted at Muslim consumers who seek products that comply with Islamic law, halal cosmetics have transcended cultural boundaries to attract non-Muslim buyers too. This broad appeal is largely due to the ethical manufacturing processes and the absence of harmful ingredients, which resonate with the growing global demand for cleaner, safer beauty products. This expansion is not just reshaping who shops for these products but also how companies market them.

2. Emphasis on Ethical Production

Halal cosmetics are not only defined by their compliance with Islamic law but also by their commitment to ethical production standards. These products are often cruelty-free, not tested on animals, and manufactured using fair labor practices, which appeals to ethically conscious consumers. As sustainability becomes a cornerstone in consumer products, halal cosmetics lead the way, showing how fashion and ethics can coexist harmoniously.

3. Boost in Natural Ingredients

At the heart of many halal cosmetic products is the use of natural and organic ingredients. Avoiding alcohol and animal-derived substances is a requirement for halal certification, which has encouraged brands to innovate with plant-based and mineral-based ingredients. This shift is significantly influencing broader fashion trends, as consumers increasingly seek products that are both ethically produced and beneficial for their health and the environment.

4. Influence on Product Transparency

Transparency is a big buzzword in the beauty industry, and halal cosmetics are at the forefront of this movement. Brands specializing in halal products often provide extensive information about ingredient sourcing, manufacturing processes, and supply chains. This transparency reassures consumers and sets a standard that many other brands are now aspiring to meet, thus reshaping expectations and demands within the fashion industry.

5. Enhancement of Brand Images

Companies that offer halal cosmetics are often viewed favorably for their inclusive and ethical business practices. This positive brand image can translate into increased customer loyalty and market share. As fashion brands seek to differentiate themselves in a crowded market, adopting halal principles can be a powerful tool for enhancing their reputation and attracting a diverse customer base.

6. Innovations in Product Offerings

The rise of halal cosmetics has spurred innovation across the beauty industry. From halal-certified nail polishes that allow water penetration for wudu (Islamic purification rituals) to breathable makeup that maintains skin health while meeting religious standards, these innovations are not only practical but also revolutionary, influencing broader beauty trends and consumer expectations.

7. Growth in Market Niches

Halal cosmetics have carved out significant niches in the beauty market, prompting even mainstream brands to develop halal-certified lines to cater to this growing demographic. This development is reshaping the competitive landscape, compelling brands to diversify their offerings and consider religious and ethical factors in product development.

8. Global Market Expansion

Finally, the global reach of halal cosmetics highlights the impact of globalization in the fashion industry. With major growth in regions like Southeast Asia, the Middle East, Europe, and North America, these products are fostering cross-cultural exchanges and broadening the global market landscape. Brands are not only selling internationally but also incorporating global influences into their products, which in turn influences fashion trends worldwide.

Halal cosmetics are more than just a compliance label; they are a movement towards more ethical, inclusive, and conscientious fashion. By addressing the needs and values of a diverse consumer base, promoting ethical production practices, and driving innovation, halal cosmetics are indeed reshaping the fashion industry in 2024. As this trend continues to grow, we can expect to see even more significant transformations in how products are made, marketed, and embraced by consumers around the globe. Whether you adhere to a halal lifestyle or simply seek more ethical beauty solutions, the rise of halal cosmetics is a development that offers exciting possibilities for everyone in the fashion ecosystem.


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HALAL ECONOMY

Sanctity of Hijab Being Undermined by the Liberal Media Globally

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The hijab—a traditional headscarf donned by countless Muslim women as an emblem of their modesty and deep-rooted faith—has long captivated global media attention. Yet, despite its religious significance, the portrayal of the hijab in the media frequently strays far from its true intent. It’s disheartening to see such a profound symbol of personal and religious commitment often twisted into something barely recognizable. Let us unpack the troubling ways the hijab is misrepresented in the media and explore the ironic twist of how these portrayals can sometimes feed into the very issues of vulgarity and objectification they purport to criticize. The media’s approach is not just misleading—it’s harmful, reinforcing stereotypes and widening cultural divides. It’s time for a change.

Media’s Misrepresentation of the Hijab

The hijab’s portrayal in global media varies widely, but common themes often emerge that skew its intended meaning and significance:

  1. Stereotyping and Sensationalism: Media often pigeonhole the hijab as a tool of oppression, ignoring the agency of countless women who choose to wear it for personal or religious reasons. This narrative is not only reductive but also erases the diversity of Muslim women’s experiences and identities. It fosters a misunderstanding of the hijab as something imposed rather than chosen, overshadowing the empowerment many women derive from wearing it.
  2. Focus on Controversy: The hijab frequently appears in media stories related to bans or legal battles in Western countries, framing the garment as a point of contention rather than a personal article of faith. This focus on controversy rather than understanding reinforces negative stereotypes and places Muslim women who wear the hijab in a defensive position.
  3. Sexualization in Media Portrayals: Ironically, while the hijab is intended to divert attention from a woman’s physical appearance and emphasize her character and values, some media portrayals sexualize the hijab. By focusing excessively on the hijab in contexts related to sexuality or freedom, these portrayals link the garment to the very vulgarity and objectification it seeks to avoid.

How Misrepresentations Promote Vulgarity

The paradox of the hijab’s portrayal in the media is that the misrepresentations can contribute to the societal issues they ostensibly critique:

  1. Objectification: By framing the hijab as a symbol of oppression or sexual repression, the media inadvertently focuses undue attention on the bodies and choices of hijab-wearing women, thus objectifying them. This attention can strip the hijab of its intended purpose, turning a personal and spiritual decision into a public spectacle. And, it is happening in many places like France, America, and so many other countries.
  2. Cultural Misunderstandings: Misrepresentations can lead to broader cultural misunderstandings and tensions. When the hijab is portrayed primarily through a lens of controversy or oppression, it perpetuates a view of Muslim women that is limited and often negative. This can hinder cross-cultural understanding and respect.
  3. Increased Scrutiny and Harassment: The sensationalist coverage increases scrutiny and pressure on hijab-wearing women, making them targets for harassment or discrimination. Such outcomes are starkly at odds with the media’s purported advocacy for freedom and women’s rights.

Steps Towards Accurate Representation

For the media to better serve global understanding and respect for cultural differences, several steps can be taken:

  1. Inclusive and Diverse Reporting: Media outlets should strive to include the voices of hijab-wearing women in their reporting, providing a platform for them to share their experiences and perspectives directly.
  2. Educational Programming: Media professionals should be encouraged to participate in cultural competence training, helping them understand the diverse reasons behind wearing the hijab and the broader context of Islamic practices.
  3. Highlighting Positive Stories: Focusing on the positive aspects of wearing the hijab and the success stories of Muslim women around the world can help counterbalance the prevailing negative stereotypes and provide a fuller picture of the hijab’s role in various societies.

The repeated misrepresentation of the hijab by the liberal media not only distorts public understanding but also challenges the dignity of countless Muslim women who choose to wear it. It is high time we question these portrayals and push for a narrative that respects and reflects the true values of modesty and faith embodied by the hijab. Let us know your thoughts. How have you seen the hijab portrayed in your community or media outlets? Do you believe these portrayals accurately reflect the intentions and personal choices of hijab-wearing women? Join the conversation below and share your insights. Together, we can foster a more informed and respectful discourse


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