Jakarta (ANTARA) - The sharia economy will not develop well without extensive efforts linked to Islamic finance, Finance Minister Sri Mulyani Indrawati has said.

"Thus, constant innovations, creativity, and in-depth efforts in terms of liquidity become very crucial," the minister stressed at the 2023 Anugerah Adinata Syariah, which was followed from here on Friday.

The government is promoting sharia finance so that it would also actively contribute to national economic recovery, the minister said. The sharia finance sector consistently offers many innovative features and instruments, which are suitable for micro, small, and medium enterprises’ (MSMEs’) needs, Indrawati affirmed.

Sharia instruments have also been introduced in people’s business credit (KUR) — an important tool for supporting MSMEs, she pointed out. The minister further said that special sharia finance instruments, ranging from zakat, waqf, infaq, and alms, to takaful/sharia insurance, are also serving as an alternative to funding.

Minister Indrawati also highlighted the government's commitment to supporting the development of the sharia economy while concurrently striving to make Indonesia a global halal center given its national economic potential.

The support is being provided to some industries, such as foods and beverages, fashion, pharmacy, cosmetics, tourism, and media, she said.

The state treasurer underlined that the government's efforts to support the enterprises include halal certifications as well as export assistance for MSMEs engaged in the halal industry.

Moreover, the government is supporting sharia economy development through tax schemes by matching identity numbers to tax identification numbers so as to allow business players to pay their taxes easily, she added.

"For MSMEs whose revenue is still below Rp500 million (US$33,376), we also do income tax exemption," the minister said.

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Translator: Agatha Olivia Victoria, Mecca Yumna
Editor: Rahmad Nasution
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